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Probably as a result of pressure exerted by
respect to rising costs of operation led to
the newly organized Peruvian International
recommendation by the mission of a 25 percent
Airways (PIA), which was faced with the com-
increase in traffic rates. Moreover, a modern
petition of two experienced and heavily backed
6,000 ft. airstrip with radio and ground facili-
US airlines, the Peruvian Government can-
ties, which was built by the US at Iquitos,
celed the license authorizing Braniff Airways
Peru, during the war to expedite the move-
(a designated US carrier under the bilateral
ment of rubber from the upper Amazon, has
agreement) to operate into Peru, just as Bran-
now been turned over to the Peruvian Gov-
iff initiated service in June 1948.
ernment.
However, intervention of the US Govern-
4. Airlines.
ment resulted in the Peruvian Government's
agreement to reinstate the Braniff permit,
a. Peruvian Scheduled Airlines.
pending consultation as provided for in the
At present, there are only two operators pro-
bilateral agreement. The US took a serious
viding scheduled domestic airline service in
view of the entire situation, inasmuch as any
Peru: Compania de Aviacion Faucett (Fau-
outcome unfavorable to the US interpretation
cett) and Transportes Aereos Militares (TAM)
of the bilateral agreement would have estab-
Faucett is a privately owned enterprise, while
lished a precedent jeopardizing the numerous
TAM is operated by the Peruvian Air Force.
similar agreements concluded by the US
A third carrier, Aerovias Nacionales del Sur
throughout the world. The revolution which
(ANDES), formerly operated scheduled serv-
unseated the Peruvian Government in October
ices within Peru. Because of financial diffi-
1948, however, ended all discussions on the
culties, however, ANDES sought and obtained
subject of the bilateral agreement. Since PIA
permission in August 1949 to operate domestic
terminated its operations in February 1949,
and international non-scheduled services for
the new Peruvian Government has not re-
passengers and freight, using C-46 aircraft.
opened the subject.
The Lima-Caracas (Venezuela) route, inaugu-
c. US Technical Assistance.
rated 1 September 1949 by ANDES on an ir-
A US Civil Aeronautics Mission has been
regular basis, offers a promising traffic poten-
functioning in Peru since February 1946 on
tial, largely because of the direct connections
the basis of notes exchanged on 27 December
from Caracas to points in the US and Europe.
1946 between Peru and the US. Specialists in
Compania de Aviacion Faucett was estab-
the fields of air traffic control, airport engi-
lished in 1928 by Elmer J. Faucett, an Ameri-
neering, meteorology, communications, carto-
can who had been barnstorming for about five
graphic engineering, and air safety have been
years up and down the northwestern coast of
assigned to the mission at various times. The
South America and across the Andes. Al-
mission has: (1) aided in the compilation and
though the present regime in Peru is not as
issuance of modern air traffic rules; (2) sur-
favorable to Faucett as previous governments
veyed and made recommendations on air traf-
have been, the company still enjoys considera-
fic control, airports, and air navigation aids;
ble influence in Peruvian aviation circles. It
and (3) studied and made recommendations
has earned a profit regularly and has experi-
for the reorganization of civil aviation in Peru.
enced little difficulty in generating additional
Since the Military Junta took over in October
traffic for its new, larger aircraft.
