BASIC AIR STUDY - ITALY

Document Type: 
Collection: 
Document Number (FOIA) /ESDN (CREST): 
CIA-RDP78-01617A004200060001-8
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RIPPUB
Original Classification: 
S
Document Page Count: 
28
Document Creation Date: 
December 27, 2016
Document Release Date: 
February 15, 2013
Sequence Number: 
1
Case Number: 
Publication Date: 
June 30, 1948
Content Type: 
REPORT
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PDF icon CIA-RDP78-01617A004200060001-8.pdf714.01 KB
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J Declassified in Part - Sanitized Copy Approved for Release 2013/02/15: CIA-RDP78-01617A004200060001-8 ? ~%GU-mot I. Italian Commercial Air Policy III. Italian Airlines (1) Introduction (2) Tri-Company Agreement (3) Civil Air Transport Companies (4) Foreign Carriers Operating Into Italy V. Aeronautical Facilities, Industry, Research Land Education NO CHANGE in Class. ^ tP7~~ DECLASSIFIED TS S C _ Class. CHANGED TO: DDA Memo, 4 Apr 77 Auth: DDA ~EG? 77/1763 Date: 9O F E7B By. A Declassified in Part - Sanitized Copy Approved for Release 2013/02/15: CIA-RDP78-01617AO04200060001-8 Declassified in Part - Sanitized Copy Approved for Release 2013/02/15: CIA-RDP78-01617AO04200060001-8 Declassified in Part - Sanitized Copy Approved for Release 2013/02/15: CIA-RDP78-01617AO04200060001-8 SECRET c I. Italian Co=ex," Air Policy The Italian Government ratified the Chicago Convention 29 September, 1947, and since admission to the United Nations in November 1947, Italy has been an active participant in the affairs of the International Civil Aviation Organization (ICAO). At the ICAO convention which met in Geneva November, 1947, for con- sideration of a multilateral air transport agreement, Italy supported the Mexican resolution for the optional granting of Fifth Freedom rights. However, subsequent US-Italian bilateral negotiations broke down Italian opposition to the granting of Fifth Freedom rights in Bermuda-type agree- ments. Italian officials have informally disclosed that all future bilateral agreements negotiated will follow the lines of the Bermuda Agreement. For security reasons, the Italian Government has favored (with US concurrence) a restrictionist approach in her bilateral negotiationswith 0 the Satellite States. Caution is thought necessary to provide adequate safeguards against the misuse of normal traffic rights by Satellite carriers. Since the Bermuda-type agreement does not provide such safe- guards, the Italians have indicated a desire to negotiate only informal air arrangements with the Satellite States. Such arrangements, presumably, would provide for a fully reciprocal exchange of air rights, permitting neither party to commence operations until the other is prepared to in- augurate similar services. Arrangements of this type could be easily ter- minated by the Italians should they feel their security is menaced by Satellite air operations into or beyond Italian territory. As Italian air carriers expand their international operations and face the stiff competition of other established world airlines, it maybe expected that the present liberal air policy of Italy may be qualified by restrictions induced for competitive reasons. Nevertheless, Italy is expected to support the US-UK liberal air policy objectives at the forth- coming Second Assembly of ICAO meeting in Geneva. SECRET Declassified in Part - Sanitized Copy Approved for Release 2013/02/15: CIA-RDP78-01617AO04200060001-8 Declassified in Part - Sanitized Copy Approved for Release 2013/02/15: CIA-RDP78-01617AO04200060001-8 In a decree signed 4 February 1947, the Italian Government fused the Ministries of War, Navy and Air under the new Ministry of Defense. (1) The Italian Defense Minister, Cipriano Facchinetti has delegated all civil aviation affairs to Ugo 'Di Rodino, the Under-Secretary of State for his Ministry. A committee has been formed to assist Di Rodino in reorganizing civil aviation in Italy. Meanwhile, it has been decided'to expand the technical department of the Directorate of Civil Aviation, and put a high-ranking officer and experienced engineer at its head. Along with the heads