Clipper, Vol. 11, No. 5, May 1954

              THE STATE OF PAA
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Pan American World Aîrhaïs LATIN AMERICAN DIVISION
VOL. 11, NO. 5
MAY 1954
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PAA again led the international transportation field in. passengers, cargo and mail in 1953, according to the annual report to the stockholders by President Juan T. Trippe,
During the year PAA carried a record 1,657,000 passengers on its world-wide routes, including 815,933 in its Latin American Division.
This was a gain of 16 per cent over the 1952 total of 1,426,-000 passengers.
T h e airline transported 28 TRIPPE per cent of all air and steamship passengers who traveled to and from the continental United States.
Revenue passenger-miles of 2,015,000,000 of which 798,881,-000 were flown in Latin America, set a new high. The company had a perfect safety record throughout the year.
In cargo, also, Pan American led all international airlines, flying 50,451,000 ton-miles of
ton-miles.
Service was greatly improved by the addition of 13 Douglas Super-6 Clippers in 1953.
Also purchased was a fleet of seven Douglas DC-7B aircraft with turbo-compound engines for delivery in 1955. The DC-7B's will have greater range and capacity than the DC-7 type developed for domestic service and, when placed in operation, will be the fastest long-range aircraft on international routes, the report said.
“As a result of the partial acceptance during the past year by other members of the International Air Transport Association of Pan American’s proposal that volume shipments should bear lower rates, tariffs were reduced in April, 1954, for . North Atlantic and Pacific air cargo shipments of over 200 kilograms,” Mr. Trippe said. “Your company will continue to press for the adoption of larger discounts for heavier shipments.”
Mr. Trippe said that as a further service to Clipper cargo users Pan American introduced
the cargo reservation service, which enables a shipper to reserve space just as a passenger would reserve accommodations for himself on a plane.
Reviewing Pan American’s contributions to defense of the free world, Mr. Trippe recalled that in the three and one-third years of the Korean War, the airline was the principal civilian contractor to the U. S. Air Force in the Pacific airlift. With the termination of this airlift in October, 1953, the company’s Clippers had transported more than 114,000 military personnel, 8,000,000 pounds
of mail, and 23,000,000 tons of strategic cargo in perfect safety across the Pacific.
In another field of defense, Pan American was awarded a contract by the U. S. Air Force to operate and maintain the Guided Missile Test Center at Cocoa, Florida, which is used for the evaluation and development of pilotless bombers and other guided missiles. The project includes management of the Florida launching base and testing and tracking facilities through a chain of auxiliary bases which stretch more than 1,000 miles through the Baha-
mas, past the Dominican Republic and Puerto Rico. A Guided Missile Range Division of the company has been organized to operate this important project which will become an increasingly vital research facility in hemispheric defense, Mr. Trippe said.
For the U. S. occupying forces and the citizens of West Berlin, Pan American continues to provide a vital transport link. Frequent daily services were operated across the Soviet zone between this oasis behind the Iron Curtain, and Hamburg, Hanover and‘Frankfurt.
Caribbean Stations Pian 11 ays To Top Forecast at Conference
EXPENSE ANGLE MAY HOLD KEY TO SUCCESS OF OVERALL
EFFORTS, DRESCHER WARNS
DTSjjfc and station managers from throughout the Caribbean area, h(^(f *a detailed report on “what we’re up against in LAD,” and thep set about devising ways and means of exceeding their station forecasts in 1954, at the annual Caribbean Regional Conference at the Hotel Hamaca in Boca Chica, Dominican Republic, in
April.	9	----------------------
Division Manager Edwin Dresche^®£raffic and Sales Manager mMEp Martinez and Superintendent“’ of Stations Art Best
TOURISTS GiO TO THE HAMACA HOTEL in the Dominican But the 37 delegates attending the Caribbean Conference at the time for anything but business. Virtually all of their time was table in the hotel dining room.
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Republic to play and relax, beachside Hamaca had little spent around the conference
"Pay Letter1 Travel Plan Big Hit at LAD Gateways
Introduction of the installment buying principle to air transportation on a nation-wide basis was initiated by PAA May 1 when ads appeared on the “travel now—pay later” plan previously announced by Willis G. Lipscomb, vice president traffic and sales.
— ■	—----------------------☆ The idea has been catching on
like fleas on a hound-dog at the PAA gateways, and the reservations folks have been catching a lot of extra business according to reports rolling in to LAD headquarters.
The plan actually didn’t become “official” until May 1 although the announcement had been made some weeks before. LAD advertising on the plan didn’t appear in the newspapers until May 2 but the inquiries before the “official” date numbered about 50 and out of that group nine bookings for trips had been recorded.
The trips recorded so far include four bookings to Europe, two to San Juan, two to Port of Spain, one to Mexico and Los Angeles.
By noon of the day after the advertising appeared, 12 inquiries had been received. Looks like the “travel now — pay later” plan is going to keep plenty of LAD -people busy.
“Air transportation long has needed an installment plan to enable it to compete with other similarly priced commodities on the consumer market,” Lipscomb said.
