The Incroyable Political Union of 1940, Part 1: Questions of Pragmatic Necessity and the Remoulding of a Future Europe

Comparative politics, International Relations, Military history, Regional History

The Governments of the United Kingdom and the French Republic make this declaration of indissoluble union and unyielding resolution in their common defence of justice and freedom, against subjection to a system which reduces mankind to a life of robots and slaves.”

~ British offer of Anglo-French Union, June 16, 1940

[Great Britain, Parliament, Parliamentary Debates, Fifth Series, Volume 365. House of Commons Official Report Eleventh Volume of Session 1939-40, (London, His Majesty’s Stationery Office, 1940), columns 701-702.]

I first heard of this astonishing plan to politically unify Britain and France in WWII – to make French citizens British and British citizens French – in a television documentary broadcast on SBS – Churchill’s Bodyguard (2005). The thought that these two Anciens rivaux of Europe nearly became one country seems, from this vantage point looking backwards, a simply incredulous thing to contemplate.

WSC (Source: PA)4C91AFBC-517F-4C91-9490-61B1BB8DEB93 

The catalyst for the June 1940 proposal to fuse the two European allies was France’s military debacle: Nazi Germany launched a massive offensive into France in May and French forces offered scant resistance as the German Wehrmacht steamrolled on towards Paris with alarming speed. In late May the British Expeditionary Forces were evacuated from France, however the British left some 90,000 French troops in Dunkirk, abandoned to the fate of the conquering German army.D9043121-5D58-4A3E-89A3-9CB5F240A301

Before the crisis in the UK: Laying the groundwork for a federation

In the late 1930s, with threats to European stability and democracy emerging from both the Right and the Left, federalist ideas and sentiments started to gain currency within the UK. There was a thriving literature on the subject…liberal and socialist thinkers like William Beveridge, Lord Lothian and Lionel Curtis, were disseminating federalist ideas which were supported by many prominent politicians from both sides and by members of the Anglican Church. Andrea Bosco has drawn attention to the activism of a grass-roots movement known as the Federal Union which functioned as “a catalyst for (Federalist) ideas and behaviours“, generating popular backing in GB for the federal idea. French political economist Jean Monnet, as chair of the Anglo-French Coordinating Committee based in London, had the most developed perspective of the “Pan-Europeans”. Monnet took some of his inspiration from the vibrant British federalist movement and even discussed federalism with the then UK prime minster, Neville Chamberlain (more of Monnet later). Before the war a bill was drafted at Chatham House◘ anticipating the Franco-British Union (henceforth FBU) [‘Britain’s forgotten attempt to build a European Union’, (Andrea Bosco), (London School of Economics & Political Science), 20-Jan-2017, www.blogs.lse.ac.uk].

M. Monnet

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Proponents of FBU: the British 

British PM Churchill, though harbouring doubts about the viability of the proposed union, was in the vanguard of the initiative. Churchill and the all-party UK war cabinet were desperate to stop the French capitulating to Hitler (failing that the PM deemed it imperative that the French fleet not fall into Nazi hands) [Shlaim, A. (1974). Prelude to Downfall: The British Offer of Union to France, June 1940. Journal of Contemporary History, 9(3), 27-63. Retrieved from http://www.jstor.org/stable/260024].

The British offer of union, described by Shlaim as a deus ex machina, came when it did, as an attempt to mend the deteriorating relations between GB and France. Westminster, by making a “spectacular gesture of solidarity” with the beleaguered French, was hoping to silence the criticism within France of British motives. It was also intended to shore up the position of French prime minister, Paul Reynaud, who was the key political figure on the French side most in favour of the Union. By making common cause with France, the British were trying to raise French morale to stay in the fight against Germany and to discourage the Nazis. At the same time, by securing FBU with France, it hoped to entice to its side the “weak neutrals” of the Continent, away from the pull of the Third Reich. It would be wrong to assume everyone associated with the government in Britain was on board with Churchill’s scheme to fast-track an Anglo-French union…top Whitehall civil servant Sir Orme Sargent for instance felt the UK public was not ready for a union with France and urged it be delayed to after the war [ibid.].

