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306  HELICOPTER AIR SERVICE PROGRAM

similar to aid now given for airport development.  It is highly probable with this assistance that direct subsidies could be eliminated.  A national policy must be established embodying these programs.

Until such aid programs are implemented, continued support of existing helicopter carriers is most essential.  However, to continue this help a carrier should submit a program for phasing out their subsidy on a diminishing scale within a very reasonable time.

If expansion of the helicopter industry occurs prior to the implementation of a national policy of assistance, subsidy must also be made available for new operators.

This aid should be only for breakeven needs, and exclude provisions for income tax, return on investment, et cetera.

In summation, it is essential that a national policy be promulgated and that programs that we have suggested be made a part of this policy.  The contribution to fast, short-haul transportation by vertical-lift aircraft in the future could be measured in millions of passengers.  To ease the coming burden of the transportation industries the wheels must be set in motion now.

Senator MONRONEY. Thank you very much, Mr. Leonard, for your very carefully thought out statement. May I ask, are you operating a taxi service now?
Mr. LEONARD. No, sir, we are not.
Senator MONRONEY. Someone is operating one here, are they not?
Mr. LEONARD. No one is operating a scheduled air taxi service.
Senator MONRONEY. Not scheduled, but a taxi service on a call basis?
Mr. LEONARD. There is a chartered aircraft arrangement available, yes, sir.  But the fare generally would run 10 times that of any scheduled fare.
Senator MONRONEY. If not, they don't run them as a taxi service?
Mr. LEONARD. No, sir.
Senator MONRONEY. What would the fare be between downtown Washington and Dulles, for example?
Mr. LEONARD. Dulles to downtown will be approximately $8.75.
Senator MONRONEY. Under your scheme?
Mr. LEONARD. Yes, sir.
Senator MONRONEY. That would require subsidation, would it not?
Mr. LEONARD. No, sir. Well, obviously we are going to have a loss the first 3 years. Up to the present date we weren't hopeful of ever obtaining any subsidies.  The fare that we have composed, of $8.75, like Mr. Bagan cited to you, is based primarily upon the economics of the operation and within the 3-year period hopefully with this fare rate we could break even.
Senator MONRONEY. You would anticipate, as Mr. Bagan did, help from the airlines on the interchange basis would you not?
Mr. LEONARD. I might add at this point, sir, I have talked to all the trunk carriers.  They are all, with one or two exceptions, agreeable to some sore of joint fare proposal.
Senator MONRONEY. So it would be a question of subsidizing by $3 or $4 perhaps to get the fare down.  That would be $8.75 that the customer pays.  Would you seek to get, say, the $3 out of the airline carrier perhaps and the 75 cents out of yourself, and $5 out of the customer to construct that fare?
Mr. LEONARD. The last citation you made is essentially correct.