Pan American World Airways, commonly known as
Pan Am, was the "flagship" international
airline of the United States from the 1930s until
its collapse on December 4, 1991.
Founded in 1927 as a scheduled air mail
and passenger service operating between Florida
(Key
West
, and later Miami
) and
Havana
, Cuba
, the airline
became a major company credited with many innovations that shaped
the international airline industry, including the widespread use of
jet aircraft, jumbo jet, and computerized reservation
systems. Identified by its blue globe logo (widely known as
"the blue ball") and the use of the word "
Clipper" in aircraft names and
call signs, the airline was a cultural icon of the
20th century and the unofficial
flag
carrier of the United States.
History
Formation
Pan American Airways Incorporated was founded on March 14, 1927, by
Major
Henry H. "Hap" Arnold and partners.
Their shell company was able to obtain the
U.S. mail delivery contract to Cuba
, but lacked
the physical assets to do the job. On June 2, 1927,
Juan Trippe formed the Aviation Corporation of
America with the backing of powerful and politically-connected
financiers who included
William
A. Rockefeller and
Cornelius Vanderbilt Whitney.
Their
operation had the all-important landing rights for Havana
, having
acquired a small airline established in 1926 by John K.
Montgomery and Richard B.
Bevier as a seaplane
service from Key
West
, Florida to Havana, and carried mail over the route
for the first time on October 19, 1927.
The
Atlantic, Gulf, and Caribbean Airways company was established on
October 11, 1927, by New York City
investment banker
Richard Hoyt, who served as president. The three companies
merged into a
holding company called
the
Aviation Corporation of the Americas on June
23, 1928. Richard Hoyt was named as chairman of the new company,
but Trippe and his partners held forty percent of the equity and
Whitney was made president. Trippe became the operational head of
the new Pan American Airways Incorporated, created as the primary
operating
subsidiary of Aviation
Corporation of the Americas.

Flown cover carried from Key West, FL,
to Havana, Cuba, on the first contract air mail flight operated by
Pan American Airways, Oct 19, 1927
(Signed by pilot Cy
Caldwell)
The U.S.
government approved the original Pan Am's mail delivery contract
with little objection, out of fears that the German-owned Colombian
carrier SCADTA (currently
Avianca) would have no competition in
bidding for routes between Latin
America and the United States. The government further
helped Pan Am by insulating it from its American competitors,
seeing the airline as the "chosen instrument" for U.S. foreign air
routes. The airline expanded internationally, benefiting from a
virtual monopoly on foreign routes.
Trippe and his associates planned to extend Pan Am's network
through all of Central and South America. During the late 1920s and
early 1930s, Pan Am purchased a number of ailing or defunct
airlines in Central and South America and negotiated with postal
officials to win most of the government's airmail contracts to the
region. In September 1929, Trippe toured Latin America with
Charles Lindbergh to negotiate
landing rights in a number of countries, including SCADTA's home
turf of Colombia.
By the end of the year, Pan Am offered
flights along the west coast of South America to Peru
.
The
following year, Pan Am purchased the New York, Rio, and Buenos
Aires Line (NYRBA), giving it a seaplane route along the east
coast of South America to Buenos Aires
, Argentina
, and westbound to Santiago, Chile
. Its Brazilian subsidiary
NYRBA do Brasil was later renamed as
Panair do Brasil. Pan Am also
partnered with Grace Shipping Company in 1929 to form
Pan American-Grace Airways,
better known as
Panagra, to gain a foothold
to destinations in South America.
Pan Am's
holding company, the Aviation Corporation of the Americas, was one
of the hottest stocks on the New York Curb Exchange
in 1929, and flurries of speculation surrounded
each of its new route awards. On a single day in March, its
stock rose 50% in value. In April 1929, Trippe and his associates
reached an agreement with
United Aircraft and
Transport Corporation (UATC) to segregate Pan Am operations to
south of the U.S.-Mexico border, in exchange for UATC taking a
large shareholder stake (UATC was the parent company of what are
now
Boeing,
Pratt & Whitney, and
United Airlines).
Pan Am and its flight crews
Critical to Pan Am's success as an airline was the proficiency of
its flight crews, who were rigorously trained in long-distance
flight, seaplane anchorage and berthing operations, over-water
navigation, radio procedure, aircraft repair, and marine tides.
During the day, use of the compass while judging drift from sea
currents was normal procedure; at night, all flight crews were
trained to use astral navigation. In bad weather, pilots used
dead reckoning and timed turns,
making successful landings at fogged-in harbors by landing out to
sea, then taxiing the plane into port. By the time a man became a
pilot at Pan Am, he had first gained years of practical experience,
not only in flying seaplanes, but in anchoring, sea tides, engine
repair, astral, radio, and dead-reckoning navigation. Many had
merchant marine certifications and radio licenses as well as pilot
certificates. A Pan Am flight captain would normally begin his
career years earlier as a radio operator or even mechanic, steadily
gaining his licenses and working his way up the flight crew roster
to navigator, second officer, and first officer. Before the war, it
was not unusual to see a Pan Am first officer or captain changing a
cylinder head or other engine part while the plane rocked at a
floating berth in a remote anchorage.
