Sponsor Message:
Civil Aviation Forum
My Starred Topics | Profile | New Topic | Forum Index | Help | Search 
What Caused Panam To Go Out Of Business?  
User currently offlineUnited Airline From Hong Kong, joined Jan 2001, 9498 posts, RR: 13
Posted (15 years 7 months 3 weeks 12 hours ago) and read 14555 times:

Panam was one of the most successful airliner in aviation history. However, due to heavy financial problems they had had over the years, it finally went out of business at early 1991.

I personally believe it is because of their attitude as well as their horrible service. For example: 'You very lucky to be on one of our flights!' etc etc!

What caused it to go down? Any idea? Free comments!

Good luck!

4 replies: All unread, jump to last
User currently offlineILUV767 From United States of America, joined May 2000, 3142 posts, RR: 7
Reply 1, posted (15 years 7 months 3 weeks 12 hours ago) and read 14535 times:

Read the book by Amiee Brat: Glamor and turbulence, it's a biography from a Pan Am flight attendant.

A big thing that led to the downfall of Pan Am was the fact that they operated so many 747s, and didn't have the money to keep them running.

Deregulation was a big factor. After deregulation, airlines like American, Unt=ited, Delta, and even Continental were awarded international routes where Pan Am didn't have the compition before.

Now that hurt Pan Am because of there lack oif a domestic market here in the United States. A passenger going from, oh lets say, Tulsa couldn't get to London very easily, on Pan Am. After Deregulation, a passenger could fly on Delta, American, United, Continetal, TWA and so on.

Maintence probles with there 747s were a big factor.

Flying 747s from JFK to San Juan wasn't making any money.

Trying to be too good.

I remember reading in that book that in 1982, one extra lemmon would cost Pan Am $15  

Hope that Helps

User currently offlineN202PA From United States of America, joined Jun 2000, 1577 posts, RR: 3
Reply 2, posted (15 years 7 months 3 weeks 12 hours ago) and read 14527 times:

In reality, the service in the final few years that so many lament was a direct result of a schism that developed throughout the late 70s and early 80s between Pan Am management and Pan Am employees. Management had screwed the employees time and time again; management had killed the pride that Pan Am employees like my mother felt, by selling off the empire piece by piece (ie, the Pacific, the Pan Am Building, the Intercontinental Hotel chain) and making bonehead decisions like the purchase of National Airlines. In the end, Pan Am employees were tired and frustrated at seeing a) their once-proud airline go down the toilet at the hands of the incompetent managment team of the year (which changed more frequently than the flavors at TCBY), and b) the seniority they had built with years of faithful service getting flushed.

This situation, in fact, is not unique to Pan Am at all; many airlines that fail suffer this syndrome right before the end. Continental is the most notable of these examples; service was terrible, employees were embarrassed to work for CO, and the airline was on the verge of going under for the third and final time. The only difference is that CO was fortunate to have acquired the brilliant Gordon Bethune to be their CEO, who righted Continental's ship, and gained back the trust of his employees. Now CO is perhaps one of the best models on how to run an airline. Pan Am wasn't as lucky, and suffered from additional problems that did the airline in (such as not having an American route system that could sufficiently feed their int'l flights, like those of Delta, United, American, etc.).

Since you joined just over a day ago, United, I wouldn't expect you to know this, but this discussion has gone on many times before now, and the answers you require have already been posted. Next time, all you have to do is to use the 'search' tool and input "Pan Am". Here is just one recent thread (from approx. 2 weeks ago) that discussed the subject:


User currently offlineRyanair From United Kingdom, joined Jul 1999, 654 posts, RR: 0
Reply 3, posted (15 years 7 months 2 weeks 6 days 6 hours ago) and read 14492 times:

I think the major things was National. They got into a bidding war with EA which saw them pay far too much, borrowing far too much, more money than National could ever create to repay. Of course Pan Am ripped National apart very quickly which was a commercial disaster and put the price up. Then operational costs associated with the 747's etc came into play, multiplied by the number of airlines that were starting toflyinternationally,. Before National the company was dealling with this via the Tristars etc an later tried with the Airbuses but incompetence at the top and lack of cash meant it never worked. Despite that, the bizare intra European Routes, right up until the Gulf War, excluding the period after Lockerbie, in terms of international flights, I'm told by ex senior Pan Amer's and have read the company was profitable on those routes. However losses on the domestic side wiped out the gains internationally and more. If you think about it, almost all of Pan Am's network outside of America remains intact with Delta, United and Lufthansa.

Talking of service I think in the Plaskett days that improved again, as the planes were refurbished and despite evrything people didn't feel nastyness against them as in the "Jump Eddy Jump" days of Acker applied anymore. I don't think many, especially those hired in the Trippe era, believed it was possible for Pan American to go out of business, just wouldn't happen.

User currently offline9V-SPI From United Kingdom, joined Sep 2000, 59 posts, RR: 0
Reply 4, posted (15 years 7 months 2 weeks 5 days 22 hours ago) and read 14465 times:

I'd say that the final straw was the Lockerbie crash. People lost their confidence in Pan Am. I thought the next airline to go would be TWA after their crash but they seem to be ok.


Top Of Page
Forum Index

This topic is archived and can not be replied to any more.

Printer friendly format

Similar topics:More similar topics...
What Happens If UA Go Out Of Business? posted Fri May 13 2005 12:30:05 by Paul
Does UA/AA Deserve To Go Out Of Business! posted Fri May 2 2003 08:34:05 by Beno
Do You Think United Will Go Out Of Business? posted Thu Oct 18 2001 03:44:41 by CcrlR
Will Ansett Australia Go Out Of Business? posted Thu Sep 13 2001 06:38:19 by United Airline
I Want To Go Out Of The Cone! posted Thu Sep 30 1999 00:35:35 by JWM AIRTRANS
How Far Do Airlines Go Out Of Their Way To Help... posted Sat Jul 8 2006 00:30:56 by AirCanada014
What Time Of Day Is Good To Fly Out Of JFK? posted Fri Mar 3 2006 03:41:01 by Stealth777
What Is Your Hardest Gate To Push Out Of? posted Thu Feb 12 2004 15:29:18 by Cb777
What Caused PanAm & Eastern To Fail? posted Sat Jan 31 2004 23:35:18 by Alexinwa
What Is HKG Tarmac Made Out Of? posted Tue Nov 21 2006 04:10:54 by Kaitak744