and 2,153 between New York and Cuba for an average load factor of approximately 68.1 percent. Air express shipments during the same period totaled 130,457 pounds between New York and Venezuela and 4,287 pounds between New York and Cuba. Prior to the inauguration of common carrier service under its permit, LAV conducted charter operations between Maiquetia, Havana, and New York. A total of 5,927 passengers was carried by LAV between these points in both charter and common carrier operations during the period November 15, 1946, to June 30, 1947, and cargo valued at $87,244.25 was transported in such service between the same points from November 1, 1946, to June 30, 1947. National contends that the traffic potential between Havana and New York is not sufficient to justify additional competitive service by LAV, and that the route to New York via Havana represents such a substantial deviation from the most direct practi- . cal route between Venezuela and New York as not to be required by international reciprocity. Although this country has withdrawn from the International Air Transport Agreement, under which the permit here involved was issued, the withdrawal is not determinative of the need for air service between this country and Venezuela. The figures recited above with reference to the traffic carried by LAV since service was inaugurated under its permit indicate substantial public acceptance of the service provided. The successful conduct of those operations, together with the fact that LAV is wholly owned by the Venezuelan Government and has its backing, establishes that LAV is competent to perform the services here under consideration. Under these circumstances, and taking into account considerations of international reciprocity, we find that a continuation of service by LAV will be in the public interest and that LAV is fit, willing, and able to perform the service to be authorized, and to conform to the provisions of the Act and the rules, regulations, and requirements of the Board thereunder. Approval of the LAV request for an extension of its permit for 6 months from July 25, 1947, would necessitate a further proceeding looking toward an additional extension almost immediately. In order to avoid this situation we will extend the LAV permit for a period of 3 months from the date of its approval by the President. On the basis of the foregoing considerations and all of the facts of record, we find that the foreign air carrier permit heretofore issued to Linea Aeropostal Venezolana authorizing it to engage in foreign air transportation between (1) Maiquetia, Venezuela, and Miami, Fla., via Havana, Cuba, and (2) Maiquetia and Montreal, Canada, via Havana and New York, N. Y., should be amended so as to extend the permit for a period of 3 months from the date of approval by the President; provided, however, that if, during the term of the permit, as amended, the transportation therein au thorized becomes the subject of any treaty, convention, or agreement, to which the United States and Venezuela may become parties, the permit, as amended, shall continue in effect during the period provided for in such treaty, convention, or agreement. The permit as thus amended will by its terms be subject to all applicable provisions of any treaty, convention, or agreement affecting international air transportation to which Venezuela and the United States shall be parties, now in effect or that may hereafter become effective during the period the permit remains in effect, as well as to the provisions of the Act and the orders, rules, and regulations issued thereunder, and to such reasonable terms, conditions, and limitations required by the public interest as may from time to time be prescribed by us. An appropriate order will be entered. Landis, Chairman, Ryan, Branch, and Lee, Members of the Board, concurred in the above opinion. ORDER A full public hearing having been held in the above-entitled proceeding and the Board, upon consideration of the record, having issued its opinion containing its findings, conclusions, and decision, which is attached hereto and made a part hereof, IT IS ORDERED, 1. That the foreign air carrier permit issued to Linea Aeropostal Venezolana pursuant to order in 7 C. A. B. 317, dated August 15, 1946, be amended and issued in the form attached hereto; 2. That said amended permit shall be signed on behalf of the Board by its Chairman, shall have affixed thereto the seal of the Board, attested by the Secretary and shall be effective from the date of its approval by the President of the United States; and 3. That the exercise of the privileges granted by said amended permit shall be subject to the terms, conditions, and limitations prescribed by sections 238.4 and 238.7 of the Board's Economic Regulations, and such reasonable terms, conditions, and limitations required by the public interest as may from time to time be prescribed by the Board. The White House, January 17, 1948.