of the civil aviation departments of the Defense Ministry, the chiefs of other technical departments of the Ministry will also belong to the Civil Aviation Committee. (2) The Committee will have to elaborate a plan for the allocation of routes, limiting the number of airline companies to be licensed. It is understood that basically only two lines will?be'licensed for international services and one for domestic services. Thus, prelimi- nary discussions (with Fiat as the driving power) have already taken place between the three leading airlines (ALITALIA, LAI and ALI) in connection with an agreement to form a consortium for international services (on the pattern of the Scandinavian Airline System). (2) 40 SECRET, Declassified in Part - Sanitized Copy Approved for Release 2013/02/15: CIA-RDP78-01617AO04200060001-8 Declassified in Part - Sanitized Copy Approved for Release 2013/02/15: CIA-RDP78-01617AO04200060001-8 III. Italian Airlines The Allied Combined Chiefs of Staff in March, 1946, approved the establishment of internal civil airlines by the Italian Government. (8) Because of lack of capital, the Italians were unable to begin commercial air operations in 1946, but concluded contracts during the year with US and UK air carriers for the creation of the two mixed companies. The US. carrier,.TWA, participated in the formation of Linee Aeree Italians (LAI), and the British carrier, BEA, joined in the creation of Aeree Linee Italians Internazionale (ALITALIA). Neither of the above mixed companies commenced operations until early 1947. The six following all-Italian companies were subsequently formed, and initiated air transport services in 1947: Airone, Avio Linee Italian (ALI), Aeronautics Sicula, Transadriatica, and Societe Italians Servizi Aeri (3ISA). In addition, (4) three other minor carriers were authorized to start operations. During the first months of 1948, a new Italo-Egyptian Airline, "Services Aeriens Internationaux de L'Egypte" (SAIDE), was formed. Of the numerous airlines mentioned above, only two or three are expected to survive the rivalry resulting from their competing services. It is likely that the. smaller lines (unless they are nationalized) will sell out their interests and equipment to the larger lines rather than merge. LAI, ALITALIA andAVIO LINES ITALIANE (ALI) are by far the most able carriers in the field. Of the three, only LAI realized any profit during 1947. n;* Many of the; officials,ih the Ministry of Defense-Aeronautics favor a chosen instrument approach to civilx.aviation. During the postwar period to date,thowever, the Italian' Government has not.followed the practice of subsidizing her air barriers and appears to be waiting for a natural consolidation of companies to take place. SECRET Declassified in Part - Sanitized Copy Approved for Release 2013/02/15: CIA-RDP78-01617AO04200060001-8 (2) Tri-Company Agreement on the Division of International Routes The three major Italian airlines (ALITALIA, LAI.and.AVIDLINEE) on 11 November 1947, reached agreement among themselves, with respect to the international routes each desired to operate. The Ministry of De- fense-Aeronautics is reported to have originally suggested that the three carriers reach such an agreement, presumably. hoping thereby to make its own decision easier with reference to the division of inter- national routes among the principle Italian companies. The tri-company agreement prescribes the following division of international routes: AEREE LINEE ITALIANE INTERNAZIONALE ALITALIA F 1. Rome-Milan-Vienna-Prague (with technical stop at Milan if the line is direct from Rome to Prague and Vienna).* 3. Rome-Milan (with technical stop at Stuttgart or in the area of Buckeburg)-(Hamburg)-Copenhagen-Goteborg.* 5. Rome-Milan-Brussels-Amsterdam (exclusive of traffic between Milan and Brussels).* 6. Rome-South America (south of the Equator) via Lisbon and Tripoli. 7. Rome-Tunis-Tripoli. 8. Rome-Catania-Tripoli. 9. Rome-(El Adem)-Cairo and beyond to the Middle and Far East. 10. Rome-Athens (together with LAI)-Cairo and beyond as under- (9) above. 11. Rome-Paris. 12. Rome-Geneva. 