Clipper, Vol. 15, No. 9, December 1959

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VOL 15. NO. 9 PUBLISHED BY THE EMPLOYEES OF PAN AMERICAN WORLD Al		-PM HMFRIC1N wnpm (IRWWP	cember 1959
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PAD Cargo Boom Forecast When New Rates And DC-7C Air Freighters Are Introduced Next Year
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I wish that I could personally shake the hand of everyone in the Pacific•
Alaska Division and say to him or her “Merry Christmas.” Since even the jets will not make it possible for me to do that, / am using this opportunity to extend to all of you and to your families my sincere wishes for a Merry Christmas.
To each of you I also want to say “thanks” for your efforts in behalf of the Pacific-Alaska Division during 1959. Without your cooperation we could not have achieved the success that ice did.
If we maintain this same spirit, 1 am sure we can all look forward to 1960 with confidence. 1 know that you all join me in the hope that the new year will bring about better understanding between all nations throughout the world, and that we will truly have peace on earth and goodwill among all men.
I add the wish that 1960 will bring happiness to all of you and to your loved ones.

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Rate reductions averaging 50 per cent on general air freight shipments between the United States and the Orient, and a new simplified method of applying these rates, will be introduced by Pan American on January 1st.
New Contract's Give PAD 20 Engine Overhauls Per Month
The Pacific-Alaska Division recently concluded two contracts to provide engine overhaul service for two airlines.
The first is with Slick. It calls for the overhaul of five 3350 engines each month. This contract runs until next October 31st.
Another agreement was reached with the Flying Tigers, also for 3350 engines. This calls for 15 overhauls per month. The contract runs through December of 1961.
ADVANTAGE POINT
This is a reproduction of the joint Pan Am-American Airlines ads being run in New York papers. Similar ads are appearing in papers in Boston, Chicago, Dallas, Fort Worth and Baltimore. Hawaiian newspapers carry the same idea with an eastbound theme.
These new low rates for bulk shipments will open up the U.S.-Orient market to thousands of shippers and importers who previously have been unable to use air transportation to develop this rich and growing market.
Said PAD Cargo Sales Superintendent “Pat” Patterson: “The whole picture of air cargo in the Pacific area will be changed. We expect our Orient traffic will double in 1960 and double again in 1961.”
Early next year enough of the DC-7C’s now being converted to all-cargo aircraft will be assigned to the PAD to enable the division to operate all of its cargo flights with that type of equipment.
The present complex commo-dity-by-commodity system will be replaced with a simplified system under which there will be only one rate for all kinds of goods within each weight class. This will make it possible for more types of goods to be flown at low rates.
The principle behind this new bulk discount system is simple —the heavier the shipment, the lower the rate per pound.
There will be five weight classes: Under 100 pounds, up to 550 pounds, up to 1,100 pounds, up to 5,500 pounds and up to 22,000 pounds.
The rate per pound of a 22,-000-pound shipment from San Francisco to Tokyo will be slashed over half—from $1.62 to 75 cents. A 550-pound shipment from Hong Kong to New York now costs $1.91 per pound. The new rates will be just $1.17 per pound.
Commenting on the new rates, Vice President, Traffic/Sales, Willis G. Lipscomb said: “Pan American has been seeking this kind of bulk discount rating system for years. If this system were approved by the IATA I carriers and their governments
for the trans-Atlantic area, it would quadruple air freight traffic between the U.S. and Europe in a few years.”
Under the present commodity rating system, the shipper must classify his goods under a highly technical and restrictive series of commodity categories, each with its own rate. There are presently more than 80 such categories applicable in the Atlantic.
Under the new U.S.-Orient bulk discount system, any mixture of commodities in each weight class can be shipped at the same rate.
Great Circle Batting Average —Two Trips, Two Records
On the second trip that Pan Am operated over the great circle route the records set on the inaugural took a sound beating. Flight time from Tokyo to Seattle was just 8 hours and 11 minutes.
Total elapsed time from Tokyo to San Francisco—and that includes the ground time at Seattle—was 10 hours and 28 minutes.
Captain Lanier Turner was in command of the Intercontinental Jet Clipper.