Pan Am clipper, Vol. 4, No. 8, August 1978

              Second quarter net a record $46.2 million
Pan Am’s net profit for the second quarter of 1978 rose to $46.2 million, a 192.4 percent increase over the $15.8 million net income for the second quarter of 1977.
Both the operating revenues and net profit set a record for any second quarter in Pan Am’s history except 1976, when the net profit included extraordinary credits of $97.9 million related to an exchange of debentures.
Pan Am’s total operating revenues, aided to some extent by the Northwest Airlines strike, increased 15.7 percent to $553.5 million for the same period over the second quarter of 1977.
The total operating expenses in
1978’s second quarter were up 11.9 percent over the restated operating expenses of last year’s second quarter.
The net profit for the first six months of 1978 was $22.1 million, compared to a restated net loss of $11.1 million for the previous year’s
Chairman Seawell looks at the second quarter financial results, in the first of a monthly “From the Top” column on page 2.
first half. Operating revenues for the first half of 1978 increased to $996.7 million, or 14.2 percent, as compared to the same 1977 period. Operating expenses increased 11.1 percent during the
same time span.
Scheduled revenue passenger miles for June showed an increase of 26.3 percent compared to the same month in 1977. Available scheduled service seat miles increased 5.7 percent for June 1978, and the scheduled seat
factor was 69.2 percent, up 11.3 percentage points over June 1977.
Scheduled passenger traffic for June increased in all areas of Pan Am’s global operations. Revenue passenger miles were up 44.6 percent in the Pacific, 19.9 percent in the Atlantic, 16.5 percent in Latin
America, and 15.5 percent on domestic routes.
Scheduled cargo revenue ton miles rose 24.3 percent in June. Total cargo revenue ton miles, including charter, were 92.1 million, up 17.8 percent from the previous year.D
Inaugural flight links the world to Houston
With a snip of the scissors, Houston was linked to the rest of the world as Pan Am inaugurated Houston-London and Round the World service on July 1. Left to right are Chairman Seawell, Houston Chamber of Commerce President Louie Welch and Mayor James McConn. The flight was also the startup of Pan Am’s domestic service between Houston and New York.
Pan Am’s Houston hub operation took a giant step forward on July 1, with the inaugural of the first and only daily 747 flight between Houston and London’s Heathrow Airport, continuing on around the world.
When Clipper Sam Houston — specially renamed for the flight-— took off from Houston Intercontinental Airport, it carried 323 passengers, 18,466 pounds of cargo and 286 pounds of airmail.
The flight also marked another equally important milestone in Pan Am’s history: the inaugural of the company’s first major U.S. domestic route—between Houston and New York.
And, with the startup of Flight 52 from Mexico to Houston, the first daily 747 Mexico-London flight was launched.
Aboard Clipper Sam Houston were Chairman and Mrs. Seawell escorting a group of prominent civic and business leaders, headed by Houston Mayor James McConn and Mayor Emeritus Louie Welch, and their wives.
Also aboard the huge Clipper was Richard Kincy, the first passenger to depart Houston on a $999 round-the-world excursion fare. London was the first stop for the 25-year-old who flew from Dallas to take the flight.
As the 747—under the command of Atlantic Division Chief Pilot Ned Brown—took off. Pan Am employees broke into spontaneous cheering and applause. After months of planning and hard work, it had happened—Houston was linked to the world by a daily Pan Am flight.
Pan Am was awarded Houston-London service last December. However, under terms of the bilateral agreement with Britain, Pan Am must make a mandatory stop in New York until April 1980, when Pan Am will have authority to operate nonstop flights to London.
Two weeks prior to the inaugural flight, the Civil Aeronautics Board granted Pan Am permission to operate fill-up rights between Houston and New York and the company immediately instituted a $70 standby fare, as well as a “Fair Fare” at $106, a saving of 25 percent from regular coach.
Chairman Seawell, who flew to Houston on the first southbound New York-Houston flight on June 30, told employees on arrival in Houston that the trip had caused quite a flurry among air traffic controllers who wanted to know “what Pan Am was doing in the middle of the United States.” Flying our first major domestic route was the answer.
On July 1, a reception was held in the new Clipper Club in Houston for the group of special guests who flew on the inaugural flight. Champagne and cake were served in the departure lobby to all passengers boarding the first flight. Members of the Houston chapter of World Wings, association
Aware’s new executive committee members got together for the first time last month, to make plans for their upcoming year in office.
The group also met briefly with President Colussy, who offered his heartiest congratulations to the new officers and reaffirmed his support for Aware and its activities.
“1 think it’s appropriate at this time, with this new committee beginning its year in office, to say thanks, not just to the officers, but to the employees around the world who continue to contribute their time and effort to helping Pan Am
of former flight attendants, assisted in the festivities, including Maria Wilson, Pat Benson, Pam Joyce, Lupe Henley, Marilyn Daly, Nancy Kenney, Anne-Marie Tennberg and Sandra Yeager.
Houston marketing employees who enthusiastically helped in handling the inaugural flight were
offer a better product to our passengers.
“We all recall Aware’s very successful work during the time when the company was in great financial difficulty. Now that our financial picture is brighter, 1 think it’s heartening to see that this enthusiasm remains.”
“Undoubtedly, this is due, in part, to the fact that Aware has changed with the times. From the days of the Awareness ‘walk to Washington,’ the employees have now turned to more marketing related functions—EPIC, the product improvement arm of Aware; Fundraising; and Marketing. A marvelous example of this, 1 think, is last year’s participation by Aware in the ASTA World Congress in Madrid. The employees made a great many friends for Pan Am with our travel agents, who, by all reports, were as impressed with their contribution to the convention as I was.
“At the same time, Aware
Lyn Hurlbutt. Patricia Mower, Sally Mayo, Mike Thomas and Nancy Jameson, as well as Don McMullen, Dave Peterson, Bob Duffey, Ron Wilson and Don Allen. Before the aircraft left Mexico enroute to Houston, as Flight 52, it was christened by Paulina Lopez continued on page 7
continues its political activities, through the political action arm of the group. Just last month, the employees from the U.S. embarked on a campaign to assure passage of the noise bill that would assist airlines in meeting government-imposed noise standards for aircraft.
“This kind of support from a group of employees —totally separate from union activities—is unique in the industry. No other airline management has such a team of employees behind it. As president of the company, I’m proud of that.”
The executive committee discussion in New York last month centered on meeting plans for the upcoming year. Felicia Fairchild, chairman, said the committee will hold two major meetings—one in the fall, another in the spring—in New York.
“We decided to cut down our meetings to only two a year, so as continued on page 8
Renamed Clipper Sam Houston for the historic flight, the 747 is prepared for takeoff.
At Clipper presstime ...
Pan Am announced that it has designated N.W. Ayer ABH International as its advertising agency on a worldwide basis. The appointment is effective Sept. 1, in the U.S. and Oct. 1 overseas.
The announcement was made by William Waltrip, Executive Vice President-Marketing and Services, at a press conference attended by Louis Hagopian, Ayer’s chairman and chief executive officer. Waltrip
said, “The objective of the search was to find an agency most capable of creating and implementing worldwide advertising that will communicate a clear, consistent image of Pan Am to travelers and the travel trade. We feel confident that N.W. Ayer best demonstrates that capability.”
Pan Am announced in May it would seek a new advertising agency to handle both U.S. and overseas advertising.
New Aware committee sets plans