[2] Pan American was correct and during May and July 1928, the new company had three foreign airmail contracts bestowed for service to Latin America.

Interestingly, Pan American had already strategically decided that if it received FAM 5 then it would ask for extension services beyond the Canal Zone to and along the Western Coast of South America.

It was found by the Postmaster-General that Pan American had spent two years in preparing for the new route down the West Coast of South America and the company's successful operation of service in the Caribbean as well as the significance of the infrastructure already in place along the proposed routes along the West Coast that were in operation and in place by W. R. Grace and finally the financial abilities of Pan American and W. R. Grace played an additional significant role in the award.

However, until the end of 1929, Pan American operated the route as far south as Guayaquil, Ecuador, which included the use of PAA aircraft and personnel.

Pan American Grace's Ford Trimotor airliner departed Buenos Aires, Argentina, and headed toward Chile.

The venerable Ford flew over the flat pampas and then landed at Mendoza, Argentina, where it refueled and prepared for the next leg of the trip.

Having left the Argentine capital city eight and one-half hours earlier, the aircraft landed at Santiago's Los Cerrillos Airport.

The Act, signed into law on June 23, 1938, transferred the responsibility of non-military aviation from the Bureau of Air Commerce to the newly formed Civil Aeronautics Agency to oversee the operation of all of the nation's airlines including for economic reasons as well as safety needs and requirements.

Airlines were now required to be issued a Certificate of Public Convenience and Necessity to prove that their service was viable to the nation's air travel needs.

[7] It was founded in 1929 to compete with SCADTA, a German-owned company, and held a quasi-monopoly over air travel in parts of Colombia and South America during the 1940s and 1950s.

[9]After World War II, airliners could operate at night over South America, and in 1947 Panagra Douglas DC-6s made scheduled flights from Miami to Buenos Aires in 20 hours and 25 minutes.

In 1955, Panagra Douglas DC-6Bs and DC-7Bs began serving Washington DC and New York City with these flights being operated by National Airlines crews north of Miami.

It was placed before the CAB in 1951 but ultimately, an interchange service agreement (see Transport hub) was awarded to Eastern and Braniff for thru-flights between New York and South America.

A projected merger date was to have been late summer 1965 but Pan American's legendary Founder and President Juan Terry Trippe did not accept Braniff's offer.

[2] A New York Federal Court ruled that Pan Am was in violation of the Sherman Anti Trust Act by its actions in regard to limiting Panagra's Northern expansion.

Three months later on March 17, 1966, Braniff further completed an agreement to purchase Pan American World Airways's 50-percent share in Panagra for the same amount.

Braniff purchased the 39-year-old South American West Coast airline for US$30 million from its two owners, W. R. Grace and Company and Pan American World Airways, Inc.. Braniff Executive Vice President Charles Edward Acker presented a check for US$15 million to W. R. Grace and Company Assistant General Council Walter Morris a month earlier in January 1967, which signaled the historic finalization of the merger between the two carriers.

Earlier, Braniff had presented a check for US$15 million to Pan American World Airways for their one-half share in Panagra.

President Lyndon Baines Johnson approved the merger in October 1966, and on January 19, 1967, Braniff International completed the purchase agreement.

Braniff Chairman of the Board of Directors Harding L. Lawrence held a press conference in New York City to announce the purchase of Panagra.

Lawrence stated:This is perhaps the most significant development in air transportation between North and South America, since the advent of the jet aircraft.

Months of intensive planning were completed and in place to begin a smooth transition that would emphasize leadership, the delegation of responsibilities, and effective utilization of the 9918 combined employees as a result of the merger.

Five US Gateways would also be used for the first time and included New York, Miami, Houston, Los Angeles, and San Francisco, which would allow service to be provided to South America from each major section of the US Mainland.

[10] According to the Panagra system timetable dated July 15, 1966, the airline was operating DC-8 "El Inter Americano" jet service between various destinations in Latin America and Los Angeles (Los Angeles International Airport), Miami (MIA), New York City (JFK) and San Francisco (San Francisco International Airport).

[11] Panagra was still cooperating with National Airlines and Pan American World Airways with regard to their service between the U.S. and Latin America at this time.

This timetable listed the following destinations served by Panagra in Central and South America: Antofagasta, Chile; Buenos Aires, Argentina; Cali, Colombia; Guayaquil, Ecuador; La Paz, Bolivia; Lima, Peru; Panama City, Panama; Quito, Ecuador; and Santiago, Chile.

All Pan American Grace Airways posters were created by J. W. Thompson Agency at the Airline's Lima, Peru, offices.

July 16, 1932 - Ford Trimotor NC403H "San Jose" - Flying a revenue flight from Santiago, Chile, to Buenos Aires, Argentina, with an en-route stop at Mendoza, Argentina - The Ford was operating over the Andes Mountains east of Santiago when it encountered a heavy snowstorm and crashed into mountainous terrain near El Plomo.

January 22, 1943 - Douglas DC-3A - Flight 9 flying regular schedule between Santiago, Chile and Lima, Peru - One hour after leaving Arequipa Airport and then after 3 PM the crew reported via radio that it was flying over Ocoña River, the DC-3 crashed on the slopes of Guayuri Grande Hill in the province of Caraveli, Department of Arequipa, Peru.

January 4, 1945 - Douglas DC-3A NC19470 - Operating an illegal flight from Limatambo Airport, Peru - Two mechanics and two unknown persons boarded the aircraft and departed Lima.