Proponents of FBU: the French

Reynaud was the political face of the pro-FBU cause within the French ranks, but behind the scenes the concept was largely the brainchild of the aforementioned Jean Monnet. After the war Monnet’s untiring efforts at unification saw him identified as the “father of European integration”. In early 1940 as the war began to encroach closer and closer to France, Monnet was preoccupied with finding a way of avoiding the excesses of nationalism and militarism plaguing Europe. FBU was intended to be the “prototype of complete union” (Shlaim)…Monnet saw the surrender of national sovereignty by France and GB as the first step on the road to greater Europe’s supranational integration. The incorporation of the two countries and economies was a starting point for the ultimate political unification of Europe. Monnet’s relentless advocacy of the merits of a “United States of Europe” postwar, helped to bear fruit with the creation of the Common Market and the European Community. 763A822C-5DD3-4314-A12A-F53D7B66581B

Although, for the British participants in the drama, eventual European unification was not the rationale for making FBU happen, there were some on the English side of the channel who endorsed M Monnet’s integrationist ambitions, such as Professor Arnold Toynbee and Sir Arthur Salter. Even Churchill’s private secretary at the time was eyeing off the prospect of new openings and a shifting role for the UK – even going so far as to affirm that a union with France could be a “bridge to Europe and even World Federation”  [‘When Britain and France Almost Merged Into One Country’, (Dominic Tierney), The Atlantic, 08-Aug-2017, www.theatlantic.com].

The consensus in the British block did not endorse Monnet’s visionary role for FBU, the hard-nose pragmatist view of  Westminster was that, at that time of extreme and extraordinary peril, the union was purely one of expediency. The British offer was, in Avi Shlaim’s words, “no more than a last and desperate effort to keep France in the war against the common enemy” [ibid.] – a short-term objective only.

French military leader General de Gaulle (despite like Churchill harbouring some reservations about the concept) threw his weight behind FBU, believing it represented “a grand move to change history” [ibid.]. The linchpin for the Union’s success or otherwise came to hinge on secret talks between Churchill for the British and de Gaulle for the French. It was indeed an irony that on this occasion the “two patriotic statesmen, the symbols of independence and nationalism” (of their respective nations) were in synch with each other in seeking a supranational entity (Shlaim).

Like PM Reynaud, de Gaulle (still at this stage a junior minister in the French government) advocated FBU as the sole way forward because he wanted to fight on against the German invasion forces. Unfortunately for them (and the stricken French republic), the military high command and the majority of the French cabinet had other ideas. In the second part of this blog, we will look at how the events of June 1940 planned out and discover the fate of FBU and it’s postwar reverberations for Britain and France and for contemporary Europe as a whole.

Richard (the Lionheart) Plantagenet

Postscript: Incredible or incroyable as the prospect of an Anglo-French union in 1940 might seem, it would not have been without precedent. The Norman and Plantagenet monarchs in England in the 11th through 13th centuries ruled what was an Anglo-French state.

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based on the memoirs of Winston Churchill’s long-time bodyguard, Walter H Thompson

although the idea of an Anglo-French Union didn’t simply emerge out of thin air in 1940. The military alliance between the two countries in the face of the menace of an encroaching fascism in Europe had been taking shape since 1936…which in turn had built on the 1904 Entente cordiale, agreements which formally ended centuries of on-again, off-again Franco-English conflict [Mathews, J. (1941). The Anglo-French Alliance and the War. The Southwestern Social Science Quarterly, 21(4), 351-359. Retrieved from http://www.jstor.org/stable/42865013; ‘Franco-British Union’, Wikipedia, http://en.m.wikipedia.org]

Act of Perpetual Association between the UK and France

◘ a London “think tank” known officially as the Royal Institute of International Affairs

M Monnet was an unapologetic Anglophile, having lived and worked in London for part of his career he admired the British welfare system and had a sincere appreciation of GB’s assistance to France in two world wars

Man V Sheepdog: A Sample Bag of Life on a South Island Sheep Farm

Leisure activities, Local history, Travel

499338BA-95AD-403A-B893-242D9EF65207We booked into Rydges Hotel in Queenstown✲, New Zealand’s capital of adventure tourism. Whitewater rafting, bungy jumping and Jet Shotovers beckoned, but as our hotel was handily situated in proximity to the wharf on picture perfect Lake Wakatipu, something more sedate – a leisurely boat trip across its glistening waters – was what took our immediate fancy.

