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IMPORTANCE TO THE US OF LATIN AMERICAN CIVIL AIR TRANSPORT
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IMPORTANCE TO THE US OF LATIN AMERICAN CIVIL AIR TRANSPORT
TABLE OF CONTENTS
SUMMARY
ESTIMATE
11
15
15
DEFINITIONS
Tableol Latin American Scheduled Airlines
TableWeekly Scheduled Mileage ot Airlines
TableAir Agreements Concluded by Latin American Countries . . 16
Tableof
Tableot
19
26
Appendixes
AArgentina BBolivia
CBrazil
D
9 61
8
FCosta
Cuba
67
Dominican Republic IEcuador
JEl Salvador
Guatemala
Ti TI7 9:
L
Honduras
NMexico
ONicaragua
pPanama
QParaguay
S
T
UAirlines of British Colonies and Puerto
ST
LIST OF
Potential Alilift Contribution of Latin American Civil Air
Principal increase in Scheduled Weekly LA. Mileageo
Airlines of
Organization for Civil Aviation
Airlines of
Organisation for Civil Aviation
Airlines of
Organization for Civil Aviation
Airlines of
Airlines of Costa
Airlines of
Airlines of
Airlines of
Airlines of
The TACA
Organization for Civil Aviation
Airlines of
Organization for Civil Aviation
Airlines of
Organization for Civil Aviation
Proposed Re-organizatlon for Civil Aviation
Airlines of
Airlines of the British Colonies and Puerto
MAPS
Tho following maps, which supplement the information contained Ineparate envelope:
Latin American Routes of Airlines Wholly or Partly US Owned Airline Routes in South America Airline Routes in Middle America
International Airline Operations In the South American Area International Airline Operations In the Middle American Area
S Eus ET
r
IMPORTANCE TO THE US OF LATIN AMERICAN CIVIL AIR TRANSPORT
SUMMARY
ease ot war with thc USSR, US military airlift requirements will exceed theof available US civil and military transport aircraft Under these circumstances, the Latin American countries could and probably wouldonsiderable number of multi-engine passenger and cargo transports tor military airlift operations within the Central-South American area which would somewhat reduce this deficiency Thus, withinays the Latin American airlines could assume the major portion of the military airliftwithin that area, thereby releasing US aircraft for operations elsewhere. InLatin America mightmall number of four-engine aircraft for military lift on the trans-Atlantic runs. If the Latin American contribution were limited to twin-engine aircraft, it is estimated that as manylanes could be furnished, of whichould be cargo types. This twin-engine cargo fleet could be employed tocritical strategic materials from the interior of Latin America to seaboardpoints, and in the event of serious disruption of ocean shipping by enemy action, it could fly such materials directly to North America.
In time of peace, Latin American civilIs of some secondary Importance to the US because lt: (a) aids In the economicof an area exceeded only by Europearket for US exports; and (b)imited market for US transport aircraft of all types, thus slightly increasing the level of activity in the US aviation industry Most latin American countries, furthermore, have adopted In international agreements theaviation principles sponsored by the US throughout the world, and thus havefacilitated unimpeded international air traffic, whichrerequisite to the maximum development of US commercial air carriers.
Expected trends in Latin American civil aviation unfavorable to the USeduction in Latin American purchases of US aviation equipment owing to the dollar shortage and the competition now being offered lo USby foreign aircraft manufacturers;endency among certain Latin American countries to adopt restrictive measures against foreign air carriers. The latter development would give Impetus to similar restrictivealready evident in other parts of the world, thus eventually threatening theof US world air routes.
Note: The intelligence organisations of the Departments of Stale. Army. Navy, and ihe Air Force have concurred in this report. The information in the estimate is as0 and in thc Appendixes as ol9 Important changes since these closure dates have been added os footnotes-
IMPORTANCE TO THE US OF LATIN AMERICAN CIVIL AIR TRANSPORT
Strategic Contidcraliom.
In case- otajor airlift would prob-nbly be required to support US objectives,in widely separated areas. The strain on the airlift capacity of the US In an emergency will be such that help from other sources will be of considerable strategicDespite its relative backwardness, Latin American civil aviation is capable of makingontribution to military airlift operations within the Central-South American area. Hetwccnnd SO percent of the Latinu-plane transport fleet could and probably would be made available in ashort time.
There are sound reasons to anticipate that al) Latin American countries, in varyingof effective cooperation. would be aligned with the US in the event of war with the USSR. The degree and promptness of theirwould depend in part upon thcout of which the emergency arose, but assistance would be immediately offered with sincere Intentions If an attack occurred within the Western Hemisphere.
Because most of thc governments concerned regulate private airlines and because there Isertain amount of US influenceumber of importanthere should be little difficulty in diverting the planes to wartime use.
Given contracts protecting sovereignty and guaranteeing against loss, co-belligerent Latin American countries could be expected toasiversion of civil aircraft to joint war purposes as would thc US undercircumstances, despite the fact that air
* Although US investments are proportionately not large, the actual influence of the US in the air transport industry ot Latin America exceeds lhat suggested by the direct ownership parlicipaUon ol US Interests, largelyonsequence of theindebtedness of numerous airlines to their US stockholders.
transport is normally of more criticalto Latin American countries than are other media of transportation."
The most urgent US need In caseajor emergency would almost certainly be for four-engine aircraft capable of transoceanic opera-lions Of the multi-engine US-builtnow operated by IAmerican civil air carriers,rf the total, arc four-engine aircraft. This number Is roughly one-eighth of those now operated by all US scheduled domestic and international airlines and.roportionate diversion to wartime use. would increase by one-eighth the airlift contribution in four-engine aircraft made by US scheduled airlines. Apart from the mere number of these Latin American aircraft, moreover, their strategic value to thc US would beenhanced by virtue of the fact that more than half are adapted for long-range overwa-ter operations. Their employment onairlift missions would thus not require the time-consuming structural modifications which would be necessaryarge part of the US domestic fleet
The maximum estimate for availability of thc Latin American civil transports lo the US isercent, the minimum,ercent. The first figure is supported by thc consideration that the bulk of the Latin American fleet is owned by thoseChile, and Mexico, forto be most closely associated with the US in time of war; the second takes into account the increased wartime transport demands of the countries
Certain variables, such as the operatingof the aircraft at any given Umc and the feasibility of their rapid conversion from passenger to cargo use or vice versa, which would have to be considered in precise logistic planning, are omitted here. They are beyond the scope of this analysis, which is intended solely to indicate the order o( magnitude of the possible Latin American airlift contribution
SECf KT
as well as any combination ofcircumstances that would be likely to arise. On the basis of these estimates, Latin America couldinimumaximumransport aircraft, predominantly of twin-enginef IL is assumed that cargo lift would be morethan passenger operations, it isto suppose that of the UO-plancsixty cargo-type aircraft would bennd ofeasonable basis of operating efts-cienryypothetical run between the US Atlantic seaboard and Brazil, for example, thc lift capacity ofs wouldons a
' In addition toivilian aircraft already mentioned, mere arc about lad US-bullt transports, most ol which are structurally suited to both cargo and passenger operations, which are attached lo the various LaUn American armed forces, and could be drawn on lor airlift purposes or employed by LaUn American countries as replacements forcivil transports.Boo Table I, page 7.
month;ons. For theof passengers, on the other hand,aximumlanes of this type could be expected, capable00 troops per monthypothetical run between Miami and Natal In the event of circumstanceseither type of operation, the continued existence of the extensive and well-organized chain of airfields and other facilities on the Brazilian north coast and through thewouldonsideration of the highest importance to the US.
Particularly if bilateral arrangements had been made before warajority of the Latin American aircraft could be madeto thehort time Because of the low standards of efficiency andprevailing In many LaUn Americanhowever, and the organizationalinvolved, it would take al least sixty days before the full capacity of these planes would be utilized.
S SfC RET
present trend Inward replacing USwith foreign types, if continued, would somewhat hamper the effectivenessatin American contribution In case of emergency because of the difference in flight andprocedures and the need of obtaining parts abroad If, however, the Latinfleet were usedelf contained unit in purely South American operations from its normal bases, the effect would be less '
Although ll is impossible to foresee the many US requirements for emergency airliftone possible use of the Latin American air fleet directly affecting US security interests would be the transport of ceitaln criticalmaterials from remote sources totransshipment points or, in case ofemergency, from latin America directly to the US. Current stocks of most of thematerials in the US stockpiling program ate considerably short of objectives, and there is no Immediate prospect of meeting these goals Tht present unfulfilled objectives, moreover, are subject to drastic upwardat any time as Uie result, for example, of scientific or technological progress In the availability of strategic materials from norma) sources Is also possible. The fall of Southeasl Asia to the CommunisLs, forwould render Increased US access to South American production critically Other sources of materials to which the US has external lines of communication might be cut off by hostile submarine action orsabotage
Use of the Latin American airlift fortransport of strategic materials isfeasible Such an airlift would probably be directed toward commodities for which the US requirement, is relatively small and for which the limited airlift capacity would be best suited. Latin American sources ot such mate rials are already being exploited and are in many cases capable of expanded ptoduction. while airfield installations have already been constructed in locations within reach of needed materials. Although the majority of Latin American airfields are not suitable for four-engine aircraft, most are capable olsustained operations by twin-
engine aircraft, which are those in largest latin American supply and most likely to be usedtrategic materials airlift Since twin-engine planes constitute the leastUS requirement, their usetrategic material lift would not seriously prejudice the primary airlift commitment. Moreover, In caseatastrophe such as the breakdown of ocean transport twin-engine aircraft could be diverted from their most logical usetrategic material airlift (production site to seaboard) Lo an operation from Latinlo North American destinations, whereas they could not satisfactorily transport mass cargoes liom sites overseas. The strategic value olt in American airlift in suchcircumstances is illustrated by the (act thai these aircraft, which are cupable ofons per month If operated from Brazil to the US (seeouldolume of beryl, quarts crystals, tantslite, tungsten, zirconolumbltc and vanadiumerceni greater than tho average monthly US imports from all sourcesn the eventustained operation,cargo capacity could be increasedby the conversion of passenger aircraft to cargo use.
2. Economic Considerations.
The principal long-range economicof civil aviation in Latin America, from lhe US point of view, stems from Its role in providing rapid intra-area communications. Aviation develops and maintains the economies of backward and isolated areas, and otherwise promotes the economic stability of the Latin American nations, particularly in view of their inadequate surface transport and theobstacles to their economicAs an important factor In promoting the economic welfare of an area whicharket for US exports by Europe alone, the continued development of Latin American civil aviation is, therefore, clearly lo the long-range advantage of the US.
There are other factors of secondaryimportance to the US The areaa market for the sole of new and used US transport aircraft, spare aircraft parts, and olher aviation equipment as evidenced by the (act that aboulerceni of the present
SECJTET
American transport fleet is of USUS exports of all types of transport aircraft to Latin America totaledillion for the three-year* This volume represented roughlyercent of thc dollar value of all US exports in thisduring these three years, thusa significant portion of thc overseasfor US transport aircraft, and it wassupplemented by the sale of spare parts and equipment. Because of the vital need to maintain thc US aircraft industry at thcpossible peacetime level in order tothe required wartime expansion, anymarkets for planes or for engines and parts arc significant, particularly in view of the rapid downward trend in US civilproduction
The bulk of recent sales to Latin America has been of US war surplus slocks, and the actual purchase of new planes during the three-year period was not large (onlyercent of US civil transportut the very fact that most of thc planes were not new is of some significance, because Itan accelerated demand for replacements. The present US-made Latin American civil transport fleetnd larger) is aboutercent of that now operated by all USairlines,eplacement demand at least half the size of that In the US.the need for new and modern planes to replace obsolescent ones, thus increasing the average unit volume of the aircraft sold, and the high replacement demand for new engines and parts, the Latin Americancould, in coming years, have aeflect on maintenance or the US industry, despite thc fact that the rate of expansion of the area's air fleet is expected lo be moderate.
The above estimate, however, is madereference to the competition that usmust meet. Thetin American dollar shortage plus the competitive advantage accruing to British and othermanufacturers throughtrong temptation in Latin America to buy in other than USThese factors have already tended to favor Increased Latin American purchases
Sec Table II. page 1.
ot military equipment and machinery from Europe. Furthermore, current production in Europe of small aircraft particularly suitable for Latin American feeder-line operations, some ol which have already been sold in the area, and the probable Introduction to the Latin American market of Canadian or British jet transports In advance of such US types will Increase the competition.tinpurchases of new aircraft in the nearare not expected to be extensive, however, any trend away from US equipment willgradually and its effects on the USindustry may not be appreciable foryears.
With respect to its economic significance as an outlet for US Investments, Latin American civil aviation does not offer an attractivefor venture capital. The declining US financial stake in Latin American-flag airlines, most of which are capitalised at comparatively low levels, is estimated now to be lessillion, on the basis of the nominal value of stock holdings. This situation is in part the result of the enactment and enforcement by many Latin American countries of legislation requiring majority stock ownership andcontrol of national-flag airlines to be held by interests of the same nationality. The policy of establishing national control over civil air activities is consistent with the efforts of the Latin American countries towardautarchy in other directions, asby their attempts to develop localtheir preference for government-to-govcrnment loans or grants, and theirprejudice against admission ofcapiLal except under restrictions unlikely to appeal to foreigners.
3. Political Considerations.
Civil air relations between Lhe US and Latin America haveubsidiary politicalintin America's technicalupon the US in aviation matters during and after the war has resultedarked US influence in civil air affairs.there Is evidence that this influence is declining as Latin American capabilities are developed, close cooperaiion between the two areas in aviation matters has contributed to
S F.
generally cordial relations andotential means or sustaining them.promoting close relations, in addition to the increased economic intercoursethrough exchange of airline services, have been ihe negotiation of reciprocal alr agreements, and Lhc establishment of USassistance missions In Latin America and training programs for Latin Americanin the US.
A prime objective of postwar US aviation policy has been the facilitation of freedom of internaovement for US commercial air carriers under conditions conducive to their maximum development. In general,agreements negotiated by the US with major Latin American civil air powers embody "liberal" principles, favorable to US aviation interests. In turn, Latin American agree-
Taule i
estimated latin american contribution TO EMERGENCY AIRLIFT
IkCSaFI'
v-iunij
HUUHEB AIRCRAFT%
275
VrH>niicl I'rioriiy'i Priority*
-
Priorilr*
Aircraft.
Pa&cngrr
* Thisreakdown of minimum and maximum figuresurther estimate of thr. distribution Ixztwccn cargo and pB<wiigCr aircraft which would be made available should priority airlift requirement) demand on tlM one handt of nargo. and on lhc olher hand transport of personnel.iiiiBlc.'. nir titzcd on acvaralni'ludiiiK Hie fact thai UiO Latin American civil air Heel it made up olargo aircraftuciigcr transiting.
men is with European countries have generally conformed to the US standard type. As adesignated US airlines have been assured freedom of movement throughout most of Latin America, and the US case in sponsoring world-wide liberal air principles has beenstrengthened in other areas lessthan Latin America to US influence.
There is no assurance, however, that this trend will continue. As the Latin American lines, already financially weak, encounterforeign competition, they are likely to adopt more restrictive policies toward foreign carriers. Moreover, the quondam opposition of certain Latin American countries to aair agreement, which was being strongly advocated by the US, indicates that opposition from this area to US objectives in international air conferences is not excluded. Should this change take place, it would give impetusimilar movement alreadyin other parts of Lhe world and thus might eventually threaten the whole structure of US world air routes.
Table 11
us transport aircraft exported to latin america
ind civil)
-ill.it
AKnhc ha rr
I Value
IT,
Win'
3*
4
S
5
II
8
Year
56 2 1
S BfC RET
DEFINITIONS
following terms pertaining to civilemployed throughout this estimate are herewith defined:
Fifth Freedom This controversial principle concerns commercial air trafficaccorded through Internationallo an air carrier ol one niilion inecond Specifically. Filthis the privilege of an air carrier of one nation to take on in the territoryecond country passengers, mall, and cargo destinedhird state and, conversely, the privilege to put downecond nation passenger, mail, and cargo originatinghird country.
Bermuda Agreement The Bermuda Agreement was negotiated between the US and UK in. It Incorporated certain liberal principles governingcommercial air truffle, including aconcession of Fifth Freedom privileges and recognition of the right of fair and equal opportunity lo engage In air commerce under
competitive conditions The US and UK have jointly promoted these principles throughout the world and the Dcrmuda AgrccmcnL has become the modelarge number ofinternational air agreements.
(c) UnduplKated Route Mileage. Thehypothetical case Illustrates thein which unduplicated route mileage ls computed Two given routes, such as New York-Habana-Panama and New York-Habana-Caracas.ommon segment (Newre both operatedingle airline. In computing the unduplicated route mileage of this carrier thc duplicated segment (New York-Habana) Is included in the airline's total only once. Moreover, this carrier'sroute mileage Is not affected by the fact that one or more other airlines operate parallel routes. The termherefore, refers only to those route miles which are not duplicated by an individual
SECRET
SEyTRET
ANNEX
INTRODUCTION
Historical Background.
a. Prewar Development.
Before World War II, civil air transport in Latin America was developed, financed, andarge extent controlled by Eurnpenn and North American Interests. It wassusceptible to foreign developmentol the financial and technical Inability ofin American countries to develop their own air services. Lack of adequatetransport, moreover, led Latin American countries to encourage development of air transport.esult, foreign interestsGerman and US) established, operated, and controlled extensive air networks under liberal concessions The capability of various national interests in Latin America to provide domestic air services gradually Increased,with the result that by the outbreak ol World Warrend was perceptible toward the progressive restriction of privileges enjoyed by foreign aviation interests.
b Wartime Development.
Elimination of Axis Influence. With the outbreak of the European war and thomilitary victories of the Axis, the extensive penetration of Latin American civil aviation by German-flag andairlines (which together flew three million miles00 route miles throughout South America)ource of Increasing concern to the US. Italian trans-AUantlc services, furthermore, flew from Rome to Natal, Rio de Janeiro and Buenos Aires Consequently. Uie US and various Latin American governments cooperated to eliminate all Axis influence gradually from Latin American avialion. This wasthrough the progressive replacement ol Axis air services either with US airlinesor with native services operated by US-trained flight and ground personnel and
SEO
backed by US financial aid and technical
esult of these measures and thcof air services in Latin America by other European interests, together with the close wartime collaboration between the US and Latin American governments, the US, at the close of the war,irtualof foreign influence over Latin American aviation.
US Atd to Latin American Aviation. US-Latin American collaboration in aviation matters, Instituted early in Lhe war, hasLechnical guidance as well as theof pilots, mechanics, instructors, engineers, and high-level administrative officers US civil air missions have also assisted inand developing standardized air traffic control and operational procedures, and have provided technical advice on navigational aids, radio communications, meteorologicaland maintenance requirements. Moreover, the US has advised certain Latin American nations regarding thc promulgation of modern civil aviation regulations. Thistogether with the US-sponsaredAirport Development Program, laid thc foundation for the rapid expansion of Latin American airline operations.
c. PoifiKor Expansion of Airlines and Air Facilities
Thc end of World War IIeriod of rapid ond continuing expansion of notional-flag and foreign airline operations in Latin America.
Increase in Latin Americanesult of having purchasedaircraft from US postwar surplus stocks at low cost, Latin American7 were operatingore aircraft. Includingore 4engine types, thanSeey9 another C9 aircraft. Includingdditional
r
ORE
transports were added, thusthe total fleet operated by the area's scheduled airlines to.
Although US-manufactured aircraft amounted toercent of the total owned by Latin American scheduled airlinesnlyere as modern as theix hundred aircraft, orercent of the total, were of US manufacture, and ofere ol types at least as large and as modern as theAircraft of UK manufacture in use9 amounted toercent of the Latin American transporthe increase in US equipment operated by Latin American airlines, moreover, would have been even greater had it not been for thc severe dollar shortage which has recently prevailed in most Latin American countries.
Although Latin American airlines operatedercent of the world total of scheduledequipment9 (excluding theheir sharengine aircraft amounted to slightly lessercent of the world total of this type.
Increase in Latin Americanesult nf rapid postwar expansion. Latin American scheduled airlines7 about four times more mileage than0 (Seehis mileage had increased to over IS million miles
per week or more than five timeshe principal increases in scheduled weekly mileage09 were made by the airlines of Argentina (an increase ofBrazil0 percent) and Venezuelahese countries havesubstantialhe airlines of Mexico and Cuba have also shown marked increases in scheduled operations, amounting per week to0 percent) and00espectively. The total scheduled mileage in9 for all Latin American airlines amounted to slightly less thanercent of thc mileage flown by all US scheduled domestic and international carriers and aboutercent of the world total (exclusive of the USSR) of scheduled operations.
Despite pronounced postwar expansion of operations. Latin American airlines have been limited by the general lack of public funds throughout the area, and by the severe dollar shortages which have affected most Latin American countries during the last two years. Government plans for badly neededand improvement of airports, radio aids to navigation, and meteorological and com-
SEC/RET
facilities have had lo beadjusted to national budgets. Many airlines, therefore, have been forced lo develop air Installations at their own expense. Asabove, moreover, the recent dollar shortage has also, by preventing the purchase of desired new equipment from the US. to some extent limited the expansion ol airline operations
perations o/ Foreign Airlines in Latin America. The growing capability of Latin' American carriers to provide services throughout Latin America and to Europe and the US has created an increasinglysituation for foreign airlines operating to Latin America. In addition, thc postwarof Latin American operations by six European carriers has gradually dissipated thi- monopoly of foreign-Mag services enjoyed immediately after lhe war by thc US in thai area In spite o( these developments, the postwar Latin American operations of US scheduled airlines have expandedpartlyesult of the addition of new routes, but principally because of the greatly increased frequency and capacity of services offered. Moreover, despite the growth of Latin American-flag services, the scheduled mileage of US-flag airlines operating in Latin America9 was stilt abouLercent at theand International mileage of all Latin American-flag scheduled airlines combined 2. Governmentol Policy toward Civil Aviation.
With respect to the civil aviation policies of Lailn American countries, the principaltrends which affect US interests reflect the increased capabilities of Latin American air interests to provide adequate air transport services. The development of national-flag aviation has resultedrowing Latin Amei lean independence of foreign influence In aviation mattersesire to protectairlines from intensive foreignin international operations Inoperations, moreover, all but two of the Latin American countries which granted cabotage privileges to foreign airlines have withdrawn such rights, thus reservingair traffic to national interests.
Government Promotion ol Continued Many Latin American countries BR
promoting the development of adequate air services to all parts of their territories and in this respect are encouraging their domestic air carriers by means of air-mail contracts and other forms of direct or indirect subsidy. Modern airports and other operationalin many instances are being developed at government expense. Private flying is also promoted through government support of aero clubs. These programs are already being limited, however,rowing shortage of public funds in some Lalin Americanand by the Increasing cost of all phases of civil aviation. esult, these countries will probably be unable for some time to initiate over all development programs, andor improvement of facilities may beto the most essential projects. the announced plans of various Latin American airlines Indicate that there willlo be some expansion of both domestic and international olr routes and frequencies Latin American governments will continue to seek US advice and assistance In technical training of Latin American airline personnel until national capabilities have been further developed.
Protectionnternational Carriers. In addition to the foregoing positive support of both domestic and internationalumber of Latin American countries have adopted policies designed to protect theircarriers, operating internationally, from intensive foreign competition. Attempts have been made during negotiations for air transport agreements with other countries to neutralize the competitive advantage of heavily-subsidized foreign airlines bytheir traffic privileges in Latin America (sec below, "Policy Toward International.
Policy Toward International Arrangements.
Multilateral Air Transport Agreements. Having generally similar aviation interests, the Latin American countries represented at multilateral air transport conferences have voted practicallyloc Because they lack the financial and technical resources to meet intensive competitionimited amount of International air traffic, these countries have opposed multilateral agreements on in-
K
air traffic rights which included Fifth Freedom privileges, and have Insisted on retaining discretionary powers in such matters For example, this attitude on the part of Latin American countries was partially responsible for the failure7pecial International Civil Aviation Organization (ICAO) Commission convened tor the purpose of negotiating such an agreement Thereto be little likelihood, moreover, that this attitude willhange In the foreseeable future.
Bilateral Mr Transport Agreements. In contrast to their opposition to multilateral agreementsiberal type. Latin American countries have concluded forty-three bilateral air agreements which, for the most part,to the basic principles of the Bermuda pact. (Seehe substantialexpansion of both Latin American-Hag international operations and foreign-Magto Latin America necessitated theof thirty-five agreements Involving non-Latm American countries, principally the US and UK. The other eight agreementscivil atr relations within the Latinarea.
Two leading Latin American civil air powers. Mexico and Argentina, have consistentlyto protect their International carriers by pursuing policies designed to restrictoperations In their territories, either through limitation of flight frequenciesredetermined division of traffic. Mexico, whose international airlines are at present in the early stages of development, hasmaintained Its restrictive policy with the resulL that it has concluded only two bilateral air agreements. Argentina, on the other hand, with numerous foreign roules and plans for further expansion, has been lorced incases to accede to more liberal principles demanded by olher countries in order todesired foreign landing rights for its own International airline
In contrast to Argentina and Mexico, Brazil, whose principal international carrier is well able to compete with foreign airlines, has notestrictive air policy, but has signed eleven bilateral agreementsiberal type. While Colombiu and Venezuela, whose flag air-
BBi
lines operate less extensive international routes, have not yet attempted any major restriction of foreign airlines, there areihat they may wish to do so if theyconvinced that the ability of theirlo compete successfully on International air routes is threatened by strong foreignThe remaining Latin American countries are not yet conducting significant international air operations and therefore have had Utile reason thus far to adoptmeasures (or their national-flagThe already demonstratedof these countriesultilateralof Fifth Freedom privileges, however, Indicates the strong possibility that theirfinancial and lochnlcal weakness In civil aviation will cause them lo attempt someof foreign competition when' they areosition to Initiate their own international services. On thc other hand, these countries may eventually find it necessary to follow the example of Argentina in order to obtaindesired nghu In other countries for their own air carriers
The US and UK. the two principalof the Bermuda principles, have been particularly successful In promoting Bermuda-type air agree menu In Latin America. The US has concluded eleven such agreements throughout the area. Including all the larger countries except Mexico. Thc UK, for its pari, has negotiated six Bermuda-typein Latin America, In addition to aagreement signed with Argentina prior to the Bermuda pact.
fnfemotional Organizations. The Fifteen Latin American members of the International Civil Aviation Organization participate in its proceedings as actively as their financial and technical resources permit. Four of these members, however, were censured9 for failure to meel their financial obligations to the organization Financial difficulties have been largely responsible for failure of the other five Latin American countries to Join the organization.
Nine international airlines of seven Latin American countries are active members of the international carriers' organization, thcAir Transport Association.
ET
T
(2)
(3)
ti:
2i
(5)
11.