Pan Am's mechanics and support staff were similarly trained. Newly
hired applicants were frequently paired with experienced flight
mechanics in several areas of the company until they had achieved
proficiency in all aircraft types. Emphasis was placed on learning
to maintain and overhaul aircraft in harsh seaborne environments
when faced with logistical difficulties, as might be expected in a
small foreign port without an aviation infrastructure or even an
adequate road network. Many crews supported repair operations by
flying in spare parts to planes stranded overseas, in some cases
performing repairs themselves.
The Clipper Era

180px-PAA_"The_Americas"_Route_Map_1936.jpg"
style='width:180px' alt="" />
PAA's "Clipper" routes in "The Americas"(1936)

1941 advertising mailer for Pan Am's
"Flying Clipper Cruises" to South America
While Pan
Am was developing its South American network, it also negotiated
with Bernt Balchen, of the Norwegian
airline DNL, in 1937 for a cooperative
Trans-Atlantic flight to Europe. The agreement was for
Pan Am to use its Clippers on flights from New York to Reykjavík
, Iceland
; DNL would then take over with their Sikorsky S-43 aircraft onwards to Bergen
, Norway
. This
plan was dropped when Pan Am pulled out and instead turned to
Britain and France to begin seaplane service between the United
States and Europe.
Britain
's state-owned Imperial
Airways was eager to cooperate with Pan Am, but France was less
willing to help, because its state carrier Aéropostale was a major player
in Latin America and a Pan Am competitor on some routes.
Eventually, Pan Am reached an agreement with
both countries to offer service from Norfolk
, Virginia
, to Europe via Bermuda
and the Azores using Sikorsky S-40 flying
boats. Starting in June 1937, a joint service from the
U.S. mainland to Bermuda was inaugurated, with Pan Am using
Sikorsky flying boats and Imperial Airways using
C class flying boat RMA
Cavalier.
On July 5, 1937, the first commercial survey flights across the
North Atlantic were conducted.
The Pan Am Clipper III, a Sikorsky
S-42, landed at Botwood
in the Bay of Exploits in Newfoundland
from Port Washington, New York
, via Shediac, New Brunswick
. The next day Pan Am Clipper III
left Botwood forFoynes
in
Ireland. The same day, a Short Empire C-Class flying boat,
the
Caledonia, left Foynes for Botwood and landed July 6,
1937, reaching Montreal on July 8 and New York on July 9. These
test flights marked the first steps toward the beginning of
commercial transatlantic flights.

PAA's
China Clipper service cut the time of a
transpacific crossing from as much as six weeks by sea to just six
days by air.
Pan Am
planned to start land plane service over Alaska
to Japan and
China, and sent Lindbergh on a survey flight in 1930; the ongoing
political upheaval in the Soviet Union and Japan made the route
nonviable. Trippe then decided to start a service from
San
Francisco
to Honolulu
, and from there to Hong Kong
and Auckland
following existing steamship routes.
After
negotiating rights in 1934 to land at Pearl Harbor
, Midway
Island
, Wake
Island
, Guam
, and
Subic
Bay
(Manila
), Pan Am
shipped $500,000 worth of aeronautical
equipment westward in March 1935 and ran its first survey flight to
Honolulu in April with a Sikorsky S-42 flying boat.
The
airline won the contract for a San Francisco-Canton mail route later that year and operated
its first commercial flight carrying mail and express in a Martin M-130 from Alameda
to Manila
amid
massive media fanfare on November 22, 1935. The five-leg,
8,000-mile (12,875 km) flight arrived in the Philippine
capital on November 29 and returned to San Francisco on December 6,
cutting the time of travel over that by steamship by more than a
full month. (Both the United States and Philippine Islands issued
special stamps for the two flights.) The first passenger flight
over this route left Alameda on October 21, 1936. The fare from San
Francisco to both Manila and Hong Kong in 1937 was $950 one way and
$1,710 round trip.

Stamps issued by the United States and
Philippine Islands for Air Mail carried on the first flights in
each direction of PAA's Transpacific
"China Clipper"
service between San Francisco, CA, and Manila, PI.
(November 22 - December 6, 1935)
On August 6, 1937, Juan Trippe accepted U.S aviation's highest
annual prize, the
Collier Trophy, on
behalf of PAA from President
Franklin D. Roosevelt for the company's
"establishment of the transpacific airline and the successful
execution of extended overwater navigation and the regular
operations thereof." Later, Pan Am used Boeing 314 flying boats for
the Pacific route: in China, passengers could connect to domestic
flights on the Pan Am-operated
China National Aviation
Corporation (CNAC) network, co-owned with the Chinese
government.
