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258 HELICOPTER AIR SERVICE PROGRAM 9. The effect of the foregoing revenue and expense considerations is reflected in the summary of CHA's forecast contained in appendix A, which shows a net profit after taxes for each of the forecast years as follows: Fiscal year | Net profit after taxes | Additional net profit required to achieve minimum 7-percent return 1965--------------- | $30,900 | $9,500 1966--------------- | 35,600 | 0 1967--------------- | 27,000 | 31,600 1968--------------- | 26,500 | 64,800 1969--------------- | 29,700 | 69,700 1967--------------- | 35,600 | 57,000 Total-------------- | 185,300 | 232,600 At the rate of traffic and revenue growth projected in appendix A, a net profit can be realized in fiscal 1971 and succeeding years, without subsidy, which would terminate at the close of fiscal 1970 in accordance with this petition. While the return element shown in appendix A for this subsidy tapering-off period is not the full measure of return allowable under the Board's standards, a bettering of either revenues or expenses could meet this deficiency in return, and, in any event, this is an unusual and nonrecurring period in which CHA, in the interest of achieving self-sufficiency, is willing to operate at less than a full return on investment. 10. CHA can accomplish this program for reaching self-sufficiency with only a modest further activation of Midway Airport as shown in appendix D hereto, and the inevitability of Midway becoming this active is manifest from the ever-increasing congestion at O'Hare Field which has no place to spill over to, except to go to Midway. The shift back to Midway is taking time, just as did the shift to O'Hare previously. The traffic required for CHA to become free of subsidy is not imaginary traffic but to the extent of 78 percent is traffic which CHA once developed (309,107 passengers in calendar 1960), which will return and increase in size as Midway Airport becomes more active and Chicago's air traffic continues its rapid growth. Appendix L hereto shows how CHA's breakeven need will reduce to zero as its traffic further develops. 11. With respect to fitness and ability, and the financing of CHA's turbine program, it involves an additional investment of only $1,276,500 for the conversion of CHA's existing four S-58's and the acquisition of two additional turbine-powered S-58's. (See appendix J hereto.) This additional investment can be financed out of funds already on hand, with enough left over to bear interest income in the amount of $105,300 from 1967 to 1970, as shown in appendix A hereto. 12. Wherefore, for the foregoing reasons, Chicago Helicopter Airways, Inc., respectfully submits that the public convenience and necessity require that the Board issue an order to show cause as to why its existing certificate and the exemption authority should not be made permanent (or of indefinite duration) and incorporate therein provisions terminating this carrier's eligibility for each of the intervening fiscal years in accordance with amendment No. 1 to this petition. A copy of this amendment No. 2 has been served upon the Postmaster General, New York Airways, Inc., and Los Angeles Airways, Inc. Respectfully submitted. CHICAGO HELICOPTER AIRWAYS, INC., C. W. MOORE, President and Treasurer.
