Editing Pan Am (section)

===Bankruptcy===
[[File:N805PA-A310-PanAm-PIK-July89.jpg|thumb|''Clipper Miles Standish'' (N805PA), an Airbus A310]]

Pan Am was forced to file for [[Chapter 11, Title 11, United States Code|bankruptcy]] protection on January&nbsp;8,&nbsp;1991.<ref name=ergelvn>{{cite news |url=https://news.google.com/newspapers?id=i_IzAAAAIBAJ&pg=5370%2C1755407 |work=Eugene Register-Guard |location=(Oregon) |agency=Associated Press |title=Pan Am seeks Chapter 11 protection |date=January 9, 1991 |page=5B}}</ref> [[Delta Air Lines]] purchased the remaining profitable assets of Pan Am, including its remaining European routes (except one from Miami to Paris), and [[Frankfurt International Airport|Frankfurt]] mini hub, the [[Delta Shuttle|Shuttle]] operation, 45 jets, and the [[Worldport (Pan Am)|Pan Am Worldport]] at John F. Kennedy Airport, for $416&nbsp;million.  Delta also injected $100&nbsp;million becoming a 45 percent owner of a reorganized but smaller Pan Am serving the Caribbean, Central and South America from a main [[airline hub|hub]] in Miami. The airline's creditors would hold the other 55 percent.{{sfn|Robinson|1994}}<ref name="Collapse">''Aviation News (Pan American Airways: Part 2 – Down ... but not quite out)'', p. 52, Key Publishing, Stamford, November 2011</ref><ref>[http://www.flightglobal.com/pdfarchive/view/1991/1991%20-%202158.html ''Delta makes a difference''] {{Webarchive|url=https://web.archive.org/web/20120112163723/http://www.flightglobal.com/pdfarchive/view/1991/1991%20-%202158.html |date=January 12, 2012 }}, ''Flight International'', August 21–27, 1991, p. 20</ref><ref>[http://www.flightglobal.com/pdfarchive/view/1991/1991%20-%202711.html ''Farewell Pan American''] {{Webarchive|url=https://web.archive.org/web/20120114172146/http://www.flightglobal.com/pdfarchive/view/1991/1991%20-%202711.html |date=January 14, 2012 }}, ''Flight International'', October 16–22, 1991, p. 45</ref><ref name="DL_PA">[http://www.flightglobal.com/pdfarchive/view/1991/1991%20-%203287.html ''Comment''] {{Webarchive|url=https://web.archive.org/web/20120112214548/http://www.flightglobal.com/pdfarchive/view/1991/1991%20-%203287.html |date=January 12, 2012 }}, ''Flight International'', December 18–24, 1991, p. 3</ref>

The Boston–New York LaGuardia–[[Ronald Reagan Washington National Airport|Washington National]] ''Pan Am Shuttle'' service was taken over by [[Delta Air Lines|Delta]] in September 1991.<ref>{{cite news|url=https://query.nytimes.com/gst/fullpage.html?res=9D0CE5DE1539F930A3575AC0A967958260|title=Delta Shuttle's First Week|date=September 3, 1991|work=The New York Times|access-date=September 29, 2007}}</ref> Two months later Delta assumed all of Pan Am's remaining transatlantic traffic rights, except Miami to Paris and London.<ref name="Collapse"/> In November 1991, all members of Pan Am's frequent flyer program, WorldPass, were transferred, with their accumulated miles, to Delta's frequent flyer program, [[SkyMiles]].<ref>{{Cite web |last=By |date=1991-09-05 |title=AIRLINES TO COMBINE BONUS PLAN PAN AM FREQUENT FLIERS CAN EARN DELTA AWARDS |url=https://www.sun-sentinel.com/1991/09/05/airlines-to-combine-bonus-plan-pan-am-frequent-fliers-can-earn-delta-awards/ |access-date=2024-01-23 |website=Sun Sentinel |language=en-US}}</ref>

In October 1991, former [[Douglas Aircraft Company|Douglas Aircraft]] executive Russell Ray Jr., was hired as Pan Am's new president and CEO.<ref>{{cite news|url=https://www.latimes.com/archives/la-xpm-1992-01-26-fi-1172-story.html|title=The Man Who Tried to Rescue Pan Am|work=Los Angeles Times|access-date=May 31, 2009|last=Sanchez|first=Jesus|date=January 26, 1992}}</ref> As part of this restructuring, Pan Am relocated its headquarters from the Pan Am Building in New York City to new offices in the Miami area in preparation for the airline's relaunch from both Miami and New York on November&nbsp;1<!--, 1991-->.<ref>Dunlap, David W. "[https://www.nytimes.com/1992/09/04/nyregion/final-pan-am-departure.html Final Pan Am Departure] {{Webarchive|url=https://web.archive.org/web/20201211045910/https://www.nytimes.com/1992/09/04/nyregion/final-pan-am-departure.html |date=December 11, 2020 }}." ''[[The New York Times]]''. Friday September 4, 1992. Retrieved August 25, 2009.</ref> The new airline would have operated approximately 60 aircraft and generated about $1.2&nbsp;billion in annual revenues with 7,500 employees.{{sfn|Robinson|1994}} Following the relaunch, Pan Am continued to sustain heavy losses. Revenue throughout October and November 1991 fell short of what had been anticipated in the reorganization plan, with Delta claiming that Pan Am was losing $3&nbsp;million a day. This undermined Delta's, [[Financial District, Manhattan|Wall Street]]'s and the traveling public's confidence in the viability of the reorganized Pan Am.<ref name="Collapse"/><ref name="DL_PA"/>