Pan Am flew to Singapore
for the first time in 1941, starting a semimonthly
service which reduced San Francisco-Singapore travel times from 25
days to 6 days. The Boeing 314s were used on transatlantic
routes starting in 1939.

Flown cover carried around the world
on PAA Boeing 314 Clippers and by Imperial Airways, June 24-July
28, 1939
A fleet of six large long-range
Boeing
314 flying boats was delivered to Pan Am in early 1939. The new
type enabled commencement of a regular weekly transatlantic
passenger and air mail service between the United States and
Britain on June 24, 1939.
The route was from New York via Shediac,
Botwood, and Foynes to Southampton
. The single fare was
$375 — equivalent to $5,300 today.
After the outbreak of
World War II, the
terminal became Foynes until the service ceased for the winter on
October 5. Throughout the war, Pan Am flew over ninety million
miles worldwide in support of military operations.
In 1940, Pan Am,
TWA, and
Northwest Airlines began using
the
Boeing 307 Stratocruiser for
passenger services. It was the first pressurized airliner to go
into commercial service and the first to include a flight engineer
as a member of the crew. The Boeing 307's airline service proved
short-lived, as all five models built were commandeered for
military service at the outbreak of World War II.
The "Clippers" — the name hearkened back to the 19th Century
clipper ships — were the only American
passenger aircraft of the time capable of
intercontinental travel. To compete with
ocean liners, the airline offered
first-class seats on such
flights, and the style of flight crews became more formal. Instead
of being leather-jacketed, silk-scarved airmail pilots, the crews
of the "Clippers" wore naval-style uniforms and adopted a set
procession when boarding the aircraft. The
China Clipper
became well-known for its South Seas routings.
In 1942, while waiting at Foynes, County Limerick, Ireland for a
Pan Am Clipper flight to New York, passengers were served a drink
today known as
Irish coffee by Chef Joe
Sheridan.
During World War II, most of the Clippers were pressed into the
military, and Pan Am flight crews operated the aircraft under
contract.
During this era, Pan Am pioneered a new air
route across western and central Africa to Iran
, and in
early 1942, the airline became the first to operate a route
circumnavigating the globe. Another first was in January
1943, when
Franklin Roosevelt
became the first U.S. president to fly abroad, in the
Dixie
Clipper. It was also during this period that
Star Trek creator
Gene Roddenberry was a Clipper pilot.
He was
aboard the Clipper Eclipse when it crashed in Syria
on June 19,
1947.
Postwar developments

Pan Am Boeing 377 Stratocruiser
Clipper Seven Seas at London Heathrow in 1954
After the war, Pan American's fleet was quickly replaced by faster
and longer range airliners, such as the
Boeing 377 Stratocruiser,
Douglas DC-6B, and
Lockheed Constellation.
For almost 40 years,
Pan Am westbound round-the-world route was Flight 001 originating
in San Francisco with stops including Honolulu
, Tokyo
, Hong Kong
, Bangkok
, Manila
, Kolkata
, Delhi
, Beirut
, Istanbul
, Frankfurt
, London
, and
finally New
York
. The westbound flight lasted 46 hours after
its first takeoff. Meanwhile, Pan Am Flight 002 circled the globe
eastbound.
Although Pan Am lobbied to gain protection of its position as
America's major international airline, it encountered increasing
competition — first from
American Overseas Airlines, and
later from a number of carriers designated to compete with Pan Am
in certain markets, such as
TWA
to Europe,
Braniff to
South America, American Airlines and United Airlines for domestic
flights, and
Northwest Orient to
East Asia. In 1950, shortly after starting an around-the-world
service and developing the concept of "economy class" passenger
service, Pan American Airways, Inc. was renamed Pan American World
Airways, Inc.
With strong competition on many of its routes, Pan Am began
investing in innovations such as jet aircraft and
wide-body types. Pan Am purchased the
DC-8 and the
Boeing
707, which Boeing modified to seat six passengers across
instead of five under pressure from Pan Am. The airline inaugurated
transatlantic jet service from New York to Paris on October 26,
1958, with a Boeing 707 named the
Clipper America.
Pan Am was the launch customer of the
Boeing
747, and it initially ordered 25 of them in April 1966.
On
January 15, 1970, First Lady Pat Nixon
officially christened a Pan Am Boeing 747 at Washington Dulles International
Airport
in the presence of Pan Am chairman Najeeb Halaby. Rather than breaking a
bottle of champagne, Mrs. Nixon pulled a lever which sprayed red,
white, and blue water on the aircraft. During the next few days Pan
Am flew several of their 747 jets to various major airports in the
U.S. as part of a public relations effort, allowing the public to
tour the airplanes. Pan Am then began operation of the first
commercially scheduled 747 service on the evening of January 21,
1970, when
Clipper Young America flew from New York to
London.