1948, efforts of the mission to stimulate the
TAM was authorized to put its service on a
reorganization and coordination of civil avia-
scheduled basis in January 1949. The govern-
tion activities and functions in Peru have been
ment's desire to extend TAM's service was
fruitless. Having abandoned its efforts in this
probably largely responsible for cancellation of
direction, the mission has concentrated during
PANAGRA's cabotage privileges, also in Janu-
1949 on aiding CORPAC in the improvement
ary 1949. TAM and Faucett now share the
of its services. A meteorological survey has
former PANAGRA traffic. In order to cover
also been conducted by a US technical spe-
the routes it attempts to serve, TAM has sub-
cialist, and a study of air transport tariffs with
jected its equipment to intensive utilization,
SECRET
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"ocrText": "96\nSECRET\nProbably as a result of pressure exerted by\nrespect to rising costs of operation led to\nthe newly organized Peruvian International\nrecommendation by the mission of a 25 percent\nAirways (PIA), which was faced with the com-\nincrease in traffic rates. Moreover, a modern\npetition of two experienced and heavily backed\n6,000 ft. airstrip with radio and ground facili-\nUS airlines, the Peruvian Government can-\nties, which was built by the US at Iquitos,\nceled the license authorizing Braniff Airways\nPeru, during the war to expedite the move-\n(a designated US carrier under the bilateral\nment of rubber from the upper Amazon, has\nagreement) to operate into Peru, just as Bran-\nnow been turned over to the Peruvian Gov-\niff initiated service in June 1948.\nernment.\nHowever, intervention of the US Govern-\n4. Airlines.\nment resulted in the Peruvian Government's\nagreement to reinstate the Braniff permit,\na. Peruvian Scheduled Airlines.\npending consultation as provided for in the\nAt present, there are only two operators pro-\nbilateral agreement. The US took a serious\nviding scheduled domestic airline service in\nview of the entire situation, inasmuch as any\nPeru: Compania de Aviacion Faucett (Fau-\noutcome unfavorable to the US interpretation\ncett) and Transportes Aereos Militares (TAM)\nof the bilateral agreement would have estab-\nFaucett is a privately owned enterprise, while\nlished a precedent jeopardizing the numerous\nTAM is operated by the Peruvian Air Force.\nsimilar agreements concluded by the US\nA third carrier, Aerovias Nacionales del Sur\nthroughout the world. The revolution which\n(ANDES), formerly operated scheduled serv-\nunseated the Peruvian Government in October\nices within Peru. Because of financial diffi-\n1948, however, ended all discussions on the\nculties, however, ANDES sought and obtained\nsubject of the bilateral agreement. Since PIA\npermission in August 1949 to operate domestic\nterminated its operations in February 1949,\nand international non-scheduled services for\nthe new Peruvian Government has not re-\npassengers and freight, using C-46 aircraft.\nopened the subject.\nThe Lima-Caracas (Venezuela) route, inaugu-\nc. US Technical Assistance.\nrated 1 September 1949 by ANDES on an ir-\nA US Civil Aeronautics Mission has been\nregular basis, offers a promising traffic poten-\nfunctioning in Peru since February 1946 on\ntial, largely because of the direct connections\nthe basis of notes exchanged on 27 December\nfrom Caracas to points in the US and Europe.\n1946 between Peru and the US. Specialists in\nCompania de Aviacion Faucett was estab-\nthe fields of air traffic control, airport engi-\nlished in 1928 by Elmer J. Faucett, an Ameri-\nneering, meteorology, communications, carto-\ncan who had been barnstorming for about five\ngraphic engineering, and air safety have been\nyears up and down the northwestern coast of\nassigned to the mission at various times. The\nSouth America and across the Andes. Al-\nmission has: (1) aided in the compilation and\nthough the present regime in Peru is not as\nissuance of modern air traffic rules; (2) sur-\nfavorable to Faucett as previous governments\nveyed and made recommendations on air traf-\nhave been, the company still enjoys considera-\nfic control, airports, and air navigation aids;\nble influence in Peruvian aviation circles. It\nand (3) studied and made recommendations\nhas earned a profit regularly and has experi-\nfor the reorganization of civil aviation in Peru.\nenced little difficulty in generating additional\nSince the Military Junta took over in October\ntraffic for its new, larger aircraft.\n1948, efforts of the mission to stimulate the\nTAM was authorized to put its service on a\nreorganization and coordination of civil avia-\nscheduled basis in January 1949. The govern-\ntion activities and functions in Peru have been\nment's desire to extend TAM's service was\nfruitless. Having abandoned its efforts in this\nprobably largely responsible for cancellation of\ndirection, the mission has concentrated during\nPANAGRA's cabotage privileges, also in Janu-\n1949 on aiding CORPAC in the improvement\nary 1949. TAM and Faucett now share the\nof its services. A meteorological survey has\nformer PANAGRA traffic. In order to cover\nalso been conducted by a US technical spe-\nthe routes it attempts to serve, TAM has sub-\ncialist, and a study of air transport tariffs with\njected its equipment to intensive utilization,\nSECRET"
}