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HELICOPTER AIR SERVICE PROGRAM 491

attempted for sometime to establish within our community a heliport so that service can be rendered to our citizens by the Los Angeles Airways Helicopter Service. 

We feel that the service rendered by Los Angeles Airways is a necessary part of the national air transport system and provides a much needed service in the transporting of persons for connections with the world's airlines being served through the Los Angeles International Airport and to other points in California.
 
With the rapid population expansion, particularly in southern California, there is an ever-increasing need for the service rendered by Los Angeles Airways and for our city in particular, not only for passengers but also for airmail and air express. 

We feel that Los Angeles Airways Helicopter Service must not only be continued but rapidly expanded as a necessary part of the total air transport system and we strongly urge that Congress assure that not only shall existing service be maintained but provisions made for the expansion of such service.

Respectfully, 
HAROLD K. SCHONE, City Manager.
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MARCH 5, 1965
Hon. A. S. MIKE MONRONEY, 
New Senate Office Building, 
Washington, D.C.

DEAR SENATOR MONRONEY: From the trade press Caribbean Atlantic Airlines, Inc., has learned that your Senate Aviation Subcommittee proposes to hold hearings beginning on or about March 9, 1965, to inquire into the role of the helicopter in air transportation. We understand that this inquiry is to consider, among other things, the value of Federal subsidies in developing helicopter transportation, the trade-off of operating subsidies against airport subsidies, and the need for services other than airport-to-city services.

We believe it may be of some value to your inquiry to know of the investigation that Caribair has conducted of the feasibility of employing helicopters to meet certain transportation needs within Puerto Rico and the reasons we have pursued this inquiry.
 
As you know, Puerto Rico, through its Operation Bootstraps, has affected enormous economic development of the island's economy over the past 20 years. What remains to be done, however, poses as formidable a challenge as what has been done. A great measure of Puerto Rico's success to date can be attributed to improved air transportation both external and internal, as well as improved maritime transport.

One of the principal goals of current effort is the development of the economies of Puerto Rican communities outside Metropolitan San Juan. Transport difficulties remain one of the principal hurdles, and while highway transport may be the most significant requirement in terms of costs it is significant that the areas where the major development has already taken place to date all receive air transportation.
 
The long leadtimes involved in highway development, and even in the development of a network of airports, particularly with the problems of Puerto Rican topography, leave a gap in the availability of rapid, intercity transport that is an obstacle to the rapid rate of economic development that might otherwise be possible. The enormous capital demands of highway and airport construction make it impossible to develop systems in advance of demand when there are so many competing requirements for public capital on other needed public improvements. 
In this context, we have looked to helicopter technology-and other STOL technology- as an interim, if not permanent solution, to provide reliable, scheduled air transportation to meet travel needs of businessmen undertaking development of more isolated areas. Not only does this technology promise to support more rapid economic development, but may make possible the postponement of some of the tremendous capital expenditures entailed in improving transportation by other means. Obviously, subsidies would be required to make such transportation economically feasible. 

Within the limits of the Federal subsidy program that has prevailed in recent years, we have considered it pointless to seek Federal assistance in developing a helicopter service to do the job suggested above. Nevertheless, in any evaluation of possible directions of Federal policy, we think it is useful to consider the economic benefits that could be generated with Federal subsidies to provide partial