[[File:Pan Am Boeing 747-100 Manteufel.jpg|thumb|left|''Clipper Sparking Wave'' (N741PA), a [[747-100|Boeing 747-100]] on short final into Berlin Tempelhof Airport, wearing Pan Am's final "billboard" style livery]]

Pan Am's senior executives outlined a projected shortfall of between $100 million and possibly $200&nbsp;million, with the airline requiring a $25&nbsp;million installment just to fly through the following week. On the evening of December 3, Pan Am's Creditors Committee advised [[United States bankruptcy court|US Bankruptcy Judge]] Cornelius Blackshear that it was close to convincing an airline (TWA) to invest $15&nbsp;million to keep Pan Am operating. A deal with TWA owner [[Carl Icahn]] could not be struck. Pan Am opened for business at 9:00&nbsp;am and within the hour, Ray was forced to withdraw Pan Am's plan of reorganization and execute an immediate shutdown plan for Pan Am.

Pan Am ceased operations on December&nbsp;4,&nbsp;1991,<ref name=tdapfnfl>{{cite news |url=https://news.google.com/newspapers?id=kgohAAAAIBAJ&pg=1408%2C839158 |work=The Day |location=(New London, Connecticut) |agency=Associated Press |last=Beveridge |first=Dirk |title=Pan Am takes its final flight into history|date=December 5, 1991 |page=D6}}</ref><ref name=ergwgclp>{{cite news |url=https://news.google.com/newspapers?id=o_tQAAAAIBAJ&pg=6790%2C839030 |work=Eugene Register-Guard |location=(Oregon) |agency=Associated Press |title=Pan Am's wings finally clipped |date=December 5, 1991 |page=2B}}</ref> following a decision by Delta CEO Ron Allen and other senior executives not to go ahead with the final $25&nbsp;million payment Pan Am was scheduled to receive the weekend after [[Thanksgiving (United States)|Thanksgiving]].<ref name="Collapse"/><ref name="PanAmdead">Salpukas, Agis. "[https://www.nytimes.com/1991/12/05/business/its-cash-depleted-pan-am-shuts.html Its Cash Depleted, Pan Am Shuts] {{Webarchive|url=https://web.archive.org/web/20210309015636/https://www.nytimes.com/1991/12/05/business/its-cash-depleted-pan-am-shuts.html |date=March 9, 2021 }}." ''[[The New York Times]]''. Thursday December 5, 1991. Retrieved August 28, 2009.</ref> As a result, some 7,500 Pan Am employees lost their jobs, thousands of whom had worked in the New York City area and were preparing to move to the Miami area to work at Pan Am's new headquarters near [[Miami International Airport]]. Economists predicted that 9,000 jobs in the Miami area, including jobs at companies not connected to Pan Am that were dependent on the airline's presence, would be lost after it folded.<ref name="PanAmdead"/> The carrier's last flown scheduled operation was Pan Am flight 436 which departed that day from [[Bridgetown, Barbados]], at 2&nbsp;pm ([[Eastern Time Zone|EST]]) for Miami under the command of Captain Mark Pyle flying ''Clipper Goodwill'', a Boeing 727-200 (N368PA).<ref name="Collapse"/><ref name="DL_PA"/><ref>[http://www.pbase.com/airlinerphotos/image/46757348 ''AIR LINE PILOT''] {{Webarchive|url=https://web.archive.org/web/20080319033259/http://www.pbase.com/airlinerphotos/image/46757348 |date=March 19, 2008 }} June 1992, p.18 Air Line Pilots Association (publisher)</ref>

