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NEW YORK AIRWAYS, INC. 

COPY TO H. BROCK, J. SLATE, R. WHEATLAND ✓ AND J.E. GALLAGHER

August 9, 1955

The following is a copy of a handwritten note received today from R.L.C.:-

(I do [[underline]] not [[/underline]] wish you were here)

Dear Bill:-

In thinking about this equipment problem and in discussing it with a lot of people - primarily Sabena and B.E.A. - it is very evident that we have a most serious responsibility, not only to ourselves, but to the entire helicopter industry in deciding between the three alternatives (a) S-58, (b) PH42, or (c) wait for turbines or something better - our reputations and future are very much at stake. In doing our job we must be extremely meticulous - absolutely cold logic must prevail - guess work will most certainly be involved in some areas - but where it is it must be clearly marked and understood as such - we must bend over backwards to boil everything down to a [[underline]]factual[[/underline]] basis - and above all we must avoid being mislead - (or indeed being lead at all) - by so-called "opinions". I believe that NYA's analysis should include a comparison of a lot of things - on the back of this I have tried to draw up a table of what I mean - unfortunately I think we must count on a rate case - in other words our estimates should be [[underline]]high[[/underline]] on the cost side and low on the revenue side - and by that word [[underline]]low[[/underline]] I don't mean just conservative.

[[underline]]S-55[[/underline]] [[underline]]S-58[[/underline]][[underline]]PH-42[[/underline]]

A. Noise in decibels
(Internal and External) (NYA [[underline]]must[[/underline]] do its own measuring)
B. Indescriminate loading - ? - C.G. travel - again we must make our [[underline]]own[[/underline]] determinations.
C. Temperature accountability   "
D. Flight characteristics   "
E. Vibration     "
F. Heliport requirements    "
G. Conrtact possibilities (on this point we will never be in a better [[strikethrough]] teaching [[/strikethrough]] position - and both manufacturers are well aware of it.) All of the above as well as other items are susceptible to [[underline]]exact[[/underline]] knowledge.
H. Costs (except in the case of the S-55 we must add 25% to all so-called "accurate technical" estimates.
I. Revenues - I"m very bullish but what is the point - assuming adequate lift (power) they will vary as the usable cubage - clearly the PH42 has a big advantage - [[underline]]but[[/underline]] the S-58 does in fact represent a substantial improvement over the S-55. 

However, in this connection as a result of the presently quoted purchase prices it is possible to buy [[underline]]6[[/underline]] S-58s for the cost of [[underline]]5[[/underline]] PH42s - and as we know frequency is of the utmost importance - but of course this is only [[underline]]one[[/underline]] factor - this begins to bear on the fleet size question which I feel should be put aside until the [[underline]]facts[[/underline]] about the two types have been determined.

Earlier I said we are preparing inevitably for a rate case - I am totally convinced of this because no matter what ship we determine on,  

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