note
Began operations in 1927 operating a Fairchild FC-2 on an airmail route between Key West and Havana. Initial expansion into West Indies and Central and South America. Began Transpacific operation in 1935 between San Francisco and Manila using Martin M-130. Following World War II, Pan Am was flying to every continent. Boeing 377 Stratocruiser added in September 1948, followed by DC-6s and DC-7s. Boeing 707 added October 1959, DC-8s in 1961, Boeing 747s in 1970. Juan Trippe, founder of Pan Am, was instrumental in envisioning and creating Boeing 747 airliner. The great gamble which could have, if not successful, bankrupt both Pan Am and Boeing, prove to be the most successful commercial airliner deals to date. J Trippe also wanted to tap into emerging business jet market. Pan Am approach McDonnell and de Havilland to built light business jet to their specification but in the end Dassault of France accepted the proposal. Dassault Mystere 20 was built to Pan Am specification including the world's first small turbofan engine GE CF700. In August 1963 the Business Jets Division of Pan American World Airways ordered 54 aircraft, with an option on 106 more. Pan Am Business Jets both operated and marketed Dassault Mystere 20 which they re-named Falcon Jet. The jet became great success. Pan Am's fortune turned with the Airline Deregulation Act of 1978. Pan Am's special status of "chosen instrument" with the US authorities expired and Pan Am found itself in environment of fierce competition. To keep international customers, Pan Am had to built domestic network. In order to do that, William Seawell chairman of Pan Am at the time, decided to acquire well managed eastern seaboard carrier National Airlines. National Airlines was acquired January 7, 1980, however its incompatible route structure and equipment proved troublesome to integrate. 1980s were difficult decade for Pan Am and company was not able to turn profit. Due to declining finances, Profitable and prestigous Pacific division was sold off to United in 1986, followed by some prime London Heathrow routes. Pan Am's 50% stake in Falcon Jet (US distributor of Dassault executive jets) was sold along with company's New York headquaters a New York landmark. Pan Am, in order to cover its operating expenses, was selling its most valuable assets. This proved fatal. Company purchased New York Air's shuttle operations to start Pan Am Shuttle service between Boston, New York and Washington. Pan Am also acquired Ransome Airlines - a mid-atlantic commutter airline to start its own feeder Pan Am Express service. Pan Am also placed an order for Airbus A320 aircraft. Things begun to improve and Pan Am was able to turn in profit at the end of 1988. In December 1988 Pan Am flight 103 was bombed over Lockerbie Scotland. Publicity of this case, turned fortunes of Pan Am. People did not trust Pan Am security and victims families filed $300 million case against Pan Am. Pan Am, in turn sued Federal Government for failure to pass on warning it allegedly had. Pan Am offered takeover bid for Nortwest Airlines in June 1989 but was outbid by Al Checchi. In Fall, company sold its Intra-German network to Lufthansa. In 1990 Pan Am sold its most important asset - Heathrow slots to United Airlines. In January 1991 Persian Gulf War started paralyzing airline industry. Pan Am filled for bankruptcy protection on the 8th. Delta Air Lines offered $100 million for 45% stake in Pan Am. Pan Am sold its JFK airport terminal to Delta along with European routes. Pan Am headquarters were moved to Miami and airline was to concentrate of flights to Central and South America from Miami along with Miami - London (Gatwick) and Paris routes. There were talks with Carl Icahn of TWA to provide emergency loan but those never materialized. Pan Am continued to generate heavy losses and Delta stopped honoring the agreement made with Pan Am. Its last $25 million installment was not made and Pan Am had to cease operations on December 4th 1991. Its last flight was conducted that day on Barbados - Miami route as flight PA436. Pan Am creditors filled law suit against Delta Air Lines followed couple of days later by one filled by employees of Pan Am. In 1995 judge ruled in favor of Delta. An Icon of the industry and pioneer of international air travel worldwide had fallen. Pan Am brand has been used couple of time since but none has lasted.
founded - demised (age)
1927 - December 4 1991 (64)
headquarters
, New York, NY
web
base airports
related operators
current /stored fleet (0)