E16783A6-F9D2-426E-B332-BF85E2B073AEFrom the Queenstown wharf we caught the vintage twin screw steamboat TSS Earnslawthe journey was a complete step back in time…a slow and leisurely ride across Lake Wakatipu with the boat chugging along at a 1924 pace. No one on board much minded the pedestrian progress we were making. The only downside to the trip was trying to avoid inhaling the vessel’s toxic nasties, trying to survive the vile fumes of black smoke emitted from the steamer’s coal-fired boilers pervading the air inside the Earnslaw.

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Once at Walter Peak High Country, we were immediately taken on a guided tour of the working farm. We got up close with the farm’s various livestock – Scottish Highland cattle, red deer, lambs and some adaptable llamas. My favourite critters on the farm were the “hairy coos” as they are called in Scotland. These Erse ‘Heilan’ cows, sandy-golden-tan in colour and rather soporific in nature, were a delight with their full coats of shaggy hair endearingly covering their eyes.

DD45E9C1-E7EF-47A1-A9B9-3BC104E38816My highest highlight of the tour however was the demonstration of rounding up and penning a drove of sheep. This was made memorable by the antics of the leathery-faced old shepherd guy and his “Abbott and animal Costello” routine with the farm’s working border collie. The old farmer was a real joker, entertaining us with his dry commentary which bore more than a touch of the John Clarke quippery – and the same flat deadpan delivery. To start the show, he barked out instructions to the collie to tear madly all over the top paddock fetching the grazing sheep. After terrorising and cajoling the sheep into one cowering bunch, the dog efficiently corralled them into the enclosure at the south end. Then, with mission accomplished, the farmer, with comic timing and mock annoyance, remarked of the still heavily panting dog, “I don’t know why he’s so tired! I’m the one who does all the work”!

6F569C86-99F7-47AD-811F-EC3E624150E5The one-liners didn’t stop when the farmer donned his “shearing kit”, the blue and red overalls of his defleecing trade, to do some serious bladework. With a couple of hand-picked Romneys, he demonstrated (with accompanying audio) how to give a sheep the “Full Monty” crew cut! I’m not sure if the sizeable cohort of Japanese tourists on hand were sufficiently au fait with ‘Kiwised’ English to get the gist of the demonstrator’s jokey spiel and all the nuances of his wry humorous asides, but they generally seemed to sense the comic implications of the situation and enthusiastically laughed accordingly.

62FF7232-11DB-4D28-8A53-C00105DC42DAThe other stand-out feature of the visit, the afternoon tea, was held in the Colonel’s Homestead, an elegant turreted terracotta red and white building set against the  impressive backdrop of the towering Walter Peak. The high tea worked a treat with very generous servings of scones and pikelets and the obligatory jam and cream, all washed down with a nice cuppa. Afterwards, a leisurely lakeside stroll through the homestead’s très picturesque English-style gardens set the seal on a great day’s outing.

03984AB5-8FAE-44DA-B52C-4C3A4FA4FD48Time passed at the right pace on the return journey in the Earnslaw to Rydges – the tour operator organised a traditional sing-a-long to the accompaniment of the boat’s period-piece piano. We were given a complimentary “NZ Song Book” and encouraged to join in. The songs were every bit as vintage as the 1912 vessel and only a bit cringeworthy, but hey it was all part of setting an authentic mood for a momentary step back into yesteryear.04D360EC-404A-4029-B3D4-D6300DA0FECE

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✲ Kiwi anecdote # 579 – No double entendres please, we’re New Zealanders! The Queenstown Rydges’ street entrance unusually is on the building’s fourth floor, owing to a bit of a ridge in the landscape where it was built. Our room was on the sixth floor. Returning to the hotel on the first night of our stay, I decided to walk up the stairs (only two flights) to our floor. Perplexingly though when I reached the top of the stairs on the fifth floor, I couldn’t see the staircase which led to the next floor, our floor! It was not where it should (logically) have been. I scouted around level 6 for a bit but weirdly the staircase couldn’t be sighted. So, puzzled, I went back to the fourth floor to ask reception. The attractive young Pakeha woman on duty responded to my query in a slightly patronising tone reserved I imagine for the utterly clueless…she said to me firmly: “Sir-r-r, we are a very normal hotel in Queenstown, we always have sux here between five and seven”. Realising that the immediate implication I had drawn from what she had said, had not for one scintilla dawned on her, I was sorely tempted but managed to restrain myself from replying, thanks very much for telling me when, all that’s missing now is where! Ba-boom!

