Pan Am clipper, Vol. 16, No. 5, June 1990

              Pan Am Express Makes Flawless Florida Debut
Pan Am Announces $40 Million Contract With AT&T
Pan American World Airways and AT&T Computer Systems today announced they have signed a five-year contract for AT&T to provide networked computers to serve the airline’s airport, reservation, and operational and administrative sites worldwide. In addition, AT&T will service and maintain a wide array of existing Pan Am equipment. Pan Am awarded AT&T the contract following a competitive bidding process. The contract value is estimated at $40 million.
Shortly before the May 15th start-up of new service in Florida, Pan Am Express President Bill Lange made a fly- around tour to each of the six Florida cities involved in the initial service. At each stop, Lange met with local airport and municipal government leaders and held a press conference. In Miami, Lange presented Rick Elder, Metro-Dade Aviation Director with a model of the British Aerospace Jetstream 31, painted in the familiar Pan Am livery.
CLIPPER
JUNE 1990
VOL 16 NO 5
Pan Am Challenges Findings In President's Commission Report
“Installation of the AT&T 6386/SX and 6386/25 Workgroup Systems (WGS) at about 100 locations will form the foundation for what we call the ‘Airport of the Future,’ ’’said Bob Wagner, Pan Am’s Vice President Information Services.
That long-term Pan Am project calls for eventually automating every point of contact between the airline and the passengers, incorporating such functions as ticket-issuing, baggage-handling and
Pan Am’s First Class Guarantee
program has proven to be a success in both the U.K. and U.S., with the two programs generating a total of just nine letters of complaint to date.
The U.K. promotion, which was kicked off in January, offered a money back guarantee to residents of the U.K. who were not satisfied with the in-flight portion of their trip to the U.S. Traditionally, the British as a society are not prone to complain, so although the promotion itself was bold, the U.K. was considered a relatively “quiet” market, ideal in which to test the promotion. Only three letters of complaint were received, and numerous additional first class bookings were generated in the U.K.
The transcontinental promotion involved a different element of risk. The U.S. traveler is traditionally more of a skeptic, prone to complaining, especially when there is a money back guarantee involved. The decision to extend the program to the U.S. transcontinental flights was a gamble that paid off.
To date, only six letters requesting refunds have been received out of all of the First Class passengers who traveled between March 15 and April 15 on Pan Am flights between New York and San Francisco and Los Angeles as well as between Washington, D.C. and Los Angeles.
In addition, the booking levels were closely monitored on a week to week basis, comparing results with booking levels taken one week before the startup of the program. Nearly halfway into the program, the First Class booking levels had shown a substantial 116 percent increase, due in part to the promotion. Bookings were also on the rise in Clipper Class and Economy
boarding. Over the next five years each Pan Am agent will utilize the AT&T intelligent workstation.
“AT&T’s networked computers will enable us to use state-of-the-art technology to improve the quality of customer service and increase the efficiency of a range of operations,” Wagner said. “Passenger check-in functions will be conducted in a continued on page 6
during the program, proving that the offer attracted business travelers in all classes of service.
These results are dramatic. However, even more impressive is the way that employees from all facets of Pan Am, including reservations agents, passengers service agents, mechanics, caterers, aircraft cleaners and inflight personnel, constantly monitored every minute detail of the operation to ensure smooth sailing. First Class passengers were treated to extra special service for the duration of both programs. Two days before their date of departure, First Class passengers were called by Reservations Agents, either at home or in the office, and asked if there was anything else Pan Am could do to assist with their travel plans. One single phone call represents an incalculable amounPof goodwill.
The six letters of complaint ranged from a service compensation voucher which was issued for an overcooked special meal to a lengthy description of every flight detail beginning with the initial call to Reservations and concluding with the limousine ride to Manhattan.
Several of the complaint letters also included high praise for the service, including one in which the passenger who said Pan Am’s inflight personnel were “completely professional.”
The success of the two programs reflects the efforts of all Pan Am employees, those seen by the passenger and those who are unseen, who pulled together to make certain that all aspects of the operation went without a hitch, proving to the demanding traveler that Pan Am offers a truly superior product. And was willing to bet the price of a First Class ticket on it.
On May 15, the President's
Commission on Aviation Security and Terrorism released its public report following six months of investigations and testimony. The following is the public statement from Chairman Tom Plaskett which was issued following the release of the Commission’s report.
“Pan Am supports the Commission’s efforts to address an extremely difficult and complex matter, and commends the Commission for its comprehensive and thoughtful recommendations. “Nonetheless, as the Commission itself points out, a 17- month investigation conducted by three of the most professional law enforcement agencies in the world has not yet determined how the explosive device was loaded on Flight 103. Pan Am believes that the Commission erred in speculating how the device could have been loaded on the plane by referring to alleged violations in security procedures, a conclusion which Pan Am disputes both
Pan Am Corporation announced on
May 18 that it is exploring the possible sale or other commercial transaction involving the Pan Am Shuttle subsidiary along with additional aircraft sale and leaseback transactions and the sale of the Internal German Service in order to support the operations of principal airline subsidiary Pan American World Airways.
In a disclosure statement filed with the Securities and Exchange Commission, the Corporation said it would use the proceeds, in the event of such sales, to fund a long term operating plan for Pan American World Airways.
The decision to explore the possibility of selling the Shuttle is consistent with statements made on several occasions by Chairman Tom Plaskett that asset sales represent one means through which the
factually and logically.
‘We must not lose sight of the undisputed fact that the Flight 103 tragedy was caused by terrorist criminals who put the bomb on board. Pan Am, as much as anyone, wants those criminals to be apprehended, and Pan Am is eager to finally know where and how the device was placed on the plane. But Pan Am believes that speculative theories about Flight 103 serve to confuse the public and unfairly target Pan Am.
“Specifically, we do not agree that Pan Am’s operations in Frankfurt were unsafe in December of 1988 or at any time subsequent. The procedures in effect at Frankfurt on December 21,1988 were approved by the Federal Aviation Administration (FAA), which was fully aware of Pan Am’s interpretations and implementation practices of FAA regulations.
“Because the Commission has chosen to emphasize certain interline baggage continued on page 6
Corporation can broaden the financial base of the principal airline subsidiary.
The long term operating plan, which is fully supported by the Board of Directors and by Pan Am’s major creditors, includes the continuing growth of the Miami hub to counteract the seasonality of European operations, the expansion of transatlantic services utilizing Airbus A310-300 aircraft, and the elimination of certain unprofitable feeder services into the JFK hub. The program requires new capital which is currently not available from operations. The asset value that can be realized from such sales represents one possible alternative for raising such capital from within. It should be emphasized, however, that a formal decision to sell the Shuttle, the IGS or additional aircraft has not been made.
Money Back Guarantee-Many Takers, Few Refunds
by Elizabeth Hlinko
Corporation Weighs Possible Asset Sales To Raise New Capital