Clipper, Vol. XIX, No. 2, May 1962

              CLIPPER
LATIN AMERICAN DIVISION
MANAGEMENT REPORT TO EMPLOYES . . . Pages 4-5
VOL XIX, No. 2
MIAMI, FLORIDA, MAY 1962
620508
Contracts Are Awarded For Expansion
October Date Set For Construction To Get Underway
The $5 million expansion program of Pan American Airways and the Dade County Port Authority at Miami International airport has moved from the negotiating into the “go” stage.
The Port Authority has awarded contracts to two Miami firms for the architectural and engineering work on the new facilities.
To finance the initial step, Pan Am advanced the Port Authority $275,000.
The new facilities for the centralization of Pan Am’s jet aircraft maintenance and overhaul operations at the airline’s 36th Street hangar area are to be financed through special revenue bonds issued by the Port Authority and redeemed by Pan Am’s rental fees.
The bonds will be offered for sale as soon as engineering plans and specifications are completed.
Contracts Awarded
Award of the contracts to Steward and Skinner and Maurice H. Connell and Associates is in keeping with Pan Am’s established policy of employing local firms whenever possible to stimulate Dade’s economy and provide work for local industry and building contractors.
Signing of the contracts culminates nearly two years of coordinated work by Senator George Smathers, Metro commissioners and Port Director Alan C. Stewart with Pan Am officials to assure the continuance of the airline’s base in Miami and forestall the transfer of maintenance activities to New York.
Actual start of the new hangar construction is set tentatively for October. This date allows four to five months for the drafting of plans and specifications and two months for the sale of bonds and bidding period on the construction contracts.
Preliminary Work Started
However, work to clear the way for the new buildings has started. Initial steps include borings to test foundation requirements and a study of present sub-surface utility cables and pipe lines.
Within 60 days work will begin on a new main entrance security building, which will be erected to the west of the present wooden gatehouse. This building also houses the airline’s ground fire warning system.
The wooden smoking and luncheon sheds along 36th Street also will be razed and new facilities established in existing hangars.
The main part of the new facility, to be integrated with existing hangars, will provide for consolidation of many of the jet and piston activities at the MIAD area with those at the 36th Street area.
Operations Centralized
Centralization of the base operations will enable Pan Am to establish new scientific techniques in aircraft servicing and provide for greater efficiency and speedier overhaul and maintenance of its its jet and piston-engine fleet.
A separate administration building, near the old airport terminal area, will house the Latin American Division offices and departmental functions such as public relations, traffic and sales, advertising, promotion and passenger service.
The new construction has been designed by Pan Am engineers to provide for 100 percent future expansion of the Miami base component shops, aircraft service hangers and administrative offices.
SPOILS TO THE WINNER—Lydia Smith smiles broadly as she holds up her check for $250 before taxes, for suggesting PANAMAC'S name.
'PANAMAC" Is Christened
Miami Secretary Picks Name For Electronic Brain
A pretty secretary in Pan Am’s Latin American Division, Miami, was one of three winners in the company-wide contest to name the airline’s new $23 million electronic reservations system.	^
She is Mrs. Lydia D. Smith, employed in the Miami Sales and Service Training school.
Lydia, along with two other Pan American employes, came up with the name “PANAMAC” which was chosen by the contest judges from
Story on page 7
more than 6,000 suggestions submitted from 109 stations around the world.
The others, who thought of the same name, were Nicholas F. Mal-dari, a senior electronic data processing analyst, in the System General Accounting office, New York City, and Captain Raymond E. Raaum, an LAD pilot based in New York.
Under the rules of the contest, the three-way tie was broken by putting the names in a hat and drawing out the winner.
Maldari was the lucky contestant, receiving a cash prize of $1,-000.
Because of the closeness of the contest, President Juan T. Trippe authorized payment of $250 each
Customs Plan Speeds Cargo
New U. S. Customs procedures are speeding air freight shipments into and through the United States up to 72 hours by eliminating gateway delays.
Cargo destined for cities inside the United States or in transit to other countries will move through airports of entry 24 hours a day, seven days a week without interruption. There will be no delay in transfer from one carrier to another, a feature which will be of great benefit to Pan Am which recently concluded a domestic agreement with American Airlines for interchange.
Customs will continue to control and supervise such shipments, but “inbond” entries, complex paperwork and special custody will be eliminated. The Air Transport Association expects that increased speed and reliability should stimulate the use of international air freight to a greater degree.
to Lydia and Captain Raaum.
Lydia joined Pan American six years ago in San Francisco, where she worked for Jim Henry. When he was transferred back to Miami, she and her husband, Leslie N. Smith, came along. Later she worked for Charles Larabee in the sales department.
Smith is a mechanic with Air International. He and Lydia live in Hialeah.
Air Transport Became Major Industry in ’61, Trippe Says in Report
Pan Am Carried More Passengers, More Cargo and More Mail Than Any Other International Airline
International air transport became a major industry in 1961 when 25 million passengers paid $3 billion in hard currencies to the international airlines, Juan T. Trippe, president of Pan American World Airways, said in the Company’s 34th annual report.
