Clipper, Vol. XX, No. 4, May 1963

              ENTHUSIASTIC CROWD of 4,121 fans whoop up for Miami Marlins at a Pan American Night Game in Miami Stadium. The Marlins rewarded the Pan Amers by winning an exciting game from the Daytona Beach club in the Florida State
League by a score of 11 to 7, featured by home runs by Outfielders John Mustion and John Firenza and the fine relief pitching by Joe Verbanic. Center, Judith Ann Evans, Pan American^ stewardess, does a switch and autographs a
baseball for the Daytona Athletics Manager Bob Hofman. Judith is a Kansas City girl and rooted for her favorite major league team's farm club . . . Right, Pan American kids cheer as Marlins come from behind to win the game.
SPANISH SECTION NEWS - PICTURES ...PAGE 8
CLIPPER
ANNUAL REPORT TO EMPLOYES . . . PAGES 4-5
LATIN AMERICAN DIVISION
VOL XX. No. 4
MIAMI, FLORIDA, MAY 1963
630515
Trippe Calls 1962 “Year of Prog ress”
Grace Agrees To Dispose of Stock to PAA
Deal Would End Long Litigation Over Ownership
Pan American World Airways and W. R. Grace and Co., have announced that the Civil Aeronautics Board has been asked to approve the purchase by Pan Am of Grace’s 50 per cent stock holdings in Pan American-Grace Airways, Inc., (Panagra.)
Under the agreement filed with the CAB, Pan American would pay Grace $10,625,000, or at Grace’s option, a specified number of Pan Am shares for Grace’s half-ownership of Panagra. If the sale is approved by the CAB, Pan Am would own 100 per cent of Panagra.
In a joint statement, J. Peter Grace, president of W. R. Grace and Co., Inc., and Juan T. Trippe, president of Pan American World Airways, said: “We believe today’s agreement offers a prompt solution to the dual ownership of Panagra. The results flowing from the 50/50 ownership of that company have been the subject of litigation for many years and have created a time-consuming and difficult problem. Desire for settlement of that dual ownership problem was the major purpose of the anti-trust suit by the government against the ownners, Pan American and Grace, several years ago at the request of the Civil Aeronautics Board.
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Yugoslavia Gets Pan Am Jet Service
The first American-flag service to Yugoslavia was inaugurated by Pan American Airways with twice-weekly flights to Belgrade.
Leaving New York on Mondays and Thursdays, Pan Am Jet Clipper flights will provide the only through one-plane service between the United States and Yugoslavia. Flight time will be nine hours and 25 minutes.
Beginning with the inaugural flight Pan Am Jet Clippers leave New York International Airport, Idlewild, at 8 p.m., arriving at Belgrade at 12:20 the following afternoon after stops at London and Frankfurt. From Belgrade, flights will continue around the world.
On Mondays and Fridays, westbound flights leave Belgrade at 11 a.m., arriving in New York at 7:35 p.m.. after stops in Frankfurt and London.
Clippers to Serve Old Port of Call
Recife, Brazil, an old port of call for Pan American, again gets Clipper service when Pan Am jets started landing in mid-May. The Brazilian government has granted LAD temporary permission to service Recife pending completion of the jet runway at Belem.
Recife is being serviced twice weekly, once southbound with flight 203 on Fridays and northbound with flight 204 on Thursdays.
Traffic Jumps 14 Per Cent In 3 Months
Traffic over Pan American’s routes between U.S. air gateways and Latin America increased 14 per cent during the first three months of 1963.
Revenue passenger miles flown over the vast network for the three months was 522,607,000 as compared to 458,195,000 during the same period a year ago.
Most impressive increase was shown on Clipper flights connecting New York with Caribbean area points such as Nassau, Jamaica, the Dominican Republic and Caracas. Here traffic mileage more than doubled that a year ago, up 54 per cent.
In Puerto Rico where Pan Am handled more than three-quarters of a million passengers in 1962, traffic was up on flights from both New York and Miami. Revenue passenger miles on flights between Miami and San Juan increased 45 per cent and between New York and San Juan 9 per cent.
The three-month period saw revenue passenger miles increase 13 per cent on flights between New York and the East Coast of South America, 21 per cent in Mid-America which includes flights between Miami and Mexico and between Miami, Houston, California and New Orleans and Guatemala, and 30 per cent on flights between Panama and Rio.