1
Total aircraft
US Manufacture: No. of aircraft Percent ofK Manufacture; No. ofercent ofi ii ifaco. ofercent ofther Manufacture:
of aircrafl
cut of toial..
c aircraft
ircraft. ..
giro: alrcafl
Kino ami tniklciilifit'il
Modem US aircraft**.
001
MB
ID
Included in Item Ii) Included in ItemIUlO
IS
Ttai.it B
COMPARATIVE WEEKLY SCHEDULED MILEAGE OK Al It
Latin American Airline*,
US Airline* in7
US Airlines, Total MO
Worldotal (excludingCOO
S EJTRKT
US.
WNERSHIP OF AIRLINES South America
iihceniAOc of ownanaKir I
National* Govt.
AcroiioMnONDA..
LAB
A.rovlw 3rt*tl
LAP
LATB..
PAB
rumiroASP..
u
It*'
cw
LAN
Lipa-Sw
fWi ilni
LANBA
APRYPESCA
L'luador:
ATKCA
trasandina
ii
LATN
ANDES.
Pauortl
TAN
CAUSA
Pl.UNA
Ventiutla:
AVENSA
TACA an VENEZUELA
LAV.
1
100
5
100
103
100
AS.
iiara
r.trirai held byASPnterestold in.
PAA
Govt, of bio Grand* do 8ul
' of Sao Paulo' holds
Govt ot eltj
100
2.8
ther.PAAor* if ii
held by AVIANCA held by AVIANCA Unknown
100
No iafomaUM oo percentage* rV-Tian.
b*lK>ed to hold controlling Soma
U8 tapilaPAA
100
AA LAV
TACA controlled by Waterman Suamihip Corp. at the US, "LAV
SE/RET
se^4et
WNERSHIP OP AIRLINES Middle Amttita
"
or oriNensiiir
Nationals | Govi
nut*
II11,
holly-owned subsidiary ol BOAC.
met** *
Coita Rica:
LAC5A
20
PAA
TACA de CR
m
US Gtir.cn
Sold by TACA Systemesidents o(. Cost* Rican owners may be backed by US capital.
"<J"
n B. 1
Arnvio-ital
54
PAA
* US Ciliscn
do America
Poo-miian
CD A
oa
PAA
El Salvador
Almost wholly owned by TACAo turn controlled by Waterman Steamship Corp. of Uie US
1 _
i.
(I)
A
by TACA Systemesidents ol
Honduran owners may be
Jamaica.
BCA
CIA
Mexico:
Aero naves
Aerovisa
ATS A
CM A
CoatreraS
OPA
Jalisco
LAMSA
y US capital.
by BOAC Irom Jamaican owners in
eitlten
" PAA
US CiUwo
Controlling Interest bcliered to be held by US QUicns
USCitlMOS -
United Air Lines and US% UAL; CommonAL,S Cttlsens.
Reforms
TAMSA
TAT
Aricorafca;
La
Panama:
COPA
Patda Rico:
Caribbean-Atlantic
Trinidad:
BUT A
40*
*
40
47
PAA
PAA
US Ciliiens
subsidiary of BOAC
E
APPENDIX A
ARGENTINA
Government Organization for Civil
Ministry ofRailroads
Inland River Shipping
Overseas
Roads
Commercial
Governmental Jurisdiction over the various phases of civil aviation in Argentina is divided between the Ministry of Transport and the Ministry of Air. Following the creation ot the Ministry of Transport inheof Commercial Aviation was separated from the Ministry of Air and transferred lo the new organization. With the exception of regulation of commercial aviation, however, all Argentine aviation activities fall under the jurisdiction of the Ministry of Air. Thc two Ministries have the following general
Ministry of Air
National Meteorological
Service Institute of Aeronautical
Medicine Airport Construction and
ir Traffic Control Accident Investigation (other than
Aircraft IndustryAir Force
When the Argentine airlines wereinhey were placed under the direction of thc Ministry of Transportof the Ministry of Air over thc changes which reduced its power and rivalry between thc two Ministries in the field of transportation have adversely affected thc Argentine Government's administration of aviation matters. Military officers hold the majority of key posts In both Ministries and
The new international airport a: Bzczia lias been placed under Uie Ministry of Transport.
thus exercise almost complete control over civil aviation policy.
Among the several temporary or permanent commissions which have been established to deal with civil aviation are: (I) an advisory council whose responsibility is to coordinate the activities of all government organizations on matters affecting international civilwith particular reference to Argentina's membership in the International CivilOrganizationnd to advise the Minister of Air thereon;emporary Air Transport Advisory Council which Is to study the position of commercial aviation in Argentina fn relation to thc over-all transport requirements of thc country.
7. Domestic Civil Aviation Policy.
Argentina's desire to bring its aviation up to the level of the most advanced air nations of the world hasationalistic air policy designed to promote Argentine civil aviation and toelf-sufficientcapable of serving lhe needs of both military and civil aviation in Argentina.
a. Civil Aviation Legislation.
The Basic Air Policy of the Argentinewas outlined in Decreefhich staled the following principles:
Domestic airline operations should be undertaken preferably by thedirectly and otherwise by mixed companies which include substantial government participation.
International aviation should beby bilateral reciprocity.
Infrastructure (airport* and all other ground facilities) should belongto the government
Eventually, all shareholders andof Argentine airlines should be native Argentines
111
ot this decree outlined details ot organization of thr mixed companies which operated Argentina's air services untilof all airlines Inell ahead of the generally anticipated schedule
Earlyommission composed of representatives of the various governmentconcerned was chargedraft Civil Aviation Code, as well as regulations to govern civil air affairs Until this project can be concluded and officially approved, however, aviation matters willlo be administered by directive and decree. Government aciion taken to datereclassification of Argentine airports to conform with ICAOew scale of landing charges, and issuance by decree of aircraftregulations.
b. Regulation ot Argentine Airlines. In accordance with the first item of the Basic Air Policy, four mixed airline companies were decreed earlygovernment-owned) operated onlyservices, while Aeroposta. ALFA, and ZONDA (eachercent government-owned) provided primarily domestic service.control over management andwas so rigid, however, that the private interests were unable to exercise effectively their prerogatives, with the result that these companies never actually operaied as mixed companies. On the pretext that this form of organization was uneconomic and had caused severe financial losses (coveredationalization of the mixed companies was decreed inllshares were paid ofl and operationaldesigned lo bring about theeconomics was announced InSee Sectionhere has been no foreign capital participation inairlines since the end of the war.
Non-scheduled operators are definitelyand permits are Issued only when the services to be performed ore ofature that they cannot be conducted by thccarriers
Direct government control over airlinehas effectively prevented competition within the country Prior to nationalizatinn
sj
and reorganization of the Argentine airline nelwurk, competition was avoided bythe. number of air transport companies and fixing the areas within which each was to operate Each of lhe three domestic airlines was assignedpecific region Although this policy avoided competition, It alsorealizationnified national air network Reorganization measures, however, have combined the three formeringle carrier providing Improved service.
e. Regulation of Foreign Airlines Argentina terminated all cabotage rights for foreign airlines7 The rights now enjoyed In Argentina by foreign airlines are determined on thr bails of formal bilateral air agreements The "regionalcabotage" policy of Argentina is discussed below innder the"lnlernatlonal Civil Aviation Policy."
d. Promotion of Other Civil Aviation
In compliance with the Basic Air Policy, all airports and air navigational facilities inhave become the properly of theand are controlled by the Ministry of Air. This also applies to meteorological stations and aerial cartograpMc offices.the Argentine Government's five-year planhe State has undertaken an extensive airport building and development program.
Aero club training and flying is facilitated by substantial government subsidy andaid The State, however, retains strict and complete control over these operations, which are designed to fit into the pattern of military training. All other aeronautical training is under direct military supervision.
While Argentine aviation policyencourages private investors toIn the alrcrafl manufacturing industry, virtually all of this function Is actuallyby the State Argentina's announced objective is toelf-sufficient aircraft manufacturing Industry1 It will be many years, however, before Argentina can approach this goal In the meantime, all transport aircraft must be purchased abroad
ET
SE
4
A lack ot modem machine tools, technical and scientific knowledge, and skilled labor has impeded Argentine aircraft manufacturing efforts to date The principal emphasis or the research and construction program has been placed on military aircraft development, which absorbs thc major portion of theumber of aviationfrom several European countries, forarc working almost exclusively onaircraft projects. Moreover, theGovernment has made poor use of the many skilled Italian workers who haveimmigrated.
While many Argentine Industrial plantsindirectly to aircraft manufacture, only ihree or four are engaged In the final production of aircraft. Of these, only two are private organizations and their limited output is devoted to small aircraft These concerns are: Petrol, which hatumber of ISO-hp tandem trainers, and IMPA (Industiia Mctalurgica Plasllcawhich Is al present doing assembly work and manufacture of smallwin-engine five-passenger transport ll reportedly under construction by the latter. Argentina's productive capacity, therefore, is centeredentirely in the projects of the Aerotech-nical Institute at Cordoba. This government-operated enterprise was originally established principally for research and development, but the lack of government encouragement and assistance to private concerns has resulted in Cordoba's assumption of virtually the entire construction burden. Its projects are nowexclusively military, although its future program includes constructionwin-engine ten-passenger transport and afour-engine transport Argentina,does not yet possess adequate equipment to make thc necessary high-stress materia) and structural tests for the production ofaircraft comparable to those now being produced by the US and UK. Althoughhas been represented by the Argentine Government as the nucleusreat national atrcrait industry, it is possible that itsmission lor some time to rome willbe to develop the technical knowledge
required In Argentina for the effectiveof foreign aircraft.
3. International Civil Aviation Policy.
a. Air Tragic Policy and Air Agreements. In uidci to minimize foreign competition with its Intel national carrier, PAMA,has not only consistently resistedFifth Freedom traffic rights, but has also attempted to protect FAMA by seeking alr agreements on the basisredetermined division of traffic Some Argentinehave gained advantages for Its carrier in this respect, but, In general. Argentina has been forced lo accede to more liberalgrunting full traffic rights In order to secure satisfactory reciprocal rights.
Under Ils "regional (or international)theory (decreedpronounced and promotedempled to create and become the leaderegional bloc including Chile,Paraguay, Peru, and Bolivia, in which all mall and passenger traffic between points within the region would be reserved to airlines of the countries comprising the bloc.Argentine efforts lo create such abloc within the neighboring area were effectively frustrated by tbe defection of Chile, whichull Five Freedomswith the US innd failed to suppori Argentine attempts to securerecognition of Lhe regional bloc.itself was forced to modify its position in negotiations with thc US and alsoifth Freedom agreement inhis agreement, however, has never been fully effectiveesult of Argentine intransigence wiih respect to conclusion of the requisite route annex to the agreement. In view ofresent requirement for US landing rights, Argentine obstructionism may soon be withdrawn
Argentina has concluded restrictive typeagreements with the UK. Portugal and Spain Although thewiih France and Italy may also beof restrictive interpretation, otheragreements, including those with the Netherlands and the Scandinavian countries, areiberal nature generally similar to that
with the US (Sec attached chart on Latin American bilateral air agreements.)
b. International Organisations.
Argentina was thc only Latin American country not invited to4 Chicagoat which the Convention establishing ICAO was adopted. Since It adhered to the Conventionowever,has participated actively in ICAO.international airline, FAMA, is an active member ol the international AirAssociation (IATA).
e. US Technical Assistance.
Because of its Axis-oriented policy during World War II, Argentina did not benefit from the US-sponsored Inter-American aviation Iraining and technical assistance programs. Moreover, it has not taken advantage of the opportunity to request US air or technical missions during the postwar period.
A. Airlines.
a. Argentine Scheduled Airlines.
he airlines of Argentina were wholly privately owned. The Argentine Air Policy Lawowever, madeparticipation in the airlines compulsory. Under this and subsequent decrees, threecarriers and one international airline were established. Until nationalization of these airlines inhe government heldercent of the capital of thc domestic mixed companies, Aeroposta, ALFA, and ZONDA, andercent of the capital of FAMA. the international "chosenThc Dodero shipping andarge part of the private stock of these companies.
Nationalization of the mixed companies,sale or all private shares to thewas decreed instensibly because the mixed-company form ofwas uneconomic and resulted in severe financial losses which the state had to assume.
In order further to reduce administrative costs and improve services, the Argentine Government in9 initiated an extensive reorganization of the nationalized airlines All four carriers were merged into
a single state entity known as Aerolineas Ar-gentinas. FAMA continues to be tlicfor transoceanic and major international operations, while domestic and regionalservices arc conducted under the name of Aeroposta. ALFA and ZONDA have ceased to exist. Until the necessary changes in power plants, panel instrumentation, and radio equipment can be effected to make the equipment of the three former airlinesoperations will continue very much as in the past although functioninga single administration and management.
The military air transport line, LADE, has been maintained for pioneering new routes, for relieving the load on internal routes at peak traltic periods, and for operation of "national interest" services of little commercial interest to thc regular airlines.
Dollar exchange difficulties have seriously hampered Argentine efforts to acquire and maintain new US equipment. Utilization of KAMA'Sircraft has been severelyby lack of spare parts. An Argentine order for fiveircraft, moreover, has been subject to extended negotiations and has not yet been fulfilled because of lack of dollar exchange.
(Empresa AerocomercialAeroposta).
Routes: Aeroposta serves the southernof Argentina, below an arbitrary linefrom Buenos Airesenerally southwest direction to the ChileanThis area Includes thc agricultural and sheep-raising areas, as well as the Argentine lake region.
Equipment:
6 DC-3
7
5
Ownership: Government.ixed company, re-organized7 from an earlier privately-owned Aeroposta.
(Empresa Aerocomercial delALFA).
Routes: ALFA serves the northeastern part of Argentina, with Buenos Aires as theterminus. International routes areto Asuncion and Montevideo.
nE T
ET
SE^t
OF ARGENTINA
Route Miles'
Miles per Week
Aircraft (Various Types)
Govt.
Govt.
Govt.
Govt.
Govt.
The term "Unduplicated" refers only to those rovite miles which are not duplicated by an individual airline.
25
C-76
2 Stinsonrummanoorduynhort Sandringham
Ownership: Government.ixed company, reorganized6 from the"Corporacion."
ONDA {Empresa Aerocomercial del Estado ZONDA).
Routes. ZONDA serves the denselyagricultural region of central Argentina with three routes, and the sparsely populated northwestern region with one route. ZONDA has taken over the cabotage services formerly provided by the US airline PANAGRA, on two routes;res-Cordoba-Mendoza; andres-Cordoba-Tucuman-Salta.
An international route is also operated, as an extension of the Buenos Aircs-Mcndoza route, lo Santiago. Chile. With this route, ZONDA supplements FAMA's Buenos Aires. Santiago nonstop service by providingservice to thc intermediate cities.
Equipment.
vro Anson
Ownership: Government.ixed company set up in
ADE (Ltneas Aereas del Estado) Routes: LADE was established to operate feeder routes throughout Argentina,the trunk routes of Aeroposta. ALFA, and ZONDA Operations are atconfined to the central part of the country, which includes the entire pampas agricultural region, except for one route extending Into thc foothills of the Andes at Bariloche and San Juan
Equipment: {Not Included in the summary table of Latin American airline equipment, since LADE is operated by the Argentine Air Force and uses some Air Force transport planes.)
1 DC-3
Lockheed PlectraU
Ownership: Government Preceded byairline of the same name, also operated by the Air Force The routes of the old LADE have been taken over by other airlines, and the present LADE has established new routes.
AMA (Empresa Aerocomercial del ES' tado FAMA).
Routes As Argentina's designated "chosenAMA has the right to operate
SEC WET
international routes It operates all the long distance international services, butroutes to neighboring countries have been allocated to the "domestic" airlines.
PAMA's intercontinental routes connect Buenos Aires with the capitals of Spain, Italy. Fiance, and the UK. These connections are made over two routes, bothegment in common as far as Madrid (Buenos Aires-Rio de Janelro-Natal-Dakar-Villat Madrid the routes branch, oneto Paris and London, the other to Rome. It is planned to extend thc latter route to the Near East. FAMA has anpending beloro the US Civil Aeronautics BoardouLc from Buenos Aires to New York via Sao Paulo or Rio de Janeiro. Belem. Port of Spain, and Habana. Continental routes operated by FAMA are: Buenos Aires-Santiago, Chile, and Buenos Aires-Porto Alegre-Sao Paulo-Rio de Janeiro.
Equipment:
6C-4
5 Vickersvroancastrian
Ownership: Government.ixed company set up in FAMA is
a member of the international Air Transport Association.
b. foreign Scheduled Airlines.
Argentina is served by two US companies. Pan American World Airways (via the east coast of South America) and PANAGRA (via the westhird US airline. BranifT International Airways, hopes to extend its Latin American service to Buenos Aires, via Asuncion, in the nearheother foreign operators also serve
European:
BOAC (British Overseas Airways(via both coasts) Air France
KLM (Koyal Dutch Airlines)
SAS (Scandinavian Airways System)
ALITALIA (Italy)
IBERIA (Spain)
Lailn America: Cruzeiro do Sul (Brazil) Panair do Brosil CAUSA (Uruguay) LAN (Chile)
'ervice over this route began during
s
APPENDIX B
BOLIVIA
Government Organization for Civil
Civil aviation in Bolivia la the responsibilityirector General ol Civil and Commercial Aeronautics acting under Lhe Jurisdiction ol the Minister of Public Works andA Special Aeronautics Commission, headed by the Foreign Minister and including other present and past members of thewas appointed Ino study the aviation scene in Bolivia. Its report was submitted Inut has not yel been approved by the Cabinet With respect to administration of Bolivian civil aviation, the report recommends creationovernment-controlled airport administration authority, which would gradually assume control of all Bolivian airports, and establishment of acouncil of aviation similar to the US Civil Aeronautics Board.
2. Domestic Civil Aviation Polky.
The report of Lhe Special Aeronauticsrepresents the thinking of officials whose opinions carry considerable weight with respect to air matters and henceairly accurate guide lo Bolivian air policy. Into its recommendations concerningthc Commission alsothat the surplus transport aircraft of the military Air Transport Squadronhich has flown some routes commercially, should be transferred either to the principal established airline. Uoyd Aero Bolivianorew government-controlled commercial company The Commissionhowever, thai it preferred creationew Bolivian airline, which wouldlt over the same routes The services now operated within the country by the US carrier. PAN AGRA, would not beaffected. The report commentsthat cabotage, in principle, should be
S K
reserved for domestic companies, but thatmay make it desirable lo depart from this principle: therefore no rigidlypolicy should be adopted. Subsi-dlzalion is endorsed as an essential means of shaping the development of the industry and of giving it the financial support necessary loeasonable profit Competition. Uie report points out. is desirable but must be carefully controlled in the interest of both the public and the aviation industry,
AvtatUm Legislation.
The administration and regulation ofin Bolivia was organized under the basic law ofhich transferredover Bolivian civil aviation from military to civil authorities, and established thcGeneral of Civil and CommercialA Decree ol8upreme ResuluUon8 supplemented this law. New aviation regulations prepared by the Directorate have not yet been approved. Government relations with the domestic and international airlines are established on abasis.
of Bolivian Airlines.
Bolivian policy favors governmentin airline companies, as reflected by the above-mentioned report and by thepresent ownership5 perceniin LAB. Subsidization of airlines (LAB andir facilities and aero clubs has been practiced In the past and appears to be an accepted policy. Nationalization of Bolivian airlines Is recognized as being beyond Bolivia's financial means, however, andwould not be attempted except In an emergency. Controlled competition is favored at present, although LABonopoly of domestic air services (PANAGRA cabotage services excepted) until flight authorization was granted the Bolivian Developmentin7
SECPRET
Regulation o| Foreign Airlines.
Bolivia and Ecuador are the only Latin American countries which still permit foreign airlines io operate cabotage services. The US airline, PANAGRA, serves some eight towns within Bolivia in addition lo its International route through Bolivia, which slops only at La Pax. This privilege ls interpreted by Boliviaemporary conceulon. until such time as the domestic airlines areosition totheir services sufficiently to replace the foreign cabotage services
d Promotion of Other Ctril Amotion Activity.
By the samehich created the Directorate General of Civil and Commercial Aviation, thc executive branch of the Bolivian Government was authori7ed to proceed with the expropriation of air strips built within the country by private enterprise. The expropriated fields belong to thc State, which has authorized LAB and PANAGRA to build facilities and administer the airportscontract, including some subsidy.to LAB's present contract with theits twenty airfields will pass to the operational control of the Stateith no compensation for themade. PANAORA will be compensated for thc investments it has made, whether its facilities are taken over before or uponof its present contract (which runs.
There is no airframe or engine industry in Bolivia.
3. Internolional Civil Aviation Policy.
a. Air Traffic Policy and Air Agreements.
Because of Bolivia's landlocked position, civil aviation is of key importance to theBolivian policy with respect toaviation has favored almost complete freedom of the air. The two bilateral air agreements concluded by Bolivia have been with Chile and the US and are both Fifth Freedom agreements.
o. International Organisations. Boliviaember of the International Civil Aviation Organisationut has lacked the funds toelegation to most ICAO meetings. Furtliermoie. it was among
four Latin American members whose voting power was suspended by9 ICAOfor failure to meet their financial
c. US TechnicalAA technical assistance mission has been assigned lo Bolivia since early
4. Airlines.
Domestic services in Bolivia are provided by LAB, PANAGRA, ETA, and the Air Transport Company of the Bolivian Development Corpo ration.
LAB was organized5 and operated under German influencehen thc Bolivian Government acquiredercent of the stock. The company was operated under contractG by PANAGRA, which put LAB operations on an efficient, safe basis Upon termination Of this contract, thcwas partially reorganized andontrolling Interest of the stock.
ETA has been ambitious to use its eight DC'3's in expanded commercial operations within Bolivia. The Bolivian Development Corporation service, which uses6 cargo planes,inor operation almost entirely limited to the La Paz-Rcyes route. Ifthc Special Aeronautics Commission's recommendation that the equipment of both ETA and the Development Corporation be transferred to LAB orew commercial company controlled by the government will reduce the possibility of competition inair transport between the Defense Ministry (which controls ETA) and theof Public Works (which controls LAB and the aviation activities of thc Developmentstablishmentewair transport company, which the Commission considered preferable, would create indirect and controlled competition for LAB. with both carriers under the jurisdiction of the same government regulatory bodies.
a. Bolivian Scheduled Airlines. (l) LAB (Lloyd AcreoBoliviano)
Scheduled
RouteWeek
EM RET
LAB operates only within Bolivia, its routes extending the length ot Bolivia from north to south, nnd from la Paz in the west to Santa Cm: in the east Thepart of LAB's network serves principally the populous "altiplano" region, the eastern part of its network serves the lowlands from near thc Brazilian border in the north to thc Argentine border in thc south.
Equipment:
16
(During the recent revolt inas destroyed and two others were flown to Argentina by the rebels. As of9 LAB hadircraftor service) Ownership:
percent
percent
USpercent
ANAGRA.
In addition to its international routes, PANAGKA serves the eastern part of Bolivia over two cabotage routes extending to the Brazilian border and thence lo Campo Grande, Brazil
5. Foreign Scheduled Airlines.
The international routes of PANAORABolivia with Peru. Chile. Argentina, and Brazil
Earlyecond US airline. Braniff Aiiwuys, Instituted Its west coast servicePaz) and in Marchon-stop Lima-Rio de Janeiro service overflying Bolivia. Panair do Brasil. which plans toeciprocal Rio de Janeiro-Lima service overflying Bolivia, has not yet begun operations over this route.
RAZIL
Government Organizotion for Civil
In order to fulfill the provisions of theAir Code, an Air Ministry was created on1 to direct all aviation activity in Brazil, both civil and military. Control over civil air affairs was vested in variousof the Air Ministry having thegeneral functions:
Directory of Civilfor all legal, technical, andproblems except the operational control of air traffic; inspects aviation clubs, air schools and ah transport companies, and issues certificates and licenses on thc basis of directives from the Directory of Supply
Directory offoraircraft Thisilitary office.
Directory of Airfor organization and operation of airports,traffic control, and communication and meteorological services This isilitary organization.
Airpolicy and planning agency, which functions only through the Minister of Alt'.
Five Air Zoneofficers primarily concerned with military matters, but exercising authority over civil air affairs in their territoriesannerto that of US Civil Aeronauticsregional administrators
Inn Air Route Licensing Board was created by the Directory of Civilfor certification of domestic airline routes. This body, similar to the US Civil Aeronautics Board, deals with route requests, regulates flight frequencies and traffic itops. and handles "all other questions" of Brazilian air transport
International air policy is determinedpecial committee (the CBRNAIt. which is
dominated by the Air Ministty. although there is token representation of the Foreign Office.
The chart on following page shows thebetween the various functional units of the Rrasiltan Air Ministry
Through its Air Ministry, Brazil has at present probably the most extensive aviation organization of any country in Latin America The Air Ministry's primarily militarywith military men holding the majority of key posLs, Is attributable In part to its creation on the eve of war and to the strategic nature of the duties which were pressed upon it during the following four years
ecree ofresident Dutra set forth the objectives andof the Ministry:
to cooperate with the other agencies of the government in order to guarantee legal order and to assure the national defense;
to organize, equip and instruct the Brazilian Air Force.
to regulate, develop and coordinate civil and commercial aviation;
lo coordinate and stimulate theindustries of the country.
2. Domestic Civil Avtotion Policy.
a. Civil Aviation Legislation
Brazilian air policy finds its authority in the previously mentioned laws which created the Air Ministry and outlined its role Theseecree Lawhe Brazilian Air Code, promulgated under powers delegated to the President of the Republic byf theecree Law1 ofhich created the Air Ministry to direct ah aviation activity, both civil and military;LawU ofhich further defined the purposes and organization of the Air Ministry. Other decrees and orders
blew 10
3U
AIR MINISTRY
(AIR MINISTER)
of Civil Aeronautics
of Supply
of Air Routes
5 Zone Command Officers
Air Route Licensing Board
Division
Traffic Division
Operations Division
Private Flying Development Div.
have been issued from time to timethe foregoing legislation.
fi. Regulation of Brazilian Airlines Brazilian national policy encourages the private ownership of airlines and the Brazilian Government has no financial interest in any airline The State of Rio Grande do1 percent interest ln VARIG. and the State ol Sao5 percent share in VASP II is Brazilian policy, moreover, to assure the control of domestic airenterprises by nationals of Itnir.il
Subsidies are granted to airlines by the Brazilian Government solely for theand operation of unprofitable routes of national interest. Past recipients of this aid have been Cruzeiro, Panair do Brasil, VARIG. and NAB Sincehe Directory ol Civil Aeronautics has taken firmer action to control competition and prevent aof the severe three-year rate war which resulted from thc mushrooming of many small air transport companies after thc war (See
ORE
below, Sectionrazilian Scheduled
c. Regulation of Foreign Airlines.
Brazil reserves cabotage traffic for itsairlines. Privileges for foreign carriers, including thc carriage of International traffic, are negotiated through formal bilateral air agreements, although directcontracts are occasionally resorted to for the use of air facilities and similar privileges.
