Word: boac
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...effecting in practice what the U.S. had turned down in theory at last year's Chicago air conference. The British wanted to limit the total seating capacity on any international route to a level only slightly higher than the actual demand for seats. Thus Britain's BOAC would be assured a share of the business...
This upset the French, ready to sign an air pact with the U.S. The French, no more ready than Britain's BOAC to compete with U.S. airlines, were not so sure now that they wanted U.S. airlines flying into their country at such low prices...
...BOAC could scrap its obsolete clippers (as Pan Am plans to do), buy surplus U.S. landplanes. But the British Government prefers not to shock proud Britons by using U.S. planes. Britons fallaciously believe that their own planemakers will soon produce suitable landplanes. Actually, Britain's first postwar landplane, the Tudor, will not be ready until spring, has no chance to compete with U.S. planes...
Thus British policy tends toward a dog-in-the-manger role. Instead of making BOAC efficient, it punishes U.S. airlines for their efficiency. Efforts to negotiate an Anglo-American air agreement have been blocked by Britain's insistence on rate regulation by fixing fares on the level at which the most efficient operator could make a profit. Pan Am said that this was exactly what it was doing...
...wanted to start his own airline connecting Buenos Aires and Montevideo and Asuncion (now connected by his ships). To do so, Dodero tried unsuccessfully to buy U.S. planes in 1943. In England last summer the reception was warmer. Dodero was royally wined & dined. He got the wholehearted blessing of BOAC, Pan Am's most determined foreign competitors. Dodero bought four of Short Brothers' Sunderlands. This week the U.S. helped also. It allotted Dodero two surplus DC-45. Eventually, Dodero plans to buy at least six more planes, fly to Europe in competition with a proposed Pan Am route...