Evening star., 1939-04-17
World Powers Vie
For South American
Air Domination

TotoIitorion Countries
Pouring Fortune in
Gold Into Enterprise
The fight bet,Deen European
and American dDldtion companies
for dominance OF the air orer
South America IS attracting in
credstng attention here and
abroad. This is the first of tho
authoritative articles discussing
pdrtons phases OF the struggle.
Special Dispatch to the Star.
RIO DE JANEIRO, April II
(N.AN,A).-The struggle between
the commercial air powers of Europe
and the United States for domina-
ton of South Americas skyways-
which is one important facet of the
bitter trade war now being waged
below the Caribbean-is about to
enter an intensified phase that may
we'll prove decisive for many years
to come.
Germany has been carrying the
attack for the Old World, and, un-
der Adolf Hitler. has been carrying
1t with vast display of aggressive
energy. With only the remnants of
> broken-doWn German service to
start with, the Reich has, in five
years, spread a network of Nazi-
hammered air routes over $4,000 miles
of primary trade channels. Today
they are the principal chalengers
to the hard-won leadership the
United States still holds on it's $4,000
miles of pan-American airways
around the southern continent.
Into this trade war in the air,
the totalitarian governments, espe-
ciaily, are pouring fortunes in gold,
backed with the full force of their
diplomacy, industry and propaganda.
Unlike private American enterprise,
these great foreign airlines do not
have to count the cost in terms of
private capital invested and dollars
lost on balance sheet. Money,
apparently, is no consideration. The
objectives are far too important.
Fights With Private Cash.
Pan-American Always, a private
commercial enterprise, is fighting
the battle with private capital re-
sources. The United States Gov
ernment pays only for carrying it's
mails. The rest of the costs must
come out OF passenger and freight
traffic.
The German government itself
operates directly through its great
Lufthansa and its locally organized
subsidiary, the Condor Syndicate,
which maintains patiently. but with
Ittle success except among German
newspapermen, the fiction of being
Brazilian corporation. It's unlim-
tied financial resources stem direct
ly from the Reich. Its newest and
largest aircraft flow directly from
the Reich air ministry factories in
greater quantities than the airlines
can actually find use for.
This year, Germany's energetic
.drive to swing a greater share of
South Americas trade to Europe
will be buttressed by several allies.
Air France, once Europe's great
standard bearer on this continent.
and now but shadow of it's former
power, has been given recent in
iusions of golden blood. 1t is making
q desperate effort to regain lost
ground but, even to hold its own
n the race, has entered into a
partnership with Germany's COM
mercial air power below the Carib-
bean. And this despite the COM
plexities of politics at home and the
direct clash of commercial interests
among the South American states
Refuses to Give Answer.
Exactly how far this cooperation
extends is a matter for conjecture
A written interview with Herr
Stadthagen, Brazilian citizen who
is head of Germany's Condor Syndi-
cate, revealed that he must refuse
to answer all questions concerning
= the alleged agreement between Air
France and Lufthansa because such
information would be detrimental
to the interests of the company"
The word he used was "perjudi-
oado"
However. NJ Vachet, general man
ager in Rio for Air France, said
that an agreement does exist be-
tween his company and Lufthansa
ito avoid an air trade war in Bra
1l." He declared both companies
had agreed to arrange their depart
ures from Europe on different days
10 prevent clogging of flight sched-
Aes. He reported hearing that the
two companies had formed traffic
pool, but that he, personally, had
no knowledge of such an arrange
ment, which, in any case, was a
matter that would be decided in
Paris and Berlin.
Condor is substituting landpianes
for seaplanes on the major coastal
routes and will use Air Frances
landing fields-an arrangement M.
Vachet explains, Whicn will be ad-
vantageous to both companies since
1T eliminates duplication of equip
ment and radio and generally re-
duces overhead and personnel eX-
pense.
Italy to Make Entrance.
Italy, on stage carefully set by
its embassies, is about to make
grand entrance upon the South
American scene. Its company, Ala
EDUCATIONAL.