An engine failure caused a delayed departure
of several hours on this first flight, resulting in a substitution
to a second 747 which completed the route to London's Heathrow
Airport
.
Pan Am was one of the first three airlines to sign options for the
Concorde, but like other airlines that took
out options — with the exception of
British Overseas Airways
Corporation and
Air France — it did
not purchase the supersonic jet. Pan Am also was the first U.S.
airline to sign for the
Boeing 2707, the
American supersonic transport project, with15 delivery positions
reserved; these aircraft never saw service after Congress voted
against additional funding in 1971.
With traffic increasing in 1962, Pan Am commissioned
IBM to build PANAMAC, a large computer that booked
airline and hotel reservations. It also held large amounts of
information about cities, countries, airports, aircraft, hotels,
and restaurants.
The computer occupied the fourth floor of
the Pan Am
Building
, which was
the largest commercial office building in the world for some
time. The airline also built Worldport
, a terminal building at John F. Kennedy
International Airport in New York
that was the world's largest airline terminal for
many years. It was distinguished by its elliptical,
four-acre (16,000 m²) roof, suspended far from the outside
columns of the terminal below by 32 sets of steel posts and cables.
The terminal was designed to allow passengers to board and
disembark via stairs without getting wet by parking the nose of the
aircraft under the overhang. The introduction of the
jetbridge made this feature obsolete. Continuing the
airline's tradition of bold architecture, Pan Am built a gilded
training building in the style of Edward Durell Stone designed by
Steward-Skinner Architects in Miami.
At its
peak during the early 1970s, Pan Am's advertised under the slogan,
"World's Most Experienced Airline.", and was providing scheduled
service to every continent except for Antarctica
, and as many as 160 nations. Most of its routes
were between New
York
, Europe, and South America, and between Miami
and the
Caribbean
. Starting in 1964, the airline was providing
helicopter service between New York's
major airports and Manhattan. Aside from the DC-8, the Boeing 707
and 747, the Pan Am jet fleet also included
Boeing 720s,
727 (which
replaced the 720s),
737, and
Boeing 747SPs, which allowed Pan Am to fly
nonstop flights from New York to Tokyo. The airline also operated
Lockheed L-1011s,
DC-10s, and
Airbus A300s
and
A310. Pan Am was also involved in
other businesses that included a hotel chain, the
InterContinental Hotel, and a business jet,
the
Falcon.
The airline was
involved in creating a missile-tracking range in the South Atlantic
and operating a nuclear-engine testing laboratory in Nevada
.
The airline also participated in several notable humanitarian
flights.
Pan Am operated 650 flights a week between
West
Germany
and West Berlin, first
with the DC-6B and, in 1966, with the
Boeing 727. Pan Am also flew R&R (Rest and Recreation)
flights during the
Vietnam War.
These
flights carried American service personnel for R&R leaves in
Hong
Kong
, Tokyo
, and other
Asian cities.
It is said that the airline was well regarded for its modern fleet
and experienced and professional crews: cabin staff were
multilingual and usually college graduates, frequently with nursing
training.
During this period, Pan Am's onboard service
and cuisine, inspired by Maxim's de Paris
, were delivered "with a personal flair that has
rarely been equaled."
Downturn
The
1973 energy crisis significantly
affected Pan Am's operational costs. In addition to high fuel
prices, low demand for air travel and an oversupply in the
international air travel market (partly caused by federal route
awards to other airlines, such as the
Transpacific Route Case) reduced the
number of passengers Pan Am carried, as well as its profit margins.
Like other major airlines, Pan Am had invested in a large fleet of
new
Boeing 747s with the expectation that
demand for air travel would continue to rise, which was not the
case.

A Pan Am flight attendant in 1970s
uniform
On September 23, 1974, a group of Pan Am employees published an ad
in
The New York Times to
register their disagreement over federal policies which they felt
were harming the financial viability of their employer.
The ad
cited discrepancies in airport landing fees, such as Pan Am paying
$4,200 to land a plane in Sydney
,
Australia, while the Australian carrier, Qantas, paid only $178 to land a jet in Los
Angeles. The ad also contended that the
U.S. Postal Service was paying
foreign airlines five times as much to carry U.S. mail in
comparison to Pan Am. Finally, the ad questioned why the
Export-Import Bank of
the United States loaned money to Japan, France, and Saudi
Arabia at six percent interest while Pan Am paid twelve
percent.
