Professional Documents
Culture Documents
States international air carrier from the late 1920s until its collapse on December 4, 1991.
Founded in 1927 as a scheduled air mail and passenger service operating between Key West,
Florida 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 jets, and computerized reservation systems. Identified by its blue globe logo
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.[1]
Contents
[hide]
• 1 History
o 1.1 Formation
o 1.2 Pan Am and its flight crews
o 1.3 The Clipper Era
o 1.4 Postwar developments
o 1.5 Downturn
o 1.6 Bankruptcy
o 1.7 Reuse of name
1.7.1 Airlines
1.7.2 Railways
• 2 Destinations
• 3 Record-setting flights
• 4 Popular culture
• 5 Acquisitions and divestitures
• 6 Accidents and terrorist events
o 6.1 Pan Am Flight 103
o 6.2 Pan Am Flight 281
• 7 Fleet
• 8 See also
• 9 References
• 10 Notes
• 11 External links
[edit] History
[edit] Formation
On June 2, 1927, Juan Trippe formed the Aviation Corporation of America with the backing
of powerful and politically-connected financiers who included Cornelius Vanderbilt Whitney
and W. Averell Harriman, and raised $250,000 in startup capital from the sale of stock. [4]
Their operation had the all-important landing rights for Havana, having acquired American
International Airways, a small airline established in 1926 by John K. Montgomery and
Richard B. Bevier as a seaplane service from Key West, Florida to Havana. ACA met its
deadline of having an air mail service operating by October 19, 1927, by chartering a
Fairchild FC-2 floatplane from a small Dominican Republic carrier, West Indian Aerial
Express.[5][6]
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.[5]
The three companies merged into a holding company called the Aviation Corporation of the
Americas on June 23, 1928.[5] 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.[5]
Flown cover autographed by pilot Cy Caldwell and carried from Key West, FL, to Havana,
Cuba, on the first contract air mail flight operated by Pan American Airways, Oct 19, 1927
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.[9] 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.[5]
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.[citation needed] 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).[10][11]
The Sikorsky S-42 was one of Pan Am's earlier flying boats and was used to survey the San
Francisco-China route.
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.
[citation needed]
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 celestial 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, celestial, radio, and dead-
reckoning navigation. Many had merchant marine certifications and radio licenses as
well as pilot certificates.[citation needed] 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.[12]
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.[citation needed] 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.[12]
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.[citation needed] 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.[citation needed] 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.[13]
On July 5, 1937, the first commercial survey flights across the North Atlantic were
conducted.[14] 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 for Foynes 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.[14]
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.[citation needed] 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.[citation needed] 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.[citation needed] (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.[15] The fare from San Francisco to both
Manila and Hong Kong in 1937 was $950 one way (approximately $14,653 in 2010) and
$1,710 round trip (approximately $26,376).[16]
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."[17] 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.[18] The Boeing 314s were used on transatlantic routes starting in 1939.[8]
Flown cover carried around the world on PAA Boeing 314 Clippers and by Imperial
Airways, June 24-July 28, 1939
Pan Am's flying boat terminal at Dinner Key in Miami, Florida, was a hub of inter-American
travel during the 1930s and 1940s.
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.[citation needed] After the outbreak of World War II, the terminal
became Foynes until the service ceased for the winter on October 5; transatlantic service to
Lisbon via the Azores continued into 1941. Throughout the war, Pan Am flew over ninety
million miles worldwide in support of military operations.[8]
In 1940, Pan Am and TWA began using the Boeing 307 Stratoliner 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.[19]
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.[20] The China Clipper became well-known for its South Seas routings.[21]
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.
[22]
During World War II, most of the Clippers were pressed into the military, and Pan Am
flight crews operated the aircraft under contract.[citation needed] 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.[23] 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.[24]
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. On June 17, 1947, Pan American World Airways opened the first ever
regularly-scheduled around-the-world service with Constellation L749 Clipper America.
