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110    HELICOPTER AIR SERVICE PROGRAM

Mr. Chairman, along with you and others, I have closely followed the development of this unique and exceptional form of transportation. Los Angeles Airways, located in the southern part of the State, which I have the honor to represent, which serves the Los Angeles metropolitan area, including cities such as San Bernardino, Riverside, and Orange Counties, has continuously operated since May 20, 1947, when it was certificated by the Civil Aeronautics Board. Negotiations are underway for service to Ventura County. It was originally authorized to carry property and mail within a 50-mile radius of the Los Angeles post office. This was done with nonpassenger aircraft. In 1952, 7-passenger S-55 helicopters were secured. Late in 1961, 25-passenger-carrying, twin-engine S-61 helicopters became standard equipment. These achievements were made, not only by the Los Angeles Airways and their skilled management and employees, but also by the efforts taking place in the helicopter manufacturing industry and by the faith of the people of the United States, acting through Congress, in appropriating the necessary funds to subsidize this unusual experiment. The law authorizing these appropriations remains on the statute books. This investment of the public money has been a sound one. It will be an even better one in the future. For from the experience of Los Angeles Airways, the first carrier to be licensed by the Civil Aeronautics Board, has come to facts needed to bring about a new industry so necessary if Americans are to be able to move freely and efficiently within our large and sprawling urban areas. The land area of the counties now covered or in the process of being serviced by Los Angeles Airways totals approximately 34,000 square miles. That is larger than the States of South Carolina or Maine. The population of this area totals 9,102,100. Only six States, California, New York, Pennsylvania, Ohio, Illinois, and Texas exceed that number.

As new helicopter technology has been applied and public awareness of this mode of transportation has grown, the proportion of Federal subsidy to Los Angeles Airways has decreased.

I was impressed with the testimony before this committee yesterday by Alan S. Boyd, the Chairman of the Civil Aeronautics Board. I agree with him that a sensible solution to the problem of subsidized helicopter operations is to have a 5-year phaseout program. I think, however, merely to cut off all subsidization at this point would be foolhardy especially when almost $51 million will have been invested by the Government in these operations by June 30, 1965. The progress that has been shown has justified these expenditures. I was impressed too with Mr. Boyd's comments on the possible adverse effect which an abrupt cessation of the helicopter subsidy would have on helicopter sales abroad.

Mr. Chairman, I believe that this committee might usefully inquire into another aspect of this problem and that is the granting of a permanent certificate to helicopter operators similar to that granted to local service airlines. For 18 years Los Angeles Airways has operated on a temporary certificate. Whether or not one receives a subsidy from the Federal Government should not be the criterion as to whether or not one receives a permanent certificate. Local-service airlines receive as subsidy, yet they have a permanent certificate. Under the law there is no mandate for the Civil Aeronautics Board to differen-