Since the 1930s, Juan Trippe coveted domestic routes for Pan Am,
and throughout the late 1950s and early 1960s the airline attempted
to merge with
American Airlines,
Eastern Airlines, and
Trans World Airlines. The airline was
repeatedly denied permission from the
Civil
Aeronautics Board to operate within the United States, and Pan
Am remained as an American carrier operating international routes
only. When the
Airline
Deregulation Act of 1978 became law, it contained two clauses.
"Clause A" allowed domestic carriers to begin operating on
international routes while "Clause B" allowed Pan Am to operate
domestically. Only "Clause A" was put into effect as the other
airlines convinced
Congress
that Pan Am would monopolize all U.S. air routes, though the last
time Pan Am was permitted to merge with another airline was in 1950
when Pan Am was permitted to purchase American Overseas Airlines
from
American Airlines. As a
result, U.S. domestic airlines began competing with Pan Am
internationally.
In order to acquire domestic routes, Pan Am, under Chairman William
Seawell, set its eyes on
National
Airlines. Pan Am wound up in a bidding war with
Frank Lorenzo, which greatly raised the price
of National's stock. Nevertheless, Pan Am was granted permission to
buy National in 1980 in what was described as the "Coup of the
Decade." The acquisition of National Airlines at $400 million hurt
Pan Am's balance sheet, which was already suffering from its buying
binge of its Boeing 747 aircraft fleet. Complicating the merger,
the majority of employees from National were bitter about adapting
to Pan Am's corporate culture. While the merger enabled Pan Am to
post income of $4 billion in 1980 (from its pre-merger income of
$2.5 billion a year earlier), the integration was poorly handled by
Pan Am management. Although revenues increased by 62% from 1979 to
1980, fuel costs from the merger increased by 157% during a weak
economic climate. Further "miscellaneous expenses" increased by
74%. As 1980 progressed and the airline's financial fortunes
worsened, Seawell began selling Pan Am's assets. The first asset to
be sold off was the airline's 50% interest in Falcon Jet
Corporation in August.
Later in November, Pan Am sold the Pan Am
Building
to the
Metropolitan Life
Insurance Company for $400 million. In September 1981,
Pan Am sold off its Inter-Continental Hotel chain. Before this
transaction closed, Seawell was replaced by C. Edward Acker, a
former executive from Air Florida and Braniff International.

Clipper Spreeathen (N70724) at
Zurich in 1985
Acker inherited an airline with incompatible fleets (Pan Am had
L-1011s with
Rolls-Royce engines,
while National used DC-10s with
GE
engines); incompatible route networks (National's operations
concentrated on Florida), increased labor costs at National as a
result of harmonizing pay scales with Pan Am; and incompatible
corporate cultures. Given the airline's dire situation, Acker sold
Pan Am's entire Pacific Division (which consisted of 25% of Pan
Am's entire route system) to United Airlines for $750 million.
Acker also placed an order for new aircraft such as the Airbus
A300, A310, and A320, although the A320s were never delivered.
The
airline then spent $100 million to purchase New York Air's shuttle service between Boston
, New York
City
, and Washington, D.C.
Nevertheless, the purchase of the re-named
"Pan Am Shuttle" did not address the lack of a strong domestic
route network. In 1986, Pan Am bought
Ransome, a Pennsylvania-based commuter airline for
$65 million. Pan Am renamed the airline "
Pan Am Express." Pan Am Express operated
commuter routes from New York, Los Angeles and San Diego in the
United States and Berlin in Germany. The commuter airline started
Miami services during the following spring. However, the airline
provided only an incremental feed to Pan Am's international route
system, which was now focused on the Atlantic Division. Pan Am
later sold aircraft to other companies and countries, including
Tristar airplanes which ended up with the
Royal Air Force.
Pan Am's iconic image also made it a target for
terrorist. In an attempt to convince the public
that the airline was safe to fly with and to address lapses in its
own security, Pan Am created a security system called Alert
Management Systems in 1986. The new system did little to improve
security. The security situation was further exacerbated by
financial concerns, and the airline decided to keep security at a
minimum so as to not inconvenience its passengers and lose business
during departure. The
FAA fined Pan Am for
nineteen security failures, out of the 236 that were detected
amongst 29 airlines in December 1988.
The
airline was exposed to be falling apart, following the 1986
hijacking of Pan Am Flight 73 in
Pakistan
, in which 20 passengers and crew were killed and
120 injured. Acker was replaced by Thomas G. Plaskett, a
Continental and American Airlines executive, in January 1988.
While a
program to refurbish Pan Am Aircraft and improve the company's
on-time performance began showing positive results (in fact, Pan
Am's most profitable quarter ever was third quarter '88), on
December 21, 1988, the terrorist bombing of Pan Am Flight 103 above Lockerbie
, Scotland, resulted in 270 fatalities. Many
travelers avoided booking on Pan Am as they had begun to associate
the airline with danger; customer complaints of rude or unhelpful
customer service rose as well.
