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450 HELICOPTER AIR SERVICE PROGRA<

The location of heliports closer to the origins of traffic within the central core of the downtown area will also be of benefit in achieving high levels traffic. Rooftop heliports can provide a solution to the problem of locations within highly congested business destricts where landing areas are at a premium. The planned operations of NYA atop the Pan Am building in midtown Manhattan represents an application of this conept. Feasibility studies of the nonstop heliports as a part of a major downtown transportation center are underway in Chicago by the City of Chicago, in Los Angeles by the Department of Airports and in San Francisco by the Chamber of Commerce.

Like other forms of air transportation, the helicopter carriers have been acutely aware of the differences existing between their fares and those of surface competition. In an industry which is trying to establish itself, these competitive considerations are particulary important. However, as the need for expedited airport transportation grows in our large metropolitan areas, the time-savings value of helicopter service will be recognized more widely so that it may be possible for carrier management to view their fare problems in a differenct light. Although a strict comparison is unwarranted, some parallel can be seen in the development of fare policies by the trunkline carriers over the years. Originally, the fare level and construction of air fares was based upon the fare characteristics of its major competitors, the railroads. Now that air transportation has clearly established itself in common- carriage intercity transportation, fares are based primarily upon cost characteristics of air transportation itself thater than upon railroad fares. It is premature for the helicopter carriers to consider themselves in this position. The competitive position of the helicopter carriers is far more critical than that of the trunk carriers; it is possible, however, that some economic relief may be afforded in the form of higher yield as the service becomes more firmly established.

Recognition of the role of the helicopter carriers in the present air transportation system has been given by US trunkline and international air carriers, communities and airport authorities. This recognition has been given in the form of fare-absorptions, the furnishing of facilities at low rental costs and even assistance in the procuremtn and financing of aircraft. While it would be premature and unwise to assume any additional financial relief from these sources, the possibilities of assitance from these sources in teh future should not be overlooked. Any additional help in this area which would serve to increase revenues or decrease costs whould narrow in the differencial now existing between present passenger revenue yields and potential lower coast levels.

Summary

In summary, we have found in this section that a need for expedited aiport transportation exists in our large metropolitan ares which are centers of much of the nation's air traffic taht the helicopter carriers have demonstrated that they can probide a type of expedited service. Further, the needs of service will grow in the future as levels of aiport traffic increase under contitions of severe traffic congestion. Because it is in an initial stage of development, helicopter service has required government subsidy but, becuase of concurring programs of development of both cibil and miltary vertical-lift aircraft it appears that the benefits to the military will offset any carrier subsidy costs which may be required before the carriers attain economic self-sufficiency. The helicopter carriers cannot operate with reduced levels of subsidy at the present time but considerable progress has been made in the determinants of self-sufficiency with the operation of new turbine aircraft.

It is evident that a major breakthrough for scheduled helicopter service is now in process, with the new twin-engine turbing rotary-win aicraft going into commercial operation. All of the three subsidized helicopter air carriers have ordered these aircraft, and they have been place din service by both Los Angeles Airways and New York Aiways. Since progress in airline operations has always been directly related to improvement in equipment, the outlook for the continued progress of the helicopter airlines is bright.

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