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414     HELICOPTER AIR SERVICE PROGRAM


Because transportation revenues have failed to cover operating costs in this initial phase of development, the helicopter carriers, like other forms of transportation, have had to rely heavily on subsidy support. There has been a decrease in the per cent of revenues accounted for by subsidy, particularly in the recent past. Sharp reductions in subsidy dependence are shown in 1963 for LAA and NYA, carriers which have been able to expand their operations with new equipment.

As recent subsidy payments have been inadequate to cover carrier operating expense it is necessary to look to relationships between operating costs and nonsubsidy revenues to determine the degree of progress toward economic self-sufficiency.

From 1957, the first full year of passenger operations for all three carriers, through 1962 breakeven requirements increased steadily with an increased operation. This was true of each of the carriers and indicated the uneconomic nature of equipment available in that period. Although operating costs are usually distorted during the inauguration of new equipment, there is indication in 1963 of the effect of more economic aircraft (Table III-22).

In evaluating economic progress, the dollars of breakeven need must be related to the scale of operation. In Table III-23 are shown operating ratios between transportation revenues and total operating expenses, and in Table III-24 breakeven need is related to revenue ton miles.

Although operating costs for the year ended Sept. 30, 1963 were still 2-1/3 times transportation revenues, considerable progress is noted in the year of 1963 for the operators of new equipment.

The improved relationship between traffic and breakeven need, brought about by the increased capacity of the new aircraft can be seen in Table III-24. The number of revenue ton miles per dollar of breakeven need is up substantially for LAA and NYA. CHA's position in this regard has continued to deteriorate in its holding period.

Table III-23
TRANSPORTATION REVENUE OPERATING RATIO
Per Cent Total Operating Expenses of Transportation Revenue

[[5 column table]]
| Year | Total | CHA | LAA | NYA | 
|---|---|---|---|---|

| 1957 | 368% | 410% | 306% | 381% | 
| 1958 | 319 | 288 | 307 | 350 |
| 1959 | 254 | 199 | 269  | 314 | 
| 1960 | 229 | 181 | 258 | 287 |
| 1961 | 264 | 219 | 276 | 311 |
| 1962 | 290 | 362 | 297 | 268 |
| 1963* | 234 | 469 | 234 | 200 |

 *12 months ended September 30.

By Qt.
| Mar 1962 | 327 | 309 | 343 | 332 |
| Jun 1962 | 287 | 326 | 279 | 274 |
| Mar 1963 | 284 | 583 | 267 | 248 | 
| Jun 1963 | 198 | 422 | 193 | 170 |
| Sep 1963 | 189 | 427 | 204 | 158 |

Source: Handbook of Airline Statistics; Form 41, CAB.
Note: SFOH Transportation Revenue Operating Ratio in 1962 was 143 per cent.

III-23