postal service and the further development of this type of aircraft which may be anticipated, we conclude that the proposed experimental service is required by the public convenience and necessity.

Although the Act prohibits the Board from limiting any air carrier in the type of equipment it may use, our award herein is made upon the assumption that the character of service proposed will require the use of rotary-wing aircraft.

Data of record covering the movement of express are wholly inadequate as a basis for projecting the potential volume of air express over the proposed helicopter routes. There was no showing other than the judgment figure of 100 pounds per flight at the rate of 10 cents per revenue mile submitted by Los Angeles Airways. Upon the basis of an analysis of air express shipments forwarded and received in Los Angeles, that carrier estimated monthly express revenue from its proposed operation at $3,220. While this figure cannot be regarded as indicative of air express service possibilities an appreciable amount of premium cargo may be developed by reason of the time advantages of the helicopter service over surface facilities. On the basis of the record made in this proceeding it is questionable whether the present helicopter, after allowance for fuel, can transport loads much in excess of those anticipated for handling mail alone. However, it is typical of all scheduled transportation that loads vary from schedule to schedule and we believe that the carriage of express is desirable not only from the standpoint of expediting its delivery with space which might otherwise remain unused, but as a source of revenue to help defray a part of the cost of the experiment to the Government.

As pointed out heretofore, the Los Angeles area embraces 1,000 square miles and extends roughly from 30 to 40 miles in diameter. The maximum distance to be served by the type of operation visualized here would not exceed 50 miles from the center of the metropolitan area. The Post Office Department points out that its proposed routes represent its judgment for the present and urges certification of the service on an area basis to permit flexibility of operation without the necessity of formal proceedings every time a revision in service is desired. The examiner recognized that the conventional point-topoint certificate establishing a rigid route pattern would hinder ultimate success of the experiment and recommended authorization of the service on an area basis.

We recognize the desirability of flexibility in the operation proposed in this proceeding to permit rapid and frequent changes in the service rendered. We will therefore issue a certificate authorizing air transportation of property and mail over the routes recommended by the Post Office Department for initial operation, as hereinafter prescribed, and, in order to permit a maximum of flexibility, we will exercise our power under section 416 (b) (1) of the Act by granting an exemption to the carrier so that it may serve with rotary-wing aircraft any point within a radius of 50 miles from the Post Office Terminal Annex Building in Los Angeles. By reason of the limited extent and unusual

3 Section 416 (b) (1) authorizes the Board to exempt any air carrier or class of air carriers from the requirements of Title IV of the Act, or any provision thereof, or any rule, regulation, term, condition, or limitation prescribed thereunder, if it finds that the enforcement thereof "is or would be an undue burden on such air carrier by reason of the limited extent of, or unusual circumstances affecting, the operations of such air carrier and is not in the public interest."

circumstances affecting operation of this service, we believe that it would be clearly an undue burden on the carrier and contrary to the public interest to require the carrier in subsequent formal proceedings to obtain authority to serve new points or to vary its flight pattern every time the Post Office Department requests it.

The exemption order will contain a provision that the carrier shall at all times maintain with the Board a flight pattern showing the points currently served. Any changes in the initial flight pattern may be effected at any time by the carrier's filing with the Board an amendment thereto approved by the Post Office Department. Unless disapproved by the Board operations may be conducted under such amended flight pattern.

As heretofore indicated, the potential of the helicopter in commercial air transport is unknown and whether the service proposed can be maintained on an economically sound basis with substantial public benefit is a matter which can be established only by experience. For these reasons we find that the certificate to be issued herein should be limited to a period of 3 years.

It is clear that only one experimental helicopter service is required in the Los Angeles area. Both Southwest and Los Angeles Airways expressed their willingness to operate the routes proposed by the Post Office Department, or any other type or combination of routes, and their applications are sufficiently broad to permit authorization of either one to conduct the service. It remains therefore for us to select the carrier which will be best fitted to provide the service.

Southwest and Los Angeles Airways have presented competent evidence to prove their citizenship and we find that each is a citizen within the meaning of section 1 (13) of the Act. The financial resources and aeronautical and executive experience of both applicants qualify them to meet the tests of fitness, willingness, and ability. There have been no substantial changes in the corporate structure of either applicant since the Board found them qualified by the standards of fitness, willingness, and ability in the West Coast Case. The organizational planning and background of the officials of both companies leave no doubt that either is capable of conducting the service needed. Both carriers are thoroughly familiar with Los Angeles and have demonstrated unusual interest in the establishment of a local helicopter service in the area.

The fact that Southwest is presently certificated' is not a controlling factor in its favor since feeder operations are vastly different from the helicopter service envisaged here, which will be principally a pilot operation gaged to meet the needs of the postal service within a metropolitan area. Inasmuch as service of this type has never been performed before, it will be subject to a pattern of flight rules and regulations which have yet to be promulgated.

Although Southwest plans a separate division for the helicopter operation, it would nevertheless be conducted by management which is already involved in an extensive experimental feeder service. The operating head of the company acknowledged that commencing the

West Coast Case, 6 C. A. B. 961 (1946).

Southwest holds a temporary certificate of public convenience and necessity authorizing it to engage in air transportation of persons, property, and mail over route No. 76, totaling 1.181 miles, between Los Angeles and Medford, Oreg., via certain intermediate points. West Coast Case, supra.

operation of route No. 76 was particularly complicated and stated that he expected the proposed helicopter service to be very complex. To award both a feeder and a helicopter operation to Southwest would be to place upon this company responsibility for conducting two experiments having unusual national significance. With so many different problems involved it is questionable whether either enterprise would develop its maximum potential if undertaken concurrently by one managerial group. At the time of the hearing Southwest had not inaugurated service over route No. 76 and we believe that Southwest should at this time concentrate on the development of its feeder system to establish the feasibility of that service.

