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Pan Am and Delta
Can anyone tell me what Delta's involvement was with Pan Am during its
last days, and what Delta ended up with after the bankruptcy? Why did Delta invest in Pan Am? |
#2
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Pan Am and Delta
Can anyone tell me what Delta's involvement was with Pan Am during its
last days, and what Delta ended up with after the bankruptcy? Why did Delta invest in Pan Am? Delta wanted Airbusses quick; didn't want to wait for delivery... Roughly (and others have more detail, I'm sure) IIRC DL got Boston/New York-to-Europe (but not Heathrow), including Berlin-to-Moscow. I think they also got rights to the Middle East and India but not sure they ever did anything with them. DL provided cash to PA--they didn't exactly buy equity in PA since they were already bankrupt. |
#3
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Pan Am and Delta
Delta had entered into an agreement to purchase the PanAm Shuttle in the
Northeast and to purchase most of their international routes. They were to advance funds to PanAm to allow a reorganized PanAm to concentrate on South America. Unfortunately, Delta came to the conclusion that the Pan Am reorganization plan was unworkable, which resulted in PanAm's shutting down in December, 1991. Jeff "Todd" wrote in message om... Can anyone tell me what Delta's involvement was with Pan Am during its last days, and what Delta ended up with after the bankruptcy? Why did Delta invest in Pan Am? |
#4
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Pan Am and Delta
and don't forget how Robert Crandall (at the time, CEO of American
Airlines) got Delta into a bidding war for Pan Am...... of course, Crandall NEVER wanted Pan Am......he just didn't want Delta to get it for a song........... Cassie (who KNOWS Delta paid waaaaaaay too much for PA......) |
#5
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Pan Am and Delta
--lots of interesting side stories here.
1. The planes that Delta picked up from PA were not in good shape--A-310s with every possible optional maintenance item deferred. Delta would have been better off buying new planes. 2. Delta paid far too much for the European operations of PA. 3. The routes Delta picked up from PA were a mess--too many that PA had run at a loss, too many routes to the wrong places at the wrong times. 4. The resulting losses-billions of dollars threatened to ruin Delta. 5. An agreement between Delta and PA to finance a PA Latin American operation was never put into final contractual form and before it could be completed, the economics turned bad in a hurry. PA would not have lasted six months. Delta pulled the plug on throwing more good money after bad. 6. Ever since that time, former PA employees idled after the bankruptcy of PA have blamed Delta for their plight. Generally, there was no good business reason for Delta to have taken on any of the PA routes/employees/planes. They should have let PA wither away and then pick up whatever pieces they wanted or just start the routes with their own planes. There are some interesting parallels with the AA/TWA situation in the past couple of years. |
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