UPS AND DOWNS IN BUSINESS

The Pan Am most of us knew was born on 28 October 1927, when it began scheduled mail service between Key West and Havana. Passenger service started on 16 January 1928. 16 September 1928 As Peruvian Airways already existed, Trippe purchased half interest in it and on 28 November,1928 acquired the Peruvian air. On 25 January 1929, Pan American-Grace Corporation (Panagra) was formed. On 15 May 1929, Panagra started its own service with a leased S-38 from Pan American On 21 July 1929, the route was extended to Santiago On 12 October 1929, a Panagra Ford Tri-Motor made the first commercial flight across the Andes, reaching an altitude of 18,000 feet (5,486 meters) and establishing a mail route between Santiago and Buenos Aires.

 The route extended some 4,200 miles and what is often overlooked is that the flying distance it represented was virtually unheard of during that time. In less than a year from its inception. Panagra had linked Panama, Colombia, Ecuador, Peru, Chile, Argentina and Uruguay with the United States. No domestic airline in the US had even managed to span the country, yet, with this route

 During 1930, the Colombian airline SCADTA (now AVIANCA), and NYRBA (New York, Rio, & Buenos Aires Airline) were acquired (bringing many qualified personnel, nearly 30 almost new multiengined planes, and the Panair Do Brasil subsidiary). Finally, it was Trippe's backing of the flying boat, the first Pan Am Flying Clippers, that pioneered global routes: across the Pacific and, in the late 1930s, across the Atlantic. By the end of World War II, Trippe had in place a route system that was truly global.

 In 1931, Sikorsky S-40, four-engined flying boats (the first Clippers) opened a new route to Colombia, via Jamaica, and to Panama. Also Completed a systemwide radio network, and equipped all aircraft with twoway radio. In 1932, new subsidiaries were opened in Alaska and Cuba (Pacific Alaska Airways and Cubana). In 1933, Panagra was the first to install radio and weather stations in the Andes between Chile and Argentina In 1935, the China Clipper opened trans-Pacific schedules to Manila, Electras opened new schedules in Alaska and Cuba, and DC-2s came to CNAC.

 In 1937 Sikorsky S-42Bs surveyed the Atlantic routes, and opened Bermuda service from New York and Baltimore. In 1939, Boeing 314 Clippers entered Pacific service and opened Atlantic schedules to Europe In 1945 other airlines didn't think or act that way. Trippe decided to introduce a "tourist class" fare from New York to London On 17 June 1947, Juan Trippe realized perhaps his greatest dream, by opening new Round-the-World schedules. In 1952, it was first to introduce DC-6Bs and inaugurate touristclass services in South America. In 1954, it was first to use the latest airborne weather radar in regularly scheduled service. In 1955, it was first to introduce DC-7B service between the US and Argentina. Panagra was also first to introduce the DC-8 to South America.

 In 1950s Its El Pacifico tourist service and El Interamericano first class service were the staple for travel from the United States to cities such as Guayaquil, Lima, Antofagasta, Santiago and Buenos Aires. By the mid-1950s, major expansions were over, and efforts were concentrated on superior service and economy fares, while cargo services were improved and expanded.

 He cut the round-trip fare more than half, to $275 ($1,684 in today's dollars, which makes current pricing a bargain, right?). This went over like a lead balloon in the industry, where air fares were fixed by a cartel, the International Air Transport Association; it didn't want to hear about the tourist class. Incredibly, Britain closed its airports to Pan Am flights that had tourist seats. Pan Am was forced to switch to remote Shannon, Ireland. The industry's aversion to competition and making travel affordable was to have a long life, as Sir Freddie Laker would discover in the 1970s and Virgin Atlantic nearly a decade later.

 Trippe managed to find one route where the cartel could not thwart him: New York to San Juan, Puerto Rico. Pan Am's one-way fare was $75, and the flights were packed. Finally, in 1952, Trippe's relentless attacks on the I.A.T.A. forced all airlines to accept the inevitability of tourist class. But by then his vision had taken off for its next destination.

In October 1958, a Pan Am Boeing 707 left New York for its first scheduled flight to Paris.

 By the 1960s Braniff was in negotiations to acquire the 50% interest of W. R Grace and in December 1965, a deal was made to purchase these shares. On 17 March 1966, the remaining 50% interest was acquired from Pan American. In July 1966, the acquisition was approved by the US Civil Aeronautics Board and by February 1967, Panagras operations were fully integrated into Braniff.

 Sadly, the 747 also sank Pan Am. Trippe bought too many 747s in the early 1970s. A world oil crisis hit airline travel hard, and his business never recovered. Boeing itself almost went belly-up because of the cost of launching the 747. The 1970s soon brought major increases in worldwide fuel prices, and declining travel. followed by deregulation and huge increases in competition. Despite Pan Am's being a leader in low operating costs, deficits grew. The magic era ended with the passing on of Juan Trippe in 1981, and a succession of managements were unable to regain profitability.

REFERENCES
The Pan Am Series Part XXII: The Boeing 747 http://jpbtransconsulting.com/tag/juan-trippe/ JUAN TRIPPE: Pilot Of The Jet Age TIME http://content.time.com/time/magazine/articl e/0,9171,989780,00.html#ixzz2tbmobSiO http://www.panam.org/about-pahf/a-brief-historyof-pan-am.html

 On 22 December 1965, Juan Trippe and Bill Allen signed a Letter of Intent for the Boeing 747. On 13 April 1966, Pan American formally ordered twenty-five airplanes. But before the April agreement, a huge obstacle arose: On 30 March, President Johnson invited the Business Council to a dinner. Both Juan Trippe and Bill Allen were in attendance. During the dinner Johnson pleaded for austerity due to economic problems caused by the war in Southeast Asia. This jolted both Trippe and Allen, whose 747 project was not exactly austere. Was the project in jeopardy? After the dinner, Trippe, who had previously no success in having a personal meeting with Johnson, approached him to press his case. Johnson asked Trippe if anyone knew about the project and Trippe said no, except for Bill Allen. Johnson then asked Trippe to be at the White House the next day to see someone.