14. Rome-Cairo-Kharto -Asmara and beyond to the South (to be discussed with AVILINEE).' *It is understood that the segments of lines in national territory will be non-traffic except when such segment forms a part of the, national network already granted to the company. N.B. The stops indicated in parentheses are optional. The technical stops are open to all. SECRET CrtDCT Declassified in Part - Sanitized Copy Approved for Release 2013/02/15: CIA-RDP78-01617AO04200060001-8 LINES AEREE ITALIANE LAI (7) 2. Rome-Palermo-Tunis and beyond to Algiers and Morocco (Only Rome-Tunis service now being operated). 3. Rome-Brindisi-Athens-Constantinople. 4. Rome-Brindisi-Athens-(Alexandria)-Cairo-Lydda. 5. Rome-Brindisi-Athens-Lydda-Cairo. 6. .Rorie-Venice-(or Milan)-Monaco-Berlin-Stockholm. 7. Rome-Zurich; for hich LAI reserves the right to agree directly with AVIgLINEE. C The Ministry of Defense-Aeronautics is recently reliably reported to have granted ALITALIA permission to develop the fourteen routes which that company requested. LAI and AVI INEE are pressing for similar approval of the routes for Which the have applied. (7) C N.B. is understood tat the segments of lines in national territory will be non-traffic except when sucg segment forms a part of the national. network already granted to the company. The stops indicated in parentheses are optional. CrfDrr Declassified in Part - Sanitized Copy Approved for Release 2013/02/15: CIA-RDP78-01617AO04200060001-8 CUD& Declassified in Part - Sanitized Copy Approved for Release 2013/02/15: CIA-RDP78-01617AO04200060001-8 AVI INEE (7) I 1. Milan-(Marseilles or Nice)-Barcellona-Lisbon. 2. Milan-Frankfurt-Copenhagen-Oslo. 3. Milan-Monaco or other stop in German territory which would not interferevuth ALITALIA. 4. Milan-Basle-Brussels-Amsterdam. 5. Rome-Milan-Zurich.* 6. Milan-Paris, with optional extension to Ireland without intermediate stops between Paris and Ireland. 7. Rome-Brindisi-(Salonika)-Istanbul and beyond.* 8. Rome-Trieste-Budapest-Warsaw and beyond.* 9. Milan-Trieste-Belgrade-Bucharest and beyond.* 10. Rome-Moscow with intermediate stops except at Vienna and Prague. In case of necessity, non-traffic stops to be permitted at Vienna and Prague, and any other landing covered by ALITALIA. 11. Rome-Asmara and beyond to the south. This line has already been requested by ALITALIA but will have to be further dis- cussed by the to companies in any_case with exclusion of traffic by AVIINEE between Italy and North Africa. 13. Rome-North Central America, meaning northern Central America and Americai'north of the Equator. N.B. For itineraries Nos. 7, 11, 12 and 13 it is understood that AVItINEE will be excluded from connections with the British Commonwealth which have been granted to ALITALIA. It is understood that the segments of linesin national terri- tory will be non-traffic except when such,--segment forms a part of the national network already granted to the company. The stops indicated in parentheses are optional The technical stops are open to all. SECRET crrnrr Declassified in Part - Sanitized Copy Approved for Release 2013/02/15: CIA-RDP78-01617AO04200060001-8 (3) Civil Air Transport Companies AEREE LINEE ITALIANE INTERNAZIONALE (ALITALIA) Capitalization - 900 million lire (5) 40% British European Airways 60f Italian Directors: 3 British, 6 Italian President: Gieuseppe de Michelis Deputy Chairman: Gerard d'Erlanger Headquarters-Rome Equipment:] (5) 5 Lancasters (on routes to South America) 5 G-12-L's ) 3 S-95 (on routes serving England, France Spain, Africa) 5 G-12 1 S-95 (for internal routes serving Italy) Rome-London - 2 weekly Rome-Milan-London-Manchester - 1 weekly Rome-Paris - 2 weekly (Savoia Marchetti) Rome-Turin - (every day,-except Sunday) . Rome-Catania-Tripoli - 3 weekly (Fiat G-12) Rome-Cairo - 1 round trip weekly Rome-Asmara - 2 round trips per month Rome-Lisbon Rome-Geneva Rome-Buenos Aires (via Rome-Tripoli-Dakar-Natal, or Rome-Lisbon-Dakar-Natal) (See III (2): "Tri-Company Agreement on the Division of International Routes") Despite substantial financial losses, ALITALIA will undoubtedly remain in operation due to the strategic interests of the British Government. International political maneuvers on behalf