Clipper, Vol. 14, No. 11, December 1957

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LATIN AMERICAN DIVISION
RADAR PICTURES AND STORY . . . Pages 4 and 5
VOL 14, No. 11
MIAMI, FLORIDA, DECEMBER 1957
571205
¡Ékaôon’5 (greetings to tfje MB Jtamilp of
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Christmas pascuas	J^atal	i?oel
Haltg Herstfeest
Rising Costs Slash Profits For Airline
Operating Expense Cuts Deeply Into Revenue Increase
A sharp decline in net profits of Pan American World Airways for the first nine months of 1957 was reported in the company’s quarterly earnings statement.
Despite increased gross operating revenues from passenger and cargo traffic, net earnings dipped to only a little more than half those for the same nine-month period in 1956 as a result of heavy increases in operating costs of some 14 per cent.
Wages and salaries were the largest single cost factor, with fuel and oil second.
Operating income for the first nine months of this year was $239,484,000 as compared with $216,568,000 in 1956, an increase of 10.5 per cent.
At the same time operating costs jumped to $223,332,000 as compared to $195,197,000 for the first nine months of 1956, an increase of 14 per cent.
This increase in operating expenses occurred in all phases of the airline’s operations. For example, the cost of flying operations was up $9.4 million over the comparable 1956 period, and maintenance expenses rose $3.2 million. There also were increases in the costs of passenger service, aircraft and traffic servicing; promotion and sales.
There was a loss in non-operating transactions of $29,000 compared to a net income of $4.3 million from this source last year. This 1956 revenue was derived
Continued on Page 7
Mangels Explains Jet Age Problems
Medical problems involved in the transition from propeller driven planes to the new turbojet aircraft are being solved, Dr. Martin Mangels, Jr., told the American Union of Occupational Medicine Post Graduate Course at Caracas, Venezuela.
Dr. Mangels, Latin American Division medical director for Pan American World Airways, is part of Pan American’s medical “team” studying physical effects of jet operation such as noise and high altitude flight. The airline expects to be operating jet planes in 1958.
President's Christmas and New Year Message
As the holiday season approaches, I wish to extend to all in the Pan American family my warmest wishes for a Merry Christmas and a Happy and Prosperous New Year.
This year, once again, the Pan American team has made significant strides in improving and expanding our service to the public. We have accomplished record advances in passenger and cargo traffic. The Atlantic Division has greatly increased its non-stop services. The Pacific-Alaska Division is making its polar route a success. The Latin American Division has increased its operations and services.
Greater efficiency in our United States reservations network, accomplished through skillful use of the teleregister equipment, is making more satisfied passengers for our company. Pan American’s wholly owned affiliate, Intercontinental Hotels Corporation, has expanded during 1957.
Our company’s contribution to the defense effort of the free world continues to grow in importance. The Guided Missiles Range Division ful-
fills a vital mission in our government’s military program.
Our technical assistance program, under the auspices of the International Cooperation Administration, is playing an important role in the developing economy of other nations. During 1957, our project in Afghanistan got underway. It and our projects in Pakistan, Thailand and Turkey have made much progress during the year.
During the coming year, delivery to our company of jet aircraft will begin. Pan American will become the first American airline to offer jet service. In 1958, we must intensify our preparations for the vast increases in traffic and other changes which will stem from the jet age.
Our progress and leadership in the air transport industry are the result of the efforts of many people all over the world who together make up our company. The skill, experience and teamwork of this Pan American family enable us to look forward with confidence to the new year and to the years ahead.
Again, best wishes for Christmas and the New Year.
Sincerely,
Sets New Pay Formula
Pilot Sets Six
Airline, Flight Engineers Sign Jet Operation Contract
The first collective bargaining contract by any major airline covering flight operations in the forthcoming jet age has been signed between Pan American and its approximately 600 flight engineers, represented by the PAA
Chapter, Flight Engineers’ Inter-« national Association, AFL-CIO.
Signed October 25, the agreement runs to June 1, 1960, some 18 months beyond the advent of the first jet transports on PAA routes. It provides that crew members performing solely the engineering function shall be those covered under the FEIA agreement.
The contract sets up a new pay formula providing for pay differentials of approximately 20% for those assigned to jets, as well as for pay increases on present equipment. The pay provisions are retroactive to June 1, 1957.
Terms of the agreement were based on recommendations submitted to both parties by the National Mediation Board.
The signing of a long term agreement at this time will make it possible for the company to plan properly for training of engineers to be assigned to jets, as well as aid in advance planning and cost estimates for jet operations.
Pan American pioneered in the use of flight engineers more than 25 years ago, and it has had collective bargaining agreements with the FEIA as their representative since 1946.
Records in Week
Six new flight records in a week is above par for the course on any airline.
That’s what Capt. Graham W. Jones did, flying DC-6Bs in Central America. Four of the marks were set on one day, as follows: San Jose, Costa Rica to Managua, Nicaragua, 45 minutes, lowering the old record two minutes; Managua to Tegucigalpa, Honduras, 3 7 minutes, or four minutes faster than the previous time; Tegucigalpa to San Salvador, 29 minutes. The old time was 33 minutes. San Salvador to Guatemala City, 25 minutes, beating the record by two minutes.
Five days later Jones flew from Tegucigalpa to Managua in 37 minutes, lowering the mark by ten minutes, and on the following day he flew from Panama to San Jose in one hour, 13 minutes, five minutes faster than the old mark.
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United Fund Gifts at P A A Set New Mark
Employes Donate Over $65,000 To 1958 Campaign
Employees of Pan American in Miami have set a new record of giving with their contributions to the Dade County United Fund.
More than $65,700 was contributed in cash or pledged during the in-plant solicitation for the 1958 campaign.
The largest amount previously subscribed by employees was $54,706 during the 1957 combined welfare fund drive for the former Dade County Community Chest.
While no quota was set for PAA workers this year, the “suggested amount” of donations, if followed by the 5,400 Miami employees, would have produced about $127,000.
Final tabulations of all cards distributed to employes have not been completed, but there was an increase in the number of workers participating and the amount of individual gifts, as well as in the total subscribed.
The money contributed will be distributed among the 55 welfare and charity agencies that joined the newly-organized United Fund in Dade County, except for contributions marked by donors for
Continued on page 3
Holiday Service To San Juan Upped
The inherent desire of Puerto Ricans away from home to spend Christmas and New Years on their own island is responsible for Pan American increasing service between San Juan and the United States during the holiday season.
To meet the season rush, PAA is stepping up flights between San Juan and New York from 70 to 85 weekly starting December 13 and continuing through January 16.
Service between San Juan and Miami is being doubled, from 14 to 28 flights weekly, from December 13 through January 12.