For the most part, Brazil has pursued apolicy with respect to foreign non-scheduled operators, principally because of its desire to assure maximum utilization ofscheduled airline capacity. Brazil has been willing in principle to grant permission for infrequent US non-scheduled commercial flights between the US and Brazil On the other hand. It has generally denied flight clearance for US non-scheduled carriers oper atmg between Brar.ilhird country, and has resisted granting even technical stop on Brazilian territory for flights
ET
SEC
originating nor terminating ln Brazil. Recently, however. Traruoccan Air Lines of the US secured permission to fly displaced persons from Europe to Recife and Natal under contract with IRO. (See below.. Foreign Non-Scheduled Operations.)
d Promotion of Other Civil Aviation
With respect to civil aviation, the Brazilian Government's over-all economy program has cut most heavily into appropriations fordevelopment The bulk of construction funds now being made available is devoted principally to maintenance and improvement of military airfields Therefore, the initiationarge-scale civil airport developmentsuch as Argentina has undertaken seems rather unlikely in thc near future. Even thc excel lent wartime facilities in Brazil which tne Air Ministry has taken over from the US have been poorly maintained. Brazil isitself to "only the indispensable" inexisting facilities
Aero club training has been subsidized fairly generously to encourage private flying and thus to buildeserve of pilots, as well as an air-mirtded public. The recent economy program, however, haseduction in the subsidies lo tltese clubs, and. at the sameelaxation of their ties to the
A government-promoted aeronauticalschool, the first of its kind in Brazil, has been established, advised, and slatted by US nationals Air Force training schools, meanwhile, continue their extensive programs.
All manufacture of aircraft in Brazil ceased by thc endntil lhat time, lhehadewmall government factory at the Galeao Airport In Rio de Janeiro, whichtrainers from parts shipped from thehe government-owned and operated Fabiica de Molores near Rio de Janeiro, whichew aircraft engines with parts from the US;rivately owned,plant al Lagoa Santos near Belo Honzonte, whichontract toewrainers but has7 because of extended Two piivalely owned enterprises.
moteover, turned outew sport planes. These concerns were the Cla. Aeronautica Paullsla, which produced aboutwo-place "Paullstinha" aircraftnd the Cla. Nacional de Navegacao Aerea. which turned outiper Cub types.
3. oliivil Aviation Policy.
a. Air Traffic Policy and Atr Agreements.
Brazil has supported liberal air trafficin most of ils formal negotiationsin principle, it favors the multilateral approach (or the negotiation of commercial traffic rights, reserving lo bilateral negotiations the airline routes to be operated Brazilian officials, moreover, have pointed out that their country's support for the Mexican proposal in favorestrictive multilateral air agreement at7 Geneva meeting of the International Civil Aviation Organization (ICAO) did not represent actual Brazilian policy.
Brazil bases its bilateral negotiations upon ihe Bermuda type agreement concluded with the UShich was the first agreement of this type concluded by thc USatin American country Since that time. Brazil has signed similarwith the UK. Portugal. France, thc Netherlands. Norway, Sweden, Denmark, Switzerland. Argentina, Chile, and Lebanon and has nearly completed negotiations with SpainParts of the Argentinehave been criticized, particularly in Brazil, us being susceptible of restrictivewith lhe result that thehas not yel been ratified Otherwise. Brazil has adhered closely to Bermuda
nternational Organizations.
Brazil has been an active member ot ICAO since Its inception4 and has supported the organization as fully as Brazilian finances have permitted I'anair do Brosil. Cruzeiro, and VARIG are lhe country's airline members
Tlic Brazil-Spain Air Transport Agreement, signedontains restrictiveand principle! not found In olher Brazilian nit agrennet:is. It is considered aslorrr in Branlian aviation poller In an effort fur-iriei lo urmeetinic!national air
E
the International Air Transport-Association tIATA).
c. US Technical Assistance.
Brazil probably benefited more than any other Latin American country from the US Inter-American Aviation Training Program, the Airport Development Program, and other wartime measures of hemisphere cooperation. Many pilots, technicians, and administrative personnel were trained in the UString of large, modern air bases was built around Brazil's "bulge" under US sponsorship.
US technical cooperation with Brazil in air affairs is accomplished at present principally through private channels. The Aeronautical Institute al San Jose do Campo near Sao Paulo, for instance, hasumber of US aviation technicians and professors under private contract in order tu buildative corps of aeronautical engineers.
4. Airlines.
a. Brazilian Scheduled Airlines.
Brazil's vast area and Its lack of adequate surface transport has made Lhe country afield lor the development of an extensive and intensive air transport network. Aof circumstances, including thc air-mind-edness of recent Brazilian governments, their relatively laissez-faire attitude toward air transport, thc availability of cheap surplus aircraft in the US. and the technical and financial assistance furnished by the USave promoLed the great poslwarin Brazilian scheduled and non-scheduled air services.onsequence, however, an excessive number of small companies came into being,ondition of serious competitive imbalance and leadingiolent rate war which also threatened the excellent safety record of Brazilian airlines. Thecondition of several companies finallyso acute that the government tookto control the competition by stricterof existing regulations andof new ones. These steps. Including more stringent regulations on capitalization, have forcedozen marginal operators to suspend operations temporarily orleaving nine scheduled Brazilian air-
lines, eight non-scheduled, and about ten charter or taxi services still operating
Government operating permits were69 from ten Brazilianwhich had either never commenced operations or had ceased operating for more than one year. Enforcement of minimumfor maintenance and facilities has threatened to force thc remaining marginal operators out of business. In addition, one of the oldest scheduled operators in Brazil. NAB,ecipient of government subsidy for up toercent of its services, alsoinsolvent during the latter part
The six major scheduled airlines have also experienced severe economic difficulties in the postwar period, with thc result that Panalr do Brasiltrong economy program. Cruzeiro was close to bankruptcy, and Aero-vias Brasil suffered serious financial losses. VASP. VARIG, and REAL, however, with their more efficient and conservative managements, were able to minimize their financial losses. Despite the foregoing difficulties, these sixmanaged to retain their tight hold on the Brazilian air traffic market, as indicated in the following table showing the percentage of Brazil's total passenger and freight air mileage being flown by each airline
Percentage of rota? Percentage of Total
PassengerKilomelen
airlines
44
oulstanding recent development in Brazilian aviation was the purchase of Aero-vias Brasil by VASPnd its resale0 to private Brazilian interests. Thisplacedery wealthyowned and controlled almost wholly by the city and State of Sao Paulo, temporarily in control of the third ranking BrazilianIn terms of passenger-kilometers flownhc present owners of Aero-ii;is Unisi:ebusaiy i'JSJ
E#lt ET
at double the price paid byear earlier. Details of the transactions arc rather obscure but reportedly involve the political mancuver-ings of Adhemar de Barros, Governor of Sao Paulo, who is seeking the presidency of Brazil.
An important factor in the Brazilian air transport picture is the air mall and military transport service operated by thc Brazilian Air Forcehis service, the Correlo Aereo Nacional (CAN) isilitary airline, operated ostensibly with the aim of training FAB pilots. Civilian passengers have been frequently carried by CAN, however, with the result ihat it has occasionally competed with lhe scheduled airlines, especially with Panair do Brasil on its service to Asuncion, Paraguay. CAN's operations do notany great threat to thc civil airlinesthe latter and the democratic Brazilian government keep CAN in line. CAN was founded as Correio Aereo Militar by General Eduardo Gomezor the operation of
air mail routes within Brazil and to Paraguay which were inoperative at the lime, owing. CAN's proponents claimed, to the lack ofof Brazilian private capital.
AN flew an average0 miles per weekoute network0 miles. Aircraft for these operations were drawn from two air transport groups of the FAB Transport Command whose equipment includesss.
eroGeral (Aero Gerai, Ltda.)
Routes: Aero Gerai operates along the coast of Brazil between Santos and Natal via Rio de Janeiro. Vitoria, Belmonte. Salvador, Ara-caju, Penedo. Maceio, Recife, and Cabcdclo.
Equipment:
BY-5
ercent private Brazilian. Aero Gerai was established in the summer
OF BRAZIL
Route Ml lea*
Miles per Week
of Aircraft (Various Types
Gerai
Private
Brasil
{
Private.
LAP
5 *
% Private
de Brasil
{
.
VARIG
Cruzeiro
SAVAG
VASP
0
24
2
%%%% Private
The term "Unduplicated" refers only to those route milesnot duplicated by an
KT
Aerovias lirasil {Empresa de Trans paries Aerovios BrasU.outes.
Domestic: Aerovios Brasl) serves lhe eastern part of Brazilore extensive network in that area than any other Braziliani system Is composed of three main route groups: (a) routes along the Atlantic Coast from Porto Alegre as far north as Belcm; (b) interior routes straight north from Sao Paulo to Bclcm. andoute extending north from Rio de Janeiro through Belo Horizonte to lapa, where it branches oft into two routes, one to Parnaiba and tbe other to Porlaleza.
International: Aerovias Brasil's onlyroute at present Is to the US. via Caracas and Ciudad TruJlUo to Miami, Florida.
Equipment;C-3
Ownership:
ercent privateercent US (TWA)
Aerovias was organized2 as aof the extensive TACA Airways System (sec Panama, SectionACA's holdings were bought by Brazilians when the company was reorganizedASP acquired anercentin Aerovias BrasU, but then resold this share early0 to private Brazilian
{Linha.
Route* LATB operates between Rio de Janeiro and Sao Paulo, and from Rkj de Janeiro to Recife along the Brazilian coast.
Equipment:
5 DC-3
1vro Anson Ownership: Believed toercent prl-valr Brazilian. LATB was organized4
fLtnhas Aereas Paulutas.LAP operates between Rio deand Sao Paulo, and along the coast.Orandc
Equipment:
4 DC-3
1 Lockheed Hudson
Ownership: Believed toercentBrazilian. LAP was organizedAB {Panair dooutes-Domestic: The four main groups ofroutes operated by PAB are: (a) Ihecoastal route from Porto Alegre to Belcm through most of the larger coastal cities; (b) thc Amazon route extending from Bclem the full length of the river lo Iqultosubsidiary route branching oil at Manaus to Porto Velho;oute from Rio de Janeiro north through Belo Horizonte to Belem; and (d) the routes westward from Rk> de Janeiro to Campo Grande, Corumba and Cutaba. and from Rio de Janeiro through Sao Paulo, Curi-tiba and Iguassu Falls to Asuncion PAB's remaining domestic routes serve the regions near Sao Paulo. Rio deand Belo Horizonte.
International: Within South America. PAB operates international routes to Iquitos. Peru, and to Asuncion. Paraguay, both mentioned above, as wellhird route to Montevideo, Uruguay, and Buenos Aires. Argentina.South America, PABoutein Buenos Aires with stops atRio de Janeiro, Natal, Dakar, andFrom Lisbon, one branch of this route extends to London, via Paris, another tovia Madrid and Rome,hird through Madrid to Zurich andABis pending before the US CivilBoardoute to Miami. Equipment:
5 Lockheed Constellationwnership
ercent private Brazilianercent US (PAA) PAB hasan American Airways (PAA) subsidiary0 (one year aflcr it was founded) PAA held all shareshen it reduced its interest toercent.he present stock ownership ratio was
established.
EAL: (Transports Aereos.
Routes: REAL operates throughout the Stale of Sao Paulo and extends into the neighboring Slates ol Mlnas Oerais, Parana. Rio Grande do Sul and lhe Federal District.
Kf RET
SEt^tsT
also connects Sao I'aulo wtth Rio deand with many ol the southern cities as far down as Porto Alegre
Equipment:
C 3
2 Lockheedristol Wayfarer
ercent private Brazilian. REAL was organised
IS A. Ernpresa de VtacaoGrandense).
Routes: VARIG operates extensive routes to all parts of the State of Rio Grande do Sul. connects Porto Alegre with Rio de Janeiro, via Florianopolis, Curillba and Sao Paulo, and connects Porto Alegre with Montevideo over an international route.
Equipment:
C 3
7 Lockheed6
23
1 Noorduyn Norseman
ercent Brazilian. The State of Rio Grande doelieved to hold aboutercent of the capital stock.inARIG is Brazil's oldestorganized airline
{Scrvxcot Aereos CruzeiroLtda.).
Routes: Cruzeiro's domestic networkalong the Brazilian coast from Belem to Porto Alegre Fromoute extends up the Amazon to Manaus. From Rio deoute extends westward through Sao Paulo to Corumba on the Bolivian border. Connections for points in Bolivia are made on this route with the US carrier, PANAGRA, at Campo Grande From Corumba, Cruzeiro's route continues northward to Culaba, Porto Velho. and then to Xapuri, Acre Territory. Cruzeiro also operates an International route from Rio de Janeiro to Buenos Aires, and another, in conjunction with LAV, theairline, from Rio dc Janeiro to Caracas. Change of aircraft on the latter route ls made
at Boa Vista. Brazil, near thc Venezuelan border.'
Equipment.
C-4
2
ercent private Brazilian. Organized by German intereststook Its present name when all German influence was eliminated
(Sociedade AnonimaGaucha).
Routes SAVAG connects Porto Alegre,of thc State Ot Hto Grande do Sul, with three cities in the southern part of the State: Bagc. Pelotas, and Rio Grande. (These cities are also served byquipment:
2 Lockheed Lodestar (One or twolrcroft have been lost recently In crashes.)
ercent private Brazilian. SAVAG was organized
{Viacao Aerea Sao Paula,VASP operates domestic routes only.
connecting the City of Sao Pauloio dcoiania, capital of the State of Goiax;he southern andportions of the State of Sao Paulo. Equipment:
U-52
ercent Brazilian. The State of Sao Paulo, the City of Sao Paulo, and the Rank of the State of Sao Paulo together own5 percent controlling Interest in VASP.
b. Foreign Scheduled Airlines
Three US airlines serve Brazil on regular international schedules: Pan American World Airways, from the US to Belem. Rio deSao Paulo, and Porto Alegre (thence to Montevideo and Buenosraniff In-
' Crucli wasoreign Ali Carnnby the US CAB onebruary IftUIt to operate service to Washington and New YorkInicimediate poinu In Trinidad, Puerto Rico and ihr tiominican Republic Thla service had nut commenced by
T
France Alitalia (Italy)
BOAC (BritishAirways
KLM (Royal Dutch Airlines)
SAS (Scandinavian Airway System)
Iberia (Spain)
and Rio de
and Rio de Janeiro
Rio de Janeiro and Sao Paulo
and Rk) de
Janeiroand Rio de
Janeiro
addition, the Argentine-flag carrier FAMA, stops ut Rio de Janeiro and Natal en route to Europe, and the Uruguayan airline,erates between Montevideo and Porto Alegre.
c. Portlan Son Scheduled Operations.
Transocean Air Lines of the US hasBrazilian permission to fly displaced persons under contract with the International Refugee Organization (IRO) from Europe as far as Recife and Natal, where passengers are transferred lo Cruzeiro da Sul. (The latter has been acting for some time asgent inransocean expects to make about fifty such trips before this agreement is terminated upon expiration of IRO ln
HILE
Govornmont Organization for Civil
Civil aviation In Chile is the responsibilityirectorate General of Aeronautics (DGA) acting under the Jurisdiction of the Minister of National Defense ivil Aeronautics Boardatterned after that of the US, was created during IMC Itomposedi-iccEor of Aeronautics, who is also chairman of Hieepresentative ol tlie Foreigna representative of the National Council of Communications (in the Ministry of Public Works andnd twoappointed by thc President of Chile, in addition, theieecretary General of the CAB. who is also chief of the Division of Law and Air Transport in the DGA. The National Council of Communications advises theon domestic aviation policy through on Air Transport Committee and on Interna-
tional aviation policy through an AirCommittee Chilean Air Force control of the DGA and of thc national airline, LAN (Una Aereas somewhat tempered by civilian domination of the CAB and the committee of the Communications Council Nevertheless, conflicts of opinion between civil anl military authorities have seriouslythe progress of civil aviation in Chile during the past few years The military, for example, has succeeded in holding upwhich would provide the CAB withand with funds to execute lis functions, including Chilean representation incivil aviation organizations. Chile's air communications system and ils airports are operated and controlled by the air force within lhc DGA The relationship between theagencies concerned with civilis indicated in the following chart;
Ministry of Public Works and Communications
Council of Communication
Air Force
General of Aeronautics
Air Transport Commitlee
Air Navigation Committee
Aviation
Safety
Tourist Aviation
Law and Air Transport
7
SEfcfRET
Domestic Civil Aviation Policy.
a. Cwit Aviation Legislation.
The organic law oi the Chilean Air Forceirectorate General of Aeronautics to control commercial and private flying and to enforce rules and regulations of aerial
Thc Chilean Civil Aeronautics Board was created by Decree No.firect dependency of the Ministry ofDefense. However, additionalIncreasing its autonomy and providing funds for its work has been held upA Civil Aeronautics Code for Chile was approved by the Chamber of Deputiesut has not yet been acted upon by thc Senate.ecree publishedegulations were establishedthc granting of concessions andby the CAB to commercial airlines.
o licgulation of Chilean Airlines It is Chilean policy to maintain aand financed airline as the sole scheduled Chilean operator for routes within Chde and to other countries. Though an in-'Icrendent entity, the national airline, LAN, is owned and subsidized by the government and effectively controlled by the air force, which provides most ot the airline's pilots and key officials, and which dominates the government regulatory body, the DGA.
Thc establishment of additional Chilean airlines must be approved by both the CAB and LAN. Direct competition with LAN is not permitted, although two small companies have recently been authorized to establish scheduled services supplementing LANCharter and taxi services are alsoby one of these companies, and an all-cargo service is being proposedhirdThe law of9 extended to any other commercial airline the sameand tax exemption privileges previously enjoyed only by LAN
c. Regulation of foreign Airlines.
hc US carrier PANAGRAcabotage rights In Chile, sharingservice within the country with LAN. Cabotage traffic lor foreign airlines,ow prohibited. Foreign airlines arc al-
lowed to operate scheduled services lo Chile on thc basis of concessions granted by theCAB. Other foreign flights over Chilean territory must also be authorized by this body.
d. Promotion of Other Civil Aviation
LAN is awarded an annual subsidy fordevelopment. However, the amount of funds allotted to LAN or through otherfor the development and improvement of air facilities and navigation aids has been very limited. The continued inability of the government to finance adequate facilities and navigational aids for LAN, as well as lheol the air force to cooperate in thishas prevented, for example, theof regular all-year service to the south Of Santiago. The limited funds which have been available, therefore, havebeen used for the improvement and mainlenancc of Chile's international airports.
The government is anxious to support and encourage aero clubs, but has been able tothis activity onlyimited extent. In spile of insufficient funds and lack of adequate flying equipment and spare parts, however, aero club flying in Chile has increased rapidly.
There is no aircraft engine or airframein Chile.
3. lolerrtoiionol Civil Aviation Policy.
a. Air Traffic Policy and Air Agreements.
t appeared that Chilean airendorsed restriction of Fifth Freedom rights for foreign air carriers. Inowever. Chile changed its attitude anda liberal (Bermuda type) air agreement with the US. Chile followed thc form of this agreement in other bilateral negotiations shortly after the US agreement was concluded. Thc civil aviation policy of Chile, therefore, is directly opposed to the Argentine-sponsored principlesregional cabotage" blocredetermined division of traffic (seeSectionnternational Civil Aviationn the other hand, Chilean policy has had to take into account the country's peculiar geographical position with respect to Latin American trunk airline routes, especially the relatively Isolated location of its capital and principal city, Santiago. Recognizing
f/RET
S
an unrestricted aviation policy toward foreign carriers would probably result in many international flights overflying Chilean<cn route to Buenos Aires, for example, via the west coast of Southheof Chile has followed an international air transport policy designed to assure service Lo Chile on Uie principal airline routes of the area. It has Lhercfore insisted LhaL aircrossing Chile make at least one traffic stop within the country, direct or connecting service to Santiago being mandatory.
Chile now has bilateral air transportwith the US. the UK, Argentina. Bolivia, Brazil, and Peru.
Organization.'
Chile has exjx-rienced considerable difficulty in financing delegations to meetings of theCivil Aviation Organizationf which the country hasember sincet was nottor example, at theCAO Assembly meeting in Geneva Some high government circles, particularly the military, are seriously considering Chile's withdrawal from ICAO, allegedly because of the acute shortage of dollar exchange in Chile. The civilian elements concerned with aviation, however, which arc more actively promoting civil air activities in the country, are strongly opposed Lo wilhdrawal of Chile's International representation Outstanding among this group, as well as in his contribution to the progress of civil aviation in Chile, Ls Edward Hamilton. Secretary-General of the Chilean Civil Aeronautics Board and Chief of theof Law and Air Transport In theGeneral of Aeronautics. He haseader both In Chilean aviation and In Its representation abroad, and has consistently supported the liberal aviation principlesthroughout thc world by thc US.
LANember of the International Air Transport Association (IATA).
Technical Assistance.
A US Civil Aviation Technical Assistance Mission, set up in Chileubmitted numerous recommendations to the Chilean Government for improvement of the country's civil aviation facilities. Chile is now request-
mg the services of an airways expertew US mission can be assigned
A. Airlines.
a. Chilean Scheduled Airlines.hen it was organized, untilhe Chilean national airline LAN (Linea Aereaonopoly of Chilean-flag scheduled air transportation. In May and Juneowever, concessions were granted to two small Chilean airlines to conduct scheduled services supplementing LAN operations
A number of factors have hampered LAN's efforts to expand and improve Its services.B, for instance, thc company was unable to fulfill Its new flight schedules when its four newircraft were grounded for manufacturer's design changes Overhaul and repair difficulties with these same aircraft again interfered wtth flight schedules In the summeroreover, lack of adequate airfield, air navigation, and meteorologicalin the southern part of thc country has handicapped LAN's efforts to provide regular service In that region. Thc company has also been plagued with personnel problems to the extentull-scale investigation of the company's operations was recently ordered,iew to eventual reorganization.
Government subsidization of LANhas been increased considerably0 Continued heavy subsidies, however, are required lo cover Lhe company's operating deficits. Some economies have been effected Lhrough thc joint maintenance by LAN and PANAGRAeteorological service atwhich supplies all aircraft with weather data.
AN (Lmea Aereaoutes:
Domestic: The main domestic routeby LAN stretches the lull length of Chile from Arlca In the north, on the Peruvian border, to Punta Arenas in the extreme south of Chile, on the straits of Magellan.
/nter-naftionai: LAN operateson-stop service from Santiago to Buenos Aim. using its's, LAN has long planned to inaugurate service to Lima. Peru, and to La Paz, Bolivia, on the basis
SEC BfE T
AIRLINES OF CHILE
(
Route Miles"
Miles per Week
of Aircraft Various Types)
LI PA SUR
567
6
% Private
Tha .
Equipment:
3 Dc Havillandepublicercival Proctor
Ownership: Believed toercentChilean.
LAN ts now taking delivery on its order for six De Havilland "Dove" aircraft to be used in "feeder-line" service. These aircraft are being acquired from the UK chiefly because ofcredit terms and Chile's prevailing dollar shortage.
ercent Chilean
PA-SURnea Aerea Pactftca Sur).
ttoutes: LIPA-SUR was authorized by the Chilean CAB early8 to operate an air taxi service between Santiago and the tourist districts in the southern lake regions of Chile. Int was authorized to conduct scheduled service over this route and wasby the Chilean CAB to operateSantiago and San Carlos de Baiilochc, Argentina Authority for Chilean service into this Argentine tourist area is derived from the Argentine-Chilean Air AgreementIPA-SUR's permit Irom the Chilean Government for scheduled services is ol three years' duration.
;erviciQ Aereo Austral Routes The newly-organized air taxihas also been authorized to operate in the southern region of Chile. Equipment:
1 De Havillandrumman Widgeon
Ownership: Owned outright by Sr. Carlos A. Ave!hilean national.
6 Foreign Scheduled Airlines.
PANAGRA. the US carrier which started service to Chileontinues to be the largest single foreign carrier operating into the country. After many months ot intense negotiation with the Chilean CivilBoard, an arrangemeni was worked out8 permitting certain changes In PANAGRA service. Thlsairangcmenl. however, wasonly after Chilean rears had beenthat Santiago would be increasinglyin PAN AGRA'S operations from Lima and La Paz to Buenos Aires
BOAC (British Overseas Airwaysthe only European carrier to operateto Chile, terminates both its west and east coasl services at Santiago, although the service between that city and Buenos Aires is
lo have been temporarilyInAN signed aIATA form inter-line agreement witb the Royal Dutch Airlineshereby LAN feeds Europe-bound traffic to KLM at Buenos Aires.
A special agreement between LAN and the Argentine carrier. FAMA, provides for aof capacity on the Santiago-Buenos Aires
route. Both airlines fly the route non-stop,econd Argentine carrier, ZONDA. serves the two cities via Mcndoza. Argentina. Under the Chilean-Argentine bilateral air agreement,hird ArgentineAeroposta, is operatingeek service between Punta Arenas. Chile, and Rio Gallegos. Argentina, where connection is made for flights to other points in Argentina.
SEjCRET
OLOMBIA
Government Organization for Civil
Civil aviation in Colombia isirectorate of Civil Aeronautics (DAC) acting under thc jurisdiction of the Ministry of War.eries of airearly7 which were attributable largely to lack of government attention tomatters, thc DAC was reorganized on thc model of the US Civil Aeronauticsand given increased powers. Theorganization now includes fiveOperations, Engineering, Instruction, Economics, and Administration.ecree onational Council ofwas created under the Ministry of Public Works to coordinate and regulate all forms ot transportation in Colombia. Its eight members include the Director of Civil Aeronauticsepresentative of theairlines. The chart below Indicates the relationship between the civil aviation agencies of Colombia.
2. Domestic Civil AvioHon Policy.
a. Civil Aviation Legislation. With the assistance of the US Civil Aviation Mission, revision of the existing Manual of
Regulations was effectedaking the current regulations similar to those of the US Civil Aeronautics Administration.
Exchange control regulations have seriously affected international airline operations In Colombia by reducing ticket sales, increasing the costs of operation, and limiting orthe purchase of new equipment and spare parts.
b. Regulation of Colombian Airlines.
It is Colombian policy to promote domestic air transport enterprises and protect them from outside competition. Colombian airlines are required by law to be at leastercent owned by Colombian citizens. With thchowever, of its small stock8 percent) In the principal ColombianAVIANCA, the Colombian Government does not actively participate In theair transport field. Although thedoes not subsidize airlines directly, it provides limited aid through air mailAVIANCAonopoly ofair mail transportation untilhen the governmentmall irregular cargo carrier. SAM, which is largely US-controlled. InAVIANCA's contract makes it the postal
Ministry of Public Works
Directorate of Civil Aeronautics
1
Administration
43
for all the domestic air mail which ilecause the airline is required to maintain ils own postal agencies and loand deliver domestic air mail. Thc SAM service, which has been very successful, is also presumably required to actostal agency for the mail il carries.
