Pan American air ways, Vol. 4, No. 2, April 1933

              c
AMERICA’S
MERCHANT
MARINE
OF
THE
AIR
PAN AMERICAN AIR
WAYS
THE
WORLD’S
GREATEST
AIR
TRANSPORT
SYSTEM
Volume 4	April, 1933	Number 2
PAN AMERICAN ACQUIRES INTEREST IN CHINESE NATIONAL AIRWAYS SYSTEM
Becomes Partner of Government in Developing Air Routes of the Far East
The first major step in a plan to secure for the Americas a foothold on the key aerial trade routes of the Far East was seen in the acquisition by the Pan American Airways System,.of the entire minority stock interest in the national air transport system of China.
FIFTH ANNUAL REPORT
SHOWS RECORD GAINS
First Earned Surplus in Four Years
Overcoming an operating deficit which has appeared on the company's books since the Pan American Airways System was formed in 1928, the international air transport system ended the year 1932 with its first earned surplus of $188,-327.95, it was recorded in the statement to stockholders signed by Mr. J. T. Trippe, President of Pan American Airways Corporation, in the fifth annual report of the Corporation.
Reflecting substantial returns from basic economies instituted more than three years before in the operations and administrative departments together with benefits derived from an aggressive drive for increased traffic, Pan Ameri-( an Airways Corporation, hold-~ing corporation for the Pan American Airways System, reported a net profit, after all charges, of $698,527.26 for the year 1932 which compares with a net prof it of $105,452.24 for the previous year, and with losses of $305,271.60 for 1930 and $317,412.65 for 1929.
In addition to increased traffic and broad economies previously instituted, Mr. Trippe pointed out in his statement that the improved earnings reflected in a substantial measure the action of a majority of the countries on the airlines toward reduction of inequitable and archaic taxes, thereby removing these serious handicaps to improved international air transport operation. Other gains, realized from reduced ton mile costs of operating new and larger equipment, purchased the previous year, wereapplied to a reduction of passenger and express tariffs and assisted materially in the substantial increase of traffic shown.
Technical research was substantially advanced looking I jowards the establishment of jrans-Atlantic service, in which % an American is associated with ^“important European international airlines, and expeditions were dispatched to Iceland, Greenland and Newfoundland for scientific field research on climatic and meteorological conditions. In December,con-
FIRST THREE MONTHS SET RECORD PACE FOR YEAR
Driving ahead to new records that set a fast pace for the next nine months, January, February and March of this year registered totals better than fifty per cent above those of the same months In 1938, for every department of traffic for the Pan American Airways System.
Preliminary reports show the number of passengers carried during the first three months of 1933 total 28,551, better than 60$ over 1932 figures.Equally significant, passenger miles were 7,159,048, as compared with 4,375,569 for a year ago — a gain of 62$— which means not only that we have sold "via Pan American" to more passengers, but also have sold them longer trips.
Express and cargo are Indicated at 903,577 pounds—nearly 61$ increase over the 1938 record of 561,703 pounds. Air mall figures, as yet Incomplete, are expected to show similarly satisfactory gains.
Here Is the pace for 1933! Hard driving, will enable us to live up to our slogan — 100i Increase in 1933!
tracts covering complete engineering on two new types of super flying boats, faster and more efficient than the Clipper type now in service, were let to American manufacturers.
As a result of disturbed economic conditions, volume of international trade between the United States and countries served by Pan American lines decreased 38% over the previous year and volume of letter mail showed a loss of 36%. In spite of this trend, however, the volume of air mail carried by Pan American Airways System registered a gain of 9% over 1931, Mr. Trippe pointed out. Revenue to the United States Treasury from the Pan American operations increased to $1,521,000 in 1932. For the third successive year, scheduled efficiency of the international air lines, as determined by the United States Post Office Department, exceeded 99%.
Setting anew international travel record, the system reported a total of 19,571,000 passenger miles, as compared with 12,479,000 passenger miles for 1931, a gain largely credited to the greater capacity and commodiousness of the new 4 engined 44 passenger "Clipper Ships" in service during the year and to the considerable increase registered in long-haul passenger traffic especially between the United States, Brazil and Argentina. Air express volume more than doubled during the year, to register a total of 298,815 lbs.
3,000 MILES IN 3 DAYS
—SAME TIME TO GO 100
So Burning Oil Well Waits Week For Fire Fighter
While a blazing oil well in Colombia spouted flame and smoke high into the air, M.M. Kinley, internationally famous fighterofo.il f ires raced 3,000 miles in three days to battle the fire, only to take nearly the same time in traversing the last 100 miles of his journey.
Boarding a plane of American Airways at Dallas, Texas, Mr. Kinley flewto Miami. There he boarded a Clipper Ship of Pan American Airways System and flew across the Caribbean sea,reaching Maracaibo, Venezuela via Barranquilla, Colombia. This journey took three days.
From Maracaibo, Mr. Kinley went by boat and mule, into the Catatumbo field of Colombia. Here, after three more days of travel, he was met by officials of the Venezuela Gulf Oil Company. Meanwhile, in New York, Johns, Manville Company had been trying desperately to make the plane of Eastern Air Transport with an air express shipment of asbestos cloth to be used in protecting Mr. Kinley while he approached the fire.
Missing the plane in Philadelphia by a scant five minutes, the shipment was held over until the following trans-Caribbean plane, which also carried Mr. Roy Newton, General Manager of the oil company in Venezuela.
M.M. Kinley is one of the famous Kinley brothers of Tulsa, Oklahoma, who have put out oil fires on three continents. One of his last commissions carried him to Roumania where he succeeded in extinguishing a destructive fire after all other attempts had failed. The Colombia fire burned for 32 days before he was summoned.
The national airways of China, in the development of which Pan American will be associated with the national Government of China, form the strategic routes of access into the center of the chief world markets of the Orient, the goal toward which the powerful international air systems of Great Britain, France, Germany, Holland and Russia are already well advanced in what now becomes a race to establish great trade routes of the air to Western Europe and to North America.
Announcement was made by Mr. J. T. Trippe, President of the Pan American Airways System, of the acquisition by the Pan American Airways Corporation of 45% of the capital stock of China National Aviation Corp., whose operating routes and important franchises cover the basic air transport development of the Chinese Republic. All the capital stock not acquired by Pan American is held by the Chinese National Government. The acquisition was effected through an exchange of stock, the amount of which was not revealed.
Use American Aircraft
Employing American aircraft, manned by American pilots, China National-Aviation Corp., is the company which succeeded the early development of commercial air service in the Chinese republic. The first service in which Americans were associated, was inaugurated between Shanghai and Hangkow in 1929. In July,1930,new operating contracts and important franchises were acquired from the Government, and China National Aviation Corp., as it now exists, was formed to operate the new routes and develop the various extensions provided. The commercial and administrative departments of the company are directed by the Chinese, while the operations will be managed by Pan American