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DOORED APPENDIX I ECUADOR Government Organization for Civil Avia- inability to meet the emergency transport re- 1. quirements of the recent earthquake disaster tion. illustrated the country's need of a more ex- Civil aviation in Ecuador is the responsi- tensive air transport network. The US air- bility of the Department of Civil Aviation line, PANAGRA, and the Colombian carrier, (DAC) acting under the jurisdiction of the AVIANCA, provide the only dependable serv- Ecuadoran Air Force Command. The latter, ice in Ecuador and these airlines serve only a in turn, is a dependency of the Ministry of De- few Ecuadoran cities. fense. The DAC is understaffed and its ac- Civil aviation, however, has gradually ex- tivities are limited by the necessity of strug- panded in Ecuador, especially since govern- gling for funds in a ministry which naturally ment policy becamemore liberal after the 1947 places defense needs ahead of civilian require- change of administration. Two Ecuadoran ments. Despite these handicaps, the DAC airline companies have been in operation for has gradually assumed increased direction over two years and a few marginal companies over civil aviation matters. It will probably were being organized during 1949. With gov- be transferred soon to the Ministry of Public ernment policy encouraging expansion, pros- Works and Communications. Creation of an pects for continued development of the air aviation board is under consideration. transport industry in Ecuador are favorable. Operation of airlines is left to private inter- 2. Domestic Civil Aviation Policy. ests, the government neither subsidizing nor a. Civil Aviation Legislation. financing commercial air services. The Aerial Traffic Law (No. 946) of 12 Sep- c. Regulation of Foreign Airlines. tember 1936 stipulates that control over do- Ecuador and Bolivia are the only two Latin mestic and foreign aircraft in Ecuador shall American countries permitting foreign airlines be exercised through domestic legislation and to operate cabotage services. Under contract in accordance with international agreements. with the Ecuadoran Government, PANAGRA In 1947 the new administration cancelled the and AVIANCA both serve a half dozen points restrictive measures which had imposed heavy within Ecuador and connect it with other taxes on airline income and ticket sales. Dur- countries through international services. ing 1949, the DAC undertook to prepare new PANAGRA's contract to operate in Ecuador, aviation legislation and regulations, for which which expired in February 1949 after twenty a need had developed as air services increased years in force, was renewed in May 1949 after after the war. This legislation was to be pre- much discussion with DAC officials. No ma- sented to the Congress in August 1949, but jor difficulties were encountered, but there has been tabled for further consideration. was some rewording of the contract as a result b. Regulation of Domestic Airlines. of the government's desire to secure more con- Although Ecuador is anxious to develop all trol over all air companies. phases of civil aviation, that country is second Braniff Airways, the second carrier desig- only to Paraguay in its lack of civil aviation nated by the US for west coast service in South development. Ecuador's difficult terrain fa- America, stops at Guayaquil on its Houston- vors extensive use of air transportation, but Rio de Janeiro flights. It recently secured an lack of funds has prevented adequate develop- air mail contract with the Ecuadoran Govern- ment of air services and facilities. Ecuador's ment. 61

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    "ocrText": "DOORED\nAPPENDIX I\nECUADOR\nGovernment Organization for Civil Avia-\ninability to meet the emergency transport re-\n1.\nquirements of the recent earthquake disaster\ntion.\nillustrated the country's need of a more ex-\nCivil aviation in Ecuador is the responsi-\ntensive air transport network. The US air-\nbility of the Department of Civil Aviation\nline, PANAGRA, and the Colombian carrier,\n(DAC) acting under the jurisdiction of the\nAVIANCA, provide the only dependable serv-\nEcuadoran Air Force Command. The latter,\nice in Ecuador and these airlines serve only a\nin turn, is a dependency of the Ministry of De-\nfew Ecuadoran cities.\nfense. The DAC is understaffed and its ac-\nCivil aviation, however, has gradually ex-\ntivities are limited by the necessity of strug-\npanded in Ecuador, especially since govern-\ngling for funds in a ministry which naturally\nment policy becamemore liberal after the 1947\nplaces defense needs ahead of civilian require-\nchange of administration. Two Ecuadoran\nments. Despite these handicaps, the DAC\nairline companies have been in operation for\nhas gradually assumed increased direction\nover two years and a few marginal companies\nover civil aviation matters. It will probably\nwere being organized during 1949. With gov-\nbe transferred soon to the Ministry of Public\nernment policy encouraging expansion, pros-\nWorks and Communications. Creation of an\npects for continued development of the air\naviation board is under consideration.\ntransport industry in Ecuador are favorable.\nOperation of airlines is left to private inter-\n2. Domestic Civil Aviation Policy.\nests, the government neither subsidizing nor\na. Civil Aviation Legislation.\nfinancing commercial air services.\nThe Aerial Traffic Law (No. 946) of 12 Sep-\nc. Regulation of Foreign Airlines.\ntember 1936 stipulates that control over do-\nEcuador and Bolivia are the only two Latin\nmestic and foreign aircraft in Ecuador shall\nAmerican countries permitting foreign airlines\nbe exercised through domestic legislation and\nto operate cabotage services. Under contract\nin accordance with international agreements.\nwith the Ecuadoran Government, PANAGRA\nIn 1947 the new administration cancelled the\nand AVIANCA both serve a half dozen points\nrestrictive measures which had imposed heavy\nwithin Ecuador and connect it with other\ntaxes on airline income and ticket sales. Dur-\ncountries through international services.\ning 1949, the DAC undertook to prepare new\nPANAGRA's contract to operate in Ecuador,\naviation legislation and regulations, for which\nwhich expired in February 1949 after twenty\na need had developed as air services increased\nyears in force, was renewed in May 1949 after\nafter the war. This legislation was to be pre-\nmuch discussion with DAC officials. No ma-\nsented to the Congress in August 1949, but\njor difficulties were encountered, but there\nhas been tabled for further consideration.\nwas some rewording of the contract as a result\nb. Regulation of Domestic Airlines.\nof the government's desire to secure more con-\nAlthough Ecuador is anxious to develop all\ntrol over all air companies.\nphases of civil aviation, that country is second\nBraniff Airways, the second carrier desig-\nonly to Paraguay in its lack of civil aviation\nnated by the US for west coast service in South\ndevelopment. Ecuador's difficult terrain fa-\nAmerica, stops at Guayaquil on its Houston-\nvors extensive use of air transportation, but\nRio de Janeiro flights. It recently secured an\nlack of funds has prevented adequate develop-\nair mail contract with the Ecuadoran Govern-\nment of air services and facilities. Ecuador's\nment.\n61"
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