The Directorate of Aeronauticshe Colombian Government's regulatory agency for civil aviation, has taken little action to control airline competition or regulate rales and routes. esult, thereostwar period of intense competition in Colombian air transport,evere rate war. The reorganisation of the DAC7 unproved this situation somewhat, but the rate warwellne of the majorTACA de Colombia, was forced tooperations early7 and six smaller carriers suspended servicesf financial difficulties. Although three small companies. AFRYPESCA. Aerolaxl and SAETA, are also listed as scheduled Colombian carriers, only AVIANCA and LANSA are of much significance as scheduled operators. There are about five other smalt nan-scheduled passenger or cargo services.
e. Regulation of Foreign Airlines. Cabotage traffic in Colombia is reserved for the domestic airlines. Foreign airlines mustoreign Air Carrier Permit tocommercially to Colombian cities,most such operations arc conducted in accordance with inter-governmentalolombia's previouslypolicy toward loreign non scheduledwas considerably relaxed.
d. Promotion of Other Avialion Activity.
Colombian civil airports have been owned and developed for the most part by Colombian airline companies, but the Government seems to have in mind un eventual nationalization program. Private ownership of all civilforced each airline to develop Its own facilities, until the government required the airports to be opened loall traffic8 By that time. LANSA had built duplicate facilities at many points also served by AVIANCA. with the result that only lhe smaller companies were substantially benefited by thc change
The government, however, now controls new airfield construction and six new airports were completed8 under Government sponsorship.
he Government of Colombiathe formation of an aeronauticalorganization to operate all air navigation facilities. Since the airlines concerned were unable to agree on the details oflan, however, nothing was accomplished, and radio facilities are still maintained by thecompanies.esult of surveys mudc by the US Civil Aviation Mission to Colombia In conjunction with Colombian officials, plans are being developed forodern system of traffic control and airways
A law8 authorizes the DAC to grant each Colombian aeroearly subsidy. No grants have been made to date, however, since none of the clubs, which are composed for the most part of wealthy persons, has been in need of funds.
The Institute Tecnico dc Aviaclon (ITECA) continues to be the only school in Colombia offering courses in all phases of aircraftand operation. Recently, however, reduced funds have curtailed itslan is now under consideration by the DAC and the Colombian airlinesrainingto develop operating personnel for theAlthough the government wouldfinancially to such an organization, it would be operated as an independent
3. International Civil Avialionir Traffic Policy and Air Agreementi Colombia has notonsistent or well-defined policy with respect toair transport Colombian aviationhave staled that Iheir country's support al international conferences for proposalsFifth Freedom privileges has been based upon Colombia's desire to retain thebargaining advantage inherent inol such privileges, rather thun upon any policy designed to withhold Fifth Freedom traffic from foreign carriers Nevertheless. Colombia continues to favor theultilateral agreement on air rights.
JR V- T
spile ol efforts lo renegotiate9 Glaya-Kclloja exchange or notes, the>llll stands as the only all' transport agreement be'.ween Colombia and the US. Oneo the conclusionewair agreement was removed by the US Civil Aeronnutles Board's recent grantogota-New York route to AVIANCA under authority of9 exchange of notes, thereby placlnc. AVIANCAore equal rooting with Pan American Airways and PANAGRA.
nly other bilateral airare Bermuda-type agreementswiih thc UK and the NeUierlands.
b. Interna'lonal Organizations
Colombia ha; actively participated in and given -Vm suppon to thc Internationalatinn OrganizationVIANCA Is tho only Colombian airline whichember o* the International Air Transport Association (IATA).
c US Technical Assistance.
The US Civil Aviation Mission AgreementeTiber IM7 was implemented by the arrivalS mission in Bogota inE.imp surveyed Colombian needs in ah" transport control, radioand flight and maintenance personnel training. It participated actively In revising the Manual of Regulations and in establishing procedures for personnel licensing. The Mis-s'on has also assisted in work on Aviation Training and Scholarship programs
a. Airlines.
a. Colombian Scheduled Airlines.
Culnmbia was the first country in Latin America to en|oy the advantages of airShortly after World War I. the Sociedad Colomboa-AIemanda de Transportes Aereos (SCADTAV commenced services3ogota with Barranquiiia. Colombia's thref port Since the most heavily populated part cf Colombia consistscries ofranges, separated by valleys In which the main poi'iiluHon eenlets are lar-atctl. lhextension ol air transport services to inter-ffiiinectenters and intermediate towns
has been of great value in unifying the country.
When SCADTA was reorganized as AVIANCAts substantial Germanwas removed. Since then, the airline has been Jointly owned by Colombian and US interests, the latter being represented by Pan American World Airways (PAA).
Numerous Colombian airlines were formed after World War II Some have disappeared,ew others have survived as non-scheduled operators. Five new companies commenced operationshile six others suspended services. In addition to AVIANCA and LANSA, the two principal scheduled operators in Colombia, three smaller enterprises (SAETA. AFRYPESCA. and Aero taxi) operate regularly scheduled flights within the country. The respective share of the total Colombian passenger and cargocarried by each domestic airline8 Is shown in the following table:
Percentage ol Percentage o/ Passenger Traffic Cargo Traffic
1
(bis)
Ufn
onths only i
Servicio
OH Companies and others
Although PAAarge percentage of thc stock intsto control AVIANCA policies andis limited by Colombian law, whichthat no stockholder, however many shares he may control, may vote more thanercent of the total shares represented at any meeting.
Both AVIANCA and LANSA are financially sound and have good safety records.will continue to operate most of thefacilities until the proposed airwayssystem is actually established.
VIANCA (Aeromas Nacionales de Co.
Routes:
Domestic: One group of AVIANCA routes stretches the lull length of Colombia covering
&
AIRLINES OF COLOMBIA
(9 )
Route Miles"
Milesper Week
of Aircraft (various Types)
Lansa
SAETA Aerotaxi
AFRYPESCA
85
(
4 i
9 1
% Gov.
% Other
%rivate
vianca Unknown
The term "Unduplicated" refers only to those route miles
which are not duplicated by an
mountainous central and western regions of the country. In this region are the major cities of Colombia, which are all served by AVIANCA. Another group of routes, served with less frequency, radiates out from Villa-vicencio and covers the western and central portions of the relatively flat, undeveloped eastern part of the country.
International; AVIANCA's international routes extend to Ecuador, the US, andThe route to Ecuador not only connects the two countries, but extends the full length of Ecuador, fnVIANCAtwice-weekly operations betweenand New York, via Barranquilla and Miami, on the basisermit granted by the US Civil Aeronautics Board in
Equipment:
3 DC-4
4 (cargo)C-3
7 (cargo andBY-5A
Ownership:
Colombianpercent
percent
ANSA (Lineas Aereas Nacionales.
Routes:
Domestic: In general, the routes of LANSA parallel those of AVIANCA, serving all the principal cities in the central part of Colombia. LANSA serves only three minor cities, Lorica, Fundacion and Valledupar (all in theot also served by AVIANCA.
titter national: LANSA operates only oneroute, from Bogota to Caracas. Venezuela. LANSA has an inter-company traffic agreement with the Venezuelan airline, LAV. on this route. Equipment:wnership:
Colombianercent
SE/RET
(Sociedad Aeronauttca deSA.).
Routes: Bogota-nirardot-Ibague'f (one passenger and Ihree cargo)
O inters ft Approximatelyercent owned by AVIANCA. The remainder Is believed to be in private Colombian hands.
(Aerataxi de
Routes: Aerolaxi serves Barranquilla.and about llflcen other cities in the northwestern part of the country.
Equipment:
8 Cessna 1D0 andercent owned by AVIANCA
(Aviaeion Rcfnoeracion
Routes: AFRYPESCA serves approximately eight towns in the northeastern part of
Ownership: Unknown
7
oreign Scheduled Airlines. The following foreign air carriers operate to or through Colombia, serving the cities
Pan American World Airways: Directfrom Barranquilla to thc US, to Panama, and to Venezuela.
Vraba, Medellin and Central Airwaysedellm-Panama.
PAR AGRA: Cali (on west coast servicePanama and Peru)
KLM (Hoyal Dutcharranquilla (on Aruba-Panama service)
BOAC (British Overseas Airways: Barranquilla (en route to Lima. Peru from Kingston. Jamaica)
TACA de Venezuela: Bogota to Caracas
c. Foreign Non-Scheduled Operations.
esultecline In import cargo and the virtual non-existence of export cargo for air transport, few US non-scheduled cargo carriers have taken advantage of Colombia's iiberalizcd policy toward this type
SEfFRET
OSTA RICA
Organization for Civil
A Civil Aviation Board was formed under the Ministry of Government8 to control and regulate matters pertaining to civil and military aviation. The Board, similar to the Civil Aeronautics Board in the US, formulates rules and regulations for the registry oflicensing of pilots, granting of landing permits, and other matters pertaining to civil aviation.
Aviolion Legislation.
The Junta Government on9ew general civil aviation law,largely on thc civil aeronauticsof the US, and some changes suggested by thc legal section of the International Civil Aviation Organization (ICAO).
Rican Civil Air Policy.
Largelyesult of the political anddifficulties which have beset Costa Rica during the past two years, regulation of civil aviation affairs has been relegatedather minor consideration. Airighly important role in thc economy of Costa Rica, providing in many cases, the sole means of freight and passenger transportation between the capital andsections of country. Internationalcontinue to provide the most practical and popular means of passengerbetween Costa Kica and other countries. International traffic originating andIn the capital, San Jose, showed adecrease8esult, no doubt, of the unsettled political conditions in Costa Rica. During the revolution ofnd again during the attempted invasion from Nicaragua inhe facilities and equipment of the domestic transport companies were commandeered and
put to use for military purposes. None of the international facilities was molested, buthort time during the revolutionairlines suspended operations to Costa
Hlca.
There has been considerable discussion ot several proposed sitesew International airport near San Jose. Since the government docs not have sufficient funds for the project and would have to dependoan fromS bank, thc local air companies, or the World Bank, improvement of the existing airport will probably be undertaken. The Junta of Government, however, has hoped that the US will become Interested In theof an airfield at San Jose in view of Its proximity to the Panama Canal. Other Lhan this project, little expansion of existing facilities is planned.
Costa Rica has concluded no bilateral air transport agreements, and isember of the International Civil Aviation Organization (ICAO).
irlines. a. Costa Rican Scheduled Airlines. Unless additional new airports arein Costa Rica, domestic air transport operations will be limited to approximately the present pattern. The three domesticwhich presently serve Costa Rica are: Cnmpania dc Transportes Aereos Centro Americanos de Costa Rica (TACA de Costalneas Aereas Costarricenses. S. A.nd Aerovias Oceidentales, S- A.ost of the towns andin the country with landing facilities are now served by one or more of thesewhile several points along thc Pacific Coast and in Guanacasle are served by two or even three of the domesticighly uneconomic and intensely competitive condition in several parts of the country has
ET
SE^
from the Civil Aviation Board'sof licensing virtually any route and any frequency requested by the local airlines. Thus,eek service by both TACA de Costa Rica and LACSA has. at some points, been on the same day instead of beingto furnish more frequent service, in spite of the interruption of services during the periods of fightingACA de Costa Rica lost very little money on routeand actually made money on theof their maintenance and overhaul shops in San Jose. On the otherACSA claims to have lost money throughout thebut more recently it has begunrofit.ecree of IS9 LACSA was designated the Costa Rican flag carrier for International operations and especially to operate routes to Miami, New Orleans, and Brownsville. (Aso application had been Hied by LACSA lit thc US CAB for such routes.)
Aetovtas Occidcnlales, an American-owned company, started operations8 with two's which ii operated on thewest coast route until it became necessary to cannibalize one ol the planes to obtain parts for the other. Ithoestring operation and has had rough going from the start. At the present time the company Ls doing fairly well financially considering lhe fact that it
has no shops and only the one plane which generally operates at capacity. In view of the age and condition of its equipment.will not be able lo operate much longer unless It can obtain new aircraft.
{Aerovias Occident
Routes Occtdentales connects San Joseew points in the southern part of Costa
Rica.
ercent private US. Occi-denlales was established by two US citizens and received official Costa Ricanto operate freight and passenger servicesnternational operations are subject to special approval.
de Costa Rica (CompaniaAereos Centra AmericanosRica),
Routes: TACA de Costa Rica operates from San Jose, Costa Rica'srincipally to the interior and to numerous points along the Pacific coast. Only one route extends to the Atlantic, serving Puerto Limon and extending along the coast into Panama to Bocas del Toro.
C-3
1 Lockheed Hudson
Ownershtp; Believed toercentCosta Rlcan. The present TACA de
AIRLINES OF COSTA RICA
(9 )
Route Miles*
Miles per Week
of Aircraft (Various Types)
TACA
LACSA
609
897
4
3 (
% Private
ov.
* The term "Unduplicated" refers only to those route miles which are not duplicated by an individual airline.
SwC RET
Rica was established Inits purchase from the TACA Airways System by two residents of Costa Rica (see Panama,here Is some evidence, however, that these individuals may be backed by US interests.
ACSA (Ltneas Actcai.
Routes: LACSA originates all flights at San Jose and serves principally the northwestern and southwestern parts ot Costa Rica. One route. San Jose-Los Chiles, extends to the north, outside these regions. One of the routes to thc southwest, moreover, extends into Panama to Puerio Armuelles.
C-3
Ownership ercent private Costa Rican
ercent US (Pan American World Airways)
ercent Government of Costa Rica
LACSA was organizedan American affiliate ineceiving official Casta Rican authorization in December of that year, b. Foreign Scheduled Airlines. Costa Rica receives scheduled international airline service (rom three foreign-flag carriers. Pan American World Airways (PAA)umber of services lo San Jose, over which traffic is carried to points throughout Centra] and South America and to the US. The PAA routes serve Costa Rica directly from both Managua, Nicaragua, and Tegucigalpa.continuing on to David and Panama City. Panama. KLM (Hoyal Dutch Airlines) connects San Jose with Panama City and points throughout its extensive Caribbean network. Connections via KLM are also made for Europe. San Jose Is also the southern terminus of TACA El Salvador's Central American services, which extend through Managua as far norlh as Mexico City and New Orleans.
SEt/RBT
SECRET
APPFNDIX G
CUBA
Government Orgonizalion for Civil
Cuban civil aviation, as well as various forms of land transport, is regulated by the National Transport Commissionependency of the Ministry of Communications Although the general functions of the CNT areby law, there is considerablebetween the Ministry of Communications and the CNT for control over certain aviation matters- With respect to international route questions, final authority appears to rest in the Ministry of Communications (subject to the approval of the President of Cuba) The Inspector Oeneral of Airports exercisesinfluence within thc CNT,ivil Aviation Advisory Committee, composed of influential Cuban aviation personnel, is called upon from lime to time lo acturelycapacity to the CNT.
2. Domeslic Civil Avialion Policy.
Avialion Legislation.
Decree4he authority of the CNT cancelled Decree4 ofulthe provisions of previous decrees giving the Ministry of Communications final derision in certain matters handled by the CNT
of Cuban Airlines.
The Cuban Government has not yet been faced with the necessity of formulating strict polKtes or regulations lo govern its domestic air services The Cuban attitude towardcompetition, for example. Li not yet clear.ubana was the only airlinein Cuba Since that time, thehas issued permits to both Expreso and Aerovias "Q" to operate routes which would compete with Cubana service The only route now being operated within the area served by Cubana (domestically, all ol the
island of Cuba east ofowever, Ls the Aerovias "Q" route to Varadero The few competitive routes established within Cuba by Expreso5 have since been discontinued. On the other hand, both Aerovias "Q" and the newly organized Apropostal operate between Habana and Nueva Gcrona. on the Isle of Pines, and Expreso has also served that islnnd, bul at Santais the practice of the National Tiansport Commission (CNT) to Issue permits forroutes to any duly constituted Cuban company. In this connection, thelakes the position that simple majority control by Cubans constitutes Cubanand effective control. It is also theof the governmeni to support permitby all such Cuban companiesoreign country, when such applications are based on permits issued by the CNT. The Cuban Government's supportarticular Cuban applicationoreign permit,does not necessarily indicate that thefavors lhat airline over any other. On lhe other hand, political connectionsto determinearge degree the favors received by Cuban airlines for their operations within the country.
The Cuban Government does not subsidize any Cuban airline directly.xpreso. and Aeroposta) receive an indued subsidy in the form of flee use of the Cuban Army airfield Camp Colombia, which is more accessible from Habana than thecommercial airfield Rancho Boyeros.
Because of thc importance which theattaches to continued domestic and international service by Cubana. an impasse in Cubana's labor-management relations in9 prompted thc government to intervene. Thc dispute involved Cubana's plans lo resolve its serious financial difficulties through economies in operations (principally
K
sec
wage and personnelhich are apposed by certain elements of theas well as thc labor force and the unions.esult, the stockholders ofno longer desiring to continueosing basis, voted on9 to dissolve and liquidate the company if within one month the Hoard of Directors had failed lo arrange for future operationsound financial basis. Pan American World Airways8 percenthad already refused assistance to Cu-bana until the company is putoreoperating basis. It is improbable that the majority of Cubana's stockholders actually desire dissolution of the company at this time, however, and their recent aciion may have been designed to influence the government to take whatever steps arc necessary to assure continued Cubana service. On the other hand, it is doubtful that the government is willing to assume the. burden of operating the company, as it is being urged to do by labor in the event that Cubana votes to dissolve. It seems probable, therefore, that thewillompromise solutionthe continued operation of Cuba's most important domestic and International air car:.or
c. Regulation of Foreign Airlines.
Cuba, the gateway to Middle America, has permilted many scheduled internationalto provide service to and through Ha-bana. both because of the revenue accruing to Cuba from the airlines' traffic, and because thc Cuban Government feels that competition among Ihese carriers tends to keep rates down and provides incentives for Improved services. Foreign airlines mustermit from the National Transport Commissionilateral air agreements concluded by Cuba with other countries govern the terms ofissued to airlines of those countries.
Non-scheduled carriers, to obtainlo operate to Cuba, must demonstrate to lhe CNT that no established scheduled airline can provide the service hi question. Cuba has insisted on recognition of its right to prohibit non-scheduled commercial aircraft fromin Cuba if it so desires. (See Seclion
EET
d. Promotion of Other Aviation Activity.
Improvements are being made on several airports throughout Cuba. Expansion of the existing runways at Rancho Boycros, theHabana airfield, ls now in progress, and the government has encouraged contractors to plan construction of other air facilities,ew airport nearer Habana. This encouragement has included thc suspension for five years of import duties on materials destined for the construction and operation of airports, as well as the cancellation for ten years of taxes on profits, capital, dividends, and interest for persons or companiesand operating airports.
A cooperative aeronautical organization, Aeronautical Radio Company of Cubaas formed by the airlines late7 to coordinate all aviationWith the exception of Aeroviashich has its own communications system, all of thc major airlines which operate in or through Cuba are members of RACSA and receive its services. Labor difficulties delayed commencement of operations until8 and have recurred intermittently since that time.
The Cuban Pilots Association is composed entirely of the more thanubana pilots.
There are about seven private flying schools in Cuba.
3. Inlernolional Civil Aviation Policy.
a. Air TraQlc Policy and Air Agreements.
While Cuba believes that certain benefits are lo be derived from compctilion among foreign air carriers flying to Cuba, lt has attempted to minimize such competition on those routes flown by its own carriers and to assure Cuban airlinesertain share of thc traffic.
Cuba has concluded only three bilateral air agreements, of which those with the UK and Peru are Bermuda-type. Little is known about the third agreement, signed recently with Mexico, but it is possible Lhat iL contains restrictive provisions, in view of Mexico'srestrictive policy. Under the Mexican agreement. Cuba was granted the Habana-Merida-Vera Cruz route (presently flown by Aeroviashile Mexico retained aover the Mexico City-Merlda-Habana route.
S RET
SE^
Intermittent negotiations between the US and Cuba have notilateral pact, largely because of disagreement over what constitutes substantial ownership or effective control of an airline.
Organizations.
Upon deposit of its unreserved ratification of the Chicago Convention inuba was admitted ash member of theCivil Aviation Organizationhen Cuba had earlier ralified theint hadeservation onn thc belief Uiat the Articlenon-scheduled commercial operators to land in Cuba without obtaining prior approval from Cuban authorities, thus contravening Cuban law. Cuban objections have been withdrawn in view of the current widespread practice of interpreting the "limitations" which may be imposed on such flights asany country to prohibitull-fledged member ofuba has indicated an activein its proceedings by sending observers to most meetings of the organization.
Cubanaember of the International Air Transport Association.
Technical Assistance.
Various technical specialists have beento Habana for short periods of time by the US Civil Aeronautics Administration.
4. Airlines.
a. Cuban Scheduled Airlines.
Only four Cuban airlines can be considered scheduled operators at present, although there arc three or four other Cuban air transport companies attempting to organize scheduled or chattel services of various types. Thc four scheduled airlines arc; Cubana. Aeroviaseropostal, and Expreso
hen it introduced domestic air transportation to Cuba,ubana was the only airline Operating in Cuba. It operated exclusively within the countryhen it was authorized by the US to add the important Habana-Miami route to its system. Cubana provides such valuableto Cuba both domestically andthat the government hasin an effort to prevent Cubana's current
financial difficulties from forcing dissolution and liquidation of the company.
The wholly Cuban-owned Aeroviasas also experiencedfinancial difficulty, buL is graduallyservices under the close supervision of Manuel Qucvedo, its president and general manager, who is principally responsible for having built Aerovias "Q" into the most stable, dependable, and efficient airline in Cuba. It is Still awaiting CAB action on its request for additional lucrative routes to the US. For many months, Aerovias "Q" was the only Cuban carrier to enjoy the privilege or using the military field, Campo Colombia, which is nearer Habana than the regular Habanaairport, Kancho Boycros.
Cuba Aeropostal commenced scheduledon its Habana-Isle of Pines route int has recently applied to the US Civil Aeronautics Board (CAB)ermit lo operate scheduled passenger service on Its present non-scheduled cargo route to Miami. Aeropostal appears to be backed by theJose M. Aleman. former Cuban senator and cabinet officer. Thc President ofdenies that Alemsn owns or finances the company, but admits that he has aided in obtaining permits from the government. In any event, Aeropostal apparently has veryfinancial resources.
Expreso inaugurated service on severalroutesut all domesticexcept that lo thc Isle of Pines weresome time later. Internationally, however. Expreso is continuing lo operate more or less regular flights between Habana and Miami, while its application for renewal of its permit for this route is being considered by thc CAB. The company's financialhas steadily deteriorated, and itshave been unstable. This condition is largely the result of insufficient revenue and the deathormer Expreso benefactor, who had provided funds and equipment forirmail contract, moreover, was cancelled by the Cuban Government in9 for failure to adhere toew contract, however, was signed in August, providing an increased rale for transporting mail Although its present owner is reported-
EC/iET
OF CUBA
9 )
Route Miles*
Miles pcrWeek
of Aircraft (Various Types)
"Q"
rivate
Aoropostal
83
{
7
.rivate
i
.
The term "Unduplicated" refers only to those route miles which
are not duplicated by an
Rafaellose friend of President Prio of Cuba, the favors Expreso expected from III close government connections have not materialized, and its future Is very uncertain
JL
Routes: Aerovias "Q" connects Habana withorth Cuban resort, and with the Isle of Pines. Two international routes are operated by Aeroviasrovidingfrom Habana to Key West, Florida, and to the Mexican cities of Merida and Vera Crux. Aerovias "Q" has also applied to the US Civil Aeronautics Board for permission lo operate from Habana to Washington and New York, as well as to several additional points In Florida.
C-3
cargo only)
C-46
ercent private Cuban. Aeiovias "Q" was organized5 andscheduled operations the following year.
iCompanta Cubana
Routes: In its domestic services. Cubana operates throughout all of Cuba east ofwith from one to seven round-trips daily In addition lo Cubana's Habana Miami inter nalional service, the company operates sched-
uled service from Habana to Madrid, wiih non traffic stops at Bermuda, the Azores and Portugal.
C-3
2 Lockheed Electra
Ownership:ercent private Cuban
ercent US (Pan American World Airways)
Cubana was established9 and has been affiliated with Pan American World(PAA)AA swas reducedercentndn order to satisfy thc Cuban Government requirement that effectiveof Cuban airlines be retained by thenationals, PAA further reduced ilslo the present figure.
eroposfaf (Cuba.
Routes: Aeropostal's only scheduled serviceomestic route from Habana to the Isle of Pines Aeropostal operates internationally, however, between Habana and Miami incargo service. Including the transport of Cuban air mail.
C-3
6 (cargoockheed Lodestaruse only)
RE T
100 percent private Cuban. Aeropostal was organized in
xpreso {Expreso Aereo Inter-Amen.
Routes: Expreso operates one domestic route. Irom Habana to the Isle ofifferent city than that served by"Q" and Aeropostal. Expreso alsoa service from Habana to Miami,carrying cargo only.
fc'rruipmenf Expreso6 aircraft.ercent private Cuban.
ercent US (made up of smallxpreso was founded2 and started servicen the Habana-Mlaml route, b. Foreign Scheduled Airlines. Cuba ts served by eight foreign-flagcarriers. Including four US. two European and two Latin American airlines Thesewhich are listed below, all serve Habana. and Pan American World Airways also oper-
ates extensive Caribbean services through Camaguay. Cuba.
Route
Pan US to Caribbean
World Central
and South America
Chicago US to Venezuela
Southern
BrantfT Interna- US US to South
tlonal
National Airlines US US to(Royal Nether- West Indies,
and
South America to US
BOAC UK to Cuba
Overseas
Mexico to Cuba
Venezuela to US
APPENDIX H
DOMINICAN REPUBLIC
Organization lor Civil
The principal civil aviation authority of the Dominican Republic is the Aviation Division (Ncjroctano dehich functionsthe Secretary of State for War and Navy. Attached to the Aviatton Division is anCommission consisting of theAve members selected by the Executive Power: two members from thcpecialist on legalechnical engineer,eteorological'lite functions of the Commission are to cooperate with the Aviation Division In the promotion, development, and regulation of all forms of civil aviation This Commission is apparently the administrative agency of the Aviation Division.
Avialion Legislation.
The functions of the foregoing civil aviation agencies are outlinedew civil airlawassed Inhis law constitutes an expansion of previous legislation7ndnew features based on theof other countries with similarThere appear to be no provisions whichignificant change frominternational and domestic practices in the regulation of civil air transportation
Avialion Policy.
The Compania Dominicana de Aviacion C. por A.rganizeds the only Dominican air transport company ever towithin the country. It docs notirect subsidy from the Government, butyear contract for the carriage of air mail.
Foreign scheduled airlines must receiveauthorization from the Executive Power lo operatethe Dominican Republic. For-
SEjl
elgn non-scheduled carriers are allowedprivileges In thc country under theof Uie new civil air law or regulations made for its application. Cabotage privileges may be acquired only by special permission, which is not known ever to have been granted.
