Pan Am clipper, Vol. 21, No. 14, July 6, 1970

              start of a winning streak?
Pan Am nets $1,050,000
READ AROUND THE WORLD
Voi. 21, No. 14/July 6, 1970
Published every other Monday
passenger luggage
their bag:
“Smash your bag, mister?”
That’s what porters used to say when offering their services to suitcase-laden travelers years ago in the U.S. And if a suitcase was lost, they’d say: “What suitcase?”
If anyone wants to smash luggage nowadays—send ’em over to some other airline.
At Pan Am, baggage claims during the period January-May decreased 22.6% compared to the same period in 1969.
Even with an 11.1% rise in scheduled revenue passenger miles, baggage claims slid down from an average of one claim for every 214 passengers in January, 1970, to one claim for every 464 passengers in May.
handles up!
These are the latest results of Pan Am’s program to give its passengers the best baggage service of any airline, no matter where in the world they happen to be.
The program includes:
•	Service-oriented training for load servicemen, passenger service representatives, skycaps, and others who handle Pan Am passengers’ baggage.
•	A “handles-up” baggage loading policy. Luggage is stored upright, not on its side or on end.
•	An improved preventive maintenance program to keep baggage-handling equipment constantly in top
shape. This prevents, for example, damage to luggage caused by a faulty conveyor belt or a sharp corner on a truck.
• Installation of shelves and a center divider in 747 baggage containers so that luggage doesn’t have to be loaded on top of each other.
service theme
Training is the key and the key to training is a service motivation, says John S. Maloney, superintendent of baggage.
“In this training program,” he explains, “we stress that Pan Am per-
ROME—Alitalia adds four U.S. cities to its string and U.S. carriers get new access rights to Milan and Rome, plus rights beyond Rome, as part of the new bilateral agreement Italy and the U.S. signed June 22,
The signing returns airline operations between the two countries to the normalcy disrupted on May 31, 1967, when Italy’s renunciation of the old bilateral became effective. The carriers served each nation for the next three years on the basis of unilateral permits.
The bilateral gives Alitalia access from Rome and Milan to Detroit, Philadelphia, Washington, D.C., and Los Angeles or San Francisco, in
sonnel have to ‘think service,’ that Pan Am is a service organization, and that a passenger’s bag deserves as fine treatment as does the passenger. So it involves motivation, not simply training on how to load a bag.”
To improve service, an employee baggage commission consisting of load servicemen and their counterparts in passenger service was set up by Richard S. Mitchell, executive vice-president. The commission travels to various stations, exchanging ideas with colleagues, and presenting ideas to management for action.
addition to New York, Boston and Chicago, cities Italy was granted under the old bilateral and Alitalia continued to serve.
The Italian airline can serve Los Angeles from Italy via Chicago or Washington, D.C. If it serves San Francisco, Alitalia must come via Detroit from Italy.
Pan Am, TWA and all-cargo Seaboard World Airlines are the scheduled U.S. carriers serving Italy. The carriers can serve Milan and Rome from the U.S. via intermediate cities in Ireland, United Kingdom, France, Germany, Switzerland, Portugal and Spain.
(continued on page 4)
in May
NEW YORK—Pan Am and its subsidiaries earned a net profit of $1,-
050.000	this May, compared with a net loss of $3,312,000 in May, 1969.
The May profit, reported in a preliminary and unaudited statement, ended a streak of eight consecutive months of losses.
Total operating revenues this May were $98,405,000, up 12.3% from last May’s $87,588,000. Total operating expenses were $94,358,000, up 5% from $89,855,000 in May, 1969.
The operating profit of $4,047,000 this May reflected an improvement of $6,314,000 when compared with the $2,267,000 operating loss in May, 1969.
profits ‘on schedule’
“The results indicate that our profit program as outlined to stockholders at Pan Am’s annual meeting is on schedule,” President Najeeb Halaby said. “Both revenues and expenses are close to the programmed goals as Pan Am enters the summer peak travel season.”
Capital gains after taxes on disposal of property and equipment for this May were $569,000. In May, 1969, there were capital losses of $24,000.
While May’s profit reversed the trend of losses reported for the preceding eight months, net loss for the first five months of 1970 was $24,846,-000 (compared with a loss of $18,-
821.000	for the same period in 1969).
expenses up, too
Total operating revenues for the first five 1970 months were $426,012,-000, up 3.2% from the $412,817,000 reported for that period last year. Total operating expenses for the 1970 period were $446,088,000, up 4% over the $429,119,000 for the first five months of 1969.
The January through May, 1970, figures include capital gains after taxes on disposal of property and equipment of $1,387,000, compared with capital losses of $361,000 for that period last year.
Italy, U.S. sign bilateral air accord
'for growth and economic viability
WASHINGTON, D.C.—On June 22, President Nixon issued the new United States international aviation policy statement. It was the first document of its kind since 1963.
The following is the White House summary of the 20-page policy statement.
•	The basic system of exchanging air transport rights through a structure of bilateral agreements should be continued. However, in negotiating agreements, an excessive price should not be paid for rights for which there is little near-term need. Attempts to restrict U.S. carrier operations abroad should be vigorously opposed.
•Scheduled services are of vital importance and steps should be taken to avoid substantial impairment. Charter services are a most valuable component and substantial impairment should be prevented. Both scheduled and supplemental carriers should be permitted a fair opportunity to compete in the bulk transportation market. Intergovernmental agreements should be sought covering charter services, with the charter rights of foreign carriers subject to possible modification.
•	The United States should work for the broadest range of potentially profitable services designed to appeal to the broadest consumer market and based on the lowest cost of operating an efficient air transport system. The United States should continue to accept the International Air Transport Association as the machinery for pricing scheduled services.
•	Competition among air carriers tends to improve the quality of services, keeps prices reasonable and enlarges the market for all"carriers. The United States should maintain a flexible policy on certificating competition among U.S. carriers on international routes. The policy should also distinguish between point to point competition of U.S. carriers and services to a particular foreign country from different sections of the United States. Within this framework, there may be future route possibilities for new U.S. carriers, as well as the present ones. U.S. carriers should adequately serve their certificated routes and every effort should be made to improve U.S. carrier competitive performance vis-a-vis foreign carriers.
•	The international all-cargo services of U.S. flag carriers constitute an
important national transportation capability serving commercial as well as national defense needs. The present bilateral system for exchanging all-cargo and other rights should be continued.
•	The primary objectives of the United States’ policy on carrier liability are certainty, speed, and sufficiency of recovery by the injured party.
•	Foreign carriers of marginal financial resources should be required to maintain minimum amounts of liability insurance.
•	All practical measures to facilitate international air movement should be adopted.
•	Existing U.S. policies on user charges, fees and taxes are essentially sound.
•	All agencies must carefully consider the potential effects of international air transportation on balance of payments. U.S. air transport policy during the 1970’s should recognize that actions which improve the U.S. flag share of international air traffic also benefit U.S. payments.
The policy is carefully framed to provide passenger and shipper benefits through improved services at the lowest feasible rates and to conserve the opportunities of all our carriers for continued growth and economic viability.
In order to maintain an economically sound service network, however, U.S. carriers must be assured a fair and equal opportunity to compete. The policy calls for firm U.S. measures if our carriers’ services are unreasonably limited.
Of course, no matter how wisely and how well a policy statement is formulated, its effectiveness will rest with those who will implement it.
In dealing with international aviation problems falling within the Department of Transportation’s jurisdiction, we shall strive to exercise the same degree of dedication and foresight as was exercised by the framers of the policy. This we shall do in close coordination with the Civil Aeronautics Board, the Department of State and other concerned government departments.