The operating record in 1956 and prior years was as follows:

1956           1955           1954           1953

Revenue passengers'..........          43,205         24,569          8,758           1,513

Express (lbs)'...............     1,907,373    1,758,534       159,450

Freight (lbs) ................       607,023       473,785       359,360       141,116

Mail (lbs)  ..................    1,159,704    1,412,181    2,354,464    3,347,456

Scheduled revenue

ton miles carried...........        108,306         79,313         53,314        43,926

Revenue load factor ( 7( )  ......            52.21           51.13           34.04          32.37

Scheduled miles flown ........       429,224       387,773       391,435       334,100

Schedule completion factor (Vc)           77.23          82.07          84.21           82.72

Charter hours flown..........               209             149             167               52

"Passenger service was commenced in July, 1953 and express service in October.  19.^4.
 

Thus, in 1956, the Company's passenger traffic increased 76% over 1955,
cargo traffic increased 13%, and charter hours flown increased 40%. The volume
of mail has begun a marked upturn as a result of the inauguration of service to
Manhattan. As contrasted with the monthly total of 96,642 pounds averaged during
1956, mail loads are now running at the rate of some 200,000 pounds per month.

The rapid growth of your Company's passenger traffic was due primarily to
our success in achieving public acceptance of New York Airways' services and our
ability to increase frequencies as required by the demand. In large measure this
growth was also attributable to the program, commenced in 1955, for the establish¬
ment of joint fare arrangements with the fixed-wing airlines serving New York.
Such arrangements have been consummated with sixteen international and do¬
mestic airlines, thus integrating your Company's operations into both the air trans¬
portation system of the United States and the international route network.

NEW EQUIPMENT. During the latter part of 1956 your Company took delivery
of three Sikorsky S-58 helicopters for which commitment had been made in
1955. These are the largest and most advanced helicopters now in civil operation
anywhere in the world, and New York Airways was the first to inaugurate scheduled
service with this equipment. As compared with the maximum of seven passengers
which can be accommodated on the older S-55's, the S-58's provide seating capacity
for twelve passengers. This new equipment also offers a substantial improvement
in operating efficiency and passenger comfort, including greatly reduced noise and
vibration levels.