of ALITALIA can be expected on the part of Britain in order to minimize these financial losses. (6) SECREE, Declassified in Part - Sanitized Copy Approved for Release 2013/02/15: CIA-RDP78-01617AO04200060001-8 LAI was originally capitalized at 10 million lire of w hich 4 million consisted of an Italian governmental subsidy, 2 million private Italian subscription and 4 million TWA. Sub- sequently, however, LAI increased its capitalization to 200 million lire, and may further increase that figure to 800 million lire as long as the ratio remains 40% foreign and 60% Italian. Present holdings: (5) 60% Italian of which 40% is held by the Italian Government, and 20% by private Italian capital (made up of holdings by Fiat; Piaggio, aircraft manufacturers; and the Italian Southern Railways). Board of Directors: Prince Marcantonio Pacelli, President Richard Mazzarini (TWA) Arthur R. Wilson (TWA) Carlo Giulli Ruggeri Giancarlo Pre Egidio Dagua Vittorio Giovine Ercole Graziadei Aldo Castelfranchi Renato Perno Equipment: (5) LAI's equipment consisted of 16-C-47's (April,.1947) Personnel: (5) 36 air crew members, 200 ground crew personnel.. Routes Flown: (10) Rome-Palermo - daily Palermo-finis -3 weekly Milan-Rome-Naples-Palermo-Catania - daily Milan-Venice - daily Venice-Rome - daily Rome-Bari-Brindisi - 3 weekly Proposed Routes- Rome-Bari-Athens-Istanbul - 1 weekly (special) (11) Rome-Barcelona (via Milan) (special) (12) Rome-Athens-Alexandria (special) (13) (All three of the above routes have been flown by LAI, on s ecial, provisional flights.) (See III (2): "Tri-Company Agreements on the Division of International Routes") Declassified in Part - Sanitized Copy Approved for Release 2013/02/15: CIA-RDP78-01617AO04200060001-8 v 1%~ . Declassified in Part - Sanitized Copy Approved for Release 2013/02/15: CIA-RDP78-01617AO04200060001-8 LAI is the only one of the three major airlines engaged in profitable operations, estimating the gross profits for her first eight months of operation to total 104 million lire. The favorable financial position of LAI is in large part due to the fact that it operates a large number of routes with a minimum of employees, while other companies began operations of a few uneconomical routes with a top-heavy administration and a surfeit of employees. LAI's operating costs of about 245 lire per passenger mile are about half those sustained by other companies. (6) From an initial flying activity in April 194777of 2,800 Ions. daily, LAI's operations expanded to 5,400 lans. at the height of the season. To 31 December 1947, LAI has flown a total of 1,530,100 Ions. or 5,885 hours of flying time. LAI carried (during its first eight months of operations which ended 31 December 1947) 54,253 passengers; 137,221 pounds of excess baggage; 102,168 pounds of airmail and 746,456 pounds of cargo. The average aircraft payload utilization totaled 67% and LAI operated with 98% regularity in respect of schedules. (14) C SFrQrr - Declassified in Part - Sanitized Copy Approved for Release 2013/02/15: CIA-RDP78-01617AO04200060001-8 CCIDCT Declassified in Part - Sanitized Copy Approved for Release 2013/02/15: CIA-RDP78-01617AO04200060001-8 AVIO LINEE ITALIANE (ALI) Capitalization: (5) AVIO LINEE ITALIANE is capitalized at 12 million lire of which 94% is held by FIAT, and the remaining 6% by SOCIETA ITALO-AMERICANA del PETROLIO. Guido Ringler, President Felice Porro Public Magini 0 Administrative Office: Milano, Italy .:Personnel: (5) A AVIO LINEE ITALIANE employs 21 air crew members and 200 service personnel. Equipment: (5) AVIO LINEE ITALIANE is using 6 0-47, and G-12 aircraft. Routes Flown: (10) Milan-Rome - daily (flying Douglas 'Dakotas) Rome-Albegna - (service temporarily suspended) Milan-Geneva Rome-Naples Proposed Routes: (15) Milan-Brussels - 2 weekly (to be extended later to Amsterdam); Fiat G. 212's. Milan-Paris - 2 weekly; Fiat G. 212's. Milan-Frankfurt-Copenhagen-Oslo Milan-Nice-Barcelona (with extensions to Madrid and Lisbon later). (See III (2): "Tri-Company Agreements on the Division of International Routes") SECRET Declassified in Part - Sanitized Copy Approved for Release 2013/02/15 : CIA-RDP78-01617AO04200060001-8 