Founded in 1927 by two U.S. Army Air Corps majors, Pan Am began as a scheduled airmail and passenger service flying between Key West, Florida, and Havana, Cuba.
In the 1930s, under the leadership of American entrepreneur Juan Trippe, the airline purchased a fleet of flying boats and focused its route network on Central and South America, gradually adding transatlantic and transpacific destinations.
Also competing for the contract, Juan Trippe formed the Aviation Corporation of the Americas (ACA) on June 2, 1927, with $250,000 (equivalent to $3.53 million in 2023)[15] in startup capital and the backing of powerful and politically connected financiers including Cornelius Vanderbilt Whitney and W. Averell Harriman.
ACA chartered a Fairchild FC-2 floatplane from a small Dominican Republic carrier, West Indian Aerial Express, allowing Pan Am to operate the first flight to Havana on 19 October 1927.
[17] The US government approved the original Pan Am's mail delivery contract with little objection, out of fears that SCADTA would have no competition in bidding for routes between Latin America and the United States.
During the late 1920s and early 1930s, Pan Am purchased a number of ailing or defunct airlines in Central and South America and negotiated with postal officials to win most of the government's airmail contracts to the region.
In September 1929 Trippe toured Latin America with Charles Lindbergh to negotiate landing rights in a number of countries, including Barranquilla on SCADTA's home turf of Colombia, as well as Maracaibo and Caracas in Venezuela.
[26] Pan Am's holding company, the Aviation Corporation of the Americas, was one of the most sought after stocks on the New York Curb Exchange in 1929, and flurries of speculation surrounded each of its new route awards.
A joint service from Port Washington, New York, to Bermuda began in June 1937, with Pan Am using Sikorskys and Imperial Airways using the C class flying boat RMA Cavalier.
The five-leg, 8,000-mile (13,000 km) flight arrived in Manila on November 29 and returned to San Francisco on December 6, cutting the time between the two cities by the fastest scheduled steamship by over two weeks.
[38] On August 6, 1937, Juan Trippe accepted United States aviation's highest annual prize, the Collier Trophy, on behalf of PAA from President Franklin D. Roosevelt for the company's "establishment of the transpacific airline and the successful execution of extended overwater navigation and the regular operations thereof.
The Northern transatlantic route to Britain was inaugurated for Air Mail service on June 24, 1939, by the Yankee Clipper piloted by Harold Gray flying via Shediac (New Brunswick), Botwood (Newfoundland), and Foynes (Ireland) to Southampton.
[53] The growing importance of air transport in the post-war era meant that Pan Am would no longer enjoy the official patronage it had been afforded in pre-war days to prevent the emergence of any meaningful competition, both at home and abroad.
This changed situation resulted from the new post-war approach the Civil Aeronautics Board (CAB) took toward the promotion of competition between major US carriers on key domestic and international scheduled routes compared with pre-war US aviation policy.
The DC-4 returned to San Francisco as Flight 2; the Constellation left Calcutta at 13:30 Tuesday, stopped at Karachi, Istanbul, London, Shannon, Gander, and arrived LaGuardia Thursday at 14:55.
The introduction of the faster Bristol Britannia turboprop by British Overseas Airways Corporation (BOAC) between New York and London on December 19, 1957, ended Pan Am's competitive leadership there.
Pan Am was the first US airline to sign for the Boeing 2707, the American supersonic transport (SST) project, with 15 delivery positions reserved;[75] these aircraft never saw service after Congress voted against additional funding in 1971.
These events, together with Soviet insistence on a very narrow interpretation of the post-war agreement on the Western powers' access rights to Berlin, meant that until the end of the Cold War air transport in West Berlin continued to be confined to the carriers of the remaining Allied Control Commission powers, with aircraft required to fly across hostile East German territory through three 20 mi (32 km) wide air corridors at a maximum altitude of 10,000 ft (3,000 m).
[21][70] On September 23, 1974, a group of Pan Am employees published an advertisement in The New York Times to register their disagreement over federal policies that they felt were harming the financial viability of their employer.
From early 1986, additional new longer range A310-222s replaced some of the 747s on the slimmed-down transatlantic network following ETOPS certification (approval by the Federal Aviation Administration (FAA) of transoceanic flying with twin-engined aircraft).
This parallel move was intended to enable Pan Am to provide a high-frequency service for high-yield business travelers in direct competition with the long-established, successful Eastern Air Lines Shuttle operation.
[119] Faced with a $300 million lawsuit filed by more than 100 families of the victims, the airline subpoenaed records of six US government agencies, including the CIA, the Drug Enforcement Administration, and the State Department.
Though the records suggested that the US government was aware of warnings of a bombing and failed to pass the information to the airline, the families claimed Pan Am was attempting to shift the blame.
The proposed merger was Pan Am's final attempt to create a strong domestic network to provide sufficient feed for the two remaining mainline hubs at New York JFK and Miami.
This in turn caused a sharp contraction of worldwide air travel demand, plunging once profitable operations, including Pan Am's prime transatlantic routes, into steep losses.
[139] The carrier's last flown scheduled operation was Pan Am flight 436 which departed that day from Bridgetown, Barbados, at 2 pm (EST) for Miami under the command of Captain Mark Pyle flying Clipper Goodwill, a Boeing 727-200 (N368PA).
[149] Eclipse Holdings (Pan Am II) later rescinded the Asset Purchase Agreement for cause and issued a cease and desist in January 1996, affecting all downstream transactions thereafter (as noted in US DOT proceeding OST-99-5945, and SEC 10-Q dated August 24, 1997, Plan of Reorganization (S.D.
The Pacific Clipper landed at Pan American's LaGuardia Field seaplane base at 7:12 on the morning of January 6, 1942, completing the first commercial plane flight to circumnavigate the world.
A satire of the movie by Mad magazine in 1968 showed Pan Am female flight attendants in "Actionwear by Monsanto" outfits as they joked about the problems their passengers faced while vomiting in zero gravity.
[180] Emphasis was placed on learning to maintain and overhaul aircraft in harsh seaborne environments when faced with logistical difficulties, as might be expected in a small foreign port without an aviation infrastructure or even an adequate road network.