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HELICOPTER AIR SERVICE PROGRAM 375 have actively encouraged the use of the helicopter for commercial and other purposes, and have assisted the development of heliports. We believe it to be widely recognized that an air vehicle with vertical lift characteristic, capable of utilizing vacant lots or roof tops in business centers, can be the answer to economic, rapid, airport-to-city and short haul intercity transportation. It remains only to perfect and refine the vertical lift aircraft to make it more efficient and more economical to operate. NASAO is of the opinion that the scheduled helicopter airways are not only providing practical test and development grounds for this purpose, while providing a very beneficial public transportation service, but they are also furnishing a great deal of valuable knowledge regarding traffic generation problems, helicopter operating statistics, heliport requirements, etc. While it may be true that the scheduled helicopter airways have not advanced to a point of self-support as rapidly as might have been hoped, and while State aviation officials are fully cognizant of the necessity for prudent administration of public funds, NASAO is of the opinion that it would not be prudent, and the full value of Federal funds already expended would not be realized, if the program were discontinued at this time when its potential value has not veen fully explored. Not only in commercial transportation, but in business and private transportation as well, the vertical lift air vehicle appears to have a bright future as a development that will add a new stimulus to the continuing expansion of economic, cultural, and social life in the United States, and anything that can expedite this movement should be in the public interest. If, after consideration of the problem, the committee should deem it necessary to limit the helicopter air service program, NASAO believes the subsidy reduction plan and program recommended by the Civil Aeronautics Board, to establish specific dollar limits on helicopter subsidy eligibility for the 5-year period 1965-70, to be a reasonable limitation. STATEMENT OF IRVINE H. SPRAGUE, DEPUTY DIRECTOR OF FINANCE, STATE OF CALIFORNIA, BEFORE THE AVIATION SUBCOMMITTEE OF THE SENATE COMMERCE COMMITTEE, MARCH 11,1965 Mr. Chairman, Governor Brown has asked me to give your committee his views on the problem of helicopter subsidies. The Governor would like to join the 23-member Democratic delegation in the House and the two Republican Senators in their urgent plea that helicopter subsidies not be terminated this year. We have watched with interest as the hearings unfolded this week, particularly the comments of CAB Chairman Alan S. Boyd and the Committee Chairman Senator Monroney, both giving us hope that some solution may be reached. California is concerned about the problem primarily because of the plight of Los Angeles Airways, which serves the Los Angeles metropolitan area, covering 34,000 square miles and with a population exceeding 9 million persons. This service has been conducted continuously since 1947 and has been expanded and modernized as this mode of intraurban transportation has gained public acceptance. The law authorizing the appropriation of the necessary funds to subsidize the helicopter program remains on the books, the CAB recognizes the Federal commitment and the Congress should do likewise. It is my understanding that the affected helicopter companies and the CAB are in agreement on a 5-year phaseout of the Federal subsidy, providing sufficient time and money for an orderly transition period. I am advised that an abrupt termination of the subsidy would force Los Angeles Airways to cease operations, depriving the people of southern California this essential service and in effect forfeiting the $51 million investment the Federal Government has already made in this program. We are looking hopefully to your committee for the wisdom and leadership that will resolve this vexing problem.