AEREO TESEO Capitalization: Adone Zoli.; President Attilio Marrocchi Nereo Tommasi Giuseppe Sacchi Luige Burgisser Mario Werber Mario Paganelli Marcello Teddei Fabrizio Baggiano-Pico The administrative office is located in Firenze (Florence). Personnel (5) AEREO TESEO is employing 21 air crew members and 35 ground service personnel. Rome-Milan-Barcelona-Madrid-Lisbon - 1 flight weekly DC-3's Milan-Florence-Rome-Naples-Reggio-Calabria-Palermo - daily services Services to Bologna, Turin, and Venice temporarily suspended. Declassified in Part - Sanitized Copy Approved for Release 2013/02/15: CIA-RDP78-01617AO04200060001-8 Declassified in Part - Sanitized Copy Approved for Release 2013/02/15: CIA-RDP78-01617AO04200060001-8 Directors of AIRONE are: Vittorio Minio Paluello Vittorio De Castro Amilcare Lanza Administrative offices in Cagliari, Sardegna. Personnel: (5) 12 air crew members and 74 ground service personnel. Equipment: (:5) 5 Fiat G-12's Routes Flown: (16) Cagliari-Alghero-Rome Milan-Turin-Cagliari-Palermo Cagliari-Naples SECRET CCaDCT Declassified in Part - Sanitized Copy Approved for Release 2013/02/15: CIA-RDP78-01617AO04200060001-8 A. V. I.O.M. (5) Capitalization: 500,000 lire Administration: The directors of A.V.I.O.M. are: Giovanni Caproni Giovanni Pedace Roberto Consigli Umberto Rivo 9 air crew members; 25 ground service personnel SECRET Declassified in Part - Sanitized Copy Approved for Release 2013/02/15: CIA-RDP78-01617AO04200060001-8 Declassified in Part - Sanitized Copy Approved for Release 2013/02/15: CIA-RDP78-01617AO04200060001-8 GRUPO SICULO - Capitalization and Administration: GRUPO SICULO is a group of three companies merged to operate one franchise. A. AERONAUTICA SICULA; capital, 7 million lire; directors: Angelo Ambrosini and Mario dalla Guda. B. ALISI; capital, 500,000 lire; directors: Antonio Voltaggie, Guido Paresce, Umberto Capps, Sebastiano Lo Verde, Salvatore Pocoraino. C. SASIS; capital, 1 million lire; directors: Antonio Ramirez, Giovanbattista Santangelo, Girolamo Coffari, Gaetano Sabatini, Vincenzo Barone. SFrDn Declassified in Part - Sanitized Copy Approved for Release 2013/02/15: CIA-RDP78-01617AO04200060001-8 Declassified in Part - Sanitized Copy Approved for Release 2013/02/15: CIA-RDP78-01617AO04200060001-8 SALPANAVI Capitalization: 100 million lire Administration: (5) The directors are: Carlo Viansino Luciano Quarenghi Umberto Cappa Main office: Milan Personnel: . (5) 24 air crew members; 41 ground personnell. 6 Fiat G-12 L aircraft DC-3's (number unknown) 0 Milan-Grosseto-Rome; daily; DC-3's Milan-Bari; daily; DC-3's C~'r~et Declassified in Part - Sanitized Copy Approved for Release 2013/02/15: CIA-RDP78-01617AO04200060001-8 Declassified in Part - Sanitized Copy Approved for Release 2013/02/15: CIA-RDP78-01617AO04200060001-8 Capitalization: 300 million lire Carmelo Carmilleri Lot Bernardi Goffredo Innocenzi Vincenza Camilleri-Sillitti Decio Costanzi Personnel: 28 air crewamembers, 119 ground personnel. Equipment: 8 C-47's C SECRFT CGCDET Declassified in Part - Sanitized Copy Approved for Release 2013/02/15: CIA-RDP78-01617AO04200060001-8 SOCIETA ITALIANA SERVIZI AEREI (SISA) Administrative offices: Trieste Equipment: (17) 6 surplus C-47's (Douglas Dakotas) Routes Flown: (10) Trieste-Milan; daily except Sunday Bari-Naples Trieste-Rome-Naples; 2 flights weekly Milan-Trieste-Vienna-Prague; 1 flight weekly Trieste-Milan-Marseilles-Barcelona; 1 flight weekly Trieste-Zagreb-Belgrade Rome-Bari-Athens-Beirut (16) SEl Rrr Declassified in Part - Sanitized Copy Approved for Release 2013/02/15: CIA-RDP78-01617AO04200060001-8 Declassified in Part - Sanitized Copy Approved for Release 2013/02/15 : CIA-RDP78-01617AO04200060001-8 TRANSADRIATICA Capitalization: (5) 4 million lire The directors are: Leonida.Schiona, President Giuseppe Baccaglini Giordano Nobile Antonio Piana Giuseppe Simoni Administrative offices are in Venice. Personnel: (5) 17 air crew members; 38 ground personnel. Routes Flown; (10) Venice-Padna-Rome- daily Venice-Padua-Milan - daily except Sunday Venice-Padna-Genoa-Cagliari - three flights weekly Venice-Pescara-Rome (temporarily suspended) SECRET Declassified in Part - Sanitized Copy Approved for Release 2013/02/15: CIA-RDP78-01617AO04200060001-8 SECRET SERVICES AERIENS INTERNAT.IONAUR DE L'EGYPTE ("SAIDE") Capitalization: 250,000 Egyptian pounds, divided 60% Egyptian 40%. Italian .