Pan Am westbound Flight 1 originated in San Francisco with stops including Honolulu,
Tokyo, Hong Kong, Bangkok, Manila, Kolkata, Delhi, Beirut, Istanbul, Frankfurt,
London, and finally New York. The April 1949 OAG shows the flight leaving San
Francisco at 0030 on Friday and arriving New York La Guardia at 1500 the following Friday;
meanwhile, Flight 2 circled the globe eastbound from New York. Both flights included at
least one change of plane until the Boeing 707 took over; in 1968 the California origin shifted
to Los Angeles, and in the 1970s the flights finally completed the round-the-world trip, New
York to New York.[25]
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.[26] 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.[27]
The Pan Am Building, now the MetLife Building, served as the Pan Am headquarters; it is
located in Midtown Manhattan
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 B707-121 Clipper America.[28]
Pan Am was the launch customer of the Boeing 747, and it initially ordered 25 of them in
April 1966.[29] On January 15, 1970, First Lady Pat Nixon officially christened a Pan Am
Boeing 747 the Juan T. Trippe[30] 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.[citation needed]
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.[31]
Passengers still cheered and drank champagne as the jet finally lifted off from the runway at
John F. Kennedy International Airport.
The Pan Am Worldport at JFK airport, once the center of the airline's New York operations,
was sold to Delta Air Lines in 1991.
With traffic increasing, Pan Am commissioned IBM to build PANAMAC, a large computer
that booked airline and hotel reservations, which was installed in 1964. It also held large
amounts of information about cities, countries, airports, aircraft, hotels, and restaurants.[34]
The computer occupied the fourth floor of the Pan Am Building, which was the largest
commercial office building in the world for some time.[35] 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.[citation needed] 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,[weasel words] Pan Am built a gilded training building in the
style of Edward Durell Stone designed by Steward-Skinner Architects in Miami.[36]
At its peak during the early 1970s, Pan Am's advertised under the slogan, "World's
Most Experienced Airline.",[37] 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 City, Europe, and South America, and between Miami and the Caribbean.[citation needed]
Starting in 1964, the airline was providing helicopter service between New York's major
airports and Manhattan.[28] Aside from the DC-8, the Boeing 707 and 747, the Pan Am jet
fleet also included Boeing 720Bs, 727s (which replaced the 720Bs), 737s, 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 A310s. 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.[38]
Pan Am stewardess in 1966 uniform
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.[28] 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.[39]
It is said that the airline was well regarded for its modern fleet[40] and experienced and
professional crews: cabin staff were multilingual and usually college graduates,
frequently with nursing training.[41] 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."[42][43]
In keeping with Pan Am's leading edge style, its London reservations number was REGent
PAWA (7292).[44]. Not many people were aware of this, and it was not published presumably
as London numbers were rarely quoted as letters other than the exchange name itself - unlike
in New York, where one assumes Pan Am developed the idea.
Revenue passenger traffic (in millions of passenger-miles), scheduled flights only: 1,551 in
1951, 2,676 in 1955, 4,833 in 1960, 8,869 in 1965, 16,389 in 1970 and 14,863 in 1975.
[edit] 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.[citation needed] 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.[8]
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.[45] 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.[46]
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.[citation needed]The airline was repeatedly denied permission
from the Civil Aeronautics Board to operate within the United States, and Pan Am
remained an American carrier operating international routes only (aside from Hawaii
and Alaska). 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.[citation needed] 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.[citation needed] As a result, U.S.
domestic airlines began competing with Pan Am internationally.[47][48]
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.[citation needed] 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.[citation needed] 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%.[49][50] 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.[51]
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.[citation needed] 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 Airlines, a Pennsylvania-based commuter
airline for $65 million.[citation needed] 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.[52] 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.[53]
Pan Am's iconic image also made it a target for terrorists. 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.[citation needed] The
new system did little to improve security.[citation needed] 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.
