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HELICOPTER AIR SERVICE PROGRAM 279

Instead of our passenger traffic increasing to approximately 400,000 passengers a year, our passenger business would be terminated since we would be unable to continue our common carrier operations. Consequently, all of our S-58 helicopters would have to be disposed of. 
Instead of our employees increasing to 242 people, they would decline to only 10, and thus 232 jobs would be eliminated. 
Our only remaining activity would consists primarily of the trafficopter service, the continuation of which as a sole enterprise might not be feasible on any long-range basis. 
The cessation of our common carrier operations would have an immediate adverse effect o the plans of the city of Chicago to relieve the congestion at O'Hare by moving flights to Midway. The availability of interairport helicopter service is essential for the rapid movement of transfer passengers between the two airports. 
The whole Chicago area would be adversely affected by eliminating the nucleus now maintained by CHA. From this nucleus will emerge the future vertical-lift service of this area, which is necessary to to help solve the increasing problems of congestion in the area. 
Moreover, our operation in Chicago, together with those in New York and Los Angeles, is helping to develop the art of helicopter transportation to the point of self-sufficiency, so that it can be used as a pattern for extending helicopter service to other cities throughout the Nation on a nonsubsidy basis. This program would be seriously impaired by abruptly terminating subsidy before the existing carriers have completed their transition to self-sufficiency.
We believe it is in the interest of not only the cities presently receiving helicopter service but also in the national interest to approve the CAB's program for gradual elimination of subsidy, which will permit the existing helicopter services to continue until they reach maturity. 

CHA HAS SAVED THE GOVERNMENT FOUR TIMES AS MUCH AS IT HAS RECEIVED IN SUBSIDY

As explained in appendix K, CHA has proven in a formal CAB proceeding that is has saved $48.8 million for the military helicopter program which is four times as much as the $12.8 million it has received ins subsidy from the inception of its operations to the present time. A witness for the Department of Defense vouched for the amount of this saving.
What happened is that CHA'S service experience with the S-58 helicopter increased the utilization of this type of ship to the point where military procurement of the same helicopter could be reduced with a saving to the Government of many millions of dollars. We believe this accomplished by our company should receive recognition in appraising the past and future value of our operation. 
The additional subsidy of $2,825,000 which we need to become self-sustaining would bring our total alltime subsidy up to about %16 million, which is less than one-third the $48.8 million we have saved for the military helicopter program, as shown in appendix K. 
That concludes my testimony, Mr.Chairman.
Senator Monroney. Do you believe that if you were allowed to land at Grant Park, or in that neighborhood, that you could increase your traffic immediately with the present equipment?