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HELICOPTER AIR SERVICE PROGRAM      225

joint fare must be a good business proposition for each of the carriers participating in it. 

With this sort of foundation the next thing we look at is the reasons why there are joint fares. From the standpoint of the trunks, including the foreign-flag airlines, there are three primary reasons. First competition. A trunk is willing to establish a reduced rate to the customer in the form of a joint fare in other to provide better service and because in their judgement it will mean more business to them. 

Another form of joint fare is the protective filing, where somebody else has filled a joint, and another carrier will meet it. 

The second reason is because of the lack of operating space at one airport, and joint fares with the helicopter operator in New York enable the trunk to, in effect, offer service to the public through both airports while serving only one. 

The third reason is very similar to the second, only it is based on a decision of the trunk to stay out of an airport rather than lack of space at that airport.

The reasons why New York Airways is interested in participating in joint fares is simple that they will produce more business at the best rate which can be negotiated in the bilateral agreements, and which is always satisfactory to the management of New York Airways. 

When thinking of the New York Airways joint-fare situation we must always recognize that there are two categories of joint fares. One, Between the airports serving the New York metropolitan area, and the other is between an airport and downtown. And these two things are quite different. 

Let me quickly give you some examples of the kind of joint fares in existence and the reasons. 

The first joint fare with New York Airways was in 1955 between New York and Northwest. Northwest was serving Kennedy Airport but not serving Newark. They decided to offer service to the people of New Jersey. They would enter into a joint-fare arrangement so that the customer got a free ride from Kennedy over to Newark, or vice versa on the outbound. This started New York Airways' joint-fare program. 

Senator MONRONEY. Let me ask you a question. What about the people who wanted to go to New York? They were just as far away from Kennedy as they were from Newark. 

Mr. TURNER. That is right. 

Senator MONRONEY. They got no consideration at all. 

Mr. TURNER. Not at this time. We do have a joint fare arrangement from many of the New York Airways points right now into downtown Manhattan.

Senator MONRONEY. Good.

Mr. TURNER. Another example. When Braniff and Delta were certificated into New York in the 1950's they could not match the Eastern schedules into Newark. Therefore they entered into joint fares with New York Airways for joint service to Kennedy and the other two airports. 

Another example, when the Eastern merged with Colonial they started a direct service from Newark to Bermuda. This created a competitive situation for BOAC so they entered into a joint. This put the pressure on Pan-AM, so they joined, and the chain reaction began to take effect.