Pan American-Grace Airways

Pan American-Grace Airways, also known as Panagra, and dubbed "The World's Friendliest Airline" was an airline formed as a joint venture between Pan American World Airways and Grace Shipping Company. On September 13, 1928, a small single-engine Fairchild airliner flew from Lima, Peru, to Talara, Peru, which marked not only the beginning of Pan American Grace Airways but also the inauguration of scheduled air transportation along the West Coast of South America. From this short flight in 1928 to nonstop flights from New York to South America with Douglas DC-8 Intercontinental Jets in 1966, Panagra became the standard-bearer for transportation between the US Mainland East Coast and the West Coast of South America for 39 years. The company merged with Braniff International Airways in 1967, and the combined carrier became the largest US airline serving South America.

Formation of Pan American Grace Airways

In June 1928, Pan American Airways Corporation, originally known as Aviation Corporation of the Americas, was formed to obtain the necessary capital to enable its operating subsidiary, Pan American, to bid for various foreign airmail contracts to Latin America. These contracts were soon to be announced by the US Postmaster General pursuant to the Foreign Air Mail Act of 1928 and Pan American believed that it would be ultimately conducting operations under any contracts that might be awarded.

Pan American was correct and during May and July 1928, the new company had three foreign airmail contracts bestowed for service to Latin America. Specifically, Pan American was awarded the contract for Foreign Air Mail Route (FAM) No. 5 for service between Miami and Panama in the Canal Zone.