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But Mohawk believes that a much more extensive penetration can be made in the shorter ranges that has been to date. We have a Market Development group whose sole responsibility is to tap these new markets, In addition to the experimental fares which I discussed previously, we have established a special events and conventions unit, the purpose of which is to work directly with those responsible for special activities well in advance of the occasion so that many will fly who previously have used the automobile.

We have requested permission from the Civil Aeronautics Board to experiment with a developmental tariff which would encourage travel to and from auto shows, garden and home exhibits, and the like. In other words, encourage air travel to be the rule rather than an exception in connection with avocational interests.

The business of chartering aircraft for sales meetings, for sales-incentive programs, for athletic events, for visits by agricultural groups to different parts of the country, and the like, has barely begun to be tapped. Mohawk will nearly double its dollar volume of charter sales in 1961 over 1960.

Research suggests that only one-third of the 18 million adults in the $10,000 and over income group took a trip by air in 1960. Obviously, this is a prime source of potential revenue. Only 10% of the next lower income group, i.e., from $7,500 to $10,000 a year, are thought to have flown commercially by air last year.

With defense build-ups, the potential for air travel on the part of those in both the military and industry, both business and pleasure travel, is exceedingly high. Much of the volume of this type of travel will be within the geographic area served by a regional airline. We will share in additional traffic on a connecting basis.

What I have done above is merely to list some of the many possibilities by which regional airlines can expand traffic at a rate in excess of that achieved during the past 15 years. The customer survey to which I referred indicates that for the business traveler speed is all important. It is the reason he selects air travel as his means of transportation. Closely related to speed, his second points to which the airline could take him. We believe that by concentrating on these three: on-time arrivals and frequent flights over a strong route system with strong terminals, we can continue to provide improved service to more customers each year; and incidentally, to continue to show the dramatic growth which Mohawk has enjoyed over the past ten years-- more than 20% growth per year on the average.

56,000,000 passenger trips were made on scheduled domestic airlines in 1960. However, these trips were made by no more than 12,000,000 individuals. With a population of 180,000,000 we have a long way to go. When you consider, that less than 5% of these were made aboard scheduled airlines, we see that we are just scratching the surface.

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