Pan Am clipper, Vol. 21, No. 22, October 26, 1970

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add third ad agency
NEW YORK —Three advertising agencies will help market Pan Am’s increasingly diversified transportation product around the world beginning in January. Pan Am has used two agencies since 1957.
“The three agency concept will provide Pan Am with maximum flexibility to draw on a broad diversity of skills, talents and resources,” said James 0. Leet, senior vice president—marketing.
All the agency programs will be strongly oriented toward the consumer and they will be closely integrated under the direction of the marketing department.
“It is not unusual for major companies in other business fields to market their total corporate capabilities as well as their individual product lines through distinct and multiple ad agency programs, but it is unique in the airline field,” said Mr. Leet. “We believe Pan Am will be the first airline to take this approach.”
Separate programs for passenger and cargo advertising will continue to be created by J. Walter Thompson and Tatham-Laird & Kudner, respectively. These programs will communicate routes, services and customer benefits.
Carl Alley, Inc. has been appointed to handle broad-scope corporate advertising programs.
NRDS Contract 5-year renewal
JACKASS FLATS-The National Aeronautics and Space Administration has awarded Pan Am a five-year contract to provide operational support for the Nuclear Rocket Development Station here.
Pan Am will provide laboratories, supply warehousing, data processing, operation of site radiation systems, and maintenance and repair services. Similar contracts were signed in 1963, 1965 and 1968.
after 43 years
. it's ¡ust not the bird it used to be...
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al air service with a flight from Key West, Florida, to Havana, Cuba, on Oct. 28, 1927.
Below, the lineal great-grandson of the little Fokker is a big boy now. Pride of the Pan Am fleet is the Boeing 747, five times as long as the F-7, seven times faster, carrying 45 times as many passengers, 73 times heavier.
It was a busy 43 years. After the Fokker to Havana, there came the Sikorsky S-38 pioneering the airways to Panama in February, 1929. Then
the Martin M-130 Philippine Clipper journeyed to Hong Kong in October, 1936. It was followed in June, 1939 by the Boeing B-314 Dixie Clipper carrying the first transatlantic air passengers to Lisbon in June, 1939.
The move from seaplanes to land service came as the Douglas DC-4 inaugurated commercial land plane service into the Belgian Congo in January, 1946. Next, it was on to the Lockheed Constellation, then the workhorse of the industry, the 707, which immediately preceeded Pan Am’s new proud bird.
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it	Like (or as) the ads say, you’ve
come a long way, baby. Just 43 years separate these Pan Am Clippers. Above is the Fokker F-7, the 47-foot-long, 90-miles-an-hour, eight-passenger plane which Pan Am used to launch the first U.S.-flag internation-
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READ AROUND THE WORLD
Voi. 21, No. 23/November 9, 1970
clipper
for Pan Am and the Industry
Halaby: how to get back in the black
Where does Pan Am stand in relation to the industry—and in relation to its own goals and needs? President Najeeb Halaby reviewed the status in a recent interview with the New York Times.
NEW YORK—The cycle of progress has been broken—for Pan Am and for the airline industry —President Najeeb Halaby said.
There are actually two breaks, he said. One in traffic growth because of too much competition, and another in the ability to plow back reinvested earnings into progress.
How to restore the cycle of progress?
One possibility is a healthy merger that preserves a good competitive situation. Mr. Halaby said he felt that the government should offer formative encouragement, possibly by taking the attitude “We believe that there are too many scheduled and supplemental airlines and that there should be mergers that provide a healthy com-
petitive balance.”
Mr. Halaby also observed that the traditional postures of individual airlines and adversary proceedings make it difficult for all airlines to be reasonable on the subject of mergers.
Interchanges between points in the U.S. and cities abroad should be easier to establish than the addition of foreign-flag competition. Mr. Halaby gave as an example the many months it took to establish a Pan Am-Northwest interchange service between the upper midwest and Europe.
Airlines in overly competitive areas should not only be permitted but encouraged, as through tax exemptions, to diversify into other businesses.
Mr. Halaby said that route swapping should be encouraged so that airlines can shed one route for another that fits their system better.
He also was in favor of decertification, wherein the Civil Aeronautics Board would admit a mistake and take routes away from the carrier offering the least public service.
As last resorts, Mr. Halaby suggested voluntary suspension of services, rather than continuing at a loss, and bankruptcy. He noted that carriers have faced bankruptcy or near bankruptcy with extraordinary variety and frequency in the Caribbean.
He hoped, however, that the country is smarter than just to wait for traffic growth to catch up with capacity or maybe to let one or two of the above points take effect.
In touching on the relationship of the Civil Aeronautics Board and the airlines, Mr. Halaby said that there is no question that at present we have all the worst of regulation and all the risks of free enterprise. “But we cannot blame it all on the government,” he said. “We have to help think through these problems and we also have to help our style.”
In view of this need, Pan Am is refreshing and renewing itself. “We have practically established
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