Pan American World Airways Essay

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Pan American World Airways, Inc

Pan American World Airways, Inc ("Pan Am") is a New York corporation organized in 1927 which is engaged in commercial air transportation which it pioneered between the United States and most areas of the world. Pan Am
Corporation ("the Corporation"), a Delaware corporation, is and since
September 14, 1984 has been the parent of Pan Am, it's principal subsidiary.

For the past few years Pan Am's financial condition has been very poor.
The company reported a consolidated net loss for 1986 of $469.3 million.
The 1988 net loss included a gain of $89.1 million resulting from the sale of Pan Am's Airbus A320 aircraft and delivery positions. This gain was partially offsetted by a reserve of …show more content…

The airline was considered so official by
Washington that Trippe had power to make deals with foreign governments abroad .

In 1934 people thought it was virtually impossible to cross the
Pacific by air, but Trippe saw a way to do it. Through the use of the famous Clipper Flying Boats, Trippe achieved the impossible, and started the worlds first trans-atlantic flights to europe, asia, and south america.
Pan Am achieved great heights with the help of pilots like Charles
Lindbergh, who opened many early routes, and hero pilot Eddie Musick, who pioneered routes across the Pacific, and not to mention Andre Priester, the engineering marvel behind the early flying boats.

Currently Pam Am provides non-stop service from the states to 36 locations in europe, asia, and south america. The company strives to provide the best service to all it's destinations than all the other carriers in general. Presently the airline is trying to achieve …show more content…

Paid-in capital increased two percent but the accumulated deficit increased by 11 percent thus adding 118,254 more dollars to the deficit making total stockholder deficit increase by 24.83 percent. No changes notable for total liabilities and stockholder deficit.

Pan Am's operating revenues did increase about 15 percent within the past two years. This was primarily due to an increase in passenger sales of
16 percent. But as for operating expenses a 30 percent increase resulted due to a high increase in aircraft and ground rentals for 1988. Also a 45 percent increase depreciation and amortization occurred which put an impact on 1988 operating expenses. Eventhough sales where high, total operating cost increases substantially enough to provide a net loss of $84,183. This loss decreased 25 percent compared to the operating losses of $113,293 in
1987.

Pan Am was able to recover some net losses in 1988 due to the sale of
Airbus A320 positions and insurance proceeds over the book value of the aircrafts. This sale and other expense cutbacks decreased Pan Am's net losses in 1988 to 57 percent.

Capital structure and long-term solvency is quite poor due to

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