❁ the Earnslaw briefly popped up in the movie Indiana Jones and the Kingdom of the Crystal Skull (2008) as an Amazon River boat(sic)

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New York – Once was (Briefly) “Nieuw Oranje”

International Relations, Popular Culture, Regional History

America’s greatest city, the vast metropolis of New York, can claim an interesting and varied history of nomenclature. Until the English hold on New York was established permanently in the late 17th century (permanently that is until the American Revolution!), the settlement changed hands and names several times.

Manhattan Island 36811F8E-D75C-46AC-87ED-19993BDAB5BAAnyone with a rudimentary grasp of the early colonial period of America will know the early Dutch association with the area of New York. Based on the earlier exploration of the area by Henry Hudson, the Dutch West India Company (WIC) established a trading post on the southern tip of Manhattan island in 1624. The Dutch named the post New Amsterdam, the capital of its American colony Nieuw Nederlandt (New Netherland) – comprising an area including the hub of modern-day New York City, a strip of upstate New York including Beverwijck (now Albany), centre of the WIC fur trade, part of Connecticut and New Jersey and bits of the coastline down to the Delaware.

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17th century map of Nieuw Nederlandt

The English already had a foothold on Long Island and were keen on securing New Amsterdam and New Netherland for themselves…the English king Charles II granted his brother James, Duke of York rights to a large chunk of land on the Atlantic Seaboard. James duly launched an invasion fleet in 1664. Under pressure, the unpopular Dutch governor Pieter Stuyvesant failed to muster any significant support for its defence and was forced to surrender the settlement without any bloodshed. The occupying English force renamed it New York in honour of the Duke and future king of England and Ireland, James II. Richard Nicholls became the New York colony’s first governor.

A much less familiar fact is that New York was known by two other names at different periods in its history. The first European to set eyes on New York harbour was Florentine Giovanni da Verrazzano in 1524 …. Verrazzano named the place New Angoulême after his patron Francis I of France (formerly the Count of Angoulëme). Verrazzano never attempted to establish a settlement there.

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Manhattan Transferred

In 1673 during the Third Anglo-Dutch War, a sizeable Dutch fleet led by Admiral Cornelis Evertsen the Youngest AKA Keesje de Duivel (“Little Cornelis the Devil”) and Jacob Benckes, turned up in New York harbour, demanding the city be surrendered to it. Evertsen knew from intelligence gathered that the English governor (Francis Lovelace) was absent and the settlement’s defences were in a shabby state with Fort James being poorly garrisoned. After a brief military flexing of muscle by the Dutch, the English acting commander surrendered without resistance – in a reversal of the events and results of 1664! [‘The End of New Netherland’, (American History From Revolution to Reconstruction and beyond’), www.let.rug.nl].

New York was renamed Nieuw Oranje (New Orange) in honour of the Prince Willem of Orange (ironically the future King William III of England and Ireland). The officer commanding the Dutch land forces, Captain Anthonij Colve, was appointed governor-general of the restored Dutch colony. The Dutch coup was short-lived however, within a year the English had regained the settlement through the Treaty of Westminster – by which the Netherlands received Suriname in South America as a swap. New York was New York again – this time for good!96CCC6E2-B0B8-4820-ACBE-495885D53447

PostScript: New York by metonym or other informal name

Aficionados of mainstream American popular culture know Gotham or Gotham City as the supposed abode of the superhero Batman, courtesy of the long-running DC comic strip-cum-TV and film series (Gotham City is modelled on NYC albeit evoking the darkest possible manifestation of the city). The original attribution of ‘Gotham’ to New York however long predates the Batman phenomenon (the first Batman comic hit the book stalls in 1939). Its genesis was a creation of the mind of celebrated 19th century writer Washington Irving…Irving first referred to Gotham/NYC in a satirical periodical on New York culture and politics, Salmagundi, in 1807, and the association caught on with the public [‘Gotham City’, Wikipedia, http://en.m.wikipedia.org].

