Pan American World Airways

Pan American World Airways or Pan Am — one of the largest airlines in the history of the USA. It was founded in 1927 as Pan American Airways and saved this name till 1950. Stopped existence in December, 1991.

The 1970th

Flight in economy class of Pan American Airways, the 1970th.

1991: Bankruptcy

Bankruptcy of the company in 1991 was caused by a number of gross errors and miscalculations of the management which did not manage to prepare Pan Am for sharply changed market conditions after entry into force of the law on deregulation of air transport of the USA of 1978. From this point the airline annually incurred notable losses, gradually selling assets for repayment of debts.

In 1985 the Asia-Pacific direction was completely sold to United Airlines.

The war in the Persian Gulf of 1991 led to increase in prices for oil and aviation fuel that became fatal for Pan Am which was in a deplorable financial status. The commission on investigation of explosion of the liner of Hats over Lockerbie in 1990 also ascertained guilt of the company which allowed aboard baggage with a bomb in absence of the passenger.

On December 4, 1991 the airline declared bankruptcy.

1996: Unsuccessful attempt of restart of the brand for low budget airline

In 1996 former employees of airline tried to recreate Pan Am as low budget airline for what redeemed several Airbus A300 airplanes, but in February, 1998 the company gave on bankruptcy again. Despite low costs, it could not compete with large airlines.

In 1998 the railway company Guilford Transportation Industries (USA) acquired the rights to a trademark of Pan Am and within several years performed charter flights along east coast of the USA by the Boeing-727 airplanes some of which belonged to "original" Pan Am. Air transportation were stopped.