| From 1929 to 1949, Pan American-Grace Airways, more commonly known as Panagra, dominated international aviation in Peru. The product of a "gentlemen's agreement" between Pan American Airways and W. R. Grace & Co., Panagra not only survived the constant in-fighting that occurred among its directors, but it also was an extremely profitable enterprise for both parent companies. With the help of W. R. Grace & Co., this Pan American trunk line attained a level of economic and cultural influence in Peru that was the envy of its competitors. In fact, Panagra itself could not duplicate its Peruvian experience within the other Andean republics that comprised its range of operations.;Panagra was more than another U.S. multinational doing business in Peru; it was a presence whose hold on Peru transcended aviation. Working within the cross-cultural atmosphere that surrounded the airline's Peruvian experience, this dissertation evaluates Panagra's economic impact upon Peru by examining two areas. First, it explores the changing nature of Panagra's relationship with the Peruvian government. Second, it looks at the policies instituted and role played by management in labor relations with the airline's Peruvian employees. In addition, this project assesses Panagra's cultural impact on Peru through an analysis of the airline's marketing practices.;This dissertation relies upon primary sources, both Peruvian and U.S., to make its analyses and draw its conclusions. From this research I have discovered that Panagra made a significant contribution to the early development of commercial aviation in Peru despite impositions placed on it by Lima and Washington. Those obstacles aside, Panagra developed cordial relationships with both governments. Moreover, relations between management and employees retained a level of familiarity in spite of the airline's growth from a local two-plane operation to a large multinational outfit. Not only did Panagra provide jobs to its Peruvian employees, but it also educated them in the nuances of the airline industry. This training enabled Panagra's employees to find high-level positions in Lima's airline and travel industries. As for the cultural impact Panagra's marketing policies had upon Peru, it was considerable. Publicity tours and cultural exchanges arranged by the airline played a major role in strengthening the ties between Peru and the United States during the 1930s and 1940s. Having marketing personnel who were familiar with the local culture certainly enhanced Panagra's ability to affect the development of Peruvian popular culture during these years. What was more, this knowledge of local custom enabled Panagra to register a profit in seventeen of its first twenty years. Not a bad record, considering that the airline had to contend with a devasting economic depression and a world war during this period. (Abstract shortened by UMI.). |
