The Story Of Pan American World Airways

Pan American World Airways is known as a symbol of the historic days of aviation. The airline was the largest international carrier in the United States until its demise in 1991, and it was a founding member of IATA. At its peak, the airline also set two around the world records, both using the Boeing 747. The airline was fairly old when it ceased operations. Founded in 1927, the airline would be 91 had it survived to the present day. Instead, it ceased operations in 1991 at 64 years old, due to bankruptcy. The Pan Am name lives on, however, and has now been adopted by a private rail transport company.

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Humble Origins

Pan Am was originally incorporated as Pan American Airlines on 14th March 1927. The airline was founded as a shell company meaning it had no assets or employees, just a name and a bank account. Having raised $250,000 in startup capital, the airline commenced operations on 19th of October that same year with a Fairchild FC-2 floatplane.

Photo: Michael Gordon / Shutterstock

Pan Am went on to increase its network by accepting new government airmail contracts. In the 1930s, the airline began offering passenger flights further afield with newer floatplanes known as clippers. In 1937, Pan Am secured contracts to commence transatlantic flights.

Pan Am and the Clipper service

One of the best-remembered aircraft during these early days is the Boeing 314 flying boat. Pan Am had built up its early international routes using several “Clipper” flying boat models, from Consolidated Aircraft, The Martin Company, and Sikorsky, but reached a peak with the Boeing 314.

Boeing built 12 of these aircraft, with Pan Am taking nine. These operated Americas and transatlantic services in the 1940s. This was flying in style, with armchair-style seating and tables, across a series of separate compartments. Seats converted to beds for nighttime use.

Jet Operations

Fast forward about 20 years, and Pan Am starts to operate jet aircraft. This marked the start of a close relationship with US aircraft manufacturer Boeing. In fact, in 1955, Pan Am placed an order for 20 Boeing 707 aircraft, becoming the aircraft’s launch customer. In 1958 Pan Am began operating flights from New York to Paris with a refueling stop in Canada.

In 1966, 11 years after their first Boeing 707 order, Pan Am became the launch customer for the Boeing 747 aircraft. The airline placed an order worth $525 million (approximately $4 billion in today’s money) for the aircraft. The order was actually finalized during a fishing trip that the CEOs of Boeing and Pan Am took. The motivation for the Boeing 747 came from Pan Am wanting an aircraft two and a half times the size of the 707, and the design from previous work Boeing had done for a military transport proposal.

Eventual Downturn

Despite a number of highly successful years throughout the 1970’s, the airline eventually had to come to an end. Pan Am, having once called itself “The World’s Most Experienced Airline”, eventually filed for bankruptcy protection in January 1991. Due to rising fuel costs, as well as an inability to operate domestic routes the airline was starting to run at a loss. The airline also suffered from several public relations hits in 1988. This was the year that saw a Pan Am Boeing 747 crash in Lockerbie, sparking a $300 million lawsuit, as well as an additional fine from the FAA for 19 security failings.

Delta claimed that Pan Am was losing around $3 million per day of operation in the later months of 1991. Requiring $25 million just to keep flying for another week, Pan Am was able to convince a bankruptcy judge that they were close to making a deal regarding continued operations with TWA on the 3rd December. As such the airline opened for business as usual on 4th of December, however, was shut down within an hour. Around 7,500 employees instantly lost their jobs.

Although several airlines have tried to revive the Pan Am brand over the years, ultimately, none have been successful. Today Pan Am’s legacy lives on as one of the largest names in aviation history.

Do you remember flying with Pan Am? Let us know your experiences in the comments section. Or feel free to discuss more about this important airline’s legacy.