(Has been reported that Fiat would participate in the Italian capital; this would be normal for Fiat in order to find a market for their transport airplanes.) Headquarters for the'company is to be established in Cairo. There have been no public announcements made on the activity nor any registration proposed by the Italian Government. Equipment and Personnel: - Equipment and technical personnel are to be Italian. At the outset two 5JJ[ 95's and two G-12's will be used. The technical organization has not yet materialized. 0 Routes indicated will be Rome to Cairo and Cairo to Mecca in both directions. Mecca is indicated as great interest for possible traffic of Arabs making annual visits to the Holy City. This of course will draw full support of the Egyptians. It was further indicated Company wishes to extend route North from Rome to Paris and possibly London. Company is not expected to engage in any active technical work or operations before May. Route concessions are yet to be asked for or granted and technical organization has not yet materialized. SECRFr STAT STAT Declassified in Part - Sanitized Copy Approved for Release 2013/02/15: CIA-RDP78-01617A004200060001-8 SECRET (4) Foreign Carriers Operating Into Italy (16) AIR FRANCE KIld SABENA CSA BEA AER LIN,..RTS BOAC IBERIA PAB TWA FAMA SAS (DDL, DNL, ABA) AIR MALTA 10 SECRET Declassified in Part - Sanitized Copy Approved for Release 2013/02/15: CIA-RDP78-01617A004200060001-8 Declassified in Part - Sanitized Copy Approved for Release 2013/02/15 : CIA-RDP78-01617AO04200060001-8 Bermuda-type Agreement IRELAND 21 November 1947 US 6 February 1948 ARGENTINA 18 February 1948 Temporary Arrangements SPAIN September 1946 ROMANIA October 1946 IRAN November 1946 CZECHOSLOVAKIA UK FRANCE NETHER4A NDS BELGIUM BRAZIL NORWAY DENMARK Italy is presently negotiating with The Netherlands for the conclusion of a formal air agreement, and discussions with France are to follow immediately afterwards. In the near future, Italy plans to open negotiations with Turkey, Portugal and Spain. In addition, Yugoslavia and Bulgaria have evidenced their desire to conclude air agreements with the Italian Government. SECRET Declassified in Part - Sanitized Copy Approved for Release 2013/02/15: CIA-RDP78-01617AO04200060001-8 vl-%1\L I Italy Proper: (19), Concentrations of airfields in Italy occur in the northwest near Milan; in the northeast near Udine; in the south-central part of the peninsula near Naples and Foggia; and in the "heel of the boot" east of Taranto. Otherwise, there is a general distribution of airfields in the coastal plains on either side of the Apennines and in the North Italian Plain. Of the 120 air facilities, 16 are for seaplanes. Of the 104 airfields, 30 have runways of permanent surface. Many of the remaining airfields were built or reconstructed by the Albes and in great part are believed to have had the pierced- steel-plank removed and to be returned to cultivation. Most of the air facilities are capable of expansion and.development. Under Allied occupation, many temporary new lending grounds were constructed and existing airfields were repaired and im- proved. Only a few such airfields now remain in use. Of the 13 air facilities, 4.are seaplane stations, 4 have runways of permanent surface and 2 (on Pantelleria and Lampedusa) are landing grounds of negligible importance. ? Of the 7 air facilities, 2 are seaplane stations, 2 are air- fields of permanent construction, and 3 are landing grounds that have probably been returned to cultivation. (For detailed description of the various air facilities enumerated above, see Reference +19.) Italy concluded an air service agreement with the US on 4 June, 1947, covering the transfer of navigation, communication and weather facilities at Rome, Naples, Pisa, Milan, Palermo and Tropani and providing for the training of Italian communi- cations personnel at Ciampino airfield at Rome. Since several international