[citation needed]
The FAA fined Pan Am for nineteen security failures, out of the 236 that were
detected amongst 29 airlines in December 1988.[54]
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.[56]
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.[57] 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 on October 23, 1990, Pan Am sold its
profitable London Heathrow routes, arguably Pan Am's biggest international destination, to
United Airlines.[citation needed] 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.[58]
[edit] Bankruptcy
Pan Am was forced to declare bankruptcy on January 8, 1991.[citation needed] 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.[59] 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.[citation needed] 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.[60] 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.[61] During 1991 Pan Am moved out
of the Pan Am Building in New York City and relocated its headquarters to the Miami area.
[62]
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.[63] 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).[64] 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.[citation needed]
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.[citation needed]
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.[65] 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.[66] Pan Am was the third major airline to shut down in 1991, after Eastern Airlines
and Midway Airlines.[63]
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.[citation needed]
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."[citation needed] 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.[67]
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.[68] He cites an
observation made by former Pan Am Vice President for External Affairs, Stanley Gewirtz:
"What could go wrong did. No one who followed Juan Trippe had the foresight to do
something strongly positive … it was the most astonishing example of Murphy's law in
extremis. The sale of Pan Am's profitable parts was inevitable to the company's destruction.
There were not enough pieces to build on".—Stanley Gerwitz[69]
The Pan Am brand was resurrected four times after 1991, but the reincarnations were
related to the original Pan Am in name only.
In November 2010 Pan American Airways, Inc. was resurrected for a fifth time. The
company's inaugural flight was to Monterrey, Mexico on November 12, 2010.[70] The airline
has said it will carry cargo only at this stage but intends to announce passenger service by
2011.[71]
[edit] Airlines
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 found its niche in operating usually
at smaller airports near major airports, such as Pease International (Portsmouth), and Gary
Municipal Airport, in Indiana. It used the IATA code PA, and the ICAO code PAA.
Pan American Airways and World-Wide Consolidated Logistics, Inc. will open cargo service
to Latin America in 2011.
[edit] Railways
A former Maine Central boxcar painted in the new Pan Am Railways livery in
2005
Boston-Maine Airways, Pan Am Railways, and the second reincarnation of Pan American
Airways were owned by Pan Am Systems.
[edit] Destinations
Main article: Pan Am destinations
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.[73]
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.[74]
An Orion III, Pan Am's first Space Clipper, featured in the science-fiction movie
2001: A Space Odyssey
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.[75][76]
In the 1958 film Auntie Mame, Rosalind Russell's character "Mame Dennis" declares, in the
final scene of the film: "And my ox is waiting at Idlewild...Pan American Flight 100 to
Karachi."
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.[77]
In the 1960s, Pan Am established a waiting list for future flights to the moon,[78] issuing
free "First Moon Flights Club" membership cards to those who requested them. A
fictional Pan Am "Space Clipper,"[78] 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."[79]
Revell Germany released a 1/200 scale model kit of the ‘swing-wing’ version of the Boeing
2707 Supersonic Transport. While the original 1968 release of this kit came with decal
markings for a Boeing prototype, the new release included Pan Am markings. This was
interesting since the new Revell release occurred in 2006, fifteen years after Pan Am had
filed for bankruptcy. This may be indicative of the glamorous image that Pan Am had exuded
for so long, or reflect the expectation that, had the 2707 entered service, Pan Am would have
been one of the first customers as it had been for the 707 and 747.