Faced with a $300 million lawsuit filed by
more than 100 families of the PA103 victims, the airline subpoenaed
records of six U.S. government agencies, including the CIA, the Drug Enforcement
Administration, and the State
Department
. Though the records suggested that the U.S.
government was aware of warnings of a bombing and failed to pass
the information to the airline, the families claimed Pan Am was
attempting to shift the blame.
In June 1989, Plaskett presented Northwest Airlines with a $2.7
billion takeover bid that was backed by Bankers Trust, Morgan
Guaranty Trust, Citicorp and Prudential-Bache. The merger would
produce annual savings of $240 million.
Al
Checchi presented Northwest's directors with a proposal that
surpassed Pan Am's. The
Gulf War, which
began in August 1990, brought transatlantic air traffic to a
trickle, and in October 23, 1990, Pan Am sold its profitable London
Heathrow routes, arguably Pan Am's biggest international
destination, to United Airlines. This left Pan Am with its only
London flights being two daily flights to Gatwick. In late 1989,
Pan Am also sold its IGS (Internal German System) routes to Berlin
to Lufthansa, and in September 1990 the airline announced that it
would eliminate 2,500 jobs (8.6% of its work force) by October of
that year.
Bankruptcy

Clipper Miles Standish (N805PA),
an Airbus A310
Pan Am was forced to declare
bankruptcy
on January 8, 1991.
Delta Air
Lines purchased the remaining profitable assets of Pan Am,
including its remaining European routes and the Pan Am
Worldport
at John F. Kennedy International
Airport
, and injected $100 million as a 45% owner of a
reorganized, but smaller Pan Am serving the Caribbean, Central and
South America from a hub in Miami. The airline's creditors
would hold the other 55%. During that time, Pan Am began to
relocate its offices to Miami. The new airline would have operated
approximately 60 aircraft and generated about $1.2 billion in
annual revenues with 7,500 employees. During this interim period,
Pan Am continued to sustain heavy losses as Wall Street, the
traveling public and even Delta became less confident in the
reorganization plan. Revenue shortfalls materialized throughout
October and November 1991. The Boston-New York LaGuardia-Washington
National shuttle service was taken over by Delta in September 1991.
Delta later obtained all of Pan Am's remaining transatlantic
rights, except Miami to Paris and London, in November 1991. In
October 1991, former Douglas Aircraft executive Russell Ray, Jr.
was hired as Pan Am's new chairman and CEO.
During 1991 Pan Am
moved out of the Pan Am
Building
in New
York City and relocated its headquarters to the Miami
area.

Clipper Spark of the Ocean
(N735PA) in Pan Am's final "billboard" style livery
Pan Am ceased operations on December 4, 1991, when Delta's CEO Ron
Allen and other senior executives reached a decision to cut off its
scheduled final payment due to Pan Am of $25 million the weekend
after Thanksgiving.
7,500 Pan Am employees lost their jobs;
thousands of them had worked in the New York City
area and were preparing to move to the Miami area
to work at Pan Am's new headquarters by Miami
International Airport
. Economists predicted that 9,000 jobs in the
Miami area, including jobs outside of the airline dependent on the
airline's presence, would be lost after Pan Am folded.
The carrier's last
flown scheduled operation was Pan Am Flight 436 which departed from
Bridgetown,
Barbados
, that day at 2 pm (EST) for Miami
under the
command of Captain Mark Pyle flying Clipper Goodwill, a
Boeing 727-200 (N368PA). This was at a time when Pan Am's
senior executives outlined a projected shortfall of between $100
and possibly $200 million, with the airline requiring a $25 million
installment just to fly through the following week. On the evening
of December 3, Pan Am's Creditors Committee advised U.S. Bankruptcy
Judge Cornelius Blackshear that it was close to convincing an
airline (TWA) to invest $15 million to keep Pan Am operating. A
deal with
TWA owner
Carl
Icahn could not be struck. Pan Am opened for business at
9:00 am and within the hour, Ray was forced to withdraw Pan
Am's plan of reorganization and execute an immediate shutdown plan
for Pan Am. Over 9,000 employees lost their jobs. As a result of
this action, Delta was sued for more than $2.5 billion on December
9, 1991 by the Pan Am Creditors Committee. Shortly thereafter, a
large group of former Pan Am employees sued Delta. In December
1995, a U.S. federal judge ruled in favor of Delta, concluding that
it was not liable for Pan Am's demise. Pan Am was the third major
airline to shut down in 1991, after
Eastern Airlines and
Midway Airlines.
After serving only two months as Pan Am's CEO, Ray was replaced by
Peter McHugh to supervise the sale of Pan Am's remaining assets by
Pan Am's Creditor's Committee.
