Pan Am clipper, Vol. 4, No. 1, January 1978

              I¥%(VA[VI
January
Volume 4 Number 1
Survey results:
Who’s using Budget Fares?
By Bruce C. Haxthausen
Who is the typical passenger using Pan Am’s Budget and Stand- , by fares between New York and / London? You’ll probably say students and backpackers with questionable means of support.
Wrong.
More of the passengers are over age 55 than under age 20. About half earn more than $24,000 a year. .And nearly one-quarter of them said they wouldn’t have taken the trip at all if Pan Am’s low fare service hadn’t been available.
These and other interesting facts emerge from the first complete survey of Pan Am’s Budget and Standby fare passengers, according to Candice H. Adams, Director-Market Research.
“Between October 5 and November 21,” Adams told Clipper 78, “questionnaires were distributed to Standby and Budget fare passengers on eastbound and westbound flights between New York and London. We received responses from 725 passengers.”
Although Pan Am carried about 11,500 Standby and Budget fare passengers during the same interval, Adams said the survey sample is statistically significant. Surveys on all Budget Fare route segments x will be made in the future, she added. The first passengers to use the $146 fare to London were carried by Pan Am on September 15.
Are the Budget and Standby fares really generating new traffic for Pan Am? The survey furnishes some interesting answers:
•	23 percent of the respondents said they wouldn’t have traveled at all without Pan Am’s Budget and Standby fares;
•	42 percent indicated they
Continued on page 4
HE’LL SWAP LATER. Jesus Terlaje (center, with flower leis) is “given” an airplane tire by James O’Hagan (right), director of Honolulu’s line maintenance department, at retirement ceremonies held recently. Terlaje, who left Pan Am after 37 years as a mechanic, was told by his coworkers that his retirement plaque wasn’t quite ready for the occasion and that he could redeem it at a later date by turning in the tire. Sharing the joke is John Lillis (left), Regional Managing Director, and Arthur Kam, Transport Workers Union chairman for the Honolulu shop.	,
Two more SP’s on order
Pan Am has exercised an option for the purchase of two additional Boeing 747SP jets, bringing to 10 the number of long-range jumbos Pan Am has in service or on order.
The ninth and tenth SPs are scheduled for delivery in April and May, 1979.
Pan Am operates the largest Boeing 747 fleet in the world. It presently has six 747SPs in service. In addition to the two just ordered, two others are scheduled for delivery in mid-1978.
Besides the SPs, Pan Am has in service 28 standard-size passenger 747s and five all-cargo 747s.
fi
li
Pan Am reported a $9.6 million net loss in November. See story, page 2.
Pan Am uses the SPs primarily on its long-haul, nonstop routes, such as New York-Tokyo (6,751 miles); New York-Bahrain (6,605 miles); Sydney-San Francisco (7,426 miles); and, San Francisco-Hong Kong (7,156 miles).
White House reversal
" 1 ! }
Braniff gets DFW-LON; Pan Am fights back
Pan Am is “outraged” by the Presidential order in the Transatlantic Route Proceeding, Chairman Seawell said last month in response to the White House reversal of a Civil Aeronautics Board recommendation granting Pan Am Dallas/Fort Worth-London service.
The White House approved most of the CAB’s recommendations in the case, but said Braniff Airways should have the Dallas/Fort Worth-London route, instead of Pan Am as the CAB had determined in a 4-1 vote.
“The employees and shareholders at Pan Am are fed up with government action which continues to weaken Pan Am,” Seawell said.
At Clipper presstime, Pan Am had asked the CAB to delay the effective date of part of the transatlantic route proceeding to allow for reconsideration of President Carter’s reversal of the CAB recommendation granting Pan Am Dallas/ Fort Worth-London service. At the same time, Pan Am asked the Office of Management and Budget for copies of all comments made by federal agencies on the route selection.
The White House said its decision to reverse the Pan Am award was based on President Carter’s judgment “that the certification of strong regional domestic carriers to serve international markets is important to his foreign policy of relying to the maximum extent possible on competitive forces in international aviation.”
