Pan Am clipper, Vol. 21, No. 16, August 3, 1970

              battling toward profitability
first half shows 'good financial health'
“Much of the credit for Pan Am’s success with the 747 goes to our people who are working with spirit and enthusiasm to make the System of the Seventies a reality,” President Najeeb Halaby noted, reviewing the first half of 1970.
He also observed a growing spirit among employees, iden-
tifying their interests with those of the company.
“There is increased pride in job, in airline, and in individual performance—all essential if we are to provide our customers with a product superior to that of any of our competitors.”
NEW YORK—“Pan Am is still battling to regain profitability,” President Najeeb Halaby told a press conference, July 29.
“On a year-to-date basis,” he said, “we are trailing last year. But we have had a good second quarter, with two months of profits after eight consecutive months of losses.
“Expenses are under control,” he continued, “largely as a result of strict adherence to budgets.”
“Pan Am is in good financial health at mid-year,” Mr. Halaby observed. “Our working capital of $67 million is adequate.
“We are internally generating substantial amounts of new cash. We estimate that cash flow from operations, depreciation and amortization, from tax credits and from the sale of aircraft will be in the order of $175 million to $200 million for the year.
“Start-up costs in placing the 747 in service and lower yield have been factors in reducing our profit levels for the six months.”
Traffic reached near-capacity levels on many of Pan Am’s 747 routes during July, Mr. Halaby observed, saying, “Advance bookings for August and
September are good.”
“In scheduled transatlantic service, Pan Am has been number one, without exception, since November 1969.
“During the first five months of 1970, Pan Am carried 25.2 per cent of all transatlantic passengers, TWA carried 21.5 per cent and the 17 foreign-flag scheduled airlines together carried 53.3 per cent.
In reviewing the status of 747 operations, Mr. Halaby said, “We have been super-precautious about the 747. In most cases, delays or cancellations were due to precautionary measures.
“We have learned from experience—and we are capitalizing on the lessons we have learned—to create for our passengers improved elegance, comfort and service,” he continued.
“Among the improvements we’re making are:
•	“Improved parts are being installed in all first class seats.
•	“Virtually all reclining mechanisms in economy seats have been replaced with a superior version.
•	“We are installing auxiliary galleys to provide more work space for
(continued on page 7)
employees offered third stock plan
Young British artist Nick Price’s version of the 747, above, is one of six murals he painted of the aircraft for Heathrow Airport’s new Pier Seven. A moving walkway will take 747 passengers past the murals.
murals mark Heathrow society’s nod
747 accepted by proper set
By Mary Moore Mason
LONDON—The British are usually extremely cautious about hanging portraits, erecting monuments or unveiling statues of the famous or near-famous. Who knows—their fame may not stand the test of time.
Then along came the Boeing 747.
Within a few months of his acceptance—in Pan Am livery, of course—into Heathrow Airport society, his image was perpetuated by not one, not two, but six gigantic murals.
They are located along the 900-foot moving walkway connecting London airport’s new 747 Pier 7 with the arrivals terminal.
internationally understandable tribute
According to the British Airports Authority, which commissioned young British artist Nick Price, the murals are an “internationally understandable and acceptable tribute to the 747 era, capable of being assimilated easily as passengers Pass by on the moving walkway.”
Each mural symbolizes a different aspect of the 747’s service. In one, the giant aircraft is a head waiter serving up an impressive selection of
haute cuisine; in another, a cowboy with a whole troup of Theater in the Air actors on his back; in a third, a weight lifter, holding passengers securely and comfortably aloft.
in new 747 terminal
The British Airports Authority is spending over $31 million providing new and renovating existing facilities for the Boeing 747s.
The new arrivals terminal opened on June 2 adjacent to the existing Oceanic Terminal Number 3 now being renovated to handle departures only. The construction includes the new pier designed for 747s with 10 aircraft stands and 30 acres of concrete apron and taxiways.
The airport is already the world’s largest, in terms of international passengers. The British Airports Authority estimates that four million passengers will use Terminal 3 this year with the number increasing to about seven-and-one-half million by 1975, 60 per cent of them carried on Boeing 747s.
Pan Am already has six 747 flights into Heathrow Airport each day and Mr. 747, in his various guises, is there to greet them all.
NEW YORK—Pan Am is once again offering a stock purchase plan to eligible employees.
Most full-time employees hired before Sept. 1, 1970, can participate in the plan—the third of three planned stock purchase offerings—if they fill out and forward payroll authorization forms to their payroll departments before Sept. 1, 1970. New employees hired during Sept. 1970 will be permitted to enroll in the plan during that month.
An employee who participates will have regular deductions made from his paycheck and the sums applied toward the purchase of Pan Am common stock.
Employees participating in the 1969 offering must apply again for participation in the 1970 offering. The prospectus and related documents are to be distributed before Aug. 15, 1970.
Employees interested in participating must complete the application and forward it in sufficient time to assure receipt by the director-payroll, NYC, no later than Sept. 1, 1970.
reduced price, interest on savings
Each share of stock will cost participating employees 85% of the average market price on either Oct. 1, 1970 or Sept. 30, 1971, whichever average price is lower. The average price will be determined by taking for each of those dates the average of the high and low prices of Pan Am shares sold on the New York Stock Exchange.
Pan Am will pay a simple yearly interest at the initial rate of 3% on the money deducted and saved for stock purchases.
Employees may increase once and decrease once the amounts deducted from their paychecks during the year, but 10% is the maximum deduction allowed.
All the remaining shares, but not less than 600,000, will be available for purchase in the 1970 offering. If the offering is over-subscribed, all subscriptions will be reduced proportionately. The 1969 offering was 600,000 shares.
In addition to employees of Pan Am, employees of the following companies are eligible to take part in the stock plan:
Compania Hotel Del Prado, Compania Intercontinental de Hoteles El Salvador, Compania Aviación Pan American Argentina, Corporación In-(continued on page 7)