Pan American Airways began operations on October 28, 1927 with United States airline scheduled as their first international flight. The airline transported passengers on a daily schedule between Florida and Cuba within three months. With such success, the acquisition of new aircraft, employees and routes --- to the Caribbean islands, Mexico, Central America and South America were encouraged. In 1928, the service of Charles A. Lindbergh was engaged and the famed American aviator served as a technical advisor to Pan Am for forty-five years. By 1947, after two decades of operation, 19,000 people in sixty-two countries were employed by Pan Am. In 1950, Pan American Airways changed its name to Pan American World Airways, Inc. shortly after beginning around the world service and developing the concept of ³economy class´ passenger service. In the late 1970s, Pan Am began exploring domestic flights. In January, 1980, Pan Am merged with National Airlines which led Pan Am to attempt a number of organizational restructures. Pan American World Airways, Inc. ceases operations in 1991 following a series of unsuccessful initiatives designed to improve the economic performance of the company.

WHY DID PAN AM FAILED IN TARGETED FIELD? Pan Am failed in the targeted field due to deregulation which pervasively changed the airline industry's underlying economic structure, necessitating a fundamental redirection of each airline's strategy. Besides that, they failed because they did not reset their strategies to meet the realities of the changed environment.

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