To The Stockholders and Employees of
New York Airways, Inc.
 

Your Company's operations were commenced at the end of 1952, with
service confined to the carriage of mail among the metropolitan airports
serving New York and Newark. Our services have since been steadily expanded
and by the end of 1954 had reached the position shown by the map presented
with this Report.

Developments during 1954 included the inauguration of scheduled pas¬
senger service to the capital of New Jersey and to other cities in New York,
New Jersey and Connecticut; commencement of passenger service at ntght
among the metropolitan airports; and the initiation of inter-airport and sub¬
urban air express service. The Company's inter-city passenger operations were
the first in the United States and our night passenger operations arc t'le first
to be conducted anywhere in the world.

Operating Results

The Company's progress in 1954 is shown  by the following comparison
with 1953:

1954                1953

Revenue passengers* ...................................................          8,758               1,513

Express  (lbs.)* ...............................................................       159,450                 —

Freight   (lbs.)   ..................................................................      359,360           141,116

Mail   (lbs.)   ........................................................................   2,354,464       3,347,456

Scheduled revenue ton miles carried...........        53,314            43,926

Revenue load factor (%) .......................................           34.04              32.87

Scheduled miles flown ................................................      391,435           334,100

Schedule completion factor (%) .....................          84.21               82.72

Daily revenue utilization per helicopter

(hrs)...............................................................................           4:32                4:43

* Passenger service was commenced in July, 1953 anfi express service in October, 195'^

The Company's daily revenue utilization per helicopter is the highest vet
achieved In this field. Three of our helicopters have now accumulated more
operating hours than any other equipment of this type either in civil or
military service.

Our schedule completion factor reflects the high weather limits we h.ivc
adopted to insure maximum safety. As further experience accrues, these limits
can be reduced consistently with conservative operating practice. Measures
taken to increase regularity of operations include installation of air-ground
radio facilities in the tower of the Chrysler Building (which have greatly
improved communications between our helicopters and our operating base
at LaGuardia Field) and extensive research in the largely unexplored fields