Pan Am's last remaining hub (at Miami
International Airport
) was split during the following years between
United Airlines and American Airlines. TWA's Carl Icahn
purchased Pan Am Express at a court ordered bankruptcy auction for
$13 million and promptly renamed it "Trans World Express." The Pan
Am brand was sold to Charles Cobb, CEO of Cobb Partners and former
United States Ambassador to the Republic of Iceland under President
George H.W. Bush and Under Secretary of the US Department of
Commerce under President Reagan. Cobb, along with Hanna-Frost
partners invested in a
new Pan American World
Airways headed by veteran airline executive Martin R. Shugrue,
Jr, a former Pan Am executive with 20 years of experience at the
original carrier.
In his book,
Pan Am: An Aviation Legend, Barnaby Conrad
contends that the collapse of the original Pan Am was a combination
of corporate mismanagement, government indifference to protecting
its prime international carrier, and flawed regulatory policy. He
cites an observation made by former Pan Am Vice President for
External Affairs, Stanley Gewirtz:
Reuse of name
The Pan Am brand was resurrected four times after 1991, but the
reincarnations were related to the original Pan Am in name only.
The first operated from
1996 to 1998, with a focus on low-cost, long-distance flights
between the U.S. and the Caribbean
with the IATA
airline designator PN. The second was unrelated to
the first and was a small regional carrier based in Portsmouth
, New Hampshire
, that operated between 1998 and 2004.
It used
the IATA
code PA, and the ICAO
code PAA.
Boston-Maine Airways, a sister
company of the second reincarnation, operated the "Pan Am Clipper
Connection" brand from 2004 to February 2008.
Since 2006, the Pan
Am brand, colors, and logos have been used by Pan Am Railways, a regional railroad operating in northern New England
. Boston-Maine Airways, Pan Am Railways, and
the second reincarnation of Pan American Airways were owned by
Pan Am Systems. A domestic airline in
the Dominican Republic, descended from the company's first
reincarnation, continues to trade as
Pan Am Dominicana.
In 1998,
Guilford
Transportation Industries, a shortline operator of railroad
lines assembled from the routes of now defunct railways chiefly in
New England, purchased Pan American World Airways and all related
naming rights (Pan Am III). The railway is now operated as
Pan Am Railways.
Record-setting flights
During the mid-1970s, two Pan Am flights operated around the world
to set or break previous around-the-world flying records. Liberty
Bell Express, a
Boeing 747SP-21 named
Clipper Liberty Bell with registration number N533PA,
broke the commercial around-the-world record, set by a
Flying Tiger Line Boeing 707, with a new record of 46 hours, 50
seconds.
The flight left New York
-JFK on May 1, 1976, and returned on May 3,
1976. The flight made only two stopovers during
the journey, one in New
Delhi
and the other in Tokyo
-Haneda,
where a two-hour delay was made because of a strike among the
airport workers. Nevertheless, the flight beat the Flying
Tiger Line's old record by 16 hours and 24 minutes.
In order
to commemorate Pan Am's 50th birthday, the airline organized
another around-the-world flight, this time over the North Pole
and the South Pole
and including three stopovers: in London
-Heathrow,
Cape
Town
and Auckland
, before going back to its origin—San Francisco
. The 747SP-21 used,
Clipper New
Horizons, was the former
Liberty Bell, making the
plane the only one to go around the globe over the
Equator (as
Liberty Bell) and the Poles (as
New Horizons). The flight made it in 54 hours, 7 minutes,
and 12 seconds, creating six new world records certified by the
FAI.
The captain who commanded the flight also commanded the
Liberty
Bell Express flight.
Popular culture
Pan Am held a lofty position in the popular culture of the
Cold War era .
One of the most famous images in which a Pan
Am plane formed a backdrop was The
Beatles' 1964 arrival at John F. Kennedy Airport
aboard a Pan Am Boeing
707-321, Clipper Defiance.
From 1964 to 1968, con artist
Frank
Abagnale, Jr. masqueraded as a Pan Am pilot,
dead-heading to many destinations in the
cockpit
jump seat. He also used Pan Am's
preferred hotels, paid the bills with bogus checks, and later
cashed fake payroll checks in Pan Am's name. He documented this
stage in the novel
Catch
Me if You Can, which became a very loosely related
movie in 2002. Abagnale called
Pan Am the "
Ritz-Carlton of airlines"
and noted that the days of luxury in airline travel are
over..
