In 1921, the aviation and aerial photography departments, among others, were founded in the factories of aviation pioneer Hugo Junkers. They laid the foundations for the research, development and production of aeroplanes for military and civilian use. Junkers Luftverkehrs AG, founded shortly afterwards in 1924, was the most important airline in the world at the time. Around 1925, 40% of the world’s air traffic network was flown by Junkers aeroplanes. In the same year, Junkers founded the Junkers Aircraft Pilot School.
However, the air transport business was uneconomical due to the small number of passenger seats (four passengers in an F 13 aircraft), which is why Junkers Luftverkehr AG became increasingly dependent on state subsidies. After a failed deal in Russia, the German Reich demanded the transfer of shares in Junkers Luftverkehr AG in return for the assumption of debts. Junkers had to fulfil this demand, and in January 1926 Junkers Luftverkehr AG was merged with the airline Deutscher Aero Lloyd to form Deutsche Luft Hansa.
Further facts and stories on the subject can be found in the book ‘Als das Auto fliegen lernte’ by Angelika Hofmann. Reading sample.