airlines (as well as Italian air carriers) use Ciampino, the available facilities have proved inadequate. As a result, several'foreign airlines began in early 1948 to out intermediate landings at Ciampino. Long-range plans call for the expansion of air facilities at Rome and the construction of important international airports at Genoa and Milan. SECRET Declassified in Part - Sanitized Copy Approved for Release 2013/02/15: CIA-RDP78-01617AO04200060001-8 WRET It'appears that the future potential of the Italian aircraft industry is rather small. Because of the weakness of the Italian economy, the'industry was never large or efficient and, now on a peacetime basis, is further bound by treaty restric- tions. For the name, location and status (as of October, 1947) of Italian aircraft establishments, see Reference (19) Societa Anonima Aeronautics d'Italia, division of Fiat, is an industrial group of 17 separate companies and numerous associated companies. It is the foremost Italian aircraft manufacturer, having the financial and productive potentials for future development since Fiat, the parent company, is the only modern heavy industry with modern production line methods. (20) The company's most significant aircraft to date is the. FIAT G 212 "Monterosa", a three-engined commercial transport.. Four aircraft of this type have been completed and 17 are under construction. (The production rate is 2 G.212's monthly.) In (21) early 1947, Fiat concluded a contract with the Argentine Government for the provision of 45 G-55 one and two-seater training aircraft. (22) Breda Aircraft Co. (Societa Italians Ernesto Breda) is the second most important aircraft manufacturer; its establishment is located in Milan. Breda's most important project at present is the construction of a prototype of the BZ-308, a four-engined, all-metal, duraluminum, low-wing, transport monoplane; this craft is designed to carry 78 passengers. The BZ-308 has been ordered by Argentina, and is to be built in that country under An Italian Air Mission is scheduled to visit England in mid- June, 1948, to inspect the English. aircraft industry. The pur- pose of the mission is to conduct a general survey relative to the establishment o0'an Italian air industry. Aeronautical research in Italy has made little progess during the postwar period. At present, various aircraft companies are modifying existing aircraft for transport duties, and previous designs of transport aircraft are being exploited. Research or development of aircraft engines is being conducted only in the light reciprocating engine field. No jet engine research is being conducted in Italy at this time. SECRET Declassified in Part - Sanitized Copy Approved for Release 2013/02/15: CIA-RDP78-01617AO04200060001-8 rrenrwr Declassified in Part - Sanitized Copy Approved for Release 2013/02/15: CIA-RDP78-01617AO04200060001-8 The AERO CLUBS OF ITALY were an important part of the Italian Air Force training program prior to the war. At that time all the major citiesof Italy had established Aero Clubs which were federated under the title of AERO CLUBS ITALIANO (ACI). These clubs had 800 airplanes of various sizes primarily of the cub and tourist type. The Clubs during that period were subsidized by the Italian Government in the follow- ing ways: a. They were granted the loan of Air Force training type airplanes. d. Operated from airfields that were supported and maintained by the Italian Government. During the war the Aero Clubs lost all of their equipment. Today the Aero Clubs are again active in an effort to re-establish themselves to their former position. The Italian Aero Club is the only National institution which represents Italy in the Inter- national Aeronautical Federation (F.A.I.) and is the only institu- tion which represents the.F. A. I. in Italian territory. During a recent conference in Rome the Italian Aero Club has decided to federate into the A. C. I. all institutions which are interested in the development of sport and tourist aviation. In order to obtain participation in the federation the following basic qualifications were set up: a. Submit a constitution which will meet the approval of