Aflcr two years of intermittentermuda-type air agreement was finally Initialed by the US and the Dominicanonhis ls the Dominican Republic's only bilateral air agreement.
The Dominican Republicember of the International Civil Aviation(ICAO) upon ratification of the Chicago Convention int has been represented at most ICAO meetings, but has not taken an important part in the
. Dominican Scheduled Airlines Organizedan American World(PAA) affiliate Inompania Dominicana de Aviacion, C. por A.he only airline ever to operate within the country, began commercial operations two months later over two domestic routes out of Cludad Trujlllo to Santiago, and to La Romana via San Pedro de Macorls. Other domestic routes have been added gradually. Although CDA has never operated scheduled services outside the Dominican Republic, it does conductextensive charter operationsUnder the terms of the recently concluded US-Dominican Republic bilateral air transport agreement, CDA has beenby thc Dominican Government toservices to Miami and to Puerto Rico. PAA personnel manage the company, but Dominican Air Force pilots do the flying
CDA was operating the following undupli-cate route mileage and weekly scheduled mile-MJt Ai
/
ft
S WC RET
Sclicduted
RouteWeek
DA's network connects Cludad Trujillo with Barahona and La Homana on the south coast, Monte Crlstl and Puerto Plata on the north coast, and San Juan andin the interior.
6
I5
Ownership:ercent private Dominicanercent US (Pan American World Airways)
b. Foreign Scheduled Airlines.
The Dominican Republic Is served by five foreign scheduled airlines, through which connections may be made to points in the US, Central America, and South America.
Pan American World Airways (PAA) serves Ciudad Trujillo on routes from the US (via Camguey. Cuba and on some flights Port-au-Prince. Haiti) to Puerto Rico, points In thc Lesser Antilles, Trinidad, and Caracas,(via Curacao).
British West Indian Airways (IiWIA)Ciudad Trujillo with Kingston and points in the Lesser Antilles.
Royal Dutch Airlines (KLM) operates to Ciudad Trujillo from Miami (via Kingston andirectly from Curacao, from Caracas (viand from Bar-ranquilla. Colombia (also via Aruba).
Aerovias BrasU stops at Ciudad Trujillo on iLs service Irom Brazil to Miami (via Port-of-Spain and Caracas).
Caribbean-Atlantic Airways (CAA) operates direct service between Ciudad Trujillo and San Juan, with connections for the Lesser
SEt/RET
CUADOR
Organization lor Civil
Civil aviation in Ecuador is thcof thc Department of Civil Aviation (DAC) acting under the jurisdiction of the Ecuadoian Air Force Command. The latter, in turn,ependency of thc Ministry ofThc DAC is understaffed and itsare limited by the necessity offor fundsinistry which naturally places defense needs ahead of civilianDespite these handicaps, the DAC has gradually assumed increased direction over civil aviation matters It will probably be transferred soon to the Ministry of Public Works and Communications Creation of an aviation board is under consideration
Civil Aviation Policy,
Aviation Legislation.
The Aerial Traffic Law) ofep6 stipulates thai control overand foreign aircraft in Ecuador shall be exercised through domestic legislation and In accordance wiih International agreements.7 the new administration cancelled the restrictive measures which had Imposed heavy taxes on airline income and tickethe DAC undertook lo prepare new aviation legislation and regulations, foreed had developed as air services increased after the war. Tills legislation was lo beto the Congress inut has been tabled for further consideration.
of DomesticEcuador is anxious to develop all
phases of civil aviation, that country is second only to Paraguay in its lack of civil avialion Ccvelopmenl Ecuador's dirficull terrainextensive use of air transportation, bul lack of funds has prevented adequateof all services and facilities Ecuador's
inability to meet the emergency transportof the recent earthquake disaster illustrated thc country's needoreair transport network. The USPANAGRA, and the Colombian carrier, AVIANCA, provide the only dependablein Ecuador and these airlines serveew Ecuadoran cities.
Civil aviation, however, has graduallyIn Ecuador, especially sincepolicy became more liberal after7 change of administration. Two Ecuadoran airline companies have been in operation for over two yearsew marginal companies were being organized9 Withpolicy encouraging expansion,for continued development of the air transport Industry in Ecuador are favorable.
Operation of airlines is left to privatethe government neither subsidizing nor financing commercial air services.
c. Regulation of Foreign Airlines.
Ecuador and Bolivia are the only two Latin American countries permitting foreign airlines lo operate cabotage services. Under contract with the Ecuadoran Government. PANAGRA and AVIANCA bothalf dozen points within Ecuador and connect it wllh other countries through international services
panaoka's contract to operate in Ecuador, which expired in9 after twenty years in force, was renewed in9 after much discussion with DAC officials. Nodifficulties were encountered, but there was some rewording of thc contractesult of the government's desire to secure moreover all air companies.
Branifl All ways, the second carrier desig-nuled by the US for west coast service in Soulh America, stops at Guayaquil on Its Houston-Rio de Janeiro flights. It recently secured an air mail contract with the Ecuadoran
TK T
d. Promotion of Other Aviation Activity.
Development of air facilities has been left to the airline companies, principally because public funds arc lacking (or that purpose. The limited funds which have been made available to the Ministry of Defense forconstruction have been used by the Air Command primarily for the development Of militaryew civil fields, however, are being improved and expanded, and others are gradually being built. Many Ecuadoran towns, for example, have taken the initiative of preparing landing fields in order to attract air services. The Shell Company of Ecuador has alsoew airstrips for Itsin thc country.
Under its new contract, PANAGRA willto he charged with radio and traffic control operations, thc governmentupervisory authority. Presumablypast concern over inadequatefor this service, as well as difficulties in enforcement of traffic contiol regulations, has been satisfied in the new contract.
The Aero Club de Guayaquil has an active ground instruction program, but does little actual flying. Private flying is limited by luck of funds for thc acquisition of desired equipment and spare parts.
The Escuela Militar de Aeronautica.entirely by the Ecuadoran and USis the only aviation school inand provides training for the Ecuadoran Air Forcets training program has been aided by the personnel of an advisory US Air Force Mission to Ecuador.
A Pilots Union was formedcivilian pilots, mechanics and navigators, employed by either national or foreign lines within the national territory. This group was organized to increase the professional skills of its members. Although the Union is permitted to seek legislation to this end, its statutes prohibit il from engaging In any olher political activity.
There is no airframe or aircraft enginein Ecuador.
3. International Civil Aviation Polky.
a Air Traffic Policy and Air Agreements.
Ecuador has encouraged all forms ofair transportation to serve the country
RET
I
Since no Ecuadoran carrier flys international routes, the Government Is not concerned over competition from Urge international airlines. Ecuador's only bilateral air agreement was signed with the7 andeffectivetermuda-lypc agreement
b International Organizations.
Ecuador continues to desire membership in the International Civil Aviationbut cannot afford lo Join.
c. US Technical Assistance
A US Civil Aviation Mission served inon the basis of an agreement signedegotiations for continuation of this assistance were terminated earlyormal request for the return of thc mission to Ecuador is now underby thc US.
A. Airlines.
a Ecuadoran Airlines
Ecuadoran airlines are issued permits to carry passengers and freight in service to designated cities and towns without fixed schedules. Although they are therefore not strictly scheduled operators, serviceore or less regular basis by thc two airlines listed below. There are about four other companies conducting small-scale, non-scheduled operations, and another is about to be organized."
Tero Transporto.
Routes: ATECA serves Guayaquil. Quito, Manila, and Esmeraldas In competition with Trasandina. In addition. ATECA serves Tut-can in the extreme north on the Colombian border, and Macara in the extreme south on thc Peruvian border. The company is alsoto Initiate service to the eastern
* ATECA and TRASANDINA wererine April IBMecentlyiiUne SANTA. Operations wiUiare nouvndcr the name ot SANTA iSocieOd Ano-I'ima National de Transpottes Aereosi Services nearly duplicate trie routes of HAN AURA anO Avi-anca isee>
AREA iAnovl.it EuKtnrianas. CA i, anoilicialillne,
ntt* winch pruvlrin strung cninprlilwn lor SANTA
The term "Unduplicated" refers only are not duplicated by an individual airli
egion of Ecuador, which thehas been anxious to develop, but which is still sparsely populated.7
1 Stinson Reliant
3 Stinson Station Wagon
1 Piper Cruiser
ercent private Ecuadoran.
RASANDINA ITrasandina.
Routes: TRASANDINA operatesthe most populous portion of Ecuador, serving Quito and Esmeraldas in the north. Guayaquil and Mania in the central region, and Cuenca in the south.
6
ercent private Ecuadoran.
to those roule
b. Foreign Airlines.
PANAGRA operates cabotage servicesthe cities of Quito, Guayaquil, Cuenca, Mania, and Esmeraldas, usingircraft. Il has been designated by thc Ecuadoranto give radio communication and radio navigational aid to all aircraft inwith fixed rates of compensation.
PANAGRA and another US carrier, BranirT International Airways, both operateservice along the west coast of South America, landing at Guayaquil in Ecuador.ndircraft are used by both
AVIANCA, the Colombian airline, connects Ecuador with Colombia to the north, and in addition provides scheduled service within Ecuador to Quito, Guayaquil, Cuenca, and Mania, usingircraft.
L SALVADOR
Organization lor Civil
Control over civil and miliiary aviation in El Salvador rests wllh lhe Chief of Aviation undet the Ministry of National Defense.
Civil Avialion Policy.
a. Civil Aviation legislation.
Since there are no airlines operating services within El Salvador, there has been little need for legislation onew minorsuch as air mail rales, have beenby executive decrees. The Salvadoran Governmeniontract in? withwhich was incorporatedthe laws of El Salvador9 and is therefore popularly known as TACA Eldesignating this airline as Its "chosen instrument" for International services. This contract will continue In effect until
b Regulation of Salvadoran Airlines In contrast to most of the countries ofand South America, El Salvador hasaviation as of only minor importance to its Interns] economy, principally because the country's small sire makes rapid airunnecessary Bl Salvadorhas few fixed policies toward civil avialion. other than to assure continued International service to the capital, San Salvadoras this consideration which led to El Salvador's designation of TACA El Salvador, an airline controlled by US interests, as its "chosenfor such service Largely because of Hie importance attached to TACA sety El SalvHdor and other Central American coun-Iries, the US Civil Aeronautics Board (CAB) granted thishree year permit In9 authorizing operations to the US
iinr; rtirOT-
eminent interceded in TACA's behall before
SE/
lhe CAB during consideration of thc TACA application.
c. Regulation of Foreign Airlines.
Ei Salvador is served by two foreign-flag scheduled airlines. Pan American World(PAA) of the US and SAKSA ofThe government has opposed theof any other scheduled airlines,since it feels that the country's airrequirements are being adequately served by the present carriers. Air cargo potential increased sufficiently after the war, however, for the Salvadoran Government toS non-scheduled cargo airline to Join in the cargo service to the country8
d Promotion of Other Aviation Activity. Alt hough the administration which came to power in8 has passed no laws and made no policy statement respecting civil aviation, it has taken more interest than the previous administration in buildingmall, efficient military air force and inthe Civil Air Club of El Salvador. The club operatesermanent concession by thc legislature permitting duly-free entry of flying equipment, parts, accessories and gasoline for club members. Only occasional flights have been made, however, and no flight training or ground* instruction is given. The governmeni is not known to have given the club any direct financial support.
Weather and radio navigation facilities at San Salvador are owned and operated by PAA
3. International Civil Avialion Policy.
a. Air Traffic Policy and Air Agreements.
EI Salvador has had no occasion toixed air traffic policy and has concluded no bilateral ulr agreements
b International Organisations. El Salvadorember of the International Civil Aviation Organization (ICAO) by virtue
f
k
adherence lo lhe Chicago Convention int is impossible, however, for El Salvador lo appoint delegations with adequate technical qualifications to participate actively in conferences of ICAO and otherorganizations. Its delegates areappointed "in order to help thche voting."
c. IIS Technical Assistance.
A US Air Force mission has been assigned to El Salvador7 and has been assisting with the re-eslablishment of the Salvadoran Air Force. The current favorable attitude of Salvadoran aviation officials toward the US may Ue attributed in large part Lo thcof this mission.
4. Airlines.
a. Salvadoran Scheduled Airlines.
. (or TACA Elhe only airline Incorporated in El Salvador, is onsubsidiary of the US-controlled TACAon-operating holdingin Panama which8 percentin the Salvadoran airline. Prior to the organization of TACA El Salvadorther Central American operations of the TACA System had emphasized cargo traffic The inauguration of International passenger service by TACA El Salvador brought TACA into intense competition with PAA's Central American operations, to which TACAhad formerly provided onlyservice.
TACA El Salvador originally served only thc Cenlral American countries, but has since expanded operations to the US and Mexico. Inowever, TACA El Salvador signed an agreement with TACA deunder which the latter now actually operates the Central American international roules. International service from Elto Mexico and the US, however, is still operated by TACA El Salvador. It is reported that this policy was directed by the Waterman Steamship Corporation (which controls the holding company, TACA, In order that TACA El Salvador mighton the services to Mexico and the US which supplement Waterman's surface trans-
portation operations TACA El Salvador's pressnL permit tohe US as aair carrier was granted by the CAB ino be effective for three years. The extent Ol TACA'S Operations as of9 is indicated below:
lindi'iilivatc't illi'c*Mile* PaS.A I
E! Rulviidori
Routes:. links both El Salvador and Guatemala with Mexico City and NewThese services connect directly wiih service to the capitals of Costa Rica.and Honduras, which is operated by TACA de Honduras under contract in and in the name of TACA El Salvador, fc'owipmenf:
2 DC 4
8 DC-3
Oionershrp:ercent owned byhich in turn is controlled by US interests (Waterman Steamship Corporation).
Scheduled Airlines
San Salvador, the capita) or El Salvador and the only point receiving service in theis served on Pan American World Airways' roules which parallel those Of. through most of Central America. The PAA service, in general, is more extensive than that of TACA. Moreover, connections with olher PAA routes arc made at Mexico City for points in lhe US. at Merida, Mexico, for Habana and the Caribbean, and at Panama for South America.
Servicio Aereo de. (SAHSA) also operates to Ei Salvador from Tegucigalpa, Honduras, via other points In thc latter
Non-Scheduled Operations.
Skytrain Airways, Inc. of New Orleansa temporary landing permit from the Salvadoran Government in8 and commenced fairly regular cargo flightsNew Orleans and El Salvador. This operalion soon included as many as two flights weekly, carrying such varied cargoes asand small automobiles.
SECRET
S EE T
UATEMALA
Organization (or Civil
Civil aviation activities in Guatemala are under the jurisdiction of the Ministry ofand Public works, acting through its dependency, the Directorate General of Civil Aeronauticshe government-owned airline, Conipania Guatemalteca de Aviacionowever, operatesthe direction of the Ministry of Economy and Labor It is being urged by someOfficials that AVIATECA be transferred to the Ministry of Communications andWorks, in order to unify governmentalover all phases of civil aviation.
Civil Aviolion Policy.
Avialion Legislation.
A new basic civil aviation law, based on4 Civil Air Law, was madeby the DGACfterwith AVIATECA. other aviationin Guatemala, and the foreign airlines serving the country To supplement this law, new civil air regulations are now beingby the DGAC.
of Guatemalan Airlines.
The Guatemalan Government has granted the wholly government-owned instrument,onopoly of all internal freight and passenger traffic. The airline, of course, is heavily subsidized by the government. Since surface transportation in Guatemala is very poor, therereat need for air charter services to supplement AVIATECA'sand to accommodate tourists, ftnea (plantation) owners, businessmen, and others who desire transportation lo many isolated parts of the country. To date, however, no firm has been successful, in obtaining thelicense lo operate in this manner. The
S EG
government's principal objection to this type of operation seems to be fear of competition with AVIATECA. In actual fact, however, charier services would almost certainly beonly lo points which AVIATECA does not or is not equipped to serve, such as smalllanding fields.
C. Regulation of Foreign Airlines.
The concession of Pan American World(PAA) to operate air and groundIn Guatemala is due to expireince the companyumber of bitterscattered throughout the executive and legislative branches of the Guatemalan Government, PAA will probably experience considerable difficulty in renegotiation of its contract. The governmeni has been largely responsibleumber of recent difficulties experienced by PAA with respect to its native employees in Guatemala. Moreover, there arc indications that Guatemala will choose toPAA's contract rights in such aas to invalidate an agreement providing for compensation to PAA if its facilities should be taken over upon termination of the present contract. This restrictive attitude of the Guatemalan Government may be designed only to harass PAA further. On the other hand, in view of Guatemala's known desire to extend AVIATECA'S operations, thes policy may indicate that pressure is being exerted on PAAeans ofthe US Civil Aeronautics Board's decision legarding AVIATECA's current applicationermit to establish scheduled service to the US.
If AVIATECA initiates scheduled service to the US. Guatemala's policy toward bothand non-scheduled foreign airlines will probably become even more restrictive. At present. TACA Airways is the only otherforeign airline serving Guatemala.
RET
Other Aviation Activity.
Three first-class airports were built by the US during the war under the AirportProgram: Guatemala City, Puertoand San Jose. The latter two have been turned over to the Guatemalan Government by the USAF, while the third is presently in process of being transferred Kach of these three airfieldsoot paved runway Several other good airfields of smaller site are also In operation. Since there is still no air charter service in Guatemala, several Isolated finca owners have also cleared small landing strips, have acquired aircraft and have taken (lightrder to Improve theirsituation.
Substantial progress has been made recently in private flying in Guatemala, principally on the initiative ot two US nationals whoaero club flying In that country after the war. Their company, known as Avioncs Centre-Americanos, was under contract to the Aero Club de Guatemala lo operate that club, its flying activities and ground school. The company also acted as local distributor for Cessna aircraft and the products ofMotors and Bendix Aviation Corporation There has been considerable pessimismthe future of the excellent training program of this organisation since it wasthat management of the club would pass lo Guatemalan control al the end of
PAA and AVTATECA still jointly maintain Ihe radio aids to navigation in Guatemala, while PAA and the USAF operatestations. Various arrangements have been proposed for increased Guatemalanin these services
3. International Civil Avialion Policy.
a Air TraQlc Policy and Air Agreements.
Guatemala has recentlyoreattitude toward foreign airlines,since its chosen Instrument.ECA. has sought to initiate scheduled serviceoute to the US. (See Section
Guatemala has no bilateral air transport agreements.
b International Organuat&ns
Guatemalaember of the Inter national Civil Avialion Organization (ICAO) Innd has been represented at most meetings of that organization. The country, however, has not taken an active pari in ICAO activities. Guatemala is unableto supply the air navigation and meteorological aids recommended by ICAO. bui would probably participate in jointprograms for these facilities, with outside assistance.
c US Technscal Assistance.
(See Section. concerning wartime. US-built bases recently turned over to)
4. Airlines.
a. Guatemalan Scheduled Airlines.
Guatemala's only airline. AVIATKCA,overnment-owned entity expropriated by the new administration after4 revolt. It is heavily subsidized, has good maintenance standards, and has achieved an excellent safely record. AVTATECA desires tointernational services and has appliedermit to operate to the US. which is now under consideration. Inauguration of these services, however, may also depend on theof AVIATECA's plans to acquire threeircraft.
InVIATECA was operating lhe following route miles and miles scheduled per week:
Unduptteated UiltsMiles Per
AVIATECA (Compania Guatemalteea de Aviacion).
Routes: AVIATECA's routes, which are at present only domestic, are concentrated in thc vicinity of Guatemala City, radiating from that city In all directions. Connections are also maintainedesser network in the northern part of the country.
C-3
ercent Guatemalan
SBifRET
cheduled Airlines
Pan American World Airways (PAA) and TACA Airways. Inc. both serve Guatemala City from New Orleans, as well as Irom Mexico City and points in Central America
C. Foreign Non-Scheduled Operations. Two US non-scheduled freight carriersfairly regular services to Guatemala
Skylraln Airways, Inc. lias operated up Lo twolights weekly Irom New Orleans serving Guatemala and El Salvador, while NATS Air Tr.importation Service (NATS) of Oakland. California has? In weekly service originating in Chicago and flying via New York and Miami The NATS service was originally contracted Tor by the Guatemalan Government.
S Ei/RET
APPENDIX L
HAITI
Government Organization for Civil
A'National Commission for Civil Aviation was created in Haiti8 to function under the Jurisdiction of the Secretariat of Slate for Foreign Allairs. The Commission Is composed of representatives of various governmentaland is charged with the following generalo maintainwith all national and international civil aviationo advise theon measures relating to the execution of Haitian aviation laws;o study and advise the government on all other aviation questions.
The Aviation Corps of the Haitian Armed Forces (Garde d'Haiti) controls and operates Haiti's only domestic air transport service.
2. Civil Aviation Policy.
here were no air services within Haiti. Since that time. Haiti has nota private company to operate domestic air services, reserving air transportonopoly of the Haitian Air Corps, principally fortraining purposes.esult, there are no licensed civilian commercialhe country and only ten licensed private pilots.
The country has had no occasion toormal international aviation policy other than to ensure continued adequate service lo Port-au-Prlncc by scheduled international carriers. Port-au-Prince has received such service continuously9 Although Haiti hasember of the International Civil Aviation Organization (ICAO) sincets participation in ICAOhas been negligible. No bilateral air agreements have been concluded by theGovernment.
Haiti's only international airport. Bowen Field near Port-au-Prince, Is maintained and operated by Pan American World Airways (PAA)aitian Oovernmont leaseuntil
3. . Haitian Scheduled Airlines. There arc no civil airlines operating wllhin Haiti,esult of thc Haitian Government's policy of reserving air transportonopoly of tlic Aviation Corps of the Haitian Armed Forces (Garde d'Haiti). The Haitian Air Corps, which combines military iraining with operation of an airline, was established in3 as an air mall carrier and was authorized in the following year to accept passenger Revenue derived from the air transport service, which operates under the name "Gardes devoted principally to the acquisition and maintenance of equipment and lo personnel training The Garde d'Haiti operates three scheduled flights weekly throughout Haiti l( payloads are available. Unscheduled lr.ir.hi service is also Allhough this carrierood safety record. Its passenger operations were interruptedesult of the poor condition of lis flying equipment Air mall service, however, was continued during this period.
As ofaiti's only scheduled airline, the Garde d'Haiti. wasetworknduplicated route miles andiles per week.
Carde d'Haiti (Corps d'Avlation de la Garde d'Haiti)
Routes: Garde d'Haiti operates exclusively within Haiti, connecting its capital. Port-au-Prince, with other coastal cities along the country's entire perimeter, as well as with one point in the interior.
C-47
58
Owner inercent Government of Haiti.
fr. Foreign Scheduled Airlines. Haiti's capital. Port-au-Prince. Is served by two foreign scheduled carriers, Pun American
World Airways (PAA) and RoyalAA's Caribbean operations include Haiti on Mights from the US lo the Dominican Republic and beyond The KLM route originales at Curacao and touches Haiti en rout* lo Kingston. Jamaica.arc maintained by both carriers to other points in Central and South America.
SEC/RET
SECRET
ONDURAS
Organization for Civil
Civil aviation in Honduras is regulated and supervisedivil aviation office winch is under the Ministry Ot War, Navy and
Aviation Legislation.
The government recenlly undertook theOf the) civil aviation legislation and air traffic regulations Little has been accomplished on this project tu dale, however, partly because some elements in the government object to the use of USand regulationsodel on thc grounds that they cannoi be adapted Lo basicallyHonduran conditions."
Civil Aviation Policy.
All scheduled airlines, national or foreign, must obtain an operating concessionby the Congress. Honduras admitsnon-scheduled operators only if theof origin grants reciprocal privileges to Honduran non-scheduled carriers. Otherwise the Honduran Government exercises littleover airline operations. The government0 percent interest in the slock of lhe Pan American World Airways (PAA) affiliate in Honduras, SAHSA, but has an investment in no other domestic or international airline. Honduras docs not subsidize any domestic air
The new Honduran aviation law (seerovides that civil nviaUon is to be handledepartment of Civil Aeronautics which Is set upependencyew Bureau or Aeronautics under the jurisdiction of the Ministry of War, Navy and Aviation.
A new aviation law, possibly restrictive toward foreign airlines depending on how it Is Interpreted, was put Into effect int reflects,the great haste with which il was forced through the legislature by thc air force Manyare ambiguous or obscure In meaning.
Lransport company; il docs, however, grant air mail contracts, but in most cases the flat monlhly fee which the government pays does not cover expenses. Since many points for which air mail service is contracted do noi have airports, the airlines must freqeuntly subcontract with connecting surface carriers to provide the service.
Although facilities are crude and flying hazardous, the government has appropriated very liltle money to improve airfields or lessen the hazards of flying. With the exception of the small appropriations made for theof miliiary avialion facilities, fields and facilities have been built and maintained by the airlines.
Honduras has concluded no bilateral air transport agreements, and Isember of the International Civil Aviation Organization (ICAO).
4. Airlines.
a. Honduran Scheduled Airlines. Honduras is served by two domesticand two international carriers.and cargo traffic over Honduras'airline network has grown withrapidiLy during the past few years. There is. however, intense and sometimes bitter competition between Lhe two domestic scheduled operators, the PAA affiliate, SAHSA, and the former TACA Systemprivatelyde Honduras. Both have improved their services and equipment, and are apparentlyodest profit. Twenty-two towns are served by both, five more by TACA de Honduras, and one more by SAHSA. Although bath airlines chargethe same rates on most routes, their efforLs to agreeommon uniform rate schedule have so far been fruitless. SAHSA has recently been growing morethan TACA de Honduras (which was sold
the TACA system early8ut the latter's position has been enhancedesult of its contract with TACA El Salvador to operate that airline's Central American international routes,the service is still conducted under the name of TACA El Salvador.
TAN (Transportcs Aereosonduran non-scheduled freight airline, operates rrom Honduras to Habana and Miami. TAN is used principally by businessmen and contractors for bringing freight from the US.ocs nut compete directly with either of the scheduled airlines, since it has confined its operation to freight. TAN has applied to the US Civil Aeronautics Boardermit to transport passengers, cargo, and mail from Honduras via Habana toTANt present.
AHSA (Servicio Aereo de.
Routes: SAHSA's relatively extensive routes include domestic services in thc region north of Tegucigalpa, as well as to points along the entire northern coast of Honduras and in the eastern part of the country. SAHSA also operates international services linkingwith Belize, the capital of Britishand San Salvador, the capital of El Salvador.
The CAB granted TANermithree-year period beginning
C-3
Ownership:ercent private Honduranercent US (Pan American World
ercent Government of Honduras
SAHSA was establishedan American affiliate5 contract with the Honduran Government.
ACA de Honduras (Transportes Aereos.
Routes TACA de Honduras servesand all Of the other principal cities in Honduras. An international route is also operated from Nueva Ocotepcque to Santhc capital of El Salvador. TACA de Honduras, moreover, operates international routes from San Salvador south to San Jose. Costa Rica, under contract to and in the name ol TACA El Salvador (see El Salvador, Section.