Los Angeles Airways has no plans other than specializing in the strictly local helicopter operation encompassed by this proceeding and, with a principal and independent interest in the development of such a service in the Los Angeles area, it could with undivided attention devote all of its energies entirely to that end. As indicated by the Post Office Department's brief, operation of the helicopter service by Los Angeles Airways would afford the Government a yardstick by which the economic feasibility of the service could be measured without segregation of its cost for the carriage of mail from another operation through complicated accounting procedures, as would be the case if conducted by Southwest. In view of the foregoing considerations we conclude that the comparative public interest requires the selection of Los Angeles Airways.

In accordance with the foregoing findings and conclusions and all the evidence of record we find

1. That a temporary certificate of public convenience and necessity should be issued to Los Angeles Airways, Inc., authorizing air transportation in the metropolitan area of Los Angeles, Calif., with respect to property and mail for a period of 3 years, as follows: (a) Between the Los Angeles Municipal Airport and the Los Angeles Municipal Airport via South Gate, Montebello, Whittier, El Monte, Monrovia, Alhambra, Pasadena, Glendale, Burbank, North Hollywood, Van Nuys, Beverly Hills, and Culver City; (b) Between the Los Angeles Municipal Airport and the Los Angeles Municipal Airport via Torrance, Wilmington, San Pedro, Long Beach, Santa Ana, Orange, Anaheim, Fullerton, Norwalk, Downey, and Compton; (c) Between the Los Angeles Municipal Airport and the Los Angeles Municipal Airport via the Post Office Terminal Annex Building, Station "S", Hollywood, Wilshire-La Brea Station, West Los Angeles, and Santa Monica;

2. That Los Angeles Airways, Inc., is a citizen of the United States within the meaning of the Act, and is fit, willing, and able properly to perform the air transportation herein authorized and to conform to the provisions of the Act, and to the rules, regulations, and requirements of the Board thereunder;

3. That a temporary exemption order should be issued to Los Angeles Airways, Inc., exempting that carrier from the provisions of section 401 (a) of the Act and from the terms, conditions, and limitations of the aforesaid temporary certificate of public convenience and necessity so as to authorize that carrier to serve with rotary-wing aircraft any point within a radius of 50 miles from the Post Office Terminal Annex Building in Los Angeles, Calif.; and

4. That the application of Southwest Airways Company, Docket No. 896, and the application of Los Angeles Airways, Inc., Docket No. 1821, except to the extent that it is granted herein, should be denied. Appropriate order will be entered.

Landis, Chairman, Ryan and Lee, Members of the Board, concurred in the above opinion. Branch and Young, Members, did not take part in the decision.

ORDER

A full public hearing having been held in the above-entitled proceeding, and the Board, upon due consideration of the record, having issued its opinion containing its findings, conclusions, and decision, which is attached hereto and made a part hereof,

IT IS ORDERED, 1. That a temporary certificate of public convenience and necessity in the form attached hereto shall be issued to Los Angeles Airways, Inc., for route No. 84;

2. That said certificate shall be signed on behalf of the Board by its Chairman, shall have affixed thereto the seal of the Board, attested by the Secretary, and shall be effective on the date of this order;

3. That the applications in this proceeding, except to the extent to which they are herein granted, be and they are denied.

CERTIFICATE

LOS ANGELES AIRWAYS, INC.

is hereby authorized, subject to the provisions hereinafter set forth, the provisions of Title IV of the Civil Aeronautics Act of 1938, as amended, and the orders, rules, and regulations issued thereunder, to engage in air transportation with respect to property and mail within the State of California, as follows:

1. Between the terminal point Los Angeles Municipal Airport, the intermediate points South Gate, Montebello, Whittier, El Monte, Monrovia, Alhambra, Pasadena, Glendale, Burbank, North Hollywood, Van Nuys, Beverly Hills, and Culver City, and the terminal point Los Angeles Municipal Airport;

2. Between the terminal point Los Angeles Municipal Airport, the intermediate points Torrance, Wilmington, San Pedro, Long Beach, Santa Ana, Orange, Anaheim, Fullerton, Norwalk, Downey, and Compton, and the terminal point Los Angeles Municipal Airport;

3. Between the terminal point Los Angeles Municipal Airport, the intermediate points Post Office Terminal Annex Building, Station "S", Hollywood, Wilshire-La Brea Station, West Los Angeles, and Santa Monica, and the terminal point Los Angeles Municipal Airport;

to be known as route No. 84.

The service herein authorized is subject to the following terms, conditions, and limitations:

1. The holder shall render service to and from each of the points named herein, except as temporary suspensions of service may be authorized by the Board, and may begin or terminate, or begin and terminate, trips at points short of terminal points.

2. The holder is not required to render service by landing at the terminal or intermediate points, but may employ a pick-up and delivery apparatus or other suitable means for picking up and delivering property and mail if adequate service may be rendered thereby.

8 C. A. B.-92

The exercise of the privileges granted by this certificate shall be subject to such other reasonable terms, conditions, and limitations required by the public interest as may from time to time be prescribed by the Board.

This certificate shall be effective on the 20th day of May 1947 and shall continue in effect for a period of 3 years, such 3-year period to commence either 6 months from the effective date of this certificate or upon the date the holder inaugurates any service pursuant to this certificate, whichever date shall first occur.

IN WITNESS WHEREOF, the Civil Aeronautics Board has caused this certificate to be executed by its Chairman and the seal of the Board to be affixed hereto, attested by the Secretary of the Board, on this 20th day of May 1947.

8 C. A. B.-92