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108 HELICOPTER AIR SERVICE PROGRAM Mr. TIPTON. That is right. Senator MONRONEY. How about going to Oklahoma City? Mr. TIPTON. Going to Oklahoma City- Senator MONRONEY. Have you published a line fare from there? I don't go to London very often. Mr. TIPTON. These tariffs are complicated. Let me get the concept clarified, and then I will check specifically on Oklahoma City. The concept is this-and I will turn it around and make it to Los Angeles: The fare is from Wall Street to Kennedy to Los Angeles. It is a single fare the passenger pays. In that, like in any other joint fare, the two parties to the joint fare-that is, New York Airways, and lets make it United Airlines-absorb a part of the local helicopter fare. In that case the absorption would be that New York Airways would-I had better not state the exact absorption because they are all different. Let's make it that New York Helicopter would absorb 50 cents, United would absorb $2.50, and the passenger would have to pay the remainder of the fare from Wall Street to Kennedy. Let's make that $5. He got a $3 reduction in his ticket. Of that $3, United Airlines provided $2.50 and New York Airways provided 50 cents. Those absorptions by, let's say, the trunkline, absorptions of that type aggregated, we estimate, based on this 10-day study, $667,000 in total for a year, for the year 1964. Senator MONRONEY. These were all rate concessions, part of which were borne, as you say, 50 cents of the $2.50, which was used as an example only, I presume, was borne by the very line that was being subsidized. Right? Mr. TIPTON. That is right. Senator MONRONEY. New York Helicopter subsidized their own operation by 50 cents, and United, in this example, which is taken purely as an example, $2.50. So you come up with a 1-year subsidy of $667,000, even using that kind of bookkeeping. Mr. TIPTON. I would like to urge that that not be referred to as a subsidy. The airline has decided that that helicopter service is of sufficient value to it as United or American or Braniff, sufficient value to it to absorb $2.50 of the helicopter fare. They are not subsidizing. Senator MONRONEY. If I bought a ticket with my wife, they are absorbing a part of her fare, too. You find it to your interest to merchandise it this way. So nobody is being subsidized. Mr. TIPTON. This is the same concept exactly. Senator MONRONEY. Unfortunately, sir, we are faced with the condition that is a fact, and that is that these are going to end unless something drastic is done. I think I know the Congress well enough, and the other members of this committee know the Congress well enough, to know that this kind of bookkeeping won't get the House to vacate its position that this is going to be shut down as of December 31, 1965. Mr. TIPTON, Let me emphasize the fact that this is not bookkeeping. What this is is a rate reduction by the trunklines. Senator MONRONEY. So is the joint fare with my wife, when she is traveling. I don't think you are giving me any great subsidy. You are just trying to get me on the airline, and get me off the railroad
