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ECRE
2.
Domestic Civil Aviation Policy.
lowed to operate scheduled services to Chile on
the basis of concessions granted by the Chil-
a. Civil Aviation Legislation.
ean CAB. Other foreign flights over Chilean
The organic law of the Chilean Air Force
territory must also be authorized by this body.
created a Directorate General of Aeronautics
to control commercial and private flying and
d. Promotion of Other Civil Aviation Ac-
to enforce rules and regulations of aerial navi-
tivity.
gation.
LAN is awarded an annual subsidy for air-
The Chilean Civil Aeronautics Board was
port development. However, the amount of
created by Decree No. 42 of 31 January 1948,
funds allotted to LAN or through other agen-
as a direct dependency of the Ministry of Na-
cies for the development and improvement of
tional Defense. However, additional legisla-
air facilities and navigation aids has been
tion increasing its autonomy and providing
very limited. The continued inability of the
funds for its work has been held up indefi-
government to finance adequate facilities and
nitely. A Civil Aeronautics Code for Chile was
navigational aids for LAN, as well as the reluc-
approved by the Chamber of Deputies in Sep-
tance of the air force to cooperate in this re-
tember 1947, but has not yet been acted upon
spect, has prevented, for example, the estab-
by the Senate. By a decree published in Jan-
lishment of regular all-year service to the
uary 1948, regulations were established gov-
south of Santiago. The limited funds which
erning the granting of concessions and per-
have been available, therefore, have neces-
mits by the CAB to commercial airlines.
sarily been used for the improvement and
maintenance of Chile's international airports.
b. Regulation of Chilean Airlines.
The government is anxious to support and
It is Chilean policy to maintain a govern-
encourage aero clubs, but has been able to sub-
ment-owned and financed airline as the sole
sidize this activity only to a limited extent. In
scheduled Chilean operator for routes within
spite of insufficient funds and lack of adequate
Chile and to other countries. Though an in-
flying equipment and spare parts, however,
dependent entity, the national airline, LAN, is
aero club flying in Chile has increased rapidly.
owned and subsidized by the government and
There is no aircraft engine or airframe in-
effectively controlled by the air force, which
dustry in Chile.
provides most of the airline's pilots and key
officials, and which dominates the government
3. International Civil Aviation Policy.
regulatory body, the DGA.
a. Air Traffic Policy and Air Agreements.
The establishment of additional Chilean
Until 1947, it appeared that Chilean air pol-
airlines must be approved by both the CAB
icy endorsed restriction of Fifth Freedom
and LAN. Direct competition with LAN is
rights for foreign air carriers. In May 1947,
not permitted, although two small companies
however, Chile changed its attitude and con-
have recently been authorized to establish
cluded a liberal (Bermuda type) air agreement
scheduled services supplementing LAN opera-
with the US. Chile followed the form of this
tions. Charter and taxi services are also of-
agreement in other bilateral negotiations
fered by one of these companies, and an all-
shortly after the US agreement was concluded.
cargo service is being proposed by a third com-
The civil aviation policy of Chile, therefore, is
pany. The law of 16 February 1949 extended
directly opposed to the Argentine-sponsored
to any other commercial airline the same cus-
principles of a "regional cabotage" bloc and a
toms and tax exemption privileges previously
predetermined division of traffic (see Argen-
enjoyed only by LAN.
tina, Section 3, International Civil Aviation
c. Regulation of Foreign Airlines.
Policy) On the other hand, Chilean policy
Until 1946, the US carrier PANAGRA en-
has had to take into account the country's
joyed cabotage rights in Chile, sharing sched-
peculiar geographical position with respect to
uled service within the country with LAN.
