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These same years also reflected growth in the helicopters’ payload, an indication that subsidy has helped make possible more efficient equipment. The average seats per aircraft increased from 7.6 in 1957 to 20.4 in 1964, the latter figure reflecting introduction of new twin turbine-powered craft which carry from 25 to 28 passengers, a greater capacity than the DC-3 which paved the way for non-subsidized operations by the trunk airlines. 

At the same time, operating expenses per available seat mile have been declining. As mentioned earlier, this has been a very sharp decline, from 63.4 cents in 1957 to 30.8 cents in 1964. In other words, newer equipment has more than cut in half the cost per seat mile of scheduled helicopter service. 

The foregoing have been examples of direct benefits from helicopter subsidy. There have been many indirect benefits. The military offers a classic example of this. A helicopter in scheduled passenger service operates many more hours per day than a military helicopter. The experienced gained on maintenance and other aspects of operating a scheduled helicopter has been applied to hundreds of military aircraft of the same model. I am sure you recall testimony before your committee in past years showing that such savings to the military have amounted to many more times the cost of the subsidy. Other witnesses scheduled to appear at this hearing will cover this point in more detail. I would like to dwell for a moment, instead, on another type of indirect benefit from helicopter subsidy.

It relates to our balance of payments, a subject giving all of us much concern these days.