Public affairs report, Vol. 1-66, February 1966

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PUBLIC AFFAIRS

report:
Published by Pan Am Pilots System Public Affairs Committee
February 1966
WHAT’S DOING IN WASHINGTON
by C. M. Olsen
The President approved Lufthansa’s application to serve Santiago, Chile, on Lufthansa’s Germany/New York route November 5, 1965. The approval was a gain for the US carriers in that the Board attached two conditions to the permit.
These conditions require Lufthansa to originate or terminate in Germany all flights serving a point south of New York on the North Atlantic route and to report traffic carriage over the route to the CAB. The second condition, reporting traffic carried, has never before been attached to a foreign air carrier permit, sets a precedent for attachment to all future foreign air carrier permits.
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Pan Am received CAB approval to serve Entebbe, Uganda and Dar es Salaam, Tanzania on the US-Nairobi route. (Nairobi was
added to the NYC-DKR-ROB-ACC-LOS route.
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Pan Am has reapplied to the CAB for removal of the restrictions on its Latin American certificate so as to allow daily service from NYC to St. Thomas and St. Croix in both directions using B—727s. (These restrictions require PAA to terminate flights serving STT or STX at either Port of Spain or points south thereof and San Juan or points north or west thereof.
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The Hearing Examiner postponed the date for filing of briefs from 12/1/65 to 1/4/66, in the US—South America Route Case. The newly formed Bureau of Operating Rights (formerly the Carrier Routes and Agreements Division of the CAB’s Bureau of Economic Regulation) has advised the hearing Examiner of its position. The BOR proposes the following carriers receive improved or curtailed operating authority, as follows:
Pan American —
Belem added, Houston and New Orleans added as co-terminals (for the South America route), only PAA should have nonstop U.S. — Buenos Aires authority, all restrictions between the Northeast Gateways and the Virgin Islands should be removed (to allow unrestricted turnaround services), Bahamas services should be authorized on an unrestricted basis from Miami and the Northeast Gateways and Jamaica service on the same flights as the Bahamas should be authorized, present restrictions on Maracaibo and Caracas service .should be removed and PAA should be the exclusive U.S. flag carrier between the U.S. and Rio de Janeiro and Montevideo.
BUT: Pan Am service should be deleted at the following points or between the pairs of points indicated:
Aruba, Asuncion and Sao Paulo; the Northeast Gateways/ Miami to Panama; the Northeast Gateways and Port-au-Prince; it should not be permitted to provide service on the sectors Kingston/Montego Bay - Port-au-Prince— Santo Domingo — San Juan, except Santo Domingo — San Juan; and service should be restricted to two points between San Juan and Port of Spain (except the Virgin Islands shall be considered a single point in this restriction).
PAN AM GAINS IN BILATERAL SETTLEMENT
Considerable action has taken place recently in the area of international bilateral air rights treaties and it is possible that at least a couple of the new provisions will give Pan Am new opportunities. Curt Olsen has forwarded a report on some of the current happenings.
JAPAN
December 28 the U. S. and Japan reached agreement on their protracted bilateral agreement discussions, with the following reported amendments to the route exchanges;
Japanese air carriers TYO—HON—SFO route extended to NYC and beyond, with SFO required ns a stop on all flights serving NYC and beyond.
JAL loses rights to Seattle.
JAL loses its Fifth Freedom rights on the route serving U. S. west coast to Central America and South America. (Only traffic originating in Japan or in Central or South America may be carried on this route).
U. S. carriers allowed unrestricted round-the-world cargo service.
U. S. carriers authorized service to Osaka and points beyond on trips originating in the U. S.
Of these new provisions it is apparent that the last two may be most significant to Pan Am. The RTW cargo service which was terminated at the demand of the Japanese can now be restored. Osaka is one of the greatest industrial centers in Japan and in the opinion of one high Pan Am official, should warrant daily service. A less obvious but perpaps equally important result of the agreement which will result in JAL flying across the U. S. and around the world is the fact that is should now become crystal clear to the CAB that Pan Am will have to have coast to coast rights to survive in competition with foreign carriers who have these rights. Even with this authorization Pan Am would find itself soon handicapped by the new Japanese—Russian agreement which will allow JAL to make the Tokyo—London sector several hours shorter by crossing Siberia.
AUSTRIA
The U. S. and Austria reportedly reached agreement to allow Austrian Airlines to serve the U. S. from Austria, over the following routes:
Vienna via intermediate points to NYC; and
Vienna via intermediate points to Montreal, Canada
and beyond to Washington, D. C.
Beyond rights from U. S. cities were not included.
IRELAND
The Irish Delegation had stated they would issue a statement of position by November 24, finally acted (about the 13th of December) denying the U. S. request for Dublin
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