Aerial Battle

International airline operations in Latin America, only 13 years ago the virtually unchallenged preserve of Pan American World Airways and Panagra, have become the world's hottest commercial aerial battle. Fifty-six international lines, including 37 fast comers incorporated in Latin America, now fight for passengers.

The newcomers are grabbing business mostly by making themselves the "discount houses of the air." Brazil's big Real-Aerovias charges only $432 for the round-trip excursion flight between Miami and Buenos Aires, as compared with the $779 asked by International Air Transport Association members such as Pan American. Panama's Aerovias flies from Panama to Miami for $55, v. the standard $94--and serves Scotch highballs on the house. Last week, grimly preparing to meet the competition, Panagra got set to introduce an excursion fare of its own that will undercut I.A.T.A. rates by 30%.* On the Cheap. Latin American airlines make rate-cutting work by an assortment of economies. Many fly aerial jitneys, such as war-surplus C-46s converted from U.S. Air Force freighters into lumbering passenger planes. Chile's thriving Cinta line paints its four-engined airliners Panagra yellow and green, and calls one flight El Latinamericano in cousinly association to Panagra's crack El Inter Americano --but not even dubbing the plane "Super DC-4B" makes it anything but an un-pressurized, 230-m.p.h. DC-4.

Other lines save enough on wages arid low taxes to use up-to-the-minute equipment. To fly fine 325-m.p.h. Super-H Constellations, Real's chief pilots get $900 a month, only about half what a U.S. captain makes for the same job. Nicaragua's tiny Lanica line recently put a pair of turboprop Viscounts on its Miami-Lima service.

Champagne Fare. But many Latin American airlines in the international runs have not had to cut rates to get business.

Chile's Linea Aerea Nacional, for example, is subsidized by the government, does a sedate business at I.A.T.A. rates by ap pealing to national pride. Others offer special services, such as the direct European flights of Panair do Brasil, Cubana Air lines and Colombia's 38-year-old Avianca.

Varig of Brazil offers champagne-and-lobster catering. The turboprop Britannias of Aeronaves de Mexico feature speed; they have cut the New York-Mexico City flight to 6 1/2 hours. Safety standards are generally high because inter national airlines must meet the require ments of the strictest country they land in, which in the case of 26 Latin American airlines is the U.S.

Fair Prospects. "Sure there's plenty of international competition," says Real-Aerovias President Linneu Gomes, "but we can beat it. We offer speed, service, safety and new planes." Real has built its fleet to 120 (v. Panagra's 19), and most of the other lines have big plans. The state-owned Argentine Airline is wrapping up a $28 million deal for six de Havilland Comet 4 pure jets to start 13-hour service between Buenos Aires and New York (almost a year before Panagra gets DC-8 jets on the same run). Varig has ordered French Caravelle jets; Real has bought four Convair jet 880s, will fly a route to Tokyo.

The effect is bound to be a tighter squeeze on U.S. carriers. Braniff Airways, which began flying to Buenos Aires in 1948 and still gets a U.S. subsidy ($550,000 in the first half of 1957), may have to ask for more. Pan American's Latin American division, which in 1956 went off a subsidy that had been averaging $11 million a year, and Panagra, which went off subsidy at the end of 1954, may have to appeal again for aid from the U.S.

*Sample round-trip fares:

Panagra I.A.T.A.

excursion tourist

NewYork-Lima $428.40 $567.00 New York-Santiago 576.80 771.60 New York-Buenos Aires 638.40 872.60

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