The airline appeared in other movies, notably in several James Bond films. The company's
Boeing 707s were featured in Dr. No and From Russia with Love, while a Pan Am 747 and
the Worldport appeared in Live and Let Die.[80] A Pan Am Clipper is featured in Raiders of
the Lost Ark (1981), which takes Indiana Jones to the Far East. The 1982 film Blade Runner
features Pan Am advertisements throughout the film. In Scarface (1983 film), Tony Montana
looks at the night sky and sees a blimp with the words "The World Is Yours... Pan American"
on the side. The same message also appeared on top of a building in the original Scarface
(1932 film). The airline is also seen in Chevy Chase's Fletch (film) in 1985. In the 2003 film
Kangaroo Jack there is a outside shot of the 747 they are flying on, in which the name is
spelled backwards
The airline appeared in Stephen Spielberg's "Hook" starring Robin Williams as Peter Pan in
1991. He and his family fly to the UK aboard Pan Am. A Pan Am Clipper also makes an
appearance in the 1996 film The Phantom, starring Billy Zane, Kristy Swanson and Katherine
Zeta-Jones.
Pan Am CEO Juan Trippe (as played by Alec Baldwin) figured significantly in the 2004 film
The Aviator. The film shows attempts by Pan Am to enable legislation limiting the ability of
TWA and others to compete on their Atlantic routes.
Pan American World Airways also appeared in National Lampoon's European Vacation
starring Chevy Chase as Clarke W. Griswold. He and his family travelled between countries
aboard Pan Am. It was later mentioned towards the end of the movie, where the family was
vacationing in Rome, Italy, while one of the family tried to place a call to their staff at
Rome's Leonardo da Vinci-Fiumicino Airport.
Pan American's Globe Aware Logo appeares on the side of an interplanetary 'Pan Cap' (as in
Pan Caprican) spaceship liner in the 2004 remake of the 1978 television series Battlestar
Galactica. The spaceship is part of the refugee convoy looking for the planet 'Earth'.
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.[81]
In 2010 ABC announced development of a TV pilot based on the lives of 1960's flight crew.
Pan Am aircraft were involved in 75 notable accidents and other fatal events.[82] The first
occurred on July 16, 1932, when a Ford Trimotor crashed into a mountain in Vitacura, Chile.
All nine people on board perished.[citation needed]
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.[83]
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 Los Rodeos Airport on Tenerife due to a bomb scare at Las Palmas. With
visibility blighted by thick fog, a Dutch 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, with 61 surviving. The accident led to reforms
worldwide including improvements in communications between flight crews and ground
control.[citation needed]
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.[84] 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.[84]
Flight 830 was bombed over the Pacific Ocean on August 11, 1982, killing one passenger
before safely landing in Honolulu.[85] 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.[86]
Pan Am Flight 103 was Pan Am's third daily scheduled transatlantic flight from London
Heathrow Airport to New York's JFK. Four days before Christmas on December 21, 1988,
the aircraft flying this route, a Boeing 747-121 registered N739PA and named Clipper Maid
of the Seas, was blown up as it flew over Lockerbie in Dumfries and Galloway, Scotland,
UK, when approximately 450 grams (0.99 lb)[87] 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.[88] 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.[citation needed]
Pan Am Flight 281 was a hijacking from New York to Cuba which occurred in 1968.
[edit] Fleet
Pan Am Fleet[89][90][91]
Total
Aircraft Type Notes
Turboprop
BAe Jetstream 31 10 Operated by Pan Am Express
aircraft
Propeller
Boeing 307 Stratoliner 3
aircraft
Boeing 707-121/-321 128 Jet aircraft Launch customer of the 707 series
Cargo
Boeing 747-221F 2 Operated by Pan Am Cargo
Aircraft
Consolidated
14 Flying boat
Commodore
Propeller
Convair CV-240/-340 26
aircraft
Propeller
Douglas DC-3 90
aircraft
Propeller
Douglas DC-4 22
aircraft
Propeller
Douglas DC-6 49
aircraft
Propeller
Douglas DC-7 37
aircraft
Propeller
Fairchild 71 3
aircraft
Propeller
Fairchild 91 2 4 more ordered, but all cancelled
aircraft
Propeller
Fokker F-10A 12
aircraft
Propeller
Ford Trimotor 11
aircraft
Lockheed L-1011-500
12 Jet aircraft
TriStar