Chairman Seawell, however, said “We do not believe that the
President’s decision was governed by foreign policy consideration. Rather, it appears to have been dictated by the kind of political manipulation that the President promised would not characterize his administration.”
“We believe the President’s reasoning gives only lip service to foreign policy since the issues in this case are overwhelmingly economic,” he said.
Meanwhile, the President’s approval of most portions of the CAB recommendations included the addition of Houston to Pan Am’s transatlantic route structure.
“We’re delighted that we have been granted a Houston-Europe route,” Seawell said. “Our plans to serve the market will be announced shortly, even though we can not offer nonstop Houston-London service until 1980.” (Under terms of the Bermudall bilateral agreement with Britain signed last year, nonstop Houston-London service cannot begin for three years.)
Pan Am is also authorized to serve Miami-Madrid nonstop.
Continued on page 2
Boston, LA need Pan Am
The Civil Aeronautics Board should permit Pan Am to continue its Boston-London service and to reinstate Los Angeles-London nonstop service in order to provide maximum benefit to the traveling public and the economies of the two U.S. cities.
That is the message conveyed by Chairman Seawell and other Pan Am officials recently in letters and visits to civic parties in the two cities. The reason such a message has to be conveyed at all is Continued on page 8
Interview with Flight Operations: a look ahead to 1978
Capt. James C. Waugh, Pan Am Senior Vice President-Flight Operations, thrives on what he calls a “total approach” to running the flight operations arm of the airline.
“The success of a flight goes far beyond what happens in the cockpit,” Captain Waugh states. “It reaches into every corner of Pan Am ... maintenance, marketing, airmen training, international communications, station man-
agement, engineering ... and many other elements that we in flight operations deal with on a day-to-day basis.”
Jim Waugh, whose area of responsibility includes the Company’s 1,400 pilots and 740 flight engineers, worldwide communications and liaison with the FAA, also insists that his staff conduct their day-to-day affairs with this “total approach” attitude.
And they do.
In an interview with Clipper ’78, Captain Waugh and senior members of his staff discussed several key subjects which flight operations will concentrate on in 1978. Participating in the interview with Captain Waugh were Capt. Walter H. Mullikin, Vice President Chief Pilot; Capt. A.A. Frink, Staff Vice President-Flight Standards, T.J. Townsend, Staff Vice President-Operations Liaison; Capt. William A. Brown, Director Flight Operations-Technical; and Robert Bohannon, Senior Director Communications Engineering.
Q. What direction will flight operations take in 1978?
Waugh: 1978 is the jumping off point for Pan Am in building an airline for the 1980’s ... an airline of all ... or nearly all ... widebodied aircraft. Flight operations is playing a vital role in the selection of a 707 replacement aircraft ... and in advancing the technical and operating efficiency of our existing fleet of jumbos. It is a year in which
we are well into the recall of some 118 furloughed airmen; a year in which we begin to realize the full impact of new-technology training equipment—equipment which improves airmen efficiency, enhances air safety, and saves dollars. 1978 also is a year in which we will see the retirement of more senior airmen—and senior airmen managers, like Jake Marcum and Howard Ashcraft who recently retired as Chief Pilots in Los Angeles and Berlin, respectively. In 1977, some 155 of our pilots retired. There will be some 465 more retirements between now and 1980.
Q. What is some of this new training equipment?
Waugh: Most important are new motion and visual attachments for the 747 simulator. These new attachments have resulted in more efficient, safety-conscious and cost-conscious training. The sophistication of these simulators now permits us to train airmen in a variety of landing situations in the simulator rather than in an aircraft. The prime benefit is that instructors can work in a totally controlled environment,.. they can monitor more closely the trainee’s progress without having to worry about keeping a $30 million jumbo jet properly sequenced in a landing pattern.
Frink: At present, airmen transitioning from one aircraft to another spend two hours or less actual aircraft flying time Continued on page 3
Captain Waugh