-Approved: is hereby authorized, subject to the provisions hereinafter set forth, the provisions of the Civil Aeronautics Act of 1938, as amended, and the orders, rules, and regulations issued thereunder, to engage in foreign air transportation with respect to persons, property, and mail, as follows: 1. Between the terminal point Maiquetia, Venezuela, the immediate point Havana, Cuba, and the terminal point Miami, Fla., and 2. Between the terminal point Maiquetia, Venezuela, the intermediate The civil air transport agreement between Canada and the United States having been amended to remove the limitation which prohibited Trans-Canada Air Lines from stopping at any Canadian point within 40 miles of Detroit, Mich., that carrier's permit is amended to authorize service to Windsor, Ont., it being shown that it is a port of entry into Canada and an important industrial city having a substantial community of interest with other cities on the route. Trans-Canada A. L., Air Carrier Permit, 138 (140). Honolulu, T. H., being the only point of sufficient importance to warrant a finding that service thereto by China National will be in the public interest, no other intermediate stops will be named in the air carrier permit. China National, Air Carrier Permit, 457 (461). Following the suggestion of the Board in 7 C. A. B. 715 the carrier requested that Belize, British Honduras, be named an intermediate point on its route between Miami, Fla., and San Salvador, El Salvador, and it is found that such amendment is in the public interest, there being a sufficient traffic potential and the point being presently used as a refueling stop. TACA, S. A., Air Carrier Permit, 464 (467). Regarding the granting of traffic rights at the intermediate points where stops must be made by the Swiss carrier for operational and safety reasons, held that inasmuch as this Government has uniformly maintained that American carriers should be accorded full right to engage in fifth-freedom traffic on international routes, within the usual limitations of its bilateral agreements, it would be inconsistent to deny a similar right to this applicant. Swissair, Air Carrier Permit, 626 (629). FOREIGN AIR TRANSPORTATION. See also FOREIGN AIR CARRIER Choice of Carrier: Against the advantages of a single-carrier service between important traffic centers other factors which must be weighed in the substitution of such a service for an existing connecting service are cost to the Government and gateway facilities where, as here, a long journey involving customs and immigration clearance is required. Latin American Air Service, 65 (70). Establishment of international services of the magnitude here proposed is a major undertaking, requiring stations, communication facilities, trained organiza→ tion, and equipment capable of competing with other international operators. In selecting an operator it is necessary to consider not only the carrier's ability to finance and operate the new route but also the effect such an extension would have on its existing system. Id. (73). Effect on Existing Carrier: Since inauguration of service over the newly authorized route to Braniff Airways should provide an adequate volume of service between Havana, Cuba, and the Canal Zone with a convenient connecting service to Barranquilla, Colombia, and that route is a segment important to the economic system of the carrier, the volume of local traffic anticipated between these two points is not sufficient to justify a competitive service by an American carrier. Latin American Air Service, 65 (75). Fitness, Willingness, and Ability: See FITNESS, WILLINGNESS, AND ABILITY. Gateways: In the interchange of traffic between South America and the United States it was found that the change of carriers could be effected much more efficiently at Miami, Fla., than at the Canal Zone in view of the importance of the former point as a gateway for international travel, the larger number of daily schedules, and its more adequate facilities for handling passengers. Latin American Air Service, 65 (68). Need for Service: Curacao is named an intermediate point on Pan American's route since it is shown that it can be served without additional flight mileage and with no serious adverse effect upon the competing domestic carrier, but will afford a direct service from Curacao to Haiti, Dominican Republic, and Puerto Rico, now available only over the routes of foreign carriers. Latin American Air Service, 65 (74). Service to Melbourne, Australia, being in conformance with existing air transport agreements between the two countries, and such service being an important source of new traffic in both passenger and cargo categories which will be made available to the carrier at relatively little cost, amendment of the carrier's certificate is authorized. Pan Am. Airways, Inc., Melbourne Service, 547 (551). Terminal and/or Intermediate Points: In accordance with the amended bilateral air transport agreement between Canada and the United States, Colonial Airlines, Inc., is authorized to serve Ottawa and Montreal, Canada, as coterminal points on its routes Nos. 71-F and 72-F subject to the restriction that no Canadian Ottawa and Montreal, Canada, as coterminals on its routes Nos. 71-F and 72- Capacity Provision: Under the bilateral agreement with Peru the services Peru: Concurrent with the signing of the bilateral air transport agreement Scandinavia: The consortium agreement between three foreign air carriers of Switzerland: In the absence of affirmative proof demonstrating a specific Withdrawal of United States: Air carrier permit issued to K. L. M. in 6 C. A. B. AIR TRANSPORTATION. INVESTMENT. Capitalization of Interest on Equipment Purchase Funds: The interest per- Equipment: The carrier's fleet of DC-3 passenger aircraft appears to be ade- Items Allowed: The additional mail pay found to be fair and reasonable for Items Disallowed (Equipment Purchase Funds): Equipment purchase funds |