AIRWAYS HISTORY
12 13
14
and Peru . From Shelton ’ s point of view , the CAB had no jurisdiction between Honduras and South America . Therefore , TAN could sell tickets from Miami via Tegucigalpa to points south of Central America .
However , the CAB was not happy about TAN operating all over South America with only a Honduran permit . The Board concluded that TAN had , in fact , misused its authorization , and , therefore , modified its permit to prohibit TAN from flying beyond Honduras .
Shelton was not going to let the CAB nor Juan Trippe terminate TAN ’ s great reputation for offering low fares to South America . On the contrary , he wanted to expand service to the southern continent . His creative solution : establish separate , independent airlines to divert attention away from TAN . His plan incorporated an ingenious equipment-interchange operation among the carriers .
Shelton established Aerolineas Peruanas , SA ( APSA ) in Peru on September 17 , 1956 , and Compania Ecuatoriana de Aviacion ( CEA ) in Ecuador on February 20 , 1957 . Both companies were founded in the same fashion as TAN . The documentation indicated substantial ownership and effective control by nationals of
76 AIRWAYS MAGAZINE SEPTEMBER 2024 www . airwaysmag . com