Word: lufthansa
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...ATLANTIC AIRLINE may be formed by North American Airlines, biggest nonscheduled carrier in the U.S., and the government of Austria. Since Hitler merged its air transport into Lufthansa 17 years ago, Austria has owned no airline. To get back in the air, it is dickering for North American's planes, pilots and experience...
...LUFTHANSA AIR ROUTES are finally set, despite the strong objection of almost every big U.S. airline (TIME, June 27). Under an agreement signed by the State Department, Lufthansa will get routes from West Germany to Chicago and the U.S. East Coast, and from there to the Caribbean and South America, plus a polar route to the West Coast. In return, TWA and Pan American will get the privilege of picking up passengers from six German cities for flights around the world. Snapped Florida's Senator George Smathers: "A thoughtless and completely unjustified giveaway...
...bound to lead to demands for more routes from other nations. Neither British Overseas Airways, which flies from New York to 15 Caribbean points, nor Air France, which has a Mexico City run, may fly passengers between U.S. cities and such a wide array of Latin American points as Lufthansa might be able to do under the proposed agreement. Even worse, said the airline men, the Germans were about to get South American routes that even U.S. airlines have been unable to win. For years, Braniff has been anxious to fly to Colombia, but the State Department has allowed negotiations...
...German routes, said U.S. air men, would hurt many U.S. carriers, with only a few lines reaping a real benefit in return, would eventually mean increased U.S. subsidies. Both Eastern and National Airlines carry heavy Latin American traffic between Miami and New York, traffic that Lufthansa would cut into with its through flights. Snapped National's Vice President Alexander Hardy: "If Lufthansa should get a through route, we'd be right back on subsidy." Both Pan American and Braniff, which already get a $14.5 million subsidy on their Latin American runs, would need still higher subsidies if Lufthansa...
...traded as in this deal." At the close, Committee Chairman Warren Magnuson announced that the State Department and CAB had agreed to re-examine the deal. The committee was also writing a letter advising the Department to check carefully with U.S. airlines in future deals. No matter which routes Lufthansa eventually gets, it will not be a strong competitor for some time to come. Lufthansa has just started a New York-to-Germany run twice a week with a fleet of four Super Constellations, will need years to build up a big air fleet...