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326     HELICOPTER AIR SERVICE PROGRAM

The plan provides for Federal subsidy in decreasing amounts over the next 5 years and sets a definite cutoff date. The plan is based on the very real possibility supported by the carriers themselves, that these airlines will be able to continue on their own after fiscal year 1970. Achievement of that result certainly would appear to be in the public interest. 

It would, of course, also permit our national air transportation system to finally reap the benefits of the Federal, local and carrier investment already made. On the other hand, to cut off subsidy now almost certainly means, as we understand it, the cessation or drastic curtailment of scheduled helicopter service, not only in New York, but elsewhere in the Nation, with the grave risk of totally wasting the prior investment. 

To run such a risk at a time when newly authorized IFR operations and increasing traffic hold the promise of new and dramatic advances in helicopter service to the Nation's air passengers, as well as those in and through the New York region, appears to us to be very short sighted. 

The $13.5 million in subsidy which the CAB, under its plan, proposes to grant the three operators in the next 5 years is literally a drop in the bucket compared to the amounts of Federal monies which it has been reported will be expended in the development of the supersonic aircraft. 

The supersonic aircraft will, of course, serve long-haul markets in which air travel is already the dominant mode of transportation. In the short-haul markets, which have hardly been tapped by the airlines, the helicopter or some form of VTOL or STOL vehicle offers the promise of conveniencing many many more travelers than the supersonic. 

The CAB plan to which I have referred is a plan under which these carriers can continue in operation for further period with Federal support. As to each of them, the plan provides a cutoff date. 

So far as New York Airways is concerned, the cutoff date is the date from and after which they believe, on the basis of available evidence and experience, that they will be able to carry on on their own. 

We respectfully urge that this committee recommend, and the Congress support that plan or some similar arrangement which will permit these carriers to continue in operation. Such action will, in our view, best serve the public and the Nation's air transportation system.

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