Business: Too Much Competition

Pan American World Airways last week discharged some 5% of its 5,400 Latin American Division employees. Chief reason: "A runaway competitive situation in Latin America." Another carrier operating in Latin America, Panagra. last month asked the U.S. for a yearly $6,800,000 subsidy,* citing the drop in passenger loads (from 60% to 53%). Both Pan Am and Panagra blamed the fall in revenue on "the entry of a large number of foreign carriers into the area; the cut-rate fare policies instituted by many of these carriers."

Almost every Latin American country boasts its own airline, and some have two or three. Most of...

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