Pan American clipper, Vol. 22, No. 1, January 1963

              Volume 22

JANUARY, 1963

No. 1

PA A , TW A File Merger Plans
Pan American World Airways and Trans World Airlines are filing with the Civil Aero­ nautics Board a merger agreement following approval by the Boards of Directors of the two companies. The announcement was made in a joint statement by Juan T. Trippe, President

IAT A Extends Group Fares
New fare agreements reached by members of the Inter­ national Air Transport Association will help achieve continued rising passenger revenues for Pan American, according to Willis G. Lipscomb, Vice President Traffic/Sales.
Mr. Lipscomb pointed espe­ cially to increased em phasis on group fa res and seasonal excur­ sion fa res as a valuable source of traffic w hich will receive strong sales support in all components. Group fa res have been ex­ tended to m ost p a rts of the world and excursion fa res will be available fo r longer periods of time. The agreem ents, effect­ ive A pril 1, will m ean th a t Round The W orld trav el will be possible fo r the first tim e in groups of 15 or m ore a t indi­ vidual fa res of less th an $1,000, a saving of 30 per cent below re g u la r Economy fares. Also, groups of 25 or more will be able to v isit the C arib­ bean and B erm uda from the U nited S tates a t reductions of up to 25 p er cent. Group fa res will be introduced across the Pacific on a seasonal basis and to u r fa res will save trav elers from A u stralia and New Zea­ land 22 per cent on trip s to o th er p arts of the F a r E a st and Asia. Group fa re savings will also be possible in the Middle E a st and A frica and groups flying between E urope and India will save 36 per cent, com pared w ith 22 p er cent previously. All groups will be affinity groups w ith elim ination by IATA of the spontaneous group category. In addition, groups need no longer be ticketed and make paym ent 30 days p rio r to de­ p artu re. A 10 p er cent deposit will now be accepted and fu ll paym ent and tick etin g will be

HOLIDAY SPIRIT blends with merger spirit as TWA Ground Hostess Fortune Scotti (right) and Pan Am Traffic Rep. Irmgard Tantius get together to trim a Christmas tree at IDL on the day Pan Am-TWA merger plans were announced.

New Year’s Greeting
,r o m :

dm jent Vtffe

The advent of the New Year gives me this opportunity to express the sincere hope that 1963 will bring peace and progress — to each of you, to your families, and to all people. I hope that your Christmas holiday season has been bright­ ened, as members of the Pan Am organization, by the knowledge that our Company — in its 35th year — has successfully met the many responsibilities laid upon us. In a very difficult year for the international airlines we have expanded our services and maintained our position in the market, while accruing modest earnings. Our scheduled services to West Berlin have operated without interruption, although in a some­ times troubled environment. Marking ten years as contractor to the U. S. Air Force for management of the Atlantic Missile Range, our Guided Missiles Range Division was generously commended by the military and civilian authorities of our Government. In 1962, Intercontinental Hotels Corporation became a major worldwide enterprise represented on every continent, with 15 hotels now in operation. Nine more IHC hotels will open during 1963, further to serve international travellers and the respective communities. In the 18 months which have passed since I announced our “Every Employee a Salesman” program more than $9.5 million of sales have accrued as the result of your excellent efforts. I am confident that your personal interest in this program will help the Company set new sales records in 1963. The new year will see us installed in our new quarters in the Pan Am Building at the center of New York City. For the first time in many years, our General Offices will then be under one roof, which will also house Panamac, our Company’s unique new electronic worldwide reservations and communications system. Pan Am’s teamwork and enthusiasm will be tested in 1963 as never before, faced as we will be with the keen competition of the government-owned foreign-flag airline combines. Our tasks will be demanding — to attain our proper place in the interna­ tional air traffic markets and thereby to help alleviate our Gov­ ernment’s critical adverse balance of payments — to promote the expansion of tourism and air cargo — to share in our nation’s program for the exploration of outer space. I am confident that, with continued dedication and support on the part of the whole Pan Am team, our Company will suc­ cessfully meet these challenges. Again, a happy New Year to you all. Sincerely Juan T. Trippe

