CAT and Air America in Japan by Dr
CAT and Air America in Japan by Dr. Joe F. Leeker First published on 4 March 2013, last updated on 24 August 2015 I) A new beginning: As has been shown elsewhere, Civil Air Transport, after its glorious days during the civil war in mainland China, had to go into exile on the Island of Formosa in late 1949. With only very few places left where to fly, CAT had enormous financial problems at the end of December 1949, although on 1 November 1949, CAT and the CIA had signed an agreement by which the CIA promised to subsidize CAT by an amount of up to $ 500,000.1 In order to prevent the fleets of China National Aviation Corp. (CNAC) and Central Air Transport Corp. (CATC) detained at Hong Kong’s Kai Tak airport from falling into the hands of Communist China, General Chennault and Whiting Willauer, the main owners of CAT, had bought both fleets from the Nationalist Government of China against personal promissory notes for $ 4.75 million – an amount of money they did not have2 – and registered all aircraft in the United States to Civil Air Transport, Inc. (CATI), Dover, DE on 19 December 1949. But it was not until late 1952 that the former CATC and CNAC aircraft were awarded to CAT by court decision,3 and so this long lasting lawsuit, too, meant enormous financial expenses to CAT. Finally, in order to prevent their own fleet from falling into the hands of Communist China, on 5 January 1950, the Chennault / Willauer partnership transferred their aircraft to C.A.T.
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