Equipment:
8 DC-3
Lockheed Hudson
Avro Anson
Ownership: Believed toercentHonduran. TACA de Honduras was sold by the TACA System to two residents ofin8 (see Panama.here is some evidence, however, that these individuals may be backedy US interests.
AIRLINES OF HONDURAS
Route Miles*
Miles per week
of Aircraft (Various Types)
TACA
11
rivate
.
% Private
The term "Unduplicated" refers only to those route miles which
ire not duplicated by an
se/ret
S E
Foreign Scheduled Airlines.
Aside from the TACA El Salvadorservice through Tegucigalpa, which Is actually operated by TACA de Honduras as indicated above, there is only one foreign-flair carrier serving Honduras. Tegucigalpa is served by Pan American World Airways (PAA)
over two routes from Guatemala and Elto Nicaragua and Costa Rica PAA's operations, which compete in Central America with those of TACA El Salvador, providerrom Honduras to points In the US as well as throughout Central and South' America.
SE T
EXICO
Organization (or Civil
Civil aviation in Mexico is under theol the Department of Civil Aeronautics (DAC) in thc Ministry of Communications and Public Works.
Inommission was created by the DAC to study the civil aviation situation in Mexico and make specific recommendations for reorganizing air transportation, with special attention to the international aspects ol tlic problem. Although thus commission is to act only in an advisory and unofficialits recommendations, when published, will undoubtedly exert considerable influence on the future ot Mexican civil aviation.
Civil AviationCivil' Aviation Legislation.
Air transportation in Mexico is governed by the "Law of General Communications Media and Means ofhich among other matters outlined the governmentallor civil aviation and provided for the regulation of domestic and foreign airlines. It is required by law that:ajority of the stock of Mexican airlines must beby Mexicaninety-five percent of the personnel must be Mexicans;nly Mexican pilots may be employed. The DAC grants permits to Mexican airlines ln two forms. If an operation for whichhas been made appearsne-year experimental permit is issued to allow evaluation of the proposed route. If the air-fine then desires to continue operating the route, it appliesermanent concession.ecision on this application by the government, the experimental permitin force. Most concessions are granted for the maximum period of thirty years.
b. Regulation of Mexican Airlines.
Although the Mexican Governmentto protect Its airlines from foreignit does almost nothing else to aid the expanding Mexican air transport industry Mextco does notirect subsidy to any airline. Rates paid for the transportation of mail vary according to the company, but such payments representominal subsidy. Some relief is also granted in the exemption from import duties of some aviation
Lack of proper government regulation of commercial aviation has been largelyfor the establishment of an uneconomic amount of competition over domestic routes, with the result that most of thc twenty-eight scheduled or non-scheduled Mexican airlines are losing money. The larger scheduledparticularly arc alarmed over what they term the "air piracy of shoestring airlines" Moreover. Mexico's traffic potential is notto support the number of airlines which the DAC has allowed. Recent personnel changes in the DAC may improve thebut the establishmentogical airline pattern In Mexico would probably require the elimination of most ol the non-scheduled
The Pan American World Airways affiliate, Compania Mexicana de.as been favored as Mexico's unofficial "chosen instrument" for most of lhe time it has operated in MexicoMA has not officially beenonopoly of Mexican flag International services, it has been awarded the majority of international routes flown by Mexican carriers That ils influence with the government may be waning, however, is indicated by thc fact that Aerovias Guesl received lhc franchise for the coveted route to Madrid and, contrary to thc early predictions of its critics In Mexico,
E/RET
/
Aerovias Guest appears lo be operatingandair margin of profit over this route.
Although Mexican lawajority of the stock of domestic airlines to be held by Mexican citizens, this regulation does not appear to be universally enforced, since LAMSA. one of the country's three leading trunk route operators.nited Air Lines subsidiary wholly owned by US interests.
o/ Foreign Airlines.
In an effort to promote its airlines, Mexico,reater extent than any other Latin American country, hasestrictive International aviation policy which aims to keep foreign airline competitioninimumaboLage traffic, moreover, is reserved to Mexican airlines by law.
Foreign airlines receive their permits to operate to Mexico from the DAC. Permits to airlines of countries with which Mexico has concluded bilateral air agreements are issued in accordance with the provisions of these agreements.
o] Other Aviation Activity.
Since thc Mexican Government hasno airway facilities nor meteorological aids and has builtew airportsthe Republic, most of the existing facilities have been developed by tha airlines withcapital. The apathetic attitude of thc government toward such matters led to the establishment0 of the Aeronautical Radio dcon-profit company organized by the airlines to give radio and weather service Lo all commercial and private flyers. ARMSA purchased theowned facilities and now operates and maintains them, charging the individuala rate proportionate to the amount each uses the facilities. The failureumber of small, non-scheduled operators to pay this company for its services has been largelyfor its present indebtedness. For reasons of safely, however. ARMSA has been required by the government to give service to all aircraft, whether lhe company has been paid or not. and ll has received no government assistance in its efforts to collect from its debtors
ET
k
In an effort to force Mexican and US airlines to use Peti'oleos Mexicatios (PEMEX) aviation fuel rather than Lo Import US products, the Mexican Government hasermitting tax-free Importation offuel for civil aviation. In spite of the increased costs, however. Lhe larger airlines are continuing lo importctanc fuel, since they claim PEMEX products to be of inferior quality. Moreover, they lack faith in thc administration of PEMEX and question Lhe reliability of the company's distribution of aviation fuel to Mexican airports.
Among at least thirty private aeronautical schools or aero club training units in Mexico, the most important is the Escuela dc Aviacion Civil "Cinco de Mayo" at Puebla. which offers courses In (light, navigation, meteorology, radio navigation, and related fields. Although this school is supervised and managed directly by the Department of Civil Aeronautics, it has been provided with only meager funds from the government for the purchase of flighl and ground school training equipment with which to carry on its program.
3. International Civil Avialion Policy.
a. vllr Traffic Policy and Air Agreements.
In order to protect the interests of itsin both their domestic and international operations, the Mexican Government hasa very restrictive air traffic policy. In negotiations with thc USilateral air agreement, Mexico has insisted uponrights over certain routes and upon adivision of traffic between US andairlines over certain other routes. The Mexican posilion reflects not only fear of the lechnical and financial superiority of foreign airlines (especially USgainst which Mexican carriers believe they cannotcompete, but also the extremeof the Mexican Government to criticism by nationalist groups. Since Lhe Mexicanarc inconsistent with the basicof US aviation policy, the US has refused to abandon the Bermuda pattern and hasrejected any arrangement providingegulated division of traffic.
Ncgoiiations Initiated by the UK and the Netherlands have also been unsuccessfulof similar Mexican insistence upon split
arrangement*esult, the only Mexican bilateral air agreements now In effectestrictive agreement concluded with Portugal onnd anstgncd wiLh Cuba in. Inter national Organization Mexicoember ot theCivil Aviation Organization (ICAO) upon lis ratification o! the Chicagoon6 and has taken an active part-in most ICAO deliberations. Therole was decisive in the failure of7 Geneva meeting of an ICAO commission convened to drawultilateral agreement on commercial rights in international air transport. Apparently acting as thc spokesman of the weaker civil air nations at that meeting. Mexicoesolution which brought outhe US. the UK. and other major air nationsultilateralof Fifth Freedom privileges in one in ternallonal agreement;exico, the olher Latin American nations present, and certain olher weak air nations supported the Mexican resolution reserving to each country the right to withhold Fifth Freedom privileges in thc negotiation of bilateral routesupplementing the multilateral(It had been decided thatair routes should be subject to bilateralhe Mexican resolution was acceptedoteith fiveBecause of the sharp difference of opinion, however, no compromise was possible and there has been no subsequent attempt toultilateral agreement Various explanations have been advanced for thedelegations action at the GenevaIn any event, it appears thai lhetaken by the delegation was notin advance by the MexicanOn the olher hand, the Mexicanut Geneva was clearly consistent with the generally restrictive policy on air uraffk rights pursued by Mexico Aerovias Ouestember of thc International Air Transport Association.
c OS Technical Assistance.3S Civil Aeronautics Technical Mission composed of flight training
and aircraft maintenance specialists wasto Mexico to work with governmentin establishing the pilot training school "Cinco de Mayo" at Puebla. This mission participated in training moreflight personnel,ercent of whom are currently engaged in civil aviation activities.
4. Airlines.
a. Mexican Scheduled Airlines.
There arc thirteen Mexican airlinesscheduled services within the country and to points abroad, ln addition, aboul fifteen non-scheduled operatorsariety of charter services Of the three leading Mcxi can airlines. CMA, LA MSA. and Aeronaves, CMA continues to hold its dominantCMA's total weekly scheduledmakes up half of the Mexican total, is more ihan four tunes that scheduled by any other earner, and twice the combined mileage of Its three nearest competitors.
Aerovias Guest and the two PAA affilialcs, CMA and Aeronaves, are reportedly the only Mexican airlines to be operatingrofit. Each of these, however, subsists principally on its incomeingle lucrative route. Actinias Guest. Mexico City-Madrid; CMA, Mexico City-Los Angeles; and Aeronaves. Mexico Clty-Acapulco (the popular Pacific beachll Mexican airlines have been seriously affected by the general business slump and the devaluation of the Mexican peso. While passenger traffic has fallen offercent since devaluation, operating costs (equipment, fuel, and repairs, most of which have to be paid for In dollars) have increasedercent. Freight traffic has increased aboutoercent, but not sufficiently to offset olher losses. In the face of thesewhich mean the inevitable bankruptcy ol marginal operators, negotiations have been proceeding to merge about eight of the smaller airlinesingle organization, bul noaction has yel been taken.*
In Uw conaoUdalwn of thc smaller Mexican alr-HJM which took place during the early part ofTSA took over the operations ot AI.ASA and Ja-llsio atsa. which may change IU name lo Air Mexico, will serveities and towns andwill become one of the largest domestic caiIt is reported alio thai OPA and Paninl have been merged with
'V?
SEC/KT
OF MEXICO
Route Miles"
Miles per Week
ol Aircraft (Various Types)
.
A
.
Private
Guest
.
eforma
5
% Private
.
LAMSA
Panlni
Jalisco
TAT
TAMSA
%%%% Private
TOTAL
Thenduplicated" refers only to those route miles which are not duplicated by an individual airline.
ORE
Aeronaves {Aeronaves de.
Routes; The operations of Aeronaves are confined entirely to the western part ofexcept for one international stop at No-gales, Arizona. Its services arc divided into two maineasonal, high density tourist traffic between Mexico City and the Pacific resort, Acapulco;heunfluctuating traffic carried over routes such as Mexico City-Nogates, and Mexico Cily-Mazatlan-La Paz.
Equipment:
4 DC-3
3DC-2&
1 Avro Anson
Aeronaves alsoumber of othermostly single engine types, wliich are
obsolete and not believed to be employed in regular operations. Ownership:
ercent private Mexican 40 percent US (Pan American World Airways)
Aeronaves was established4holly Mexican-owned organization. Pan American acquired itsercent holding0 and.esult of certain contractual relationships, elects two of thc five members of the Aeronaves Board of Directors who can block any action of the Directors. Moreover, purchase of equipment and certain other transactions cannot be undertaken without the consent of PAA. which therefore excr-
S EC/RET
onsiderable degree ol effective
TSA.
Kinita. ATSA operates only within Mexico, excepttop al Brownsville. Texas, which is being served temporarily because ofairAeld facilities across the border at Malamoros. Thc ATSA route networkmost of the important Mexican elites between the US border and Mexico City. These, points are served on one north-south and two east-west routes, interconnecting at two Junction points. Monterrey and San Luis Potosl.
Equipment:
3 DC-3
3
1 Vultecwnership:
ercent private Mexicanercent private US (2
ATSA was organlRed early3 and started operating early the following year. Service has twice been Interrupted for several months by lack of Hying equipment anddifficulties."
iAcrovior Contreras operates three routes
from Tijuana, on the US border. Two of these serve Lower California: one extends the full length of the peninsula to La Pas; the other serves the Pacific resort of Enscnada. The third route extends to Mexicali and San Felipe, on the Mexican mainland. Equipment:
3 Avro Ansonercent private Mexican. Contreras was founded7 by Mr. Manuel Contreras, who is believed still to be the sole owner of the airline.
.
Routes: Aerovias Guest operates twiceservice over just one route. Mexico City to Madrid, wllh traffic stops at the Azores and Lisbon and non-traffic stops at Miami and Ber-
' See note page IB.
muda The company has applied to thc US Civil Aeronautics Board, however, forloon-stop Mexico City-New York service. Equipment;
5 DC-4
(According to recent reports, two of these aircraft are operated on Guest's scheduled service, two are held in reserve or for charter service, and the fifth IS temporarily leasedS non-scheduledner ship:
ercent private Mexicanercent private US Aerovias Guest began operations lo Spain in8hirty-year license fiom the Mexican Government Aerovias Guestember of the International Air TransportTA).
LASA (Aerovias
Routes: ALASA opeiatcs local routes throughout southeastern Mexico radiating from Villahermoso. which is also connected with Mexico Cityrunk route.
C-3
ALASA also owns aboutther aircraft of at leastifferent types, all small and oltso-lete.
elieved lo be controlled by US citizens; there is no Mexican GovernmentUnder several other names, ALASA dates back to
eforma (Aerovias.
Routes: The only route now being operated by Reforma connects Mexico City with the west coast of Mexico and lowerexicoCily-Guadalajara-Culiacaneforma also holdsconcessions, however, for theof two other routes: Mexico City-Puebla and Acapulco-Puebla-Tampico,
Equipment;
3 DC-3
7 (cargo only)ercent private Mexican. Thc) and sole stockholder Is Mr. Alberto Rico Pani."
Sec note
E
S
CMA (Compania Mexicana de.
Roules: CMA wives most of the important cities of Mexico, except Acaputco on the Pacific cons', and those in the interior north of Mexico City. The CMA domestic route networkof: (I) trunk routes radiating from Mexico City;eeder routes extending from Monterrey and Mexico City to cities on the Gulf coast, as far as Merida in theCMA also operates two International routes: Mexico City-Los Angeles and Mexico Cily-Habana CMA is the only airline of any nationality serving these two routes directly. Connections with Uie affiliated PAA system are made on these routes at both Mexico City and Merida for points In Central and Southand points In the US. CMA has alsoto the US Civil Aeronautics Board forto operate passenger and cargo services to New Orleans and several Texas ports of entry.
Equipment;
55C-24
4 (cargo7 (cargo only)
Ownership:ercent private Mexicanercent US (Pan American World Airways)
CMA was founded4 by two USto transport payrolls to the Tamptco oil fieldsan American purchased the entire capital stock of the company, for the purpose of gaining operating rights In Mexico. PAA's stock interest In CMA has DMn progressively reduced in recent years8 percentoercent6 (thus relinquishingnd to Its present holding later that year.
PAacifico Aerotransportes,
.
Routes: GPA connects cities along the Gulf of Mexico (from Gutierrez Zamora to Coatia coalcos) with Mrxico City It also connects CoaUacualcos with Sulina Cruz on the Pacific coast
Equipment:
8
Arro Anson
ercent private Mexican. GPA was founded and started operating*
AMSA (Lineas Aereas
MSA operates north of Mexico City in western Mexico,outefrom Mexico City to Ciudad Juarezranch from Torreon to Mazatian on the Pacific coast, as wellroup of routes in northwestern Mexico. LAMSA operatesemporary basis to Nogales, Arizona, because of inadequate facilities on the Mexican side of the border. No direct connections are made, however, with LAMSA's US parent company. United Air Lines. LAMSA has also applied for US authorization to provide service lo Los Angeles and several points in Texas.C 3
Ownership: LAMSA Is the Mexicanof the US scheduled airline. United Air Lines, whichercent of LAMSA's preferred stock anderceni of Itsstock. The8 percent of common stock is held by olher US) Panini (Sermcto Aereo. Routes: Panini serves the central andparts of western Mexico, with Mexico City as its eastern terminus. Although several of Mexico's large cities are included in theIhe majority of points served aresmall towns with Inadequate surface transport faculties. Equipment.'
2 DC-3
2vroravelalr (not used in scheduled service)
ercent private Mexican. Panini was4 by Carlos Panini. who Is believed still loontrolling
(II) Jalisco (Traniporfej Aereos de Ja
lisco).
Sec note page It.
SB/BET
Jaliscomall section of west central Mexico, Irom Guadalajara on the east to Puerto Vallarta on thc Pacific, thence south to Tomatlan. There is no appreciable surface transport In this region
Equipment
3 DC-3
2 Fordu It-re
eicent private Mexican. Jalisco was founded6 *
(Tianspottes Acreos deTAT provides local service between
Tampico and Mexico City and also connects Tampico, the chief oil center of Mexico, with the oil fields along, the Gulf Coast. TAT is also activeharier operator along Its mutes. Equipment:
1 DC-3
5 Avro Anson
TAT alsother aircraftifferent types, all small and obsolete
ercent private Mexican. TAT was founded0
(Transportes.
Routes: TAMSA connects Mexico City with the Gull Coast, as fai as Merida on thePeninsula, and also serves the moretowns on Ihe Peninsula. In addition,
See nolo
TAMSAery short international route, originating in Merida, from Chctumal to Belize. British Honduras, where connections are made with the TACA System to Central America and with British West Indianfor Caribbean points. Equipment:
7 (cargo only)
5 Avro Anson
TAMSA also owns atozen otherof various small and obsolete types.
ercent private Mexican. TAMSA was organized3arrier which had operated under various other names
o. Foreign Scheduled Airlines.
Mexico Ls presently served by four foreign scheduled airlines, of which three are US-owncd or controlled. American Airlinesthrough-flights to Monterrey and Mexico City via points in Texas, from the US west and east coasts, and from Chicago. Pan American World Airways (PAA)roup of routes which serve Tampico and Mexico City from Texas gateways, continuing on (via Tapa-chula, on some flights) to Guatemala and other points in Central and South America. PAA also operates Miami-Habana-Merida and New Orleans-Merida-Guatemala services. TACA ElS-controlled carrier, provides service from Mexico City lo Guatemala and beyond, connecting with other TACA Airways System services. The Cuban airline. Aeroviasas recently begun operationsoute from Habana to Merida and Vera Cruz.
SE^i'et
ICARAGUA
(or Civil Ad-
1. Government miniilration.
Civil and military aviation in Nicaragua are both controlled directly by General Somoza, Minister of War, Navy, and Aviation. There appears to be no significant aviationin the government other than an assistant Lo Somoza who concerns himself with aviation matters.
?. Domeih'c Civil Aviation Polky.
a Civil AvuiHm lAglxlatkyn.
A Law of Civil Aviation, passeds presumably still the controlling basicfor civil aviation, although it has been supplemented by various presidential decrees.
b. Regulation of Nicaraguan Airlines.
The economy of Nicaragua is largelyupon air transportationne of the country's principal exports and air transportation Is almost the only link between the Isolated mining areas and the rest of the country. Supplies, mining equipment, and personnel are flown In lo the mines, while gold
and personnel arc transported nn the return trip.
In order lo secure further control over civil aviation. Somoza encouraged thr formation8ew Nicaraguan airline, FANS A. This action was taken in the hope that the airline would not onlyource ofincome, but would also train pilots of the Nicaraguan Air Force (FAN) and ensure the availability of an air transport service on which So mora could depend in an emergency, such as revolution or outside attack.eans of promoting KANSA. Somozathe operating permit of TACA deand forced the liquidation of its asseLs by suddenlyreviously waivedlaw requiringercent of the stock of domestic airlines lo be held by Nicaraguan nationals. TACA de Nicaragua wasunder this law, since ll had at one time
holly foreign-owned subsidiary of the TACA System, and had more recently been sold to private US and Honduran citizens. This action by the Nicaraguan Government was in effect an outrightmmediately took over TACA dc Nicaragua's ground equipment and attempted to operate its freight business. TACA's threeircraft, however, escaped to Honduras.
The principal boneficiary of thesehas actually been Lineas Acreas deSA. (LAan American World Airways (PAA) affiliate In which PAA0 percent Interest. The mine owners proved disinclined to do business with thegovernment-oriented FANSA. and LA NICA has graduolly secured most of the char-Vi freight traffice mines. Moreover, It soon received TACA de Nicaragua's mailand took over all of the domestictraffic Loss of two aircraft In crashes early9 has apparently brought FANSA operations almosttandstill and has forced It to negotiate thc sale to LA NICA of itstwo aircraft LA NICA. therefore, is now the only scheduled airline in Nicaragua
The preferential treatment accorded to LA NICA at the same lime FANSA was beingpromoted is attributable to theercent share of its capital stock held by the government. Somoza himself, moreover, is reported to holdubstantial portion of LA NICA's privately owned shares Even hi the principal air transport service now available to Somoza, however. LA NICAno subsidy except that provided by lis mull contract with lhe government.
C Regulation of Foreign Airlines The action taken by the government against TACA de Nicaragua did not affect the opera-lions Of. (TACA El Salvador) or PAA. both of which operate internationalthrough Nicaragua.
SEC/RET
Promotion of Other Aviation Activity.
The Nicaraguan Government is financially reluctant and technically unable to maintain meteorological and navigational aids. PAA operates Managua airport at its own expense and the US Air Force maintains weather and communications facilities there.
A now practically inactive Aeros also controlled by General Somoza, but has received no government assistance. There is therefore little or no market ln Nicaragua for civil aircraft.
3. International Civil Aviation Policy.
Traffic Policy and Airno Nlcaraguan-flag carrier operates
scheduled services outside the country,has had little occasion to develop an international air traffic policy. It has not raised any obstacles to the operation of foreign airlines into Nicaragua. The Nicaraguan Government has negotiated no bilateral ail transport agreements.
Organizations.
Nicaragua was represented atonference and became the first Latin American member of the International Civil Aviation Organization (ICAO) by adhering to the Chicago Convention onlthough Nicaraguan representatives haveICAO meetings, they have not taken an active part in the proceedings.
Technical Assistance.
Thc airport at Managua was built and equipped by the US under the wartimeDevelopment Program.
A. Airlines.
a Nicaraguan Scheduled Airlines.
LA NICA, the only scheduled airline inwas organized by PAA5 towith the TACA System's subsidiary in lhal country. TACA de Nicaragua. LA NICAexpanded its services until,t operatedercent of the scheduled service in the country When TACA de Nicaragua was expropriatedA NICA became thc only Scheduled Nicaraguan airline. It has experi-
enced only negligible competition from thc charter operations of FANSAecently established non-scheduled carrier, INCA.
INCA Airlines Express Agency was organized in Miami lute8 and was unexpectedly designated by Nicaragua shortly thereafter as its chosen instrument for Miami-Managua air transport. Under thc direction of an ex-PAA pilot. W. E. Quick, who is President, majority stockholder and Chief of Operations. INCA has maintained twice weekly non-scheduledbetween Miami and Managua via Puerto Cabezas. It also stops every other week on its northbound trip at the Bonanza and Siuna mining areas in the interior of Nicaragua. Somoza appears to be promoting Quick in this enterprise, which accounts for thc political favor enjoyed by the company at present. INCA owns onend leases another6 when needed.
I.incas Aereas de. (LAScheduled
RouteWeek
Routes: LA NICA connects Managua with towns along the eastern coast and with two mining communities in the interior, Siuna and Bonanza. One route extends east from Managua to Bluefields and then north up the eastern coast; the other extends fromnortheast through the Interior to thecoast at the northern extremity of the country.
Equipment:
4 DC-3
1
Ownership:ercent US (PAA)ercent Government of Nicaraguaercent private Nicaraguan
b. Foreign Airlines.
Managua, the capital of Nicaragua, is served on the Central American routes of both. (TACA El Salvador) and Pan American World AirwaysACA provides service to New Orleans and Mexico City, while PAA also provides direct service lo the US andservice throughout Latin America.
T
APPENDIX P
PANAMA
Government Organi/otion for Civil
Civil aviation in Panama is under the juris-diclinn of the Ministry of Government andactingepartment of Civil Aeronautics. An earlier Department of Civil Aeronautics functioned8 under thc Ministry of Finance and Treasury, but was eliminated for economy reasons and its re* sponsibllilies were transferred to an Inspector General of Aviation under the Ministry of and Justice. This arrangement, whichinistry to handle the civil aviation function directly, apparently did not work well, with the result that theof Civil Aeronautics was re-established within the Ministry ol Government andbyf9 ational Civil Aeronautics Board was created by this same decree to "study and resolve civil and commercial aviation problems subject to approval by the Executive Organ."
Aviation Legislation.
It is believed that civil aviation in Panama is regulated in partecreeodi-fledmong other matters, thispermits and regulates the registration of foreign air carriers under the flagarticular case is not covered by Panamanian civil aviation legislation, ll ls the practice of Ihc Panamanian Government toiteral translation of US civil airThe National Civil Aeronautics Board and the Department of Civilareasic civil aviation law designed to fit the special aviation situation in Panama and to fall within the framework of recommendations by the Internationa) Civil Aviation Organization (ICAO).
Aviation Policy.
Because of Panama's limited financialand the general lack of aeronautical
knowledge on the pari of most of Itsofficials, civil aviation has not been strongly supported or closely regulated by the Government of Panama. For the most part, civil aviation has been exploited for political purposes by Intensely nationalistic elements in Panama More recently, however, officialhas been focused on the necessity ofeneral policy which willall legislative and administrative action that is needed to encourage thc maximum use of Panama's new Tocuinen National Airport.
The government docs not grant any direct subsidy to Its only scheduled domestic airline. Compania Panamena dehichan American Worldafliliale. It hasontract with COPA. however, granting the latter an exclusive franchise (for scheduled air services in Panama and an indirect subsidy in the form of certain tax exemptions, in return for free transportation of Panamanian Government officials. This contract also stipulates thatercent of the airline's stock shall be controlled by Panamanian nationals and that foreign employees will not be hired unless qualified Panamanians are not available.
Although Panama does not pursue apolicy toward foreign airlines, there are extreme nationalistic elements within theand the country who havesubmitted legislation designed to give Panama rather strict control over theof foreign airlines. The government is anxious, however, to induce the airlines of as many countries as possible Lo use Panama's new Tocumen National Airport in order to derive sufficient revenue to cover the cost of its maintenance and operation.esult of the US-Panama bilateral air ngreement signedhe operations of US carriers were transferred from the US Air Force Base. Albrook Field (which is In the
4
Canal Zone about one mile from Panamao Tocumen Airport (which Ls in thc Republic, but more distant from thell commercial airlines serving Panama now operate into Tocumen
Panama has few trained radio andtechnicians and few qualified pilots for commercial-type aircraft. Other than at Tocumen Airport, ground facilities and radio navigation aids are lacking or very inadequate. Tocumen and thc airports at Dark! and Boras del Toro are currently being improved. Three flight schools and lour flying clubs continue Loimited amount of private flying and flight instruction.