(Continued on page 11)

Cargo Increases 22%, Pax Up 18% in 1962
An increase of nearly 18 per cent in p assenger traffic and a 22 p er cent climb in cargo ton-m iles were recorded by P an A m erican A irw ays in 1962, W illis G. Lipscomb, Vice P resid en t Traffic and Sales, announced recently. F o r the en tire P an Am system , revenue p assenger miles in ­ creased from 6,192,000,000 in 1961 to 7,287,000,000 in 1962. Mr. Lipscomb said the gains in passen g er traffic were due to increased frequencies — as m any as 188 tra n s a tla n tic je t flights each week during the sum m er of 1962 — introduction of new low group fa res, and prom otion of 17-day excursion fares. P an Am flew approxim ately 200,000,000 ton-m iles of cargo in in tern a tio n al traffic in 1962, com pared to 159,525,000 the previous year. Across the A tlantic alone, cargo traffic was up 25.5 per cent. Mr. Lipscomb noted th a t P an Tw o New V P's Am has recorded a four-fold John T. Shannon has been increase in cargo ton-m iles d u r­ elected Vice P resid en t — Over­ ing the last decade, achieving a seas Division by the P an Am er­ tra n sitio n from an express op­ ican B oard of D irectors. He had eration fo r packages to a tru e been Division M anager of OD fre ig h t service. since A pril, 1958. P an Am’s 1962 cargo increase H erb ert F. Milley has been of 22.2 per cent was th e larg e st elected Vice P resident, Overseas jum p in volume in the a irlin e ’s D ivision-Traffic/Sales, by the histo ry and comes as a prelude P an A m erican Board of D irec­ to 1963 when the first Boeing all­ tors. He had been OD Traffic/ cargo jets will be delivered to Sales M anager since 1960, p rio r P an A m erican and p u t into op­ to w hich he held the sam e post eratio n in tra n s a tla n tic and in PAD. transpacific service.

of P an A m erican, and C harles C. T illinghast, J r. P resid en t of TWA, who said th a t the m erger “will create a financially stro n g U.S.-flag tran s-A tla n tic airlin e b etter able to compete ag ain st com binations of fo reig n ca rriers w hich have reduced th e U.S. sh are of th e tran s-A tla n tic m ar­ ket by 42 p er cent in 12 y ears.” The new com pany will be known as P an Am W orld A ir­ lines, Inc., and will operate the routes and a irc ra ft fleets of both P an A m erican and TWA, utilizing fo r a period of years the service m arks and trad e nam es of both companies. Mr. T rippe will be C hairm an of the Board and chief executive offi­ cer, and Mr. T illin g h ast will be P resid en t of th e m erged com­ pany. The new operatin g company will exchange stock w ith TWA sh are fo r share. The p resen t P an A m erican W orld Airways, Inc., will continue as a holding company w ith 11,346,063 shares of the op eratin g company stock, or 1.7 tim es th e 6,674,155 shares owned by TWA shareholders. In addition, th e holding com­ pany will receive 150,000 shares of $100 p a r value convertible p re ferred stock in P an Am W orld A irlines and will re ta in o th er assets including $6,500,000 cash, 463,988 sh ares of com­ mon stock in N ational A ir Lines, and certain in terests in the P an Am Building. The B oard of Di­ recto rs of P an Am W orld A ir­ lines, Inc. will be nom inated in p a rt by TWA and in p a rt by P an Am erican. The m erged airlin es are ex­ pected to fly su b stan tially more hours and ca rry m ore traffic th ro u g h g re a te r u tilizatio n of the combined fleets, th u s pro-

(Continued on page 10)

Pilot Photo by Stack

THE ARCHBISHOP of Bos­ ton, His Eminence Richard Cardinal Cushing, sports a Pan Am Captain’s cap at press conference at Logan Airport before departing with his party for the Ecu­ menical Council at Rome.

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