Flying’s Future Shock: Anticipating the Great Reset

Commerce & Business, Public health,, Travel

All the travel and aviation pundits say commercial flying—when it does finally get airborne again—will never be the same again. There are so many imponderables and unknowns  about the enigmatic future of airline travel, the cup of endless speculation nonetheless runneth over.

No one, inside the industry or out, knows when international flights will resume normal services. Like everything else it hinges on containing, and ultimately on subduing the pandemic (the “holy grail” of the vaccine?). When it does happen and things return to ‘normal’, we know it will be a ‘new’ normal…so let’s concern ourselves now with what it might look like?

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What’s on the cards at airports in the future?
Airports will need to design or augment existing health and safety measures to stack up to the new requirements. Airlines will be trying to minimise the risk of human-to-human contagion, which’ll  probably mean touchless check-ins and more utilisation of self-service E-ticketing machines, thermal scanning of body temperature, increasing use of biometrics. The imperative of social distancing will still be with us, airports will have to adhere to the safety edicts of keeping everyone 1.5m apart from everyone else. But will this be feasible, or even partly attainable? Airports are people magnets, people come
en masse – to fly, to work, to farewell other people and to welcome others on return.

A pessimistic prognosis with very little “blue sky”
Will we end up seeing airports despairingly throwing their hands up in the air and saying it’s all too much? If the prescribed public health measures include things like wiping down the handles of every piece of baggage and all the trays as they go through the scanner, that will add intolerable delays to an already tortuously long process for people at peak-travel times (‘Air Travel Is Going to Be Very Bad, for a Very Long Time’, (James Fallows), The Atlantic, 11-May-2020, www.theatlantic.com). The CEO of one of the world’s busiest airports, London’s Heathrow, is on record as stating that social distancing will be impossible to maintain (‘COVID-19 and travel: Heathrow boss says social distancing “impossible” in airports’, (Neil Callanan), Traveller, 04-May-2020, www.traveller.com.au).

Will passengers turn up at the luggage check-in fully decked out in hazmat suits, smelling like they’ve been dipped by their heels in a vat of disinfectant? Will face masks, already in common use, gloves and even face shields, be mandatory for everyone in airports? Attaining standardised practice in these and other aspects of the changing landscape of flying, is a long way off happening.

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(Source: www.theweek.in)

A Covid-19 health pass?
Strict health screening for incoming passengers at international borders in the coronavirus age is a given, but future travellers may need to present new documents along with their international passport. Flyers may need