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There are a host of other nicknames for New York but by far the most popular, the most affectionate, is “the Big Apple”. The term gained currency on provincial racecourses circa 1920 and was made popular by newspaper reporter John Fitz Gerald, [‘Why is New York City nicknamed the “Big Apple”?, Elizabeth Nix, 23-Jul-2014, www.history.com].

As The New York Times‘ Sam Roberts remarked of the city’s Dutch name of 1673/1674:

(New York) “was the Big Orange before it was the Big Apple”! [quoted in ‘When New York was officially named New Orange’, Ephemeral New York, 07-Mar-2011, www.ephemeralnewyork.wordpress.com].

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the colonists followed this later by naming the adjacent island, present-day Long Island, Nieuw Amersfoort

leaving aside the undocumented and speculative claim made on behalf of Norseman Lief Ericsson who may conceivably have been the first to visit the site of New York over 1,000 years ago

metonym: the use of a (descriptive) name in place of the proper) name because it is closely associated (eg, the “White House” in lieu of the US Presidential Palace)

The Pan Am Journey – the Singular and Boundless Vision of One Man, Juan Trippe

Aviation history, Biographical, Commerce & Business, Regional History

Pan American World Airways, or as it was universally known in its peak, Pan Am, is a name that is no longer displayed on the flight indicator boards of international airports across the globe. However up to the Eighties it was one of the premier names in the international airline industry.  At the top of it’s game the airline was completing up to 214 flights from the US to Europe a week (1964) [‘Juan Terry Trippe, Founder of Pan Am World Airways and InterContinental Hotels’, Stanley Turkel (PDF, 2006), www.ishc.com].

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From the ground up

Like quite a few young, middle class American men during the Great War, Tripp gravitated towards a future in the air, at first aspiring to be a navy pilot. After the war he transitioned from running a failed taxi service into a small regional air transport company. Trippe’s drive to succeed led him within a few years to merge his group with two other similar-sized ones to form Pan American Airways Inc.

The New Jersey-born businessman came up with a steady stream of novel ideas for innovation in the airline industry – which however required money. Prospects were bright though as new airline ventures were a good selling point. As William Stadiem explains, flying in the “Roaring 20s” was “the high-tech startup of its time!” Financiers, including members of the Rockefeller and Vanderbilt families, were all too willing to bankroll Trippe’s burgeoning airline industry ambitions [William Stadiem, Jet Set: The People, the Planes, the Glamour, and the Romance, in Aviation’s Glory Years (2014)].

By 1927 Trippe had started to assemble the rudiments of a fleet of aircrafts, initially with a brace of tri-motored Fokkers supplemented by some ageing surplus floating boats which he converted into the Pan American Flying Clippers (Trippe was a pioneer of these multi-engine seaplanes). Thus modestly began Pan Am’s first air mail service to the Caribbean (maiden flight in a 65-horsepower Seagull – Key West Florida to Havana) which paved the way for further Pan Am incursions into the region. Expansion followed innovation – from the West Indies he moved into Central and South America, and the foundations were laid for a global transport business✲.AB50588C-D96D-45A9-B209-4EA072696C99

Eschewing managerial orthodoxy

As textbook BUS101 management orthodoxy goes, Tripp was far from the desired model. His inclination was not to delegate and he was given to making unilateral decisions without consulting – much to the chagrin of his boards of directors [‘Juan Trippe and Pan Am’, (Richard Branson), Time, 07-Dec-1998, www.content.time.com]. What he was really exceptional at though, was anticipating the market in air travel, working out usually before anyone else what the next big thing was going to be…and going for it totally!

Business transparency was not part of the Trippe management style…his early inroads in the industry owed a lot to his “stealthy lobbying for U.S. mail licences”, which gave Pan Am a precious legup! [Harold Evans, Gail Buckland & David Lefer, They Made America, (2004)]. Trippe took a ruthless approach to competition and was not adverse to doing secret deals to outmanoeuvre his airline rivals [‘Juan Trippe Revolutionized Trips By Air With Pan Am’, (Scott S Smith), Investor’s Business Daily, 09-Oct-2014, www.investors.com].

