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            HELICOPTER AIR SERVICE PROGRAM            147

Of particular significance is the fact that foreign airlines have purchased S-61 equipment after observing LAA's operations. This is especially true in East Pakistan, where feeder service of the LAA type is now in operation.

LAA's contributions, based upon these overseas purchases, have had a favorable impact on the United States balance of payments.

OPERATING PROGRESS

LAA has made continuous progress in the reduction of costs
1. The unit utility of its aircraft has historically been the world's highest. For example, the company has achieved the highest times on all its equipment types.
                                                    Hours
S-51_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 9,725
S-55_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _  16,988
S-61 (to date)_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 4,926

2. Its ton-mile costs have historically been the world's lowest.
3. Its estimates and projections before the Civil Aeronautics Board have been accurate, reliable, and meaningful.
4. LAA's percentage of the total subsidy has not been excessive. Example:
[---]
|                                  | Amount | Percent |
[---]
Total subsidy payments to all helicopter carriers 1954-64_ _ _ _ _ _ _ _ _ _ _ _ _ _ _| $45,627,000|_ _ _ _ _|
NYA_ _ _ _ _ _ _ _ _ _ _ _ _ _ |  20,865,000|     45.7|
CHA_ _ _ _ _ _ _ _ _ _ _ _ _ _ |  12,079,000|     26.5|
LAA_ _ _ _ _ _ _ _ _ _ _ _ _ _ |  12,683,000|     27.8|
[---]
The subsidy LAA has received frequently did not provide a return on investment, and in some instances failed to service its long-term debt. Stated differently: LAA, in response to public demand for service, has operated thousands of scheduled miles without adequate support, and with dramatic results.
   (a) Increased  frequency of flights have served the economy of the area.
   (b) Load factors have increased systemwide.
   (c) Unit costs have been decreased.
   (d) Public confidence in air transport has been inspired.

THE NATIONAL RESPONSIBILITY

In its recent show-cause orders, the Civil Aeronautics Board made the following significant comments:

"Los Angeles (Airways) serves one of the most sprawling, densely populated, and rapidly growing metropolitan areas in the United States, and, as we found previously, distances are great, public transportation inadequate, and surface travel to and from the airport is time-consuming and inconvenient. There is no question but that suburban-to-terminal airport service has won strong public support and has expedited the terminal transportation of a substantial number of airline passengers. Los Angeles' truly remarkable traffic growth bears this out: from 4,779 passengers during its first full year of passenger service in 1955 to over 205,111 passengers during 1964. In view of the recent phenomenal traffic growth, Los Angeles' 1970 passenger estimate of 854,444 appears attainable.

"The foregoing indicates that Los Angeles has provided and will probably continue to provide a significant transportation service and has made a meaningful contribution to the national air transport system.

"As stated already, the Board has granted Los Angeles temporary rather than permanent or indefinite certificates because of the substantial subsidy involved and the experimental nature of the service. However, since we have determined that Los Angeles shall be ineligible for any subsidy beyond fiscal 1970, and in view of the fact that Lost Angeles will reach a state of maturity by this time, we have tentatively concluded to renew Los Angeles' certificate for an indefinite period" (docket 15683, order E-21798, Feb. 16, 1965).

It is of paramount importance to understand that the responsibilities of public officials and those of us engaged in providing services make advance planning vital, particularly in an enterprise where the state of an art is technical and