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30 SECRET AIR MINISTRY CERNAI (AIR MINISTER) Dir. of Civil Dir. of Dir. of Air Aeronautics Supply Routes Air Staff 5 Zone Command Officers Director Air Route Licensing Board Legal Traffic Operations Private Flying Division Division Division Development Div. ORE Tr-450 have been issued from time to time supple- below, Section 4, Brazilian Scheduled Air- menting the foregoing legislation. lines.) b. Regulation of Brazilian Airlines. c. Regulation of Foreign Airlines. Brazilian national policy encourages the Brazil reserves cabotage traffic for its do- private ownership of airlines and the Brazilian mestic airlines. Privileges for foreign carriers, Government has no financial interest in any including the carriage of international traffic, airline. The State of Rio Grande do Sul, how- are negotiated through formal bilateral air ever, has a 21 percent interest in VARIG, and agreements, although direct government-com- the State of Sao Paulo, a 75 percent share pany contracts are occasionally resorted to for in VASP. It is Brazilian policy, moreover, to the use of air facilities and similar privileges. assure the control of domestic air transporta- For the most part, Brazil has pursued a re- tion enterprises by nationals of Brazil. strictive policy with respect to foreign non- Subsidies are granted to airlines by the scheduled operators, principally because of its Brazilian Government solely for the develop- desire to assure maximum utilization of avail- ment and operation of unprofitable routes of able scheduled airline capacity. Brazil has national interest. Past recipients of this aid been willing in principle to grant permission have been Cruzeiro, Panair do Brasil, VARIG, for infrequent US non-scheduled commercial and NAB. Since mid-1948, the Directory of flights between the US and Brazil. On the Civil Aeronautics has taken firmer action to other hand, it has generally denied flight control competition and prevent a continu- clearance for US non-scheduled carriers oper- ation of the severe three-year rate war which ating between Brazil and a third country, and resulted from the mushrooming of many small has resisted granting even technical stop per- air transport companies after the war. (See mission on Brazilian territory for flights BECRET

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    "ocrText": "30\nSECRET\nAIR MINISTRY\nCERNAI\n(AIR MINISTER)\nDir. of Civil\nDir. of\nDir. of Air\nAeronautics\nSupply\nRoutes\nAir Staff\n5 Zone Command\nOfficers\nDirector\nAir Route Licensing Board\nLegal\nTraffic\nOperations\nPrivate Flying\nDivision\nDivision\nDivision\nDevelopment Div.\nORE Tr-450\nhave been issued from time to time supple-\nbelow, Section 4, Brazilian Scheduled Air-\nmenting the foregoing legislation.\nlines.)\nb. Regulation of Brazilian Airlines.\nc. Regulation of Foreign Airlines.\nBrazilian national policy encourages the\nBrazil reserves cabotage traffic for its do-\nprivate ownership of airlines and the Brazilian\nmestic airlines. Privileges for foreign carriers,\nGovernment has no financial interest in any\nincluding the carriage of international traffic,\nairline. The State of Rio Grande do Sul, how-\nare negotiated through formal bilateral air\never, has a 21 percent interest in VARIG, and\nagreements, although direct government-com-\nthe State of Sao Paulo, a 75 percent share\npany contracts are occasionally resorted to for\nin VASP. It is Brazilian policy, moreover, to\nthe use of air facilities and similar privileges.\nassure the control of domestic air transporta-\nFor the most part, Brazil has pursued a re-\ntion enterprises by nationals of Brazil.\nstrictive policy with respect to foreign non-\nSubsidies are granted to airlines by the\nscheduled operators, principally because of its\nBrazilian Government solely for the develop-\ndesire to assure maximum utilization of avail-\nment and operation of unprofitable routes of\nable scheduled airline capacity. Brazil has\nnational interest. Past recipients of this aid\nbeen willing in principle to grant permission\nhave been Cruzeiro, Panair do Brasil, VARIG,\nfor infrequent US non-scheduled commercial\nand NAB. Since mid-1948, the Directory of\nflights between the US and Brazil. On the\nCivil Aeronautics has taken firmer action to\nother hand, it has generally denied flight\ncontrol competition and prevent a continu-\nclearance for US non-scheduled carriers oper-\nation of the severe three-year rate war which\nating between Brazil and a third country, and\nresulted from the mushrooming of many small\nhas resisted granting even technical stop per-\nair transport companies after the war. (See\nmission on Brazilian territory for flights\nBECRET"
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