Pan Am at times resorted to outright bribery to stay ahead of the pack, eg, offering several 100 thousand dollars to a Mexican president to block rival American Airlines’ bid for landing rights in the US’ southern neighbour [‘Juan Trippe’s Pan Am’, (Ann Crittenden), New York Times, (Archives), 03-July 1977, www.nytimes.com].

Thoroughly innovative Juan

By continually expanding the scope of Pan Am’s operations, creating many new routes, Trippe opened up both the Atlantic and the Pacific to air travel❂. Trippe’s list of innovations in the industry are legion  – including the pioneering of round-the-world commercial flights; the introduction of cockpit electronics allowing Pan Am pilots to fly in any weather; he also came up with “fly now, pay later” plans; his personnel came up with an advanced (computerised) reservations system first [Stadiem, op.cit.;   ‘Dead Airlines And What Killed Them’, (Jean Folger), 25-Jun-2010, Investopedia, www.investopedia.com].3165D89F-A045-4A1A-940C-F2CE1BE1E35F

Before Laker Air there was …

Perhaps Trippe’s greatest legacy however was the pivotal role he played in making affordable air tourism a reality to everybody. When Trippe and Pan Am entered the still embryonic industry,  seats were expensive and airline passengers tended to be exclusively from the well-off sectors of society. The airline ‘biz’ was run by a cartel called IATA (the International Air Transport Association) who contrived to maintain airline prices at a high level [Scott, op.cit.].

The first discount king of airlines

The Pan Am boss’ idea was to introduce a new class of passenger, “tourist class”, slashing the round-trip fare from New York to London by half (to US$275). The cartel reacted by trying to impede the US maverick’s move. British airports were closed to all Pan Am flights with tourist seats (Pan Am was forced to switch its European flights to remote Shannon Airport in Ireland). Pan Am managed eventually to get round the cartel’s net, it’s tourist class proved so popular that IATA caved in and accepted the reality of it [Branson, loc.cit. ; Smith, op.cit.]. Trippe’s actions thus brought air travel within the reach of ordinary people.

Airline entrepreneur and “friends with benefits”

Part of Trippe’s success owed a lot to influential people in high places…he benefited from a personal rapport with presidents like FDR and Truman. In fact, far from it being exclusively a triumph of free enterprise, federal government cooperation and support were integral to Pan Am’s overall success in the business [Crittenden, loc.cit.]. 

JT Trippe & CA Lindbergh (Source: The Trippe Family)02852001-7C9A-469E-9375-60D9D44E153E

Juan Trippe had the nous to surround himself with the right people from the start…in 1927 he ‘headhunted’ the (then) most marketable figure in world aviation, famed pilot Charles Lindbergh, to work for Pan Am (Lindbergh’s Continental survey flights helped establish the company’s early trade routes✥).

Another key figure within the company was its chief engineer Andre Priester who wrote the specifications for Pan Am’s flying boats. Priester set and maintained the airline’s meticulous safety standards [‘Pan Am Series – Part XLVIII: Skygods’, (Jpbtransportation: the Blog and Website of James Patrick Baldwin), 15-Feb-2015, www.jpbtransconsulting.com]. Staff training and airline safety were things Trippe refused to take shortcuts with – insisting on a high level of training for his pilots, flight crews, mechanics and support staff [Folger, loc.cit.].

With a little help from his (fellow capitalist) friends

Trippe in retirement freely acknowledged the help he received from United Fruit Company…the powerful US banana multinational assisted Pan Am early on to establish a presence in Latin America, thanks to United Fruit’s unique(sic) insider knowledge of the region’s states and its capacity to open doors to various governments [ibid.]. Trippe and Pan Am also prospered from cultivating a good friendship and working relationship with long-time Boeing head Bill Allen.

Enter the jet age

By the 1950s the heyday of “prop-liners” (propellor-driven aircraft) had come to an end. Jet liners were the future,  trouncing ‘props’ for both aircraft speed and carrying capacity…and as ever Trippe got in at the ground floor! Trippe immediately bought up big on Boeing 707s and the first 707 Pan Am commercial flight took place in 1958 (NY-Paris)✮. He then got to work on making it more economical by figuring out how to reduce the jet’s seat-mile cost [Branson, op.cit.].

