NON-SUBSIDY REVENUES. Your Company has succeeded in increasing its com¬
mercial revenues (i.e., from sources other than government subsidy) to levels not
previously attained in scheduled helicopter transportation. In 1956, these revenues
increased 40% over 1955, and since 1954 (the first full year of passenger opera¬
tions) they have increased 119%.

It is expected that this growth will continue. Nonetheless, the additional ex¬
penses involved in the conduct of the Company's expanded services mean that for
some time to come the Company will remain dependent for the bulk of its revenues
on subsidy payments by the Civil Aeronautics Board. Under the Civil Aeronautics
Act, these payments are made available to air carriers which are not yet in a position
to operate on a self-sustaining basis through the generation of commercial revenues
alone, and are provided in the form of payments for the carriage of the United
States mail.

SUBSIDY POSITION. During 1955, the Company had Ijeen operating under a rate
of mail payment established by the Civil Aeronautics Board in the Summer of 1954.
In the fore part of 1956, the Board reopened this rate for review and redetermina¬
tion, effective from February 3, 1956 forward. In the meantime, the Company has
been operating under temporary mail rates. These temporary rates have not been
adequate to cover the increased expenses resulting from the acquisition of new
equipment and the expansion of operations previously described. However, they
serve only as a basis for interim payment pending retroactive adjustment upon com¬
pletion of the review proceedings.

These proceedings are still pending. Accordingly, it is not yet possible to pre¬
sent a definitive profit and loss statement for the year 1956, since the Company's
actual mail revenues cannot now be ascertained. When the final results are known,
 

i«. Proposed Urban
'»-' Heliports
 


 


 

^ Existing
 

Heliport
 


 


 


 

East Side
Manhattan

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West
30th S
 

LA GUARDIA
AIRPORT
 

■
 

Q Newark

Staten O
Island
 

Q Battery

C_J Brooklyn
 

^M INTERNATIONAL
^*       AIRPORT

A
 

NEWARK
AIRPORT
 

Po
Re
 

t of New York Authority
ional Heliport Plan
 

s
 

NEW  YORK  AfRWAYS