Pan Am clipper, Vol. 21, No. 18, August 31, 1970

              READ AROUND THE WORLD
Voi. 21, No. 18 / August 31, 1970
clipper
failure to obtain fill-up rights cited
suspend JFK/LAX co-terminal flights
SPAGHETTI FACTORY TOUR? No, it’s the wiring section of the Seattle Boeing 747 plant. John P. Hickel, right, Boeing wiring supervisor discusses the bundles of wires that go into the 747 Multiplex system with, from left, Pan Am’s Solveig Mertent, Berlin; Lily Taketa, Honolulu; and Cynthia Tsujiuchi, Honolulu. The girls
are members of the 747 Flight Service Commission which closely examined ways to improve 747 in-flight service. See story, page 7.
NEW YORK—“We are sorry that we will no longer be able to extend the benefits of trans-continental service to our employees and full revenue passengers,” said Richard S. Mitchell, executive vice-president, announcing the suspension of Flights 811/812 between New York and Los Angeles, effective Sept. 16.
Heavy operating losses due to failure to obtain fill-up traffic rights between New York-California and New York-Hawaii, and the impact of route awards to other airlines were given as reasons why the flights are being cancelled.
The decision to suspend the service was taken after the Civil Aeronautics Board last month denied Pan Am’s request for an expedited hearing on its fill-up rights application.
“It is beyond our understanding, and unjust, that Pan Am should be denied domestic traffic rights while other U.S. airlines with strong domestic routes are given international routes, too,” said Mr. Mitchell.
more than $5 million loss for 1970
In 1969, Mr. Mitchell said, Pan Am incurred an operating loss of more than $5 million, on a fully allocated basis, on the transcontinental segment of its international flights.
Pan Am was first authorized to operate West Coast-Europe flights via New York in January, 1967. In November of that year, similar authority was granted permitting the introduction of New York-transpacific service via Los Angeles and San Francisco. In neither instance, however, was Pan Am authorized to carry passengers and cargo moving solely between New York and California or Hawaii. Efforts to have this restriction lifted by the CAB proved fruitless.
All other Pan Am services will continue uninterrupted, including its west coast-Europe Polar flights and its New York-Orient service via Alaska. No all-cargo flights'are affected by the suspension.
IHC announces decentralization program
By Tom Gerst
NEW YORK—Inter-Continental Hotels Corporation has introduced a decentralization program under which four divisional chief executives and a senior vice-president-services have been appointed.
Robert Huyot, president of IHC, announced that the decentralization principally involves operational functions. Control of standards and finances will remain in the New York City headquarters.
“It has become apparent that the rapid expansion of Inter-Continental around the world necessitates additional direct supervision of the hotels. The new program will make an impressive contribution toward the overall management efficiency of the group and will ensure continued progress
maintaining high standards of quality and service,” Mr. Huyot said.
start of three-year program
The initial step of establishing the division offices has begun. The complete program will be a gradual process spread over the next three years.
The newly appointed division chief executives are: Mario di Genova, Europe/ Africa, based in Paris; John P. Sutherland, Latin America/Carib-fiean, based in Miami; Hans Sternik, Middle East/ Central Asia, based in Beirut; and R. Kane Rufe, Par East/Pacific, based in Bangkok. John C. Car-rodus, previously vice-president-operations Pacific and general manager of the Hotel Southern Cross, Melbourne, Australia, is named senior vice-president-services, based in New York City.
Ernst Etter and Manuel Arriandiaga will continue their duties as vice-presidents for Europe and Latin America respectively. Andre Mas has been named director for Africa, reporting to Mario
di Genova, and Alexander Furrer, director for Central Asia, reporting to Hans Sternik.
“Plans for the decentralization are the result of situdy and research,” Mr. Huyot said. “The division chief executives will coordinate and direct the operations of the present Inter-Continental hotels and the 20 hotels currently under contract or construction.”
Each division will have at its disposal staff specialists from headquarters or the area to render customized services to each hotel. These specialists will include, among others, division directors for food and beverage, operations analysis and marketing.
“The shorter lines of communication between all the division executives, the individual hotels and key personnel around the world will permit a more intimate knowledge of the various areas involved and of the needs of each community, its hotel and guests,” said Mr. Huyot.
“It is part of the Inter-Continental philosophy to keep each hotel fully oriented to its community while maintaining high levels of quality and service.” Mr. Huyot added, “We believe the decentralization program will help us broaden and strengthen this concept and provide closer contact between hotel staff members and the community.”
Under the plan, Mr. Huyot, the president and chief operating officer, will continue to report to the chairman of the board and chief executive officer, John B. Gates. The newly appointed division chief executives will report to the president and will be assisted by the present staff vice-presidents and the new regional directors.
Of the 48 hotels in the Inter-Continental group, the corporation manages 42 and franchises the remaining six for which it handles sales, reservations, and corporate advertising and promotion.