Delta was sued for more than $2.5&nbsp;billion on December 9, 1991, by the Pan Am Creditors Committee.<ref>{{cite news|title=Pan Am, Creditors Sue Delta|newspaper=The Washington Post|date=December 9, 1991|url=http://www.highbeam.com/doc/1P2-1099194.html|archive-url=https://web.archive.org/web/20121026135857/http://www.highbeam.com/doc/1P2-1099194.html|url-status=dead|archive-date=October 26, 2012|access-date=February 9, 2008}}</ref> Shortly thereafter, a large group of former Pan Am employees sued Delta.<ref name="DL_PA"/> In December 1994, a federal judge ruled in favor of Delta, concluding that it was not liable for Pan Am's demise.<ref>{{cite news|url=https://www.nytimes.com/1995/01/16/business/market-place-in-the-volatile-airline-industry-it-s-delta-s-time-to-shine.html|title=Market Place; In the volatile airline industry, it's Delta's time to shine.|work=The New York Times|access-date=May 31, 2009|last=Bryant|first=Adam|date=January 16, 1995}}</ref>

Pan Am was the third American major airline to shut down in 1991, after [[Eastern Air Lines]] and [[Midway Airlines (1976–1991)|Midway Airlines]].<ref name="PanAmdead"/>

[[File:Pan Am Express.jpg|thumb|[[ATR 42]] (N4209G) of [[Ransome Airlines|Pan Am Express]] at [[Sylt Airport]], 1991]]

After serving only two months as Pan Am's CEO, Ray was replaced by Peter McHugh to supervise the sale of Pan Am's remaining assets by Pan Am's Creditor's Committee.<ref>[https://web.archive.org/web/20110115072939/http://www.observer.com/2011/real-estate/its-free-look-west-village-carriage-house-turned-panam-execs-hangar "It's Free to Look: The West Village Carriage House Turned Pan Am Exec's Hangar"], ''The New York Observer'', January 14, 2011</ref> Pan Am's last remaining hub (at Miami International Airport) was split during the following years between United Airlines and American Airlines. TWA's Carl Icahn purchased Pan Am Express at a court ordered bankruptcy auction for $13&nbsp;million, renaming it Trans World Express.<ref>[http://www.thefreelibrary.com/TWA+CONCLUDES+DEAL+FOR+PAN+AM+EXPRESS-a011566756 ''TWA concludes deal for Pan Am Express''] {{Webarchive|url=https://web.archive.org/web/20121111032533/http://www.thefreelibrary.com/TWA+CONCLUDES+DEAL+FOR+PAN+AM+EXPRESS-a011566756 |date=November 11, 2012 }}, PR Newswire, Trans World Airlines, Mt Kisco, NY, December 4, 1991</ref> The Pan Am brand was sold to Charles Cobb, CEO of Cobb Partners and former [[Ambassadors of the United States|United States Ambassador]] to the [[Iceland#Republic of Iceland (1944–present)|Republic of Iceland]] under [[George H.W. Bush|President George H.W. Bush]] and Under Secretary of the [[United States Department of Commerce|US Department of Commerce]] under [[Ronald Reagan|President Reagan]]. Cobb, along with Hanna-Frost partners invested in a [[Pan Am (1996-1998)|new Pan American World Airways]] headed by veteran airline executive Martin R. Shugrue Jr, a former Pan Am executive with 20 years of experience at the original carrier.<ref>{{cite news|url=https://www.nytimes.com/1996/01/31/business/shugrue-s-plan-for-pan-am-low-costs-and-lower-fares.html|title=Shugrue's Plan for Pan Am: Low Costs and Lower Fares|work=The New York Times|access-date=May 31, 2009|last=Bryant|first=Adam|date=January 31, 1996}}</ref>

In his book, ''Pan Am: An Aviation Legend'', [[Barnaby Conrad III]] contends that the collapse of the original Pan Am was a combination of corporate mismanagement, government indifference to protecting its prime international carrier, and flawed regulatory policy.{{sfn|Conrad|1999|p=28}} He cites an observation made by former Pan Am Vice President for External Affairs, Stanley Gewirtz:{{sfn|Conrad|1999|p=200}}

{{blockquote|What could go wrong did. No one who followed Juan Trippe had the foresight to do something strongly positive … it was the most astonishing example of [[Murphy's law]] in extremis. The sale of Pan Am's profitable parts was inevitable to the company's destruction. There were not enough pieces to build on.|Stanley Gewirtz}}

Under the terms of bankruptcy, the airline's International Flight Academy in Miami was permitted to remain open. It was established as an independent training organization beginning in 1992 under its current name, [[Pan Am International Flight Academy]]. The company began operating by using the [[flight simulation]] and [[type rating]] training center of the defunct Pan Am. In 2006, American Capital Strategies invested $58 million into the academy.<ref>[http://www.americancapital.com/news/newsreleases/2006/pr20060727.html American Capital invests in PAIFA] {{webarchive|url=https://web.archive.org/web/20061021212001/http://www.americancapital.com/news/newsreleases/2006/pr20060727.html |date=October 21, 2006 }}</ref> Owned by the parent of Japanese airline [[All Nippon Airways]] as of October 2014, Pan Am International Flight Academy is the only surviving division of Pan American World Airways.