Panama lias Bermuda-type air agreements with) and thef the US bilateral by the National Assembly constituted an important victory for the liberal forces within Panama and forUS-Panamanian relations, since Lhe agreement had been bitterly opposed by anti-US nationalistic forces in Panamanegotiations with the UK are expected lo terminate soon in signatureilateral air agreement
Panama has not Joined the International Civil Aviation Organization.
Thc US hasumber of military air bases both In Uie Canal Zone and in theof Panama for the protection of the Panama Canal. In compliance with Panama's requestote accessory to the US-Panama bilateral airS Technical Civil Aviation Mission has been assigned to Panama, and several specialists arc assisting and Lrain-ing Panamanian personnel In the operation of Tocumen Airport as an international air center.
A. Airlines.
o. Panamanian Scheduled Airlines.
Compania Panamena de.he only airline presently operating scheduled service within the Republic ofwas organized4 by Pan American World Airwayshichf the stock. COPA commenced opera lions7 over those Interior routes which had been served until then by PAA under its Panamanian cabotage privileges
RET
Another important element in Panamas civil aviation is Adams Enterprises In Spanish.wned by John C. L.etired US Army Colonel. AESA actsentral American representative for various US manufacturers of aviation products and arms It has also contracted wiih the Panamanian Government to operateon scheduled airline. Aviacion.nd an aviation school for thc train-ing of Panama pilots and mechanics AESA lias acquired all thc properties of anbase and aviation school at Puerto Pilon. It is building up these facilities,eaplane ramp, as well as operating the school, and conducting thrice-weekly passenger and cargo service lo several points on the Atlantic side ol the Isthmus, using Noordyn Norseman seaplanes and Grumman Goose amphibians.pecial summary of the TACA system isas Section 5)
InOPA was operating Lhe following route miles and miles scheduled per week:
Scheduled
RouteWeek
COPA (Compania Panamena de Aviacion, SUL).
Routes COPA serves the western half of Panamariangular route extending from Panama City, the capital, southwest to David and Puerto Armuelles, on the Pacific coast, then north across Panama to Chan-guinola un the Atlantic side. The route then extends east through Bocas del Toro back to Panama City.
C-3
OHmernhfp:
ercent private Panamanianercent US (PAA)
b. foreipn Scheduled AitUnes.
Panama is the hub of an extensive network of international scheduled airline servicesthroughout Central and Southas well as to lhe US and to Europe.of seven foreign airlines, representing four nationalities, regularly serve Panama City Four of these are US-flag carriers Pan American World AirwaysANAGRA.
E
SE
I If International Airways, and Uraba. Me-dellin and Centralwo others. British Overseas Airways Corporation (BOAC).
and Royal Dutch Airlines (KI.Ml. areand the seventh is the Cotombianflag affiliate of thc PAA System, AVIANCA. The routes operated by these carriers which serve Panama City are indicated below.
from:
via Central America to Pan-
ama; US via Jamaica toUS to Panamand Trinidad via north coast of South America to Panama.
Braniff
UMCA BOAC
KLM AVIANCA
PANAGRA Panama via west coast of South America to Chile and
US via Cuba to Panama and west coast of South America
Panama lo Colombia.
Europe and US via Bermuda and Jamaica to Panama and
west coast of South America,
Europe and Caribbean area to Panama and Costa Rica.
Colombia to Panama.
In addition to the foregoing operations through Panama City, service to David.is maintained by PAA en route from San Jose to Panama City. Moreover, twooreign airlines, both Costa Rican. provide service to points in Panama. The operations ol TACA de Costa Rica include Panama's northeastern border town of Bocas del Toro; LACSA's only international service crosses Panama's northern border to the Pacific town of Puerto Armuelies
c. Foreign Non-Scheduled Operations Transocean AirS Irregular air carrier, has operated frequent flights to Tocu-men Airport and Isontract with the Panamanian Government permittingoperationsharter basis
5. Ihe TACA System.
A study of the TACA System is inserted at this point because TACAhe
non-ope.ating US-controlled holding company
for this group of airlines, is incorporated in
The TACA System grew out of charterstarted1 in Honduras by Mr. Towel)ew Zealand OT, under thename Transportes Aeieos. (TACA deperations were confined to that countryhen the company began its expansion throughout Central and South America chiefly by means of the purchase or organization of other local lines TACA de Honduras remained thccompany of the systemhen TAQAas founded as the non-operating holding company for the operating subsidiaries.
The TACA System reached its maximum size7 Since that time, however, it has been contracted considerably, mostly by the sale of component companies.
The following companies make up the present system:
.
This company is the non-operating holding company of this group of airlines. It was established In Panama9 ashanged its name3 lo Inter-Amerlcanndhat year adopted the present name
SA. (TACA El Salvador).
This company was established9 in E) Salvador to operate the international routes of lhe TACA System in Central America, which had previously been operated by TACA deTACA El Salvador has continued in this role and has expanded its operations to the US and Mexico InACA El Salvador signed an agreement with TACA de Honduras lo have the latter operate theAmerican international routes. These operations are still conducted, however, under the name of TACA El Salvador.
lnea Aerea TACA de. (TACA de Venezuela).
This company was established as an affiliate of TACA Airways in4 Al present, it is the only TACA-affiliated airline operating in South America
ET
SE^E
de. (TACA de
This company was established in Mexico4on-operating subsidiary of TACA Airways to comply with the terms of thcissued by the Mexican Government to TACA El Salvador to operate into Mexico. (Thc permit required the establishmentexican company to own the TACA System's ground facilities and real estate in Mexico.)
Airways Agency, Inc.
This company was established In the US3 for the purpose of handling business in the US for the TACA System
(fi) TACA Airlines Investing Corporation.
This company was incorporated in the US6 as an inactive subsidiary of theIt owns one-half of the TACA System interest in TACA de Colombia.
The chart below indicates the relationship between the present components of the TACA System and the percentage of the stock of each component which Ls held by Lhc Panama holding company. TACA Airways. SA.
The following companies were al various times affiliated with the TACA System, but have since been sold to other interests or have discontinued operations:
British West Indian Airwayshich Mr. Yercx had organized outside the TACA Systemart of the Systemhen Yerex turned over hisercent slock interest in BWIA to TACA Airways.ACA Airways had sold all of this stock to British interests.
Aerovias Brasit, which Yerex had foundedas sold to Brazilians
TACA de ColombiaasAirways affiliatebutoperations inbecausedifficulties.
The original company, TACA de Honduras, along with TACA de Nicaragua, was sold to Central American interests inACA de Nicaragua is no longer in operation.
TACA de Costa Rica was sold to Central American interests in
The founder of the TACA System, Lowell Yerex, was originally Its principal owner. However.S investors2 interest in TACAnd subse quent capital increasesG raised4oting trustwas signed7 by the following TACA stockholders. Mr. Yerex. The Pennroad Corporation, Transcontinental and Western Air. Inc.nd the WatermanCorporation. Under this agreement, which provided that Waterman was to exercise the voting privileges of the other parties untilalerman apparently acquired effective control of thc TACA System. IL is not known, however, whether the voting trust agreement has been renewed.
Although the exact percentage of totalstock which US interests presently own is not known, iL Is believed to be aboutercent.
TACA.
TACA El Salvador
Central
s
TACA Airways Agency,Inc.
South America
TACA de Venezuela
Airlines Investing Corp.
APPENDIX O
PARAGUAY
Organizolion for Civil
Paraguay's limited civil aviation activity is administered by the Ministry of National De-lense. actingirectory of Aerial Traffic (Direction de Traficoheagency was recently removed from the jurisdiction of the Commander of thc Air Force, with the result that civilian control over commercial avialion has been increased. Military and civil aviation functions arc now theoretically separated, although there is still considerable overlapping. The effectiveness of the "Direccion" in developing civil aviation in Paraguay is still seriously restricted by its lack of greater autonomy and sufficient
Civil Avialion Polky.
Aviation Legislation.
There is very little legislation in Paraguay affecting civil aviation. No information is available on civil air regulations currently in effect. Llnca Aerea de Transporte Nacionalhe nalional airline, was established by Decree4 ofecond Decree,stablished operating regulations for LATN and also granted theonopoly on domestic air transportation.
of Paraguayanin civil aviation, which isery
primitive level in Paraguay, has been retarded by political instability, lack of interest, and insufficient funds. Implementation andof civil air regulations have been lax. and frequent changes of administration have interrupted the establishment of aaviation policy.
Paraguayertile field for theof air transport, since itimited highway system, and ran service isonly in thc southern part of lhe country
(one rail line from Asuncion southeast to the ArgenLineiver transportation and fair-weather roads must be depended on for most transport requirements. Althoughlegislation grantsonopoly of domestic commercial air service, thealso gave tacit approval toimited charter service by US interestsATN has protested this service, but the government now seems determined to encourage any form of aviation activity.
of Foreign Airlines.
It Is Paraguayan policy to encouragecarriers to serve the country, but the traffic potential is too low to attract many foreign operators. No US carrier serves Asuncion, the capital, at the present time Although an application by Brand!Airways to serve Asuncion en route to Buenos Aires is being given priority attention by thet is unlikely that BranirT will inaugurate service to Paraguay untilauthorizes extension of th? route to Buenosommercial airline travel to Asuncion is now possible only via Argentine or Brazilian airlines.
Cabotage traffic is reserved to Paraguayan enterprises.
of Other Aviation Activity.
The excellent runway at the Asuncionwas built by the US under the wartime Airport Development Program. Development and Improvement of other fields (none ol which is surfaced) has increased the number of points served by the national air service
Recent aviation policy has encouragedflying and the reorganization of the Aero Club del Paraguayeactivation of this club, equipped with its own aircraft, and
'uff inaugurated Lima-La Paz- Asuncion -Buenos Aires
92
developmentmall grass field near thc capital lor the use of private aircraft have tended to reduce civilian dependence on the air force for Lhe tatter's aircraft, personnel, and fiying facilities.
There is no airframe or aircraft enginein Paraguay.
3 Inter notional Civil Avialionrr Traffic Policy and Aa Agreements. Paraguay encourages foreign airlines lo serve the country. Since its carrier does not operate outside the country. Paraguay has no competitive reason for desiring to restrict the operations of foreign carriers.
Paraguayermuda-type bilat cral air transport agreement with the US in.
b. /nfcrnaiiofiai Organttations.
Paraguayember of the International Civil Avialion Organizationtsto participate actively in ICAO activities,ery limited, and failure to meet its financial obligations to thc organization has resulted in suspension of Its voting rights Paraguay has not been represented at all ICAO functions.
S Technical Assistance.
No CAA Mission has been assigned toAs indicated in Sectionowever, the Asuncion airport was developed with US
4. Airlines.
a. Paraguayan Airlines.
I.atn. the national airline, is operated by the air force and handles most of theair service within Paraguay. Bothand non-military transports, and even training planes on occasion, are used In commercial services. LATN was organized primarily to provide fast transportation toArmy posts. Since Its schedules are keptinimum. LATH'S commercial service is mainlyharter basis.
Two US ex-servicemen haveomestic air charter service In Paraguay, using twos. The government, under pressure from LATN, however, may force aof this service.
Several approaches have been made to thc Paraguayan Government by various foreign interests for authorization to establish anair service based In Paraguay. Various grandiose proposals for operations to Europe and lhe US, Involving both Argentine and US Interests, have been advanced, but such operations are not likely to materialize for some time, If at all.
Mtfes Scheduled Per
Data concerning LATN (Linea Aerea de Transporte Nacional) as of9 are summarized below:
VndupUcaled Route Milts
Routes: LATN connects Asuncion withtowns In Paraguay through four routes known) Eastern;outheastern Equipment:
2 Stinsontinsonepublic Seabee
Owner ship:
ercent Government of
b Foreign Airlines.
The capital of Paraguay, Asuncion, is served by two internationalanair do Brasil operates one. route west from Rio de Janeiro and Sao Paulo via Curitiba and Iguauu Falls to Asuncion,econd route south from Cam no Grande to Asuncion. ALFA, the Argentine carrier, provides service to the city on two routes from northern
A llilrd carrier, BranlfT International Airways,ves Asuncion Isea note.
SKf/RKT
ERU
Government Organization lor Civil
Civil aviation in Peru is thr responsibilityinistry ol Aeronautics acting through a Directorate Genera! of Civil Avlntion <DGAC) The DGAC is charged withof civil aviation policy and regulation of civil aviation activity. The Corporaclon Peiuana deovernment-controlledcorporation, ls responsible lorand administration of DGACrelating to the construction andof airports and air communications eneral Directorate of Meteorology established in0 replaced the National Meteorological Serviceirect dependency of the Ministry ot Aeronautics. ivilAdvisory Committee was created6 to study aviation policy and act as an advisory board to the Minister of Aeronautics. This committee is composed of the Legal Director in the Ministry of Foreign Affairs, the Chief of Staff of thc Peruvian Air Force, the Minister of Aeronautics, the Director of Civil Aviation, the President of CORPAC, and the President of the Peruvian Tourist Board.
An almost complete lack of properly trained administrative, flight, and technicalin Peru, other than those employed by
the civil airlines, has necessitated aon military personnel for staffing all civil aviation regulatory bodies. With the coming into power or the Military Junta Inoreover, all phases of civil aviation fell under stricter military control. Thishowever, has not been exerted to favor military aviation requirements overones.
Lines of responsibility foi the foregoing functional groups have been establishedas in the chart below.
?. Domestic Civil Avialion Polity.
a. Civil Aviation Legttlaiion.
A few of the most Important laws, decrees, or resolutions dealing with civil aviation are listed below.
No. 27 of 31 October 5
charged the DGAC with responsibility for the
inspection of all civil aeronautical equipment,
including that of commercial aviation
decree of6 requiredair navigation companies toaircraft In the transport offreight and mail, except whenground facilities require the useaircraft.
Civil Aeronautics Advisory Committee
Directorate General of Civil Aeronautics (Several Divisions)
T
Peruvian Air FacilitiesORPAC (Several Divisions)
Directorate General of Meteorology
Miliiary Air
ORE3
Decree NoliCORPAC. granting it additionaland funds with which lo carry out its functions
Decree No.f6 created the Civil Aeronautics Advisory Committee
Decree Nof6 directed that the legal obligation of companiesair services to employ Peruvian nationals asercent of their employees5hall be carried out progressively until fulfilled or until all qualified Peruvian nationals are so employed
Decree No.f7 esiab Ushed the requirements for concession olpermits to national and international airlines.
Resolutionf8 cancelled all cabotage lights in Peru of the US airline, PANAGRA, as
Resolutionhe "Rules of thc Air" drawn up in accordance with the standards recommended by thc International Civil Aviation(ICAO).
b. Regulation oj Peruvian Airlines Peruvian policy favors majority control of Peruvian airlines by nationals ot the country. The operating contract of the ill-fatedInternational Airways, for example,majority control of that company by Peruvians withinears of its establishment. Moreover, it Is required by lawf the employees of each airline benationals.
Except for the services rendered by theAir Transport ServiceheGovernment has not participated in the operation of air services. Until recently, therefore, it appeared that Peruvian policy endorsed private initiative for theof air services. The present military regime, however, is promoting TAM as aairline in an apparent effort todirectly with Peruvian civil airlines.the government ostensibly favorscompetition In thr airline industry, it has fallowed certain discriminatory procedures in its efforts lo draw additional traffic to TAM. Moreover, despite thc serious setback of aaccident, TAM still appears to retain am-
bitious plans for further expansion The Peruvian Government's policy of favoring TAM. however, may adversely affect theof the country's civil aviation, since it is probable that TAM does not have theskill and experience fore-liendable commercial airline.
The Peruvian Government has on occasion granted subsidies to civil airlinesery limited scale. The Compania dc Aviacion Paucett is reported to havemall subsidy at one time, for example, but it now hasontract for the carriage of mail. AN DES,cheduled domestic carrier,mall allotment in9 for the purpose of reorganizingounder economic basison-scheduled operator for domestic and international services.
In spite of Faucett'sears of servicewithin the country, the presentdoes not consider Lhisenuine Peruvian enterprise, principallyPANAGRA controlsercent of its stock. However, Faucett still retainswith the government because its services, although admittedly inferior to the cabotage services formerly provided by PANAGRA. are of great value to the country and could not now be duplicated by any other Peruvian organization.
In order to promote existing airlines,TAM. the government discourages thc establishment of additional scheduled or non-scheduled services within the country.
c. Regulation of Foreign Airlines.
Peru was the most recent Latin American country to withdraw cabotage privileges for foreign airlines. PANAGRA lost theseas
Foreign airlines must secure permits for thc operation of services to Peru from thc DGAC. Such services are subject to the terms ofair agreements negotiated between Peru and those countries whose airlines fly to Peru.
Foreign non-scheduled flights to Peru must receive prior authorization, requests for which must be made to the DGAC at least five days in advance of expected entry. Peru is not known to have put any obstacles in the way of such approval.
SE^ET
Promotion of Other Aviation Activity. Peruvian policy with respect to theimprovement, and operation of airis executed by the Ministry of Aeronautics through the government airport corporation. CORPAC. To the limited extent permitted by the funds which have been made available to it. CORPAC has attempted to bring allmaintenance, and operation ofradio aids to navigation, andfacilities under its control. For the most part, its funds have been spent onand operating the Llmatambo Airport (large, modern airport and buildings outside Lima) and in purchasing communications and other facilities throughout the country from the commercial airlines, which originallyand operated such facilities for their own purposes. CORPAC has been criticized, however, for failing to expend funds or effort to improve the communications, radio navigation aids and airports at the secondary air centers of the country. Although airline operators have found CORPAC services expensive and their charges sometimes discriminatory, it Is generally agreed that this system is less costly than duplicate operations by IndividualMoreover, more efficient administration of CORPAC might lessen the charges andthe services.
CORPAC's principal current difficulty has been the continued failure of the government to contribute sufficient funds for thcto perform adequately Its duties.esult, CORPAC's administration has recently become disorganized, its services havethe President of thc corporation has resigned, and plans have been advancedeturn of its facilities to private operations. Inowever, funds finallyto be forthcoming to enable CORPAC to continueair level of efficiency.
CORPAC plans eventually to convert the present aircraft communications network to radio-telephone. Thc new service wouldof two networks, one serving northern Peru and the other serving southern Peru.
Prior to the8 coup, thcgranted small subsidies to aero clubs and was about toroader program to encourage private flying The present gov-
ernment, however, has not revived these plans. Strict controls on Imports ofesult of Peru's acute shortage of foreign exchange, make it unlikely thatflying will receive any substantialin the near future.
There Is no airframe or aircraftIn Peru at present.owever, aircraft manufacturing was an important phase of the Faucett Aviation CompanyFaucctt developedtinson-Reliant type of single-engine planesuitable for operation into the rough Peruvian airports and capable of climbing over the Andes. About thirty of these aircraft were completedroduction wasat that time, partly because the planes were becoming obsolescent and also because of thc government decree requiring commercial airline companies operating in Peru to use multi-engine aircraft on all routes except those with landing fields not suitable for such larger aircraft.
3. International Civil Aviation Policy.
a. Air Traffic Policy and Air Agreements.
With one major exception, basic Peruvian international aviation policies have closely paralleled those of the US, Including strong support of Fifth Freedom rights, the early executionultilateral air transportand the standardization of regulations and practices through representation in and adherence to the International Civil Aviation Organizationince thc Bermuda-type bilateral air agreement was concluded with the US oneru has negotiated agreements with Cuba, Panama, Chile, the UK, and the Netherlands.
The sole major instance of divergence of civil avialion policy between the US and Peru was primarily concerned with conflictingof the US-Peru bilateral agreement. During the summer and fallengthy consultation between officials of Peru and the US took placeesult of Peru's attempts to impose frequency limitations on USflying through Peru on the west coast routes. These talks were held in an effort to reconcile divergent US and Peruvian views on the amount of service which should be allowed on those routes under the agreement
EM|JT
SECFyEl
esult ol pressure exerted by the newly organized Peruvian International Airwayshich was faced with theof two experienced and heavily backed US airlines, the Peruvian Governmentthe license authorizing DranifT Airwaysesignated US carrier under the bilateral agreement) to operate Into Peru, just as Bran-if! initiated service ln
However, intervention of the USresulted in the Peruvian Government's agreement to reinstate the BranifT permit, pending consultation as provided for in the bilateral agreement. The USerious view of the entire situation, inasmuch as any outcome unfavorable to the US interpretation of the bilateral agreement would navea precedent jeopardizing the numerous similar agreements concluded by the US throughout the world. The revolution which unseated the Peruvian Government inowever, ended all discussions on the subject of the bilateral agreement Since PIA terminated its operations inhe new Peruvian Government has notthe subject.
c. US Technical Assistance.
A US Civil Aeronautics Mission has been functioning in Peru since6 on the basis of notes exchanged on6 between Peru and the US Specialists In the fields of air traffic control, airportmeteorology, communications,engineering, and air safety have been assigned to the mission at various times. The missionided In the compilation and issuance of modern air trafficand made recommendations on aircontrol, airports, and air navigation aids,tudied and made recommendations for the reorganization of civil aviation in Peru. Since the Military Junta took over inrror ts of the mission Lo stimulate the reorganization and coordination of civilactivities and functions in Peru have been fruitless Having abandoned its efforts in this direction, the mission has concentrated9 on aiding CORPAC in the improvement of itseteorological survey has also been conductedStudy of air transport tariffs with
respect to rising costs of operation led Lo recommendation by the mission5 percent increase ln traffic rates.t. airstrip with radio and ground facili. tics, which was built by the US at Iquitos. Peru, during the war to expedite thcof rubber Tram Lhe upper Amazon, has now been turned over to the Peruvian
*. Ai'Itnrs.
a. Peruvian Scheduled Airlines.
AL presenL, there are only two operatorsscheduled domestic airline service in Peru' Companla de Aviacionnd Transportes Aereos MUitaresauceltrivately owned enterprise, while TAM is operated by the Peruvian Airhird carrier, Aerovias Nacionales del Surormerly operated scheduledwithin Peru. Because of financialhowever. ANDES sought and obtained permission in9 to operate domestic and International non-scheduled services for passengers and freight,6 aircraft. The Lima-Caracas (Venezuela)9 by ANDES on anbasis,romising trafficlargely because of the direct connections from Caracas to points in the US and Europe Companla de Aviaelon Faucetl8 by Elmer J. Faucett, anwho had been barnstorming for about five years up and down thc northwestern coast ot South America and across the Andes.the present regime ln Peru Is not as favorable lo Faucett as previous governments have been, the company still enjoysinfluence In Peruvian aviation circles It hasrofit regularly and haslittle difficulty In generating additional traffic for its new, larger aircraft
TAM was authorized to put its servicecheduled basis inlicdesire to extend TAM's service was probably largely responsible for cancellation of PANAGRAs cabotage privileges, alsoAM and Faucett now shaie the former PANAGRA traffic In order to cover the routes II attempts lo serve. TAM hasits equipment lo intensive utilization,
to the serious detriment of both the safety and efficiency of its operations. As ils serviceunder government sponsorship, TAM will probably encroach upon Faucett's traffic, in spite of the fact that TAM lias been required to increase its commercial raLesevel only slightly below that of Faucett. Elimination of ANDES from the domestic scheduled service competition, moreover, improves theprospects for both Faucett and TAM.
Peruvian International Airwayseru's former chosen instrument forair service, operated to the east coast of the US until earlyhis carrier opened service lo Habana in7 and, in accordance with the US-Peru bilateralextended its service in7 to New York via Miami and Washington. Intense competition from two US carriers over routes partially paralleling those of PIA, in addition to insufficient capital support and unsound commercial airline practices, was responsible for the serious financial difficulties which forced PIA to discontinue services and declare bankruptcy in
(I) Faucett (Comoania de.
Routes: Faucett's routes are domestic only: connecting Lima with all important cities in Peru. In addition to coastal routes extending to lhe Ecuadoran border In the north and the Chilean border in the south, Faucett'strans-Andes routes connect the developed coastal stripumber of the most im-
portant points throughout the relativelyeastern portion of Peru (including Iquitos, Cajamarca, and Pias in the north, Tingo Maria in central Peru, and Puerto Mal-donado, Cuzco. and Iberia in thequipment:
2 DC-4
7 DC-3
79
Ownership: Faucettlosely heldand details concerning its ownership are obscure. Although Mr. Elmer J. Faucett, who founded and has always directed the airline, has probably neverontrolling Interest, it is believed that majority stock control is held by private Peruvian citizens. The US airline, PANAGRA,holly owned, non-operating Peruvian airline, probably holds an approximatelyercent minoritypanish resident of Peru also holds aInterest.
Faucett was organized and began operations
AM ITransportes Aereosoutes: TAM is the air transport component of the Peruvian Air Force and has operated commercially principallypace-available basisesult of its primarily military nature, most of its operations areand its scheduled operations are on an informal basis. TAM operates extensively In soulhern Peru and has four scheduled services over Lwo routes from lqultos: lo Yurimaguas. and to Sanilitary base, via Pu-callpa.
OF PERU
(9 )
Route Miles*
Miles Per Week
of Aircraft (Various Types]
TAM
7
ov.
The term "Unduplicated" refers only to those route miles which ire not duplicated by an individual airline
S
7 DC-3
ercent Peruvian(Peruvian Air Force).
This airline has been operated by the Air Forcefter having been established by the Peruvian Navy7 andivil airline.
b. Foreign Scheduled Airlines.
International service to Peru is maintained by four foreign airlines. The US carrier, Rraniff Airways, stops at Lima on ils route from the US to Rio de Janeiro via Habana,
Panama. Guayaquil and laecond US airline, PANAORA. provides non-stop service from Panama to Lima en route to La Paz,and Buenos Aires PANAGRA also serves the Peruvian cities of Talara. Chiclayo and Arequlpa on various other international routes British Overseas Airways Corporation (ROAC) transits Lima on it* Barranquilla-Santiago trunk route, and the BrazilianPanair do Brasil. maintains service up the Amazon from Manaus (Brazil) to Pebas and Iqultos in the northeastern corner of Peru.
SECRET
APPENDIX S
URUGUAY
Organization tor Civil
Administration of Uruguay's civil aviation is the responsibilityirectorate of Civil Aeronauticscting under theof tile Ministry or National Defense. Thc DAC supervises the national airline, PI-UNA. as well as all other commercialactivity, air facilities, and aero clubs. The government agencies concerned within Uruguay are organized as shown on the chart below.
Civil AvialionCivil Aviation Legislation.