In the 1960s, Pan Am established a waiting list for future flights
to the
moon, issuing free "First Moon Flights
Club" membership cards to those who requested them. A fictional Pan
Am "Space Clipper," a commercial
spaceplane called the
Orion III, had a prominent
role in
Stanley Kubrick's film
2001: A Space
Odyssey and was featured in the movie's poster. Plastic
models of the 2001 Pan Am Space Clipper were sold by both the
Aurora Company and
Airfix at the time of the film's release in
1968. A satire of the movie by
Mad magazine in 1968 showed Pan Am
female
flight attendants in
"Actionwear by Monsanto" outfits as they joked about the problems
their passengers faced while vomiting in zero gravity. The film's
sequel,
2010, also featured Pan
Am in a background television commercial in the home of
David Bowman's widow with
the slogan, "At Pan Am, the sky is no longer the limit."
The airline appeared in other movies, notably in several
James Bond films.
The company's Boeing 707s were featured in Dr. No, From Russia with Love,
while a Pan Am 747 and the Worldport
appeared in Live and Let Die.
Pan Am and CEO
Juan Trippe (as played by
Alec Baldwin) figured significantly in
the
2004 biographical film
The Aviator. The film depicts attempts by
Pan Am to enable legislation limiting the ability of TWA and others
to compete on their Atlantic routes.
A term used in
popular psychology
is "Pan American (or Pan Am) Smile." Named after the greeting
flight attendants (or at least
actresses playing flight attendants on TV advertisements)
supposedly gave to passengers, it consists of a perfunctory mouth
movement without the activity of facial muscles around the eyes
that characterizes a genuine smile.
Accidents and terrorist events
Pan Am aircraft were involved in 75 notable accidents and other
fatal events.
The first occurred on July 16, 1932, when a
Ford Trimotor crashed into a mountain
in Vitacura
, Chile
.
All nine people on board perished.
One of the accidents that involved a Pan Am plane led to the
FAA's ordering the
installation of safety devices on aircraft.
A Pan Am 707, named
the Clipper Tradewind and operating as Flight
214
, was in a holding
pattern on a flight from Baltimore
to Philadelphia
when it was last seen going down in flames on
December 8, 1963. It was determined that lightning had
ignited vapors in the plane's fuel tanks. As a result of the
disaster, lightning discharge wicks were installed on all
commercial airliners.
Another
Pan Am 747, the Clipper
Victor (which was the first Boeing 747 to have a
commercially scheduled flight in 1970) was involved in the Tenerife
disaster
on March 27, 1977, the deadliest accidental
disaster in aviation history. The Clipper
Victor, operating as a charter flight from Los
Angeles
to New York
and Las Palmas
in the Canary Islands
, was diverted to Tenerife
due to a bomb scare at Las Palmas. A
KLM 747 taking off in the mistaken belief they
were cleared collided with the Pan Am airplane on the runway. A
total of 583 people were killed, 335 of them from the Pan Am
airplane. The accident led to reforms including improvements in
communications between flight crews and ground control.
Pan Am also experienced a number of notable events that were the
result of
terrorism.
On September 6, 1970,
Pan Am
Flight 93
, a Boeing 747 from Amsterdam
to New York, was hijacked as part of the Dawson's
Field hijackings
. Because of its size, the hijackers diverted the flight to Cairo
where,
after landing and evacuating the passengers, they detonated
explosives on-board and destroyed the aircraft. On December 17, 1973,
bombs were thrown by a Palestinian group into Flight 110 (a 707 named the Clipper
Celestial) while passengers were boarding in Rome, Italy
. The aircraft burned and 30 people were
killed.
Flight 830
was bombed over the Pacific Ocean on August 11, 1982, killing one
passenger before safely landing in Honolulu
. A 747 named the Clipper Empress of the
Seas, operating as Flight 73,
was taken over by hijackers while on a scheduled stop in Karachi,
Pakistan
, on September 5, 1986. The flight never
departed Karachi, but 20 people were killed when the aircraft was
stormed on the ground.
Pan Am Flight 103
Pan Am
Flight 103 was Pan Am's third daily scheduled transatlantic flight
from London
Heathrow Airport
to New York's JFK
. On December 21, 1988, the aircraft flying
this route, a Boeing 747-121 registered and named Clipper Maid
of the Seas, was blown up as it flew over Lockerbie
in Dumfries and
Galloway, Scotland, UK, when approximately 1 lb (450 g) of
plastic explosive was detonated in its forward cargo hold,
triggering a sequence of events that led to the rapid destruction
of the aircraft. The aircraft that crashed was the 15th 747
ever built and was delivered to Pan Am in February 1970.
Until the
September 11, 2001
attacks, the bombing of Pan Am Flight 103 was the second
deadliest terrorist attack against the United States and it remains
the largest terrorist attack on British soil to this day. Totaling
270 fatalities, including 11 in the town of Lockerbie, they came
from 21 nations. 180 of the victims were US citizens.
Pan Am Flight 281
Pan Am Flight 281 was a hijacking
from New York to Cuba which occurred in 1968.
Fleet
See also
References
Notes
External links