Clipper, Vol. 18, No. 4, June 1959

              Volume 18	JUNE, 1959	No. 4
“MY DREAM came true after 25 years” — LON Pub. Rel. photographer Bert Rees chats with Clipper passenger Ginger Rogers, long-famous movie star.
PAD Will '32J's Soon
Jet Clipper service in the Pacific may start considerably earlier than originally anticipated, it was recently disclosed. The accelerated schedule is the result of the fact that Pan American probably will receive Boeing 707-821 Intercontinentals for launching initial jet service in the Pacific, according to Gordon F. Maxwell,
Pacific-Alaska Division Manager.
The first of the 321’s may be delivered as early as July, Maxwell said, and Pan American hopes to begin scheduled service about 45 days after receiving the first aircraft.
The time interval between delivery and start of service will be required for crew training and survey and proving flights.
Exact dates and routes for jet service will be determined at planning meetings now in session. The Boeing Intercontinentals will be used for the initial period of jet service in the Pacific.
The Intercontinentals are larger, more powerful versions of the 707 Jet Clippers the Atlantic Division is currently operating. Powered by four Pratt and Whitney JT4A engines, civilian versions of the J-75’s used in Air Force supersonic fighters and bombers, they will have a gross weight of about 300,000 pounds and can
carry a maximum of 150 passengers.
Their introduction will result in drastic reductions in Pacific travel time. Honolulu, for example, will be only five hours from San Francisco.
The Boeing Airplane Company reports that the first two 321’s to be completed are well along in the Federal Aviation Agency’s certification testing program which is expected to be completed by July.
Paisan ?
A recent Jet Clipper passenger penned this note (in French) on the back of a President Special menu:
If eating well is a poison If drinking well is another I know of no airplane More dangerous than yours.
Credit for the translation goes to Phil Parrott, Commissary Supt.
Union Pact Aids Defense T raff ic
‘58 Reviewed:
Revenue Rose; So Did Costs
President Trippe in his annual report to stockholders stated that operating revenues for 1958 were up over the previous year, but operating expenses were also higher and that, as a result, net income for 1958 was lower than 1957. Mr. Trippe revealed that 1959
Gray Elected a Member of PAA Board
Pan American World Airways has signed agreements with three of its operating unions to assure the movement of cargo and personnel essential to national defense despite possible labor difficulties between the Company and the unions, Juan T. Trippe, President, announced at the annual stockholders meeting. This is the first agreement of its kind in the history
of transportation.
The three unions are the Air Line Pilots Association, the Flight Engineers International Association, and the Air Line Dispatchers Association.
Mr. Trippe termed the agreements “an important breakthrough in labor relations” and added that a major roadblock in the utilization of the scheduled airlines to carry Government traffic has been eliminated.
In the past, Mr. Trippe said, the government has limited its contracts to commercial airlines for transporting troops and military cargo on the ground that these essential operations could be threatened by strikes.
Mr. Trippe said that the Company hopes the new agreement will persuade government officials “to entrust to us a volume of their air traffic.”
Some major points of these agreements provide that:
1.	Even though the three groups should withdraw from commercial airline service because of labor disputes, they will continue at their respective jobs to insure the airlift of cargo and personnel essential to national defense.
2.	A Company official will certify in writing that the flight concerned will be exclusively for these purposes.
“The agreements between Pan American and the unions illustrate the ability of free men in a democratic nation to work voluntarily together, while still retaining the privileges and freedom of the individual,” Mr. Trippe said. “This is a noteworthy example of labor and management cooperation under the free enterprise system. The contents of the union agreements have been transmitted to other United States-flag airlines.”
While Pan American has been the leader in aviation over the years in flying techniques, technical developments, and new types of equipment, the Company considers that this forward step with labor may prove to be a most significant contribution to the strength of our nation in these days of the cold war.
The prospect of additional government contracts for military transportation, Mr. Trippe said, is only a part of the Company’s plans for expanding cargo operations in the future. Pan American, he said, is looking toward carrying bulk commer-(Continued on page 11)
will see Jet Clippers flying routes of all three operating divisions. He said that Jet service is scheduled to be placed in operation between the United States, Australasia, and the Orient. Jet service will be started to South America soon.
He also said that advance bookings for the summer months to London, Paris and Rome are double those of last year.
Net income for the year, after taxes, was $5,100,000 or 82 cents per share compared with $8,-200,000 or $1.34 per share in 1957.
Operating revenues were $313,200,000 compared with $312,700,000 in the previous year. Operating expenses were up 2.7 per cent to $305,900,000.
Despite increased costs of labor and materials, per available ton-mile costs were 35.9 cents compared to 36 cents the previous year. Decreased earnings resulted from the business recession, the lower load factor, and expenses incurred in the introduction of new jet aircraft.
For the second consecutive year no Government subsidy was included in reported operating revenues.
Again in 1958 Pan American carried more passengers, cargo and mail on overseas and international routes than any other airline. An all-time high of nearly four billion revenue passenger-miles were flown. Cargo ton-miles increased by 45 per cent to 100,900,000. United States mail ton-miles were up 14.7 per cent to 35,800,000.
Mr. Trippe said that the four-acre, $10,000,000 passenger terminal at Idlewild is scheduled for occupancy in the fall of 1959. He also revealed that electronic flight simulators for both Boeing 707 and DC-8 Clippers will soon be delivered.
These should reduce jet flight training costs more than $600,-000 in their first year of operation.
Harold E. Gray
Executive Vice President, Atlantic Division
Harold E. Gray, Executive Vice President of the Atlantic Division, was elected a member of the Board of Directors of Pan American World Airways at the recent annual meeting of stockholders. (See story at right.)
Mr. Gray completed his thirtieth year with the Company on March 29 of this year. One of the first ten pilots hired by Pan American, Mr. Gray commanded many historic survey and “first” flights.
In 1944, he was appointed Atlantic Division Operations Manager and the next year was named Assistant to the Division Manager—Planning.
He became Vice President of the Pacific-Alaska Division in 1949, holding this post until October, 1952, when he returned to the Atlantic Division as Vice President. He was named Executive Vice President of the Atlantic Division in 1953.
IVVSÛ3U /Veci Goc^S