A commission composed of representatives of civil and military aviation was appointed by the government late in9 to draft legislation for the development ofin Uruguay, but little information is available on Uruguay's current basic aviation legislation. The country's principalairline, PLUNA, was reorganized5 on the basis or an organic law4 setting il upixed company, including both governmeni and private capital. While this law authorized the acquisition of private shares by the State, it did not encompass the final organization of the company as an autonomous entity of the Uruguayan Govern-
ment. PLUNA, however, is now whollyand new legislation has been drafted to provide for its changedaw0ixes thc yearly subsidies paid by the Government to aero clubs.
b. Regulation of Uruguayan Airlines.
he DAC has gradually assumed more direct control of civil aviation activity within Uruguay. Because of the country's small area, the concentration of population in one urban area, and Its adequate railway network, there has been little incentive either in private or in governmental circles for lhc establishmentore extensive airnetwork. Present Uruguayan civilpolicy appears to have the aim ofadequate air service by whatever means are most convenient. Repeated overtures have been made by the government to induce thc privately owned Uruguayan scheduled carrier, CAUSA, which hasecord of successful operations on its shortroutes, to merge with PLUNA, whichong time has been considered anmanaged and poorly organized enterprise. Although CAUSA hasresisted such 'a merger, the DAC con-
of National Defense
Directorate of Military Aeronautics
Administration
sec^/et
to subsidize CAUSA and to countenance its private ownership, in order to ensure continuation of ils valuable services between Montevideo and Buenos Aires. Under the government's reorganization plans, PLUNA is designated as the eventual instrument for the operation of all internal services and for routes to Rio dc Janeiro, Santiago dc Chile, and to Europe. Uruguay's ability to compete with the many well-established international operators now flying these routes, however, has been challenged in Uruguayan aviation circles, and suggestions have been offered that such ambitious eflorts be diverted toward Improving and expanding service within the country.
of Foreign Airlines.
Uruguay encourages all internationalto make traffic stops at Montevideo Since Uruguay has not yet ratified any of the bilateral air agreements it has initialed,airlines receive their operatingdirectly from the government through the DAC.
of Other Aviationand facilities arc being steadily
improved by the government in order tomore international traffic.
Activities of theero clubs in Uruguay are aided by government subsidization of their pilot training programs. All but three or four clubs have at least one light sport plane,arge number are equipping theirwith ambulance planes In order to provide improved medical services forareas.
3. International Civil Aviation Policy.
Traffic Policy and Air Agreements.
Uruguay apparently supports liberalof International air traffic, since it has placed no restrictions on the operations of international carriers and has initialedtype air transport agreements with the US, the UK, and the Netherlands. Although the Uruguayan Congress has not formallyany of these bilateral agreements, for all practical purposes they are in effect.
Organizations.
A major step Loward Uruguayanin the International Civil Aviationwas taken in
when thc Uruguayan Chamber of Deputies approved adherence to the Conventionby Uie Senate and signature by the President are expected to follow In short order.
C. US Technical Assistance.
Uruguay did not take advantage of an offerS technical assistance mission7 and the offer was withdrawn8 because of pressing requirements elsewhere.
4. Airlines.
a. Uruguayan Scheduled Airlines.
ca USA's profitable international route from Montevideo lo Buenos Aires has been operated without interruptionut PLUNA's domestic services, startedave been much less dependable and were Interrupted for Iwohile PLUNA was being reorganized.AUSA concluded an agreement wiih the Argentine airline "Corporacion" for provision of equal capacity by the two airlines on the Buenos Aires-Montevideo route ALP Athese Joint operating rights when "Corporacion" was reorganized
(Compania.
Routes: CAUSA operates two international routes to Buenos Aires, originating flights from both Montevideo and Colonia. Thefrom Montevideo is operated inwith the Argentine airline, ALFA,ooling arrangement.
CAUSA's service from Colonia offerstransport connections to Montevideo. During the summer tourist season, CAUSA alsoeek-end service fromto the popular Uruguayan beachPunta del Este. This connects with the Buenos Aires service. No other domesticare operated by CAUSA.
Equipment:
Sunderlandercent private Uruguayan.
{Pmneras Uneas UruguayasAerea. SEM).
Routes: PLUNA operates three domestic routes out of Montevideo, two of which serve
E T
AIRLINES OF9 )
Route Miles*
Scheduled [Miles pcrWeek
Number of Aircraft jlVarious Types
PLUNA
0
% Gov.
TOTAL
The term "Unduplicated" refers only to those route miles which are not duplicated by an individual airline.
periphery of Uruguay. Tlic third route crosses Uruguay directly to the Brazilianserving Rivera (where connection is made with the Brazilian airline VARIG) and Artigas PLUNA also operates annon-stop service between Montevideo and Porto Alegre, Brar.il
C-3
ercent Uruguayan
b. Foreign Scheduled Airltnet.
Pan American World Airways (PAA) ts the only US carrier serving Uruguay PAA's east coast route to Buenos Aires includes imn-stcp service to Montevideo from both Porto Alegre and Rio de Janeiro.
Montevideo is also on the Latin American routes of the following six European airlines,
Nationality Fiance Italy UK
receiving service en route to Buenos Aires from various Brazilian cities. Airline
Air France Alitalia
Netherlands Spain
Norway, Denmark, Sweden
BOAC (BritishAirways)
KLM (Royal Dutch Airlines)
Iberia
SAS (Scandinavian
Airways System)
Two Latin American airlines servethc Argentine carrier, ALFA, operates from Buenos Aires in conjunction withcarrier. CAUSA;oute from Pelolas and Porto Alegre. Brazil, is flown by the Brazilian carrier. VARIG
ET
SE^ET
APPENDIX T
VENEZUELA
Government Organization for Civil
Civil aviation in Venezuela Isuectorale of Transportation acting under the jurisdiction of theof Communications. The Directorate of Transportation <one of six departments in the Ministry of Communications) performs its functionsivision of Civilivision of Railroads;ivision of Navigation.
Most officials of the Ministry ofare well informed on aviationand have been urging reorganizalion measures to centralize the various civilfunctions.
A plan for the reorganization of thecivil aviation functions wasby the Ministry of Communications, with the collaboration of thc US CivilMission, and has been accepted by the present Military Junta. Thiswas to have been puL into effect in
f funds were made available, but there Ls as yet no indicallon that the plan has been implemented. According to thcirectorate of Civil Aviation (DAC) would be created al the level of the Directorate of Transportation and wouldthe government's civil aviationThe DAC would be composed of sec-lions for Airline Operations, Air Safely,Schools and Training, and Airports. Thc planned unification of all civilingle organization, however,etback In9 when, over the objection of the Directorate ofthe government decreed that theof maintenance of airports would be the responsibilityirectorate of Harbors and Airports under the jurisdiction of theof Public Works.
Governmental responsibility for theof civil aviation is presently organized as follows:
of Communications National Technical
' Aeronautics Council
of Transport
of Civil Aviation
Division of Railroads
Division of Navigation
ORE
103
: 04
The proposed reorganisation would establish the following relationships:
Ministry of Communications
of Civil Aviation
Directorate of Transport
Five Other Directorates
Operations
Safety
Schools and Training
Airports (Operation)
ORE
ational TechnicalCouncil was createdependency of the Ministry of Communications This five-man council functions as an advisory agency on air communications, routes, and airports and is composed al representatives of the Ministries of War and Navy. Public Works, and Communications, as well asof LAV (thc national airline) and of the National Council ol Transportation Routes
Ineven-man advisory commission was created to study and advise on all matters pertaining to theof Venezuela to the International Civil Aviation Organizationnoreover, Jurisdiction over the Venc zuclan delegation to the ICAO was transferred from the Ministry of Foreign Affairs to the Ministry of Communications.
The Nalional Civil Aeronautics Inspection Board was reorganized7 to improve lis services.
2. Domcttic Civil Avialion Policy.
a. Civil Aviation Legislation.
With the assistanceS Civil Aviation Mission, Venezuelan aviation laws have been revised along the lines of USew Civil Aviation Law to replace the Law4 was enacted by the Venezuela Con-
gressut the Military Junta ofhas not yet taken action on the law.
Decree No.f8ecree7 as the basic law governing thc administration of LAV. According to Articlef8 law. LAV is authorized toIn the creationompany foroperations, in which Venezuelan capital must retain majority stock control
and effective control of the organization. Foreign capital participation in all other
Venezuelan airlines Is also limited by law lo
ercent, majority control to reside in
Venezuelan nationals
egulation of Venezuelan Airlines The separation of civil aeronautics from Air Force control after5 revolution greatly Improved the position of Venezuelan civil aviation, especially commercialWith tlic exception of increased aid and promotion of LAV. no change in civil aviation policies appears to have resulted from thc assumption of power by the Military Junta inhe proposedof the Division of Civil Aeronautics would renderarger and more autono mous entity, with virtually complete control of all civil air affairs
objectives of the present Division are.
expansion of lhe Stale airline LAV,
construction and improvementhe encouragement ofHying LAV is operated by theas an independent enlily andfinancial assistancerlicipatesimited extentcapital of the two othercarriers. Through UV,ercent interest in AVENSA.nterest In TACA de Venezuelawith the established curriers,with LAV, is discouraged, as areoperations. To date, onlyhave been authorized to operateservices within Venezuela
c Regulation of foreign Airlines Since the Inauguration ol international services by LAVhe operations ofairlines have been subject lo closerby the Venezuelan Government. Although Venezuela favors the operation of US airlines Into its territory and alsonon-scheduled flights to Venezuela from abroad. It Is willing to grant permission tor such services and flights only when they do not compete directly with LAV.Venezuela has asserted lis right tothe tariffs of all foreign airlinesin Venezuelan territory. Thc privileges of cabotage enjoyed in Venezuela for many years by Pan American World Airways were terminatedenezuela's only bilateral air agreement is with the US and thai has not been ratified. Therefore, all foreign carriers operate to Venezuela on thc basis of permits Issued by thc Directorate of
tL Promotion of Other Aviation Activity.
It is Venezuelan policy to bring thcand improvement ol all aviation facilities under control of the government In accordance with an extensive program planned earlyubstantialappropriations have been expended for the gradual purchase of existing airfields and the improvement or construction of additional facilities. Perhaps the greatest obstacle to the progress of Venezuelan civil aviation has been the country's lack of adequate airports, communications and meteorological facilities.
Improvements have been made at all uf the punripal traffic centers wllhin the past few years, however, as well as al most of theairports Extensive improvements now in progress on the Caracas airport. La Carlola. will prevent use or that facility until al least the middle0 In addition, studies are being made of the possibility of providing air service to olher populationthroughout the country.
Plans for thc unification of the existingair communications systems7rivate company. Radio Aeronautiro Venezolano. was formed for that purpose. Although most of theand foreign airlines agreed loin the company, little actual progress has been made on unification ofomprehensive planodem,airways communication and navigation system has been prepared by the US Civil Aviation Mission for theof the Ministry of Communications, and it Is probable that this proposal willbe adopted.
The five Venezuelan flying clubs receive no direct subsidies from the government. They are all equipped with aircraft, however, and benefit Indirectly from the training given at the government-operated school, "Miguelt Maracay, which oflers training to both air and ground personnel.
The Polytechnic Institute of Aviation, established at Caracasffers Link trainer instrument flight training underauspices, as well as instruction in navigation, meteorology, aerodynamics, and radio, for pilots of thc domestic airlines and private fliers.
There is no production of airframes orengines in Venezuela. The country is one of the best markets In Latin America, however, for the sale of aviation equipment.
3. International Civil Aviation Policy.
a. Aa Traffic Policy and Air Agreements.
Motivatedesire to protect itsairline from undue foreign competition. Venezuela's air policy toward foreign airlines tends to be restrictive. For example,has opposed the recognition of Fifth Freedom air rightsultilateral agree-
B
SECRET
I nnd also believes Lhal air routes should be negotiatedilateral basis.
NegotiationS-Venezuela bilateral air agreement, the only Venezuelan airto dale, was concluded on8 Continued Venezuelan failure to ratify Ihis aRrecment. however, has required each country lo grant temporary operating permits to the airlines of the other country. LAV Is currently seeking extension of its temporary operating permit or the grantermanent one by the US CivilBoard (CAB). Cm the other hand. Chicago and Southern Air Ijne (CAS) of lhe USemporary Venezuelan permit of indefinite duration (presumably untilof the agreement). Although CfcS has been certificated by the US CAB lo make traffic stops at Habana, its Venezuelan permit does not authorize the carriage of trafficHabana and Caracas since such service would be In diiect competition withnternational Organizations. Venezuela has taken an active part in the International Civil Aviation Organization (ICAO)dhered to thc ChicagoinVember of the International Air Transport Association. US Technical Assistance. Int the request ofS Civil Aviationwas assigned to Caracas to assist theof Communications In planning itsrelated to commercial aviation. Aspecialist was added to thelater in the year. This missionwith the Ministry of Communications in the preparalionlan for reorganization of thc civil aviation functions within lheGoveiiimeiii (see Ina number of LAV employees andof tlic Ministry of Communications have taken advantage of Civil Aeronauticstraining courses in the US.
4. Airlinoi.
a Venezuelan Scheduled Airlines
The three Venezuelan scheduled airlines
haveteady development since
the end of Ihe war. These carriers. LAV.
AVENSA. and TACA de Venezuela, have ex-
tended their routes, acquired additionalequipment, and have substantiallytheir passenger and freight traffic. Although LAV was authorized8 toin the creationew International auiinc (see Sectionhere seems to be litlle prospect of this plan being carried out in the near future.
Military pilots are used In rotation for LAV operations because insufficient numbers of civilian pilots are available. Although LAV's credit is good, several large governmenthave been necessary to cover its indebtedness and keep thc line in operation In the past, politics have figuredhe administration of LAV. Recently,more efficient administration of thehas made some progress In eliminating its heavy operating losses. LAVairly good safety record.
Key personnel in AVENSA, the PanWorld Airways (PAA) subsidiary which was establishedere recruited from PAA. The stall is composed largely ofin spile of the fact thai AVENSA's franchise from the Venezuelan Government requires that iU employees shall be exclusively Venezuelan nationals within its first four years of operation.
US personnel have also played anrole In thc operations of TACA deAllhough it was required by5 reorganization of TACA thatercent of its executive personnel andercent of its operational personnel be Venezuelan, almost all pilots are North Americans, while co-pilots are mostly Venezuelan.
A small cargo line. Campania Rutas Aereasas authorized in9 to add chartered passengerand scheduled cargo service to Ils formerargo operations.icet ofs ands Two other small airlines, CAVE and SAVANA. have been authorized9 to operate non-scheduled cargo service within the country
* In November IMS- Compania Anonlma Viajcs Expresosenezuelan non-*cheduledand irciitm airline, wasby the tfenc-'iiclait Mtnutry ol Communications ta conduct
SEC
AVENSA {Aerovias. Roules: AVENSA's operations, which are domestic only, serve the principal cities of tbe populous northern and coastal regionsenerally east-west direction from thc border nf British Outana to the Colombian border. Routes arc regularly operated from Qulria (oppositeaturln. and Ciu-dad Bolivar in the east to San Antonio in the far west of Venezuela, via the northern cities of Caracas,'* Cora, and Maracaibo. Equipment:
C-3
(cargoockheed Electra
1 North Americantinson Reliant
international setr.cn to Europe. To implement ihis permit CAVK organised an inter national division. Aeroviai Vmeaolanas Europand with two leasedircraft commented weekly service to Madrid. Paris, and Rome in mid-January IUM InO AVE was operating two weekly tughu to Lisbon one flight continuing to Rome, the other to Madrid and Pans.
* All airlines serving Caracas use Malauelianear the coastal city of La Guaira.
Ownership.
ercent privateerceni US (Pan American World Airways)
ercent Government of Venezuela (through the airline LAV, which Is owned by the government).
AVENSA was thc first privately ownedairline lo be established In Venezuela,
receiving its operating permit from thein
ACA de Venezuela fLsnea Aerea TACA at Venezuela. CA.).
Routes: TACA's principal domestic routes serve the same general urea as those of AVENSA;he populous northern coastal region of Venezuela In addition to itseast-west routes in the north. TACA also operates from Caracas south lo San Fernando in central Venezuela, and from Ciudad Bolivar south to Icabaru on theborder. TACA operates oneroute lo the capital of Colombia.from Caracas and Maracaibo.
OF VENEZUELA
{9 )
Route Miles"
Scheduled iMiles per Week
Number ofarious Types)
ov.
ACA
ov.
The term "Unduplicated" refers only to those route miles which are not duplicated by an individual airline.
SECRET
108
wnership:
ercent private2 percent Government of Venezuela (through the airline LAV, which is owned by theercent TACA. (which Is controlled by US interests) TACA dc Venezuela was organizednd commenced
V (Lineas Aeropostaloutes: Domestic. Thc majority of LAV's domestic routes lie in the populous Caribbean coastal region and extend to all principal cities in northern Venezuela, includingCoro, Maracaibo, Barqulslmeto,Malurin, and Ciudari Bolivar. Southern Venezuela receives LAV service over theroutes: Earquisimeto to Guasdualito in the west. Caracas lo Puerto Ayacucho in the center of the country, and Ciudad Bolivar to Santa Elena In the east. (The latter route extends across the Brazilian border to Boa Vista.)
International. LAV's principalroute links the country with Habana and New York, other international services are down to neighboring countries: Arubarinidadnd, as Indicated above. Brazil (Boalthough LAV has an interline agreement with LANSA, the Colombian airline, for joint Caracas-Bogota service, only the latter is actually operating over this route.
Equipment:
4 Lockheed Constellation
4 DC-3
tinson
ercent VenezuelanLAV is an autonomous government corporation.
LAV was organized by lhe3 to take over the operations ot the Venezuelan branch ol the FrenchCompagnie Generale Aeropostale, which had gone bankrupt.
b. Foreign Scheduled Airlines
Venezuela is served by two US-flagairlines: Pan American World Airways
nd Chicago and Southern Air LinesAA operates two routes from Lhe US to Caracas via Curacao: one from New York and San Juan, and the other from Miami and Ciudad Trujillo (Dominicann addition, PAA operates an east-westalong the Caribbean coast ol Southfrom Trinidad to Panama. This route passes through four Venezuelan cities: Ma-turin, Barcelona, Caracas and Maracaibo. and makes connections in Panama and Trinidad for olher points in Lalin America. TheUS operator. CSS. links the USouston-New Orleans-Habana-Kingston-Caracas route. This profitableserves the two majorareas of the Western Hemisphere.
Two US non-scheduled operators,have been granted Venezuelanto perform scheduled services between Venezuela and Europe. Those carriers, Transocean and Trans-Caribbean, operate from Caracas Lo Rome, where connections via other airlines are made for Madrid, since direct flights have not been authorized by Spain.
The Spanish airline, Iberia, inaugurated direct one-carrier service between Madrid and Caracas in the summern Italian carrier, LATI, also commencedabout the same time, linking Caracas and Rome via Seviiia. Service from Caracas lo Lisbon and beyond is offered by KLM, the Royal Dutch Airline, which also operatesflights from Curacao (its WestDivision headquarters just off thecoast) to Maracaibo, Caracas, and Barcelona en route to other points in the Latin American area and to Europe.
British West Indian Airways also serves Venezuela in its Caribbean operations,flights to Caracas from Trinidad and Barbados and continuing on to Curacao and Kingston. Jamaica.
With respect Lo Lalin American airlines, lhe Brazilian carrier, Aerovias Brasil,raffic Stop at Caracas on its Rio dc Janeiro-Miami service, entering Venezuela from Port of Spain and continuing on to Ciudad Trujillo.
APPENDIX U
AIRLINES OF BRITISH COLONIES AND PUERTO RICO
AIRLINES OF THE BRITISHUERTO RICO
Route Miles*
Number OfVarlous Types)
{
Trinidad
Jamaica
Bahamas Brit. Guiana Puerto Rico
'TOTAL
The term "Unduplicated" refers only to those route miles which are not duplicated by an individual airline.
Govt.
Brit. Govt. Brit. (Prlv.)
Brit. Govt.
U. S.
U. S.
ORE
British Colonies.
Civil aviation affairs ln the British colonics of Trinidad and Tobago, Jamaica, and the Bahamas are in each case supervisedepartment of Civil Aviation in the Colonial Government, although final responsibility for the determination of policy rests with the Ministry ol Civil Aviation in the UK.
a. Trinidad.
This colony is the operational base forWest Indian Airways. Ltd.hich operates the most extensive network of any of the airlines incorporated within thearea. There is no local air service on the island ol Trinidad.
BWIA was organized0 by Mr. Lowell Yerex, the founder ol the TACA System (see Panama. Sectionhe company was owned entirely by Yerexhen It was incorporated and shares were sold to the public Yerex soon sold hisercent stock interest to TACAhcholding company for the TACA System.
which in turn gradually sold all of this stock to British citizens.ritish Overseas Airways Corporationn entity of the British Government bought up all shares in BWIA.
Routes: BWIA's colonial routes connect Port-of-Spain, Trinidad, with all thcBritish possessions bordering theSea and with British Guiana.also extend west to Kingston (Jamaica) and Belize (BritishWIA'sroutes extend from St. KiLts and Kingston to Ciudad Trujillo (Dominicanand from Port-of-Spain and Barbados to Caracas (Venezuela) and beyond to Curacao (Netherlands Westrom Curacao, BWIA provides direct connections to Kingston.
Equipment:
Lockheed Lodestar
Vickers Viking
ercent British
Trinidad is probably the principal air hub on thc northern coast of South America. In
to the exlcnslvc service provided by BWIA to points In the Caribbean area, thc airlines of Ave countries connect Trinidad with points In the US, Canada, and South America:
Pan American World Atnoaysrinidad is the eastern terminus for PAAacross the northern coast ot South America, as well as the southern teiminus of PAA's Antilles routes In addition, it is antraffic stop on PAA service from the US to the east coast of South America.
Trans-Canada Air Linesrinidad is the southern terminus of TCA's routes from Canada either via Bermuda, or via Nassau (Bahamas) and Kingston (Jamaica).-
Royal Dutch AirlinesLM's West Indies service connects Trinidad with Curacao, Barcelonand Paramaribo (Dutch Guiana).
Aerovias BrasU Trinidadraffic slop on Aerovias Brasil's Rio de Janeiro-Miamivia Paramaribo, Caracas and Ciudad
Linea Aeropostal VenetoUtnaAV serves Trinidadoute connecting with Maturin and other points In Venezuela
b. Jamaica.
This island is too small to support more than token air service within its territory Two cities, Kingston and Montego Bay. are on International routes and,ood road connectshere istravel between the cities to Justify an air-shuttle service by British Caribbean(BCA).
Jamaica has been served on International routeshen PAA began service to the island. In addition toecond company, Caribbean International Airwaysases its operations in Jamaica,the latter company is registered in Nassauoth are relatively new airlines. RCA having been organizednd CIAamaican family owned BCA untilhen BritishAirways Corporation (BOAC) purchased the stock BCA's operations reportedly will be merged with those of British West Indian Airways(BWIA) The main activity of CIA is charter flying Although It haseekly scheduled service between Kingston and the Cayman Islands sinceIA
has not been formally authorised by theGovernment to conduct scheduled service on this route. Inhc US Civil Aeronautics Board grantedermit for non-scheduled service between the Cayman Islands and Tampa. Florida
BrUish Caribbean Atrways, Ltd. (BCA).
Routes:
Kingston-Montego Bay Kington-Miami Montego Ray-Nassau
2 DC-3
1 Lockheed Lodestar
ercent British Government (through iu>ao
Caribbean International Airways, Ltd. (CIA).
Routes: Kingston-Cayman Islands
Kingston-Tampa (non-scheduled)BY
ercent private British
The following tlx international airlines serve Jamaica:
Pan American World Atneays (PAA)direct or connecting service to Kingston from most of the Important traffic points ln the Caribbean area. In addition, Montego Bay Is served from Camaguey. Cuba.
Chicago <fc Soufnern Air Lines) serves Kingston on flights from New Orleans to Caracas, and also operates from Houston to Kingston via Habana.
Royal Dutch Airlines (KLM) operates to Kingston from Port-.au-Prince. Haiti, and from Aruba (Netherlands West Indies).
British West Indian Airways (BWIA) offers direct service from Ciudad Trujillo and Curacao.
British Overseas Airways Corporation (BOAC) provides Kingston with service from Europe via Bermuda or Nassau en route to Panama and South America
TransCanada Air Lines (TCA) serves Kingston on Its Canada-Trinidad route
c Bahamas
Air transportation was Introduced to this British colony by PAA9oute serving the tourist traffic between Miami and
T
Nassau. Bahamas Airways (BAL) alsoover this routehort lime, but now flies from Nassau to West Palm Beach. BAL is thc only airline now operating scheduled services within the Bahamas.
Bahamas Airways, Ltd. (BAL)
Routes: BAL connects Nassau with the outer islands of thc northern part of the Bahama group. Scheduled international flights are operated between Nassau and West Palm Beach. Charter operations are conducted throughout the Caribbean area.
Equipment:
1 PBV
Consolidated Commodore
Grummanepublic Seabee
ercent British Government (through BOAC).
In uddition to BAL's flights, the Bahamas are served at Nassau by Pan American World Airways (PAA)irect flight from Miami, by British Overseas Airways Corporation (BOAC) en route from Bermuda to Habana, by Trans-Canada Air Lines (TCA) on its Canada-Kingston-Port-of-Spain service, and by British Caribbean Airways which connects with Montego Bay, Jamaica.
d. British Guiana.
British Guiana Airways, Ltd.he only airline in this colony, has been owned and operated4 by Major A. J.S citizen. BGA conductedhen ithree-year agreement with the Government of British Guiana to operate scheduled service to interior points. In return, BGA received an annual subsidy. It is not known, however, whether this subsidy was continued after expiration of the original contract. Thc government has never attempted to replace BGAritish-owned air service and has even refusedfor other airlines to operate within British Guiana. The Colonial Government took action8 to reduce BGA rates.
Routes: Five routes radiate fromto all sections of British Guiana except thc region north of that city. Most of the towns served are river ports in thc interior.
Charter operations, both within and outside British Guiana, are also an important activity of BGA. Equipment:
2 DC-3
2 Grumman Gooseercent private US. British Guiana is served by Pan American World Airways on its service from Port-of-Spain to Paramaribo, Cayene and points in Brazil. British West Indian Airways also provides connections with Port-of-Spain, as well as Barbados.
2. Puerlo Rico.
Caribbean-Atlantic Airlines, Inc. (CAA) was incorporated in Puerto Ricooth CAA and ils former rival on the island,Nacionales de Puerto Rico, Inc.applied to the US Civil Aeronautics Board for operating permits9espectively. The applications wereby the Board and CAA was issued2 to operate between certain points in Puerto Rico, and also to St. Thomas and St. Croix in the Virgin Islands. Aerovias wasertificate and went out ofshortly thereafter. CAA continues to enjoy the distinction of being the sole USincorporated in the Carribean area.
Routes: Caribbean-Atlantic connects theof Puerto Rico with the Virgin Islands, and with the Dominican Republic. It also operates two short routes within Puerto Rico.
C-3
ercent private US citizens. (The company is at present controlled by three members of the Tngo family who9 percent of the capital.)
Two US carriers and one French airline serve San Juan, Puerto Rico.
Pan American world Airways {PAA)San Juan directly with New York, Miami, Ciudad Trujillo, Curacao, and Port-of-Spain. In addition, San Juan is the northern terminus of PAA's route through the Lesser Antilles.
Eastern Ah- Lines (EAL) also provides direct Mlaml-San Juan service.
Air France serves San Juan fromand Martinique with PBY aircraft.
Original document.
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