“Installment buying of our tickets is the second major step (Please turn to Page Eight)
Clipper Travel Up in April
Tourist traffic to Latin America through the Miami gateway is welt ahead of last year, according to PAA's April travel figures.
In April, 30,661 Clipper passengers were handled at Miami .—a 14 per cent increase over the 25,927 in April, 1953. Thes daily average of 1,022 travelers was 158 more than in April a year ago.
Port au Prince, Haiti, recorded an increase of 17 per cent in Clipper traffic—3,389 passengers compared to 2,891 in April, 1953. Nassau reported an 11 per cent gain, 7,554 passengers this April against 6.805 a year ago.
Stevens In Panama
Forrest Stevens, who joined PAA eight years ago as a traffic clerk at Miami, has been appointed district reservations superintendent for LAD at Panama. He had been on leave of absence from LAD to assist Cubana and returned from that work the end of March. He assumed his new duties April 16.
LAD Nosed Out In Tip Top's Final Count
Final Tip Top Contest figures arrived at LAD headquarters early this • month and Division Contest Chairman Jim Henry promptly left town.
Atlantic topped LAD in the final point tabulation 930,323 to 919,920. The System offices finished third with 845,396 points and Pacific-Alaska was fourth with 812,474,
From a revenue standpoint, however, LAD benefitted more than any other division from contest sales.
This paradoxical situation resulted from the fact that sales involving LAD travel, made by System personnel or individuals in other divisions, were credited to LAD dollarwise, while the contest points went to the source of the sale.
Before retreating from his contest chair, Henry philosophized that the whole thing was a standoff between Atlantic and LAD. “We got the most dollars and they got the most points,” quoth he.
Actually his departure was not prompted by announcement of the final contest results. Henry, who is assistant to the LAD sales manager, represented PAA at the Aruba meeting of the Caribbean TOurist Association May 3-6.
After the meeting he continued to Caracas, Maracaibo and Panama on a familiarization tour before returning to his office in Miami.
(speaking for Operations Manager Studeman) repeated the “State of LAD” message previously delivered before "the PAA Management Club in Miami, for the benefit of the conference members.
Emphasizing the fact that LAD’s break even need will go up by $800,000 compared to last year’s need, “unless we better our forecasts,” Drescher urged a redoubled effort all it down the line to increase revenue, and keep expenses below . the,- amount forecast.
Speaking briefly of “our record so far this year,” Drescher said: “The revenue trend in some areas is worrying us. Revenue passenger miles for the first quarter of the year were 4 1-2 per cent short of the forecast.”
The Division Manager pointed out that LAD’s 1954 revenue forecast was built around an anticipated 15 per cent inci’ease in revenue passenger miles.
“In view of the fact that our revenue passenger miles missed the forecast mark by 4 1-2 per cent during the first quarter, it may be that our revenue won’t come up to the forecast—-unless we are able to change the picture by hard work in the months ahead,” Drescher said. “First quarter expenses were
considerable lower than forecast,” he continued. “I hope this trend in expenses continues, for if we fall down from a revenue standpoint, we will need this cushion in order to meet our overall forecast.
“The expense situation is a serious part of our program. Your performance in part will be gauged on how you approach this problem at your station. If you are over the forecast on expenses, it is your job to find out why on each item—and take corrective measures.”
Fines against PAA, resulting from improper documentation, have become a serious problem, Drescher said.
“Most of these fines are due to carelessness, and it is up to each of you men to train your personnel to be more diligent and efficient so that this leak in our revenue will be effectively blocked off,” he continued.
After this review of the problems facing them, the conference delegates buckled down to the task of solving these problems.
Sales Manager Juan Homs urged the DTSMs to devote a greater portion of their time to developing contacts and soliciting business outside the office.
“Organize your offices to run themselves,” Homs urged. “Get out on the street and start meeting (Please turn to Page Six)
East Coast Officials Meet For Conference in Rio
Local PAA officials from South America, Trinidad and Puerto Rico are meeting with LAD executives for an East Coast Management Conference in Rio de Janeiro, May 12-13.
This is the third PAA regional meeting this spring. The first was held in Mexico City in March for middle-America representatives, the second in April in Boca Chica, Dominican Republic, for Caribbean area personnel.
Program topics include improving passenger and cargo service, increasing tourist traffic to South America, and means to best continue serving the South American economy.
Host for the conference is Hum-
phrey W. Toomey, vice president in charge of PAA operations in Brazil, Uruguay and Argentina. Heading the delegation from LAD headquarters in Miami is Division Manager Edwin Drescher.
Scheduled to attend from South America are:
Rio de Janeiro — Hilbert W. Peterson, regional t r a f fi c and sales manager; Stuart P. Brown, district traffic and sales manager; William Max Hartzog, assistant to traffic and sales manager; Capt. Leo C. Lorenz, sector chief pilot; George E. Nye, ground operations representative, Horace J. Strickland, cargo sales representative, and Paul N. Dault, spe» (Please turn to Page Three)