While going full-tilt into 707s Trippe was already looking beyond…to the 747, the jumbo-jet. As Evans et al observes, Trippe had “an almost clairvoyant grasp of the future (and a) determination to find aircraft to fit that vision” [Evans,  Buckland &  Lefer, op.cit.]. Unfortunately for Trippe, the antennae didn’t work as desired every single time and a few missteps had serious ramifications for the long-term future of Pan Am (see below).

1st InterContinental: Belém (Brazil)

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Pan Am ‘accommodates’ – airport to hotel…

Inevitably, the holistic approach Trippe brought to the airline industry✢ led him to capitalise on the airline ‘s success by directly entering the hospitality field… connecting the dots between passenger  transportation and accommodation. With government encouragement from US president FD Roosevelt, Trippe began InterContinental Hotels & Resorts in 1946 as a subsidiary of Pan Am…the first international hotel was situated in Belém, Brazil. Between 1946 and 1996 there were 222 I-C Hotels doing business worldwide (>90% of them outside the US) [Turkel, loc.cit.].

Changing fortunes

Pan Am – once a ‘Titan’ of the airways – is no more, what then led to its demise? Some observers trace the seeds of its eventual fall to the late 1940s – years before the company had reached the peak of its powers. Earlier in the Thirties, during Pan Am’s formative first decade, Trippe lobbied the US government, advocating his “chosen instrument” theory (by which Washington would designate a single air carrier for all foreign flights). Pan Am in fact secured this special status, initially with the awarding of a 10-year mail contract by the US Postmaster-General. Eventually though other carriers were green-lighted to enter the overseas field and started to claw back Pan Am’s advantage [Smith, loc.cit.]. Postwar, competitors such as Howard Hughes’ Trans-World Airlines (TWA), Braniff and North West Orient were allowed to enter Pan Am’s routes in South America and Asia, and contest it’s semi-official monopoly✧ over those regions [‘Pan-American World Airways: the rise and fall of a 20th century cultural icon’, (06-Jan-2017), www.seanmunger.com]. The “catch-up” had commenced.

However when Pan Am sought to establish a competitive foothold domestically in the late Forties, the US government flatly rejected its request to start a connecting domestic route network [‘Lots of Reasons Why Pan Am Failed’, (Robert J Byrne), Washington Post, 25-Jan-1992, www.washingtonpost.com]. This setback proved a critical handbreak on Pan Am’s expansion into the profitable US internal passenger market.

 Pan Am logo, the “blue meatballs”65E47663-1881-4115-AAC6-F4CBBCA0E7BA

In 1968 Juan Trippe stepped down as company president, however he remained active and influential in Pan Am’s executive decision-making, maintaining an office in the company’s headquarters. Pan Am still looked in solid business shape, it has 40,000 employees and was flying seven million passengers a year to some 86 countries. Trippe’s unflagging desire and capacity for change and innovation was to be a “two edged sword”, sparking Pan Am’s upward trajectory but also contributing to its ultimate decline. Not content with the revolutionary 707, Trippe cajoled the jet manufacturers to design a new “jumbo jet” capable of carrying in excess of 180 passengers⊡. The 747 answered this ‘need’, with the first commercial flight of a Pan Am 747 taking place in 1970. Trippe employed a similar stratagem with the Kennedy Administration which was reluctant (because of the exorbitant cost involved) to embrace the next level up, the SST-2707 supersonic jet. By signalling  that he intended to purchase five Anglo-French Concorde planes, Trippe pressured President Kennedy into launching the American Supersonic Transport project. But this was one instance where Trippe’s ‘hunch’ was badly off target. The Boeing 2707 proved so problematic (and costly) that the project was dropped altogether in 1971.

Two Pan Ams, 707 & 747 (source: Boeing)

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The ill-timed expansion into 747s: Capacity overload

Trippe, always striving to be ahead of the curve, placed his order for the new 747s before they were designed, let alone off the assembly line! On this occasion the economy brought him and the company unstuck. The timing of the introduction of 747s, 1970, was not great – coinciding with a recession! Trippe didn’t foresee the 1973 oil crisis, which blew out the costs for maintaining the fleet of jumbos – fuel prices skyrocketed after the Middle East energy backlash [Folger, loc.cit.].

