Clipper, Vol. 14, No. 4, April 1958

              Route Awards Of Vital Importance To Pan Am Growth
The economic stability and earning power of an airline today depend on a number of factors. To maintain and expand current operations, it must effectively sell its services to the traveling and shipping public— and it must deliver these services more courteously, efficiently and satisfactorily than do its competitors. At the same time, to insure its own future and the security of its employees, it must hold down the steadily rising costs of operation. In an inflationary economy, this requires growth.
Growth is vitally affected by new routes it is permitted to launch, and by the routes granted other airlines in competition with it. Pan American and its employees have been affected by many such route awards during 1957 and thus far in 1958.
Major route decisions which affect us are usually announced in the press, although sometimes incompletely and without adequate explanation of their significance.
On page six is the first of two articles summarizing route decisions affecting Pan Am since the beginning of 1957. It is published to bring employees up to date on developments that so clearly affect them, and to dispel misapprehensions which may have developed from press reports. The first will consider routes sought by Pan Am, and the second, to be published next month, will summarize routes awarded our competitors, with comments on how they affect our business.
Daily Operations Over Polar Route Will Start On May 15th
Starting May 1st the Polar route flight frequency will be upped to six round-trips weekly, and on May 15th daily service will be offered. At that time London will be served by six of the trips, Paris by one.
SAY GAL "DIG THAT CRAZY SNOW"
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Stewardess “Skip” Gibbons watches the snowplow clear the taxiway at Frobisher. See pages 4 and 5 for a picture story of what a stewardess does when it’s cold outside at the PAD’S newest line station.
SEATTLE/PORTLAND TRAFFIC STOPS
Pan Am Points Out Serious Errors Made By CAB In Petition For Great Circle Reconsideration
Pan American has filed a petition with the CAB asking that body to reconsider its recent denial of traffic rights at Seattle and Portland to Pan American ! on its Great Circle Route. In its petition Pan Am pointed out two serious errors made by the CAB in submitting data on the case to President Eisenhower.
The Board committed grave statistical errors in its forecast of the diversion that would be suffered by Northwest Airlines if Pan Am were authorized traffic stops at Seattle and Portland. These errors resulted in the CAB’s furnishing the President a diversion estimate that was 159 per cent of the correct estimate (on the basis of estimating diversion adopted by the CAB).
In the case of computing the diversion of mail revenue, the Board made a mistake in dealing with a Post Office Department exhibit and substituted
POUNDS of mail instead of TON-MILES of mail. This error by the Board resulted in a figure of diversion of mail reve-| nue from Northwest that was excessive by $2,604,000—or 245 per cent of the correct fgiure.
In the case of passenger revenue diversion, the Board applied the same diversion factor to the west-of-Tokyo traffic that it did to the trans-Pacific segment. However, the estimate “forgot” that 77 per cent of Northwest’s west-of-Tokyo passengers are LOCAL PASSENGERS BETWEEN POINTS WHICH PAN AM IS NOT AUTHORIZED TO SERVE, none of whom, therefore, could be diverted, and that most of the remaining 23 per cent are also to points such as Korea and Okinawa, which Pan Am is not authorized to serve. Actually, less than three percent of Northwest’s west - of - Tokyo traffic
(Continued on Page 13)
Sales Campaign Underway To Hike Division Earnings
The PAD Sales department, together with the U.S. Sales organization, has mapped plans for a spring campaign to boost division revenues.
“Pacific/Hawaii Week” was completed last month. During the week of March 17th thru 22nd maximum use was made of promotional material to feature Hawaii and Pacific destinations. The various district sales offices in the U.S. featured Hawaii window displays, and female counter personnel wor leis.
An intensive telephone campaign is being conducted among all commercial accounts with Far Eastern interests. An analysis of our competitors’ source of revenue is being made, followed by efforts to obtain that business.
Sales personnel are also working closely with domestic airlines whose commercial accounts have Far Eastern interests. Emphasis is also being put on securing additional business from travel agents.
The U.S. Sales group will continue to stress knowledge of the Pacific-Alaska Division’s product in their training program.
Successful promotion of this campaign will assure a healthy increase in the division’s passenger revenue.
Pan Am Only Transportation Company With Brussels Exhibit
Pan American will be the only transportation company to have an exhibit at the Brussels World’s Fair and is one of only seven U. S. companies that have erected individual pavilions there. At the conclusion of the fair in the fall of 1958 Pan Am will bring the huge inflated ball that will be its exhibit back to the United States for one-week “stands” in major cities across the country.