the A. C. I. b. Have at least 50 active members, 10 of whom must be pilots. (Exceptions are made when the institution applying has gliding and airplane modeling as their scope.) c. Prove that they have sufficient finances to carry out their proposed air activity. Institutions which meet the qualifications set forth are given the status of a local A. C. which will have administrative autonomy and be represented in the National Federation by their own selected member. The National Federation Committee is selected by vote of all the participating local Aero Clubs. Each local club selects a member of the National Elected Committee to represent them in the central administration of the organization. This selected member has authority to visit the local Aero Clubs which he represents to determine whether these clubs are operating within conformity of the respective constitutions. Any person who possesses a civilian or a military pilots license may become active members of the Aero Clubs so long as he meets the requirements of the-Constitution for that club and his character and personal activities meet the approval of the local Board of Directors. Other persons who do not SECRET possess pilots training may become participating members if they can show their active interest and intentions in asso- ciating and working for aeronautical developments. Within this category are many business men who have never flown or have any interest in becoming pilots but are actively interested in promoting Italian aviation industry, improving air fields and flying facilities and providing Italy with better civil air line services. The Italian Government enters into the control and assistance of the Italian Aero Clubs through the Ministry of Defense - Aeronautics in the following manner: a. Provides the necessary technical qualifications and licenses before any air activity can be conducted. b. Inspects airplanes technical equipment and reviews qualifications of pilots within the Aero Clubs. c. Insures compliance with air navigation rules, main- tains flight control through orders to the airport headquarters from which the Aero Club flies. d. Provides air force pilots to inspect, make test flights or assist in training programs when so requested. e. Provides special set of rules and qualifications from time to time for the civilian pilots school. f. Will provide on extended loan training type air- planes when available. g. Provides' source of finance to the Clubs by grant- ing contracts for grass cutting and minor main- tenance of the airport from which to fly. This sum amounts to approximately 15 million lire a year. This sum is divided by the National Council among the Aero Clubs which manage civilian pilots schools. No other direct subsidy is being provided to date - primarily because of lack of funds. There are 34 Club's federated into the Italian Aero Club. (1See~Ref; 25 for details as to location and officers.) At present there are about 4,000 active, members within the Aero Club. Their. equipment is limited to approximately 40 cub type airplanes. There is an indication that there will be an expansion of the Aero Clubs in membership as well as equipment but the severe limitation for the Italian Air Force by the Peace Treaty it is the plans of the Chief of Staff of the Italian Air Force to utilize the Aero Clubs to the maximum to provide primary training for new pilots as well as sustaining training for the inactive reserves. It is viewed by the Italians that this is the primary legal way of achieving the sufficient training without violating the terms of the Peace Treaty. With this point in view it is only logical to assume that all surplus types training airplanes within the Italian Air Force will be transferred to the control of the Aero Clubs. Aero Clubs are active in planning future activity but are working without equipment or funds. Future support of the Government will return them to the once important position they held in Italy and be the legal means of sustaining training for the many inactive reserve pilots. SECRFr STAT Declassified in Part - Sanitized Copy Approved for Release 2013/02/15: CIA-RDP78-01617AO04200060001-8