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HELICOPTER AIR SERVICE PROGRAM 417

Although the industry has shown progress in reducing its breakeven requirements, it is still far away from a self-sufficient operation. If helicopter carriers are to operate with no subsidy, breakeven load factors must fall into a 50-60 per cent load factor range. Before turning to the possibilities of achieving this level of breakeven operations, it is necessary to review the amount of subsidy which has been paid the industry and to express these payments in terms of direct public benefits. 

In table III-26 are shown trends for total subsidy dollars and in terms of subsidy per passenger, per passenger mile and per revenue ton mile. 

Table III-26
SUBSIDY PAYMENTS TO HELICOPTER CARRIERS
(Dollars)

[[5 Column Table]]
|---|---|Dollars Per|
|Year|Total (ooo)1|Passenger|Passenger Mile|Revenue Ton Mile|
|---|---|---|---|---|
|1954|2,582|322.75|14.11|17.10|
|1955|2,711|93.48|4.32|14.05|
|1956|2.833|44.27|1.79|10.08|
|1957|3,567|23.31|1.09|7.94|
|1958|4,371|19.00|.89|7.94|
|1959|4,915|13.43|.66|5.74|
|1960|4,931|10.06|.52|4.68|
|1961|5,258|12.23|.61|5.43|
|1962|5,518|15.37|.67|6.08|
|1963*|5,114|10.90|.41|3.94|

*12 months ended September 30.

[[5 Column Table]]
|By Qt.|
|---|
|Mar 1962|1,123|15.18|.75|6.38|
|Jun "|1,874|22.58|1.05|9.14|
|Mar 1963|1,230|12.95|.48|4.46|
|Jun "|1,247|9.31|.35|3.28|
|Sep "|1,193|8.58|.32|3.06|

1 Unadjusted subsidy dollars used so as to be comparable with 1963 data. 

Source: Handbook of Airline Statistics; Form 41, CAB. 

There has been considerable variation among carriers in subsidy dollars per passenger. Subsidy per passenger reached a low point under CHA's high-volume operation in 1960. With the operation of new equipment, the subsidy per passenger paid to LAA and NYA has shown a sharp decline. The payment of subsidy supports the carriage of nonpassenger traffic-mail and express-as well as passenger traffic, of course. The average subsidy payment per passenger has declined drastically for LAA as the ratio between passenger and nonpassenger traffic has risen. 

III-26