of our neighbor islands is directly related to their accessibility to Honolulu, and depends in large measure on their ability to commute with Honolulu. In 1956, there were 640,367 passengers carried between our islands, representing 1.25 air passengers per resident of Hawaii. Our population is a little over 500,000. This is some five times as many air passengers per resident as there were flying in the continental United States. At distances up to 250 miles, which take in the entirety of our operations, the ratio increases to approximately 20 to 1, testifying to the lependence of our islands on air transportation, and to the ability of island air transportation to achieve subsidy-free stability, provided we an obtain more economical equipment than we operate today. In the future of our islands, of vital importance is the great increase n both surface and air transportation leading into Hawaii not only From the continental United States, but from the entire Pacific areaFrom Canada, Australia, and the South Pacific, and the Orient. With nore transportation bringing more people and more supplies into the slands, the need for transportation within the islands becomes corespondingly greater. We need help now to be able to improve our facilities to obtain addiional operating economies and to operate profitably under these new onditions so that we can stay off Federal subsidy and thus, in the ong run, save the government far more money than the loan-guaranty rogram can cost the Government. We strongly urge the adoption of this legislation, which offers a ear-cut, long-term solution of the self-sufficiency problem for small rriers like ours. Thank you for the privilege of appearing before you, Senator. Senator BIBLE. I think that is a fine statement and very well illusated with exhibits and maps. The entire statement as well as the hibits will be made a part of the record, Mr. Benz. (The above exhibits and maps follow:) EXHIBIT 2 Summary of forecasts of operating results for the years 1958 through 1962 with 1 Interisland traffic forecast in terms of passenger-miles (thousands) is as follows, and is based on figures 1956 (actual). 1957 1958. 1959. 1960. 1961. 1962 86,249 90.561 96,089 99.843 104 X35 110,077 115,581 NOTE. TPA's actual load factor for the 12-month period ended Apr. 30, 1957, was 54.99 percent. Porecast of operating results for the year 1959 with new 44-seat equipment added recast of operating results for the year 1960 with new 44-seat equipment added Forecast of operating results for the year 1961 with new 44-seat equipment added Forecast of operating results for the year 1962 with new 44-seat equipment added 2,854,793 2,895, 382 2,702, 541 270,1 428, 883 831, 904 581, 135 9864.196 EXHIBIT 3 'PA experienced negative net return based on return provided by mail rates arrying of mail commenced on May 15, 1951. xcludes capital gain on sale of an aircraft and Territorial corporate tax on the gain, EXHIBIT 4 sidy has not recognized TPA stockholders' full investment and cannot provide ses from Aug. 1, 1946, through May 31, to 1949 (before scheduled es from June 1, 1949, through Apr. 30, 1951 (before mail pay): Total expenses-- 1,598, 717 Net loss for period‒‒‒‒‒ 424, 263 Total losses in periods prior to receipt of subsidy mail pay---- 763, 569 s and expenses not considered for mail pay purposes, May 1, 1951, Capital stock expenses for additional capital required for sched- Interest and penalties on delinquent taxes_. Certification cost, docket 2390__ Injunction case and exemption certificate expenses. Monopoly case expenses_ Corporate organizational expense writeoff_ 26, 127 45, 642 84, 672 23, 441 50, 396 4, 649 Total... 234, 927 Total reduction in capital not considered for mail pay-- 998, 496 |