Aeropostale's Plight

Since 1928 the aeronautical map of South America has shifted repeatedly under the struggle of U. S., French and German companies for route-dominance. Last week the speculative eyes of air transport men turned again to South America. France's great Compagnie Generate Aeropostale was in difficulty. It was virtually bankrupt. Its pilots were flying without pay. It might have to withdraw.

Because of its elaborate developments in Northwestern Africa and South America, Aeropostale's troubles have long been pyramiding. A deficit estimated at $2,000,000 is now carried in its books. Everything depended upon renewal of the government subsidy which, for 1931, was to be about $3,000,000. Fortnight ago the debacle occurred: the Chamber of Deputies rejected the subsidy. That was the signal for runs upon the three Paris banks which had well over $7,000,000 invested in Aeropostale. They had recently advanced great sums in the expectation of the new subsidy.

While Aeropostale's troubles were basically commercial, there were political embarrassments to aggravate them. In the Chamber's subsidy debates much was made of the revelation that Pierre Etienne Flandin, Minister of Finance, had been and was believed still to be counsel for Aeropostale. No one questioned M. Flan-din's honor; but with the Chamber already embattled, the fact of his association made Aeropostale an admirable target for the opponents of Premier Laval. One of the accusations was that Flandin was "trying to maneuver" the Government into taking financial responsibility for Aeropostale. Finally the Government voted to participate as a shareholder (probably between 25% and 33%) of the Company.

To Pan American Airways and to Condor Lines (subsidiary of Germany's Lufthansa; headed by able Fritz Hammer) the possible failure of Aeropostale meant more than just the removal of their most powerful competitor. It also raised the question: Who would acquire Aeropostale's highly developed airways in South America? Aeropostale had spent most of its subsidy on airports (34) and airways (5,800 mi.) from Natal (Brazil) south to Gallegos, and across the Andes from Buenos Aires to Santiago, and from Buenos Aires to Asuncion. Also it operates an interior service in Venezuela. Unlike its competitors, Aeropostale flew by night. It lighted its routes, built magnificent air-ports which, in the event of bankruptcy, might prove a pretty bargain to Pan American or Condor who land their planes in the water at most stations.

Even to Frenchmen who knew that commercial aviation means a long, long pull. Aeropostale's showing was disappointing. Its planes carried last year only 224,000 mile-tons of freight, one-fifth of capacity. In 1929 its total receipts were but $770,000. Undoubtedly the Govern-ment had hoped for better things.

Observers offered two reasons for the slight patronage: 1) South America's trade suffered heavily in the Depression; 2) the eagerness of the South American merchant for speed in business had been vastly over-estimated.

P: Aviation Corp. of the Americas, holding company for Pan American Airways, last week announced a net loss of $305,271 for 1930, against $317,412 in 1929. Gross 1930 earnings were $5,609,938; operating expenses, $5,915,210.

Unlicensed

In the New York Times last week appeared a story and headline which, while they aroused pity for the subject, gratified airmen:

THREE KILLED IN CRASH OF UNLICENSED PLANE

"MOUNDS, Okla. . . . (AP)--Three persons were killed and two others were injured, perhaps fatally, today when an old-model unlicensed airplane. . . ."

That, to the industry, was careful reporting and fair writing of an airplane accident. By giving proper emphasis to the fact that the plane was unlicensed and impliedly unairworthy,* the story was a warning to the reader against flying in unlicensed craft, at the same time created in him a sense of discrimination in favor of well-ordered air travel.

End of an Invention

In a hangar thrown open for the first time in two years to the gaze of the curious, workmen plied torch and hacksaw upon the metal framework of a great, grotesque airplane last week at Roosevelt Field, N. Y. It was the 20-passenger tandem-wing machine built, at an expense of about $500,000, by Emry Davis, 74, retired manufacturer of inks & inkwells. Eccentric Inventor Davis was killed last month when he tried to test a glider of the same design (TIME, March 2).

Gloomy witness to last week's proceedings was the inventor's son, Albert Davis, who had ordered the machine destroyed. It would take at least a year, he said, for engineers to find whether a workable idea existed in his father's designs, which he had preserved.

Flights & Flyers

33,000-ft. Woman, Down out of the sky into Akron one day last week came a young woman with two frozen toes, crackling ears and blood in her mouth. She was Miss Frankie Renner, 30, secretary-treasurer of Robbins Flying Service and of Aviation College Inc. Her physical condition did not make her unhappy for it was merely the result of climbing in a Waco biplane to an apparent altitude of 33,000 ft.--perhaps 3,000 ft. higher than Ruth Nichols' climb last fortnight, and a new women's record.

Die Hards. To encourage popular flying, the Aero Club of France canvassed its first 100 pilots, found 75 of them living, many engaged in active flying. Among them: Santos Dumont, the Farman brothers, Breguet, Bellenger, Dubonnet, Louis Bleriot, holder of pilots license No. 1.

*Planes commercially produced now are licensed before sale.

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