Latin American trunk airline routes, especially
Cabotage traffic for foreign airlines, however,
the relatively isolated location of its capital
is now prohibited. Foreign airlines are al-
and principal city, Santiago. Recognizing
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"ocrText": "38\nECRE\n2.\nDomestic Civil Aviation Policy.\nlowed to operate scheduled services to Chile on\nthe basis of concessions granted by the Chil-\na. Civil Aviation Legislation.\nean CAB. Other foreign flights over Chilean\nThe organic law of the Chilean Air Force\nterritory must also be authorized by this body.\ncreated a Directorate General of Aeronautics\nto control commercial and private flying and\nd. Promotion of Other Civil Aviation Ac-\nto enforce rules and regulations of aerial navi-\ntivity.\ngation.\nLAN is awarded an annual subsidy for air-\nThe Chilean Civil Aeronautics Board was\nport development. However, the amount of\ncreated by Decree No. 42 of 31 January 1948,\nfunds allotted to LAN or through other agen-\nas a direct dependency of the Ministry of Na-\ncies for the development and improvement of\ntional Defense. However, additional legisla-\nair facilities and navigation aids has been\ntion increasing its autonomy and providing\nvery limited. The continued inability of the\nfunds for its work has been held up indefi-\ngovernment to finance adequate facilities and\nnitely. A Civil Aeronautics Code for Chile was\nnavigational aids for LAN, as well as the reluc-\napproved by the Chamber of Deputies in Sep-\ntance of the air force to cooperate in this re-\ntember 1947, but has not yet been acted upon\nspect, has prevented, for example, the estab-\nby the Senate. By a decree published in Jan-\nlishment of regular all-year service to the\nuary 1948, regulations were established gov-\nsouth of Santiago. The limited funds which\nerning the granting of concessions and per-\nhave been available, therefore, have neces-\nmits by the CAB to commercial airlines.\nsarily been used for the improvement and\nmaintenance of Chile's international airports.\nb. Regulation of Chilean Airlines.\nThe government is anxious to support and\nIt is Chilean policy to maintain a govern-\nencourage aero clubs, but has been able to sub-\nment-owned and financed airline as the sole\nsidize this activity only to a limited extent. In\nscheduled Chilean operator for routes within\nspite of insufficient funds and lack of adequate\nChile and to other countries. Though an in-\nflying equipment and spare parts, however,\ndependent entity, the national airline, LAN, is\naero club flying in Chile has increased rapidly.\nowned and subsidized by the government and\nThere is no aircraft engine or airframe in-\neffectively controlled by the air force, which\ndustry in Chile.\nprovides most of the airline's pilots and key\nofficials, and which dominates the government\n3. International Civil Aviation Policy.\nregulatory body, the DGA.\na. Air Traffic Policy and Air Agreements.\nThe establishment of additional Chilean\nUntil 1947, it appeared that Chilean air pol-\nairlines must be approved by both the CAB\nicy endorsed restriction of Fifth Freedom\nand LAN. Direct competition with LAN is\nrights for foreign air carriers. In May 1947,\nnot permitted, although two small companies\nhowever, Chile changed its attitude and con-\nhave recently been authorized to establish\ncluded a liberal (Bermuda type) air agreement\nscheduled services supplementing LAN opera-\nwith the US. Chile followed the form of this\ntions. Charter and taxi services are also of-\nagreement in other bilateral negotiations\nfered by one of these companies, and an all-\nshortly after the US agreement was concluded.\ncargo service is being proposed by a third com-\nThe civil aviation policy of Chile, therefore, is\npany. The law of 16 February 1949 extended\ndirectly opposed to the Argentine-sponsored\nto any other commercial airline the same cus-\nprinciples of a \"regional cabotage\" bloc and a\ntoms and tax exemption privileges previously\npredetermined division of traffic (see Argen-\nenjoyed only by LAN.\ntina, Section 3, International Civil Aviation\nc. Regulation of Foreign Airlines.\nPolicy) On the other hand, Chilean policy\nUntil 1946, the US carrier PANAGRA en-\nhas had to take into account the country's\njoyed cabotage rights in Chile, sharing sched-\npeculiar geographical position with respect to\nuled service within the country with LAN.\nLatin American trunk airline routes, especially\nCabotage traffic for foreign airlines, however,\nthe relatively isolated location of its capital\nis now prohibited. Foreign airlines are al-\nand principal city, Santiago. Recognizing"
}