“Governments supported their air carriers in competing for these foreign travel funds—thereby improving their international balance of payments and supporting their gold reserves,” Mr. Trippe stated.
“On most important trade routes, foreign airlines are
outcarrying American-flag
companies," Mr. Trippe said, adding that “with this effective foreign-flag competition, the critical balance of payments deficit of the United States for air transport, on the North Atlantic alone, reached $200,000,0.00 in 1961.”
The added capacity provided by delivery of Pan American’s new long-range jets, public preference for nonstop service, anticipated increase in foreign travel to the United States resulting from our Government’s promotional efforts in many countries, forecast a $50,-000,000 increase in gross revenues for Pan American. These increased foreign travel revenues will bolster in like amounts our Government balance of payments position and potential gold reserves, Mr. Trippe said.
Pilot Dispute Arbitrated
Repeated announcements of impending strikes by the pilots and flight engineers in the first quarter of 1962 created uncertainty in the minds of the traveling public and adversely affected Pan
Equal Employment Opportunity
Pan Am Joins 50 Industries In Supporting Kennedy Plan
Pan American, along with approximately 50 other leading American corporations, has lined up solidly behind President Kennedy’s Commission for Equal Employment Opportunity.	^
Vice President Lyndon E. John-
son and President Trippe have signed a joint statement in Washington, D. C. on a “Plan for Progress” which implements a national policy regarding equal employment opportunity during a ceremony in the State Dining Room of the White House attended by President Kennedy. Vice President Johnson is chairman of the committee and Secretary of Labor Arthur Goldberg is the vice chairman. Pan American is the only airline in the select cross-section of American industry to have joined the program.
Joint Statement
The joint statement says, in part:
“Pan American intends, to the best of its ability, to follow the President’s policy and has voluntarily embarked on a companywide program to expand and strengthen its efforts to promote equal opportunity, consistant with its long-standing intention to employ the best qualified people available to do its work irrespective of race, creed, color, or national origin.”
Pan American agreed to review the plan periodically with the President’s committee since “circumstances may prompt amendments to this plan in order to attain the goal of equal employment opportunity more rapidly.”
Plan For Progrès*
The Pan American “Plan for Progress” embraces such factors as responsibilities for implementing the policy, recruiting new employees, training them, and the hiring, placement, transfer, promotion, layoff and recall of personnel. Included also is a general statement that “the Company will continue ... to follow the practice of treating all employees alike regardless of race, creed, color, or national origin” with regard to participation in Company-administered activities and maintenance of Company facilities.
The President’s Committee on Equal Employment Opportunity, as its part of the bargain, agrees to work with government agencies in recruiting qualified personnel for Pan American and to work with unions and contracting agencies on the Company’s behalf in specific personnel measures.
American’s traffic, Mr. Trippe stated. The pilots’ union however has accepted the suggestion of President Kennedy that the issues of the jurisdictional dispute over cockpit assignments be submitted to final and binding arbitration, eliminating the perennial threat of strikes.
The report listed net income for 1961, after taxes, at $1.34 per share, compared with $1.07 per share in 1960.
Operating revenues of Pan American for 1961 were up 11 per cent over 1960, the report disclosed.
Operating expenses in 1961 were $434,100,000, up 12 per cent. Despite increased expenses, due chiefly to the rising costs of labor and materials, cost per reve-
See pages 4 and 5
nue ton-mile of cargo was reduced to 49.1 cents, compared to 53.9 cents in 1960.
For the fourth consecutive year, Pan American carried more passengers, more mail and more cargo than any other international airline. Revenue passenger-miles totaled 6,200,000,000, an increase of 21 per cent, an all-time high. Pan American alone among the airlines of the world carried over 100 million ton-miles of cargo, up 16 per cent to 159,500,000 ton-miles. United States mail ton-miles increased 56 per cent to 85,-900,000 ton-miles.
Passenger Traffic Up
A total of 3,795,000 passengers were carried, an increase of 9 per cent over 1960.
1961 was a difficult year for international air transport with many carriers operating at a loss. Pan American earnings were well below the rate of return stated by the Civil Aeronautics Board as reasonable for international service.
Pointing to the growing trend toward combinations of major foreign-flag airlines, Mr. Trippe said that “to eliminate losses and strengthen their competitive position, major foreign-flag carriers have completed or are well advanced with mergers or consortiums. The national* airlines of Britain, Canada, Australia and India—BOAC, Trans-Canada, Qan-tas and Air India—have already organized a Commonwealth consortium, pooling revenues, coordinating schedules, conducting joint selling and advertising, and sharing ground facilities.”
He added that plans for an integrated operation in Air Union of the “Common Market” carriers —Air France, Lufthansa, Alitalia, Sabena, and KLM—were well advanced and that Aeroflot, the huge Soviet airline complex, has already expanded service to 15 capitals of the western world.
Although anticipating increased revenues for Pan American for the coming year, Mr. Trippe pointed out that because of these consortiums United States-flag airlines will be confronted with more effective competition than ever before.
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