PanAm in talks to be airborne

Pan American World Airways, the airline that filed for bankruptcy in the US yesterday, is in discussions for refinancing to put the carrier back in the air.

"We are in discussion with interested parties," Chief Executive Officer David Banmiller said, after a hearing in a bankruptcy court in Miami.

It ceased all operations yesterday, stranding hundreds of passengers in New York and at its home-base of Miami.

Passengers arriving for flights yesterday were greeted by signs informing them of the cancellations and instructions on obtaining refunds. The airline carried about 5,000 passengers daily to 14 cities.

With its sky-blue logo and lettering, Pan Am will once again be absent from the skies. The latest version of Pan Am was created in 1996 as a domestic regional airline. Its owners and managers were relying in part on public goodwill towards a brand that evoked the pioneering days of flight.

Unfortunately, Pan Am also has one much darker association - with the 1988 Lockerbie disaster in Scotland. The tragedy contributed to the demise of the original Pan American which finally went out of business in 1991.

Aviation analysts yesterday said the carrier's main mistake was trying to establish itself as a major US airline, with cross-continent routes, too quickly. Pan Am was offering luxury service in wide-body Airbus aircraft, while trying to keep costs down to those of discount rivals.

The corporate parent remains alive, however, and "will continue to seek outside sources of financing, or a merger, to attempt to resuscitate the airline in the near future", a statement said.

Only a week ago, Pan Am attempted to staunch losses by grounding two Airbus aircraft and lying off 225 staff. It let go 550 workers last September when it acquired Carnival Air, a no-frills Miami carrier. Pan Am had hoped to gain sufficient critical mass with Carnival to compete better with rivals.

Before the bankruptcy announcement, shares in Pan Am were already at a paltry $0.75 (45p), compared with a high of $13.375, reached on 27 September 1996, one day after the carrier went public.

While industry consultants noted that US airlines have often gone into bankruptcy and re-emerged later - including Continental and TWA - there was scant optimism that the Pan Am planes would be in the air again in the near future.

Start your day with The Independent, sign up for daily news emails
ebooks
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Customer Service Administrator

£13000 - £15000 per annum: Recruitment Genius: Are you passionate about custom...

Recruitment Genius: Dialler Administrator

£22000 - £25000 per annum: Recruitment Genius: Main purpose: Under the directi...

Ashdown Group: Contracts Manager - City of London

£35000 - £37000 per annum + benefits : Ashdown Group: Contracts Manager - City...

Guru Careers: Tax Manager / Accountant

£35 - £50k DOE: Guru Careers: A Tax Manager / Accountant (ACA / CA / CTA) is n...

Day In a Page

Blairites be warned, this could be the moment Labour turns into Syriza

Andrew Grice: Inside Westminster

Blairites be warned, this could be the moment Labour turns into Syriza
HMS Victory: The mystery of Britain's worst naval disaster is finally solved - 271 years later

The mystery of Britain's worst naval disaster is finally solved - 271 years later

Exclusive: David Keys reveals the research that finally explains why HMS Victory went down with the loss of 1,100 lives
Survivors of the Nagasaki atomic bomb attack: Japan must not abandon its post-war pacifism

'I saw people so injured you couldn't tell if they were dead or alive'

Nagasaki survivors on why Japan must not abandon its post-war pacifism
Jon Stewart: The voice of Democrats who felt Obama had failed to deliver on his 'Yes We Can' slogan, and the voter he tried hardest to keep onside

The voter Obama tried hardest to keep onside

Outgoing The Daily Show host, Jon Stewart, became the voice of Democrats who felt the President had failed to deliver on his ‘Yes We Can’ slogan. Tim Walker charts the ups and downs of their 10-year relationship on screen
RuPaul interview: The drag star on being inspired by Bowie, never fitting in, and saying the first thing that comes into your head

RuPaul interview

The drag star on being inspired by Bowie, never fitting in, and saying the first thing that comes into your head
Secrets of comedy couples: What's it like when both you and your partner are stand-ups?

Secrets of comedy couples

What's it like when both you and your partner are stand-ups?
Satya Nadella: As Windows 10 is launched can he return Microsoft to its former glory?

Satya Nadella: The man to clean up for Windows?

While Microsoft's founders spend their billions, the once-invincible tech company's new boss is trying to save it
The best swimwear for men: From trunks to shorts, make a splash this summer

The best swimwear for men

From trunks to shorts, make a splash this summer
Mark Hix recipes: Our chef tries his hand at a spot of summer foraging

Mark Hix goes summer foraging

 A dinner party doesn't have to mean a trip to the supermarket
Ashes 2015: With an audacious flourish, home hero Ian Bell ends all debate

With an audacious flourish, the home hero ends all debate

Ian Bell advances to Trent Bridge next week almost as undroppable as Alastair Cook and Joe Root, a cornerstone of England's new thinking, says Kevin Garside
Aaron Ramsey interview: Wales midfielder determined to be centre of attention for Arsenal this season

Aaron Ramsey interview

Wales midfielder determined to be centre of attention for Arsenal this season
Community Shield: Arsene Wenger needs to strike first blow in rivalry with Jose Mourinho

Community Shield gives Wenger chance to strike first blow in rivalry with Mourinho

As long as the Arsenal manager's run of games without a win over his Chelsea counterpart continues it will continue to dominate the narrative around the two men
The unlikely rise of AFC Bournemouth - and what it says about English life

Unlikely rise of AFC Bournemouth

Bournemouth’s elevation to football’s top tier is one of the most improbable of recent times. But it’s illustrative of deeper and wider changes in English life
A Very British Coup, part two: New novel in pipeline as Jeremy Corbyn's rise inspires sequel

A Very British Coup, part two

New novel in pipeline as Jeremy Corbyn's rise inspires sequel
Philae lander data show comets could have brought 'building blocks of life' to Earth

Philae lander data show comets could have brought 'building blocks of life' to Earth

Icy dust layer holds organic compounds similar to those found in living organisms