The state of Pan Am’s finances in the early Seventies was not propitious for taking on something of the magnitude of the 747. Commencing from 1969-70 Pan Am experienced seven straight years of losses. By 1977 the company’s long-term debt amounted to a disquieting $727 million! The financial burden on Pan Am was too much – and the problem was compounded by one of Trippe’s successors as company head (Najeeb E Halaby) who bumped the   order of 747s from Trippe’s original 25 up to 33 aircrafts [Crittenden, loc.cit.].

Other developments in the world added to the company’s woes. The spate of terrorist incidents involving Pan Am, culminating in the 1988 Lockerbie tragedy, damaged the company’s reputation and precipitated a decline in travel numbers [Folger, loc.cit.].

Deregulation

Another setback for Pan Am came in the late 1970s with industry deregulation. The legislation of course brought more competition for Pan Am into the game, but this time coming from the big international airline players. Deregulation also meant that Pan Am could now at last enter the American domestic market, and it acquired National Airlines which unfortunately failed at a time Pan Am was in need of a financial “pick-me-up” [Smith, loc.cit.].

When the end came for Pan Am, it came fairly abruptly – in 1991. Pan Am offices everywhere simply closed their doors, virtually overnight. Rising costs of operation, falling market share, a trough in passenger numbers (a further blow in this respect was brought on by the 1990 Gulf War which led to a fall-off in international travellers) [Folger, loc.cit.].  There was a failure to make preparations  for a smooth transition for Pan Am after the head’s departure. Trippe, having been so dominant and instrumental in the company’s success over four decades, was negligent in not planning for a long-term successor to himself [Byrne, loc.cit.]. This hurt Pan Am during the rocky days ahead when it was in desperate need of clear-headed, astute leadership.

Footnote: in the 1920s and 30s Juan Trippe was one of a handful of great US airline pioneers – the elite list also included CR Smith (American Airlines), WA Paterson (United Airlines), Eddie Rickenbacker (Eastern Airlines) and Collett E Woolman (Delta Airlines).

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PostScript: Pan Am’s broader role

Under Trippe, Pan Am’s planes could be called upon when required to provide service outside it’s core commercial role. This happened in war, both hot and cold (eg, active role of Pan Am Clippers in WWII; humanitarian trips during the 1948-49 Berlin evacuation; collecting “refugees from communism” in Cuba during the early years of the Castro regime). Trippe also came to the rescue of his fellow “captain of industry” Henry Ford in 1931, by flying the Brazilian military into the remote Amazon to put down a worker revolt in the Fordlândia rubber plantation.

 

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✲ in addition to a purely business opportunity, Trippe’s focus on this region was to help forestall the establishment of a German (and possibly also a French) airline service to the Panama Canal (in which the US held a strategic interest),  [Sean Munger, op.cit.]

❂ by the 1970s the Pan Am publicity arm was able to boast that it was “the World’s Most Experienced Airline”

✥ often taking him to inassessible places in South and Meso-America where Trippe’s workers would follow, having the arduous job of hacking out landing strips from the dense jungle [Smith, loc.cit.]

✮ in very quick time BOAC, QANTAS, Air France and Lufthansa, among others, rushed to embrace 707s. In 1959 the Douglas company debuted its DC-8, virtually a copy of the 707 [Stadiem, loc.cit.]

✢ in the early years Trippe had even helped build airports in the jungles of Latin America to fit in with the new air routes planned for Pan Am

the hotel chain was sold to an English conglomerate, Grand Metropolitan, after Trippe’s death in 1981

✧ Pan Am’s role at that time has been described as the US’ “unofficial flag carrier”, [George C Larson, ‘Moments & Milestones: Birth of the Clippers’,  Air & Space Smithsonian, Nov 2010, www.airspacemag.com]

⊡ skillfully Trippe played the big manufacturers (Boeing, Douglas and Lockheed) off against each other, manipulating them into commiting to an even larger jet before they were ready to build it! [Smith, loc.cit.]