Classroom clipper, Vol. XX, No. 1, October - November 1963

              FOR WORLD’S MARKETS ... A train of cargo pallets waits alongside a new jet freighter for fast loading.
Second Stage of Jet Age Revises International Economics Concepts
TRANSPORTATION AS AN ARTERY of commerce is vital to the security and economic welfare of a nation—and to the family of nations in their present-day interdependence.
That is why the revolution in international transportation achieved by the Jet Age has rewritten many chapters in the basic economics textbooks.
And that is why an event this summer that saw the Jet Age enter its second stage was so significant. That event was the introduction of all-cargo jet transports, the world’s largest jet aircraft which began transatlantic and transpacific operations simultaneously on June 17.
Pan American Airways opened the Jet Age in air freight as it did in passenger transportation, making the first scheduled flights with the new Boeing 707-231C allcargo jets.
Work Rate Boosted
Flying at close to the speed of sound, and capable of carrying 40 tons of freight across the Atlantic, the new jet cargo aircraft does six times the work of current piston-engined aircraft. Experts in the field of international commerce predict that the jet freighters will have as great an impact on movement of goods as passenger jets have had on tourism and business travel. (Nearly twice as many passengers will travel by air across the Atlantic during 1963 as in 1958, when the first American-flag commercial flights by jet were made.)
By slashing transportation, the new jet freighters challenge traditional concepts of marketing and merchandising, making once-distant markets a jet hop away from a manufacturer’s base. Thus, the second stage of the Jet Age promises to drastically revise existing patterns of international distribution.
Fast Growth Pattern
In 16 days new jet freighters can carry between the United States and Europe the entire tonnage of cargo hauled across the Atlantic by Pan American during all of 1952—a year in which the airline led the air-freight industry. This illustrates the dramatic growth during the last decade of air cargo, from an express operation for packages to a large-volume freight service.
A significant factor in the accelerated growth rate of air freight has been the United States’ emphasis on exports. Through its World Wide Marketing Service, Pan American has helped bridge the gap between markets throughout the world and American production lines.
This service has assisted in creating sales outlets abroad for thousands of businessmen at a time when the adverse balance of payments poses a serious threat to the American economy. Through its offices on six continents, Pan American helps manufacturers solve the problems of marketing abroad, providing on a global basis the latest business advice.
The importance of Pan American’s cargo system and its World Wide Marketing Service was recognized by the United States Government in presenting Pan American with the “E” for Export flag and citation. Secretary of Commerce Luther H. Hodges said the World Wide Marketing Service “constitutes an important aid to this nation’s effort to build an expanded trade program.”
Freighter’s Military Role
A cold war crisis erupts somewhere in the world and suddenly America’s armed might goes into the breach—men and equipment must be moved at jet speed across a global checkerboard.
At times like this, the new cargo jet, Pan American’s merchantman of the air, with a basic assignment of contributing to peace through international trade and commerce, also serves as a front-line reserve element in the Free World’s defenses. If needed, the entire fleet of intercontinental range jets, including the new freighters, could go into Government service to rush troops and equipment to trouble spots anywhere in the world.
Particularly suited to augment the nation’s military capability, the jet freighter fleet—representing a private investment of nearly $60,000,000—provides the fastest means of transport for large volumes of military cargo to most of the world’s critical areas in times of emergency. The all-cargo jets are convertible within four hours to passenger service and can also be used in combination passenger and cargo configurations. For this reason, as well as that of their great capacity, speed and capability, the new 707-321C jet freighters have the versatility necessary for military assignments.
Part of Reserve
Like all of Pan American’s Intercontinental Jets—constituting 59 per cent of the civil turbojet airliners immediately available to the Government in times of emergency—the airline’s fleet of eight freighters is committed to the Civil Reserve Air Fleet.
These eight aircraft, for example, on the routes between Air Force bases in California and Hawaii could carry nearly 19,000,000 pounds per week of essential military supplies, such as rations, hospital equipment and medicines, military vehicles and weapon components. Alternately, in all-passenger configuration, they could move 43,780 troops per week on the same routes. In mixed configuration, 109 personnel and nearly 30 tons of freight could be carried on one aircraft.
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