THIRD 720-B ABOUT READY
The third 720-B jet, purchased from American Airways, has been delivered to Pan American in Miami and is undergoing overhaul and adaptation for Pan Am’s standards. It is scheduled for service about the end of May.
It’s a Wonderful NEW World With Pan American Jets
Jet Crew Saves Baby’s Life On Flight to Los Angeles
Quick action by crew members on a Pan American Airways jet flight was credited with saving the life of a five-weeks-old Panamanian child who suffered a severe lung congestion enroute to Los Angeles.
Nearly two bottles of oxygen were used by the Miami-based crew to prolong the life of the infant, Robert William Justice, until medical aid could be obtained in Guatemala, the next stop on the flight.
Captain Warfield W. Hester, Jr., of Miami, pilot of the big jet, radioed ahead for a doctor and an ambulance. The child arid his mother, Mrs. Laura Moreno Justice, were rushed to a Guatemala hospital immediately upon arrival.
Few of the 96 passengers aboard were aware of the life and death battle being waged by chief purser Sam Nolan and flight engineer Edward J. Urban.
Other cabin attendants who assisted were purser Joseph Perez and stewardesses Judith Honaker, Margaret Sanderford and Patricia Higgs.
Pan Am station personnel in Guatemala meanwhile radioed word of the emergency to Los Angeles for transmittal to relatives of Mrs. Justice.
Best Appointed Manager
New Department Consolidates Ground, Flight Activities
To meet the increasing penetration of the Latin American market by various European carriers, a new Service Department has been created. The present section under the Traffic and Sales Department has been upgraded and expanded to full
department standing and now will^—r--------;----------;-----------—
have charge of all ground as well Reporting directly to the Divi-as flight service activities, plus “In- sion Manager, David N. Griffis is
dustrial Feeding.”
Best Named Manager
To head the consolidated new service organization, Arthur S. Best has been named division service manager. George B. E. Hambleton
BEST	HAMBLETON
has been moved up to assistant division service manager in the new expanded organization.
Named assistant division operations manager to replace Best was T. J. Townsend who in turn is being replaced as director of training by Charles Boaz. Robert Evans assumes the post of San Juan station manager, vacated by Boaz.
named LAD representative at Idle-wild to coordinate the activities of all LAD departments at the large New York base.
The department will include flight service, ground service, special service handling at terminals, food service, the operation of Pan Am’s many flight kitchens throughout Latin America, passenger handling at division sales offices and airport counters and the operation of the company’s Clipper Clubs and lounges and Pan Am Guest Houses. Most of these activities have been under different department groupings.
Gen. Kuter Visits Station in Panama
General Laurence S. Kuter (USAF-Ret), vice president of Pan American with Headquarters in the new Pan Am Building in New York stopped over in Panama for three days during his recent “Round-South America” visit to Pan Am’s principal Latin American Offices.
Merger Plan Still Urged Despite Delay
Gross Revenues Up To Half a Billion Dollars First Time
Pan American will continue to urge approval of the proposed merger with Trans World Airlines although proceedings before the Civil Aeronautics Board have been delayed by legal matters in which TWA is involved, Juan T. Trippe, president of Pan Am, said in the airline’s 35th Annual Report, TRIPPE mailed to stockholders.
The merger would enable the United States to regain a fair share of the transatlantic traffic lost to foreign-flag airlines over the past ten years and at the same time bolster the United States’ balance of payments position and gold reserve, Trippe said.
Revenues At Half Billion
Gross revenues for Pan American for the first time reached a half billion dollars, Trippe reported. He stated that 1962 was a year of progress for the company, principally because of its larger business volume.
He pointed out that Pan American’s yield per passenger-mile for the year was 5 88 cents, lower than any other airline, reflecting the company’s long-time policy of low fares and rates for the traveling and shipping public.
Tripoe credited the larger business volume to the “production of mass transportation at lower unit cost, carried on under the American system of free enterprise as a regulated public utility under economic supervision of the Civil Aeronautics Board.
Net Income $15 Million
The report listed net income for 1962, after taxes, at $15,000,000, or $2.23 per share, compared with $8,900,000, or $1.34 per share for 1961. These earnings were after payment of $3,288,000 to Eastern Air Lines under the airline industry mutual aid agreement, covering the period when Eastern was shut down by a strike.
Operating revenues of Pan American World Airways for 1962 were $503 900,000 compared to $460,400,-000 for the previous year, an increase of 9.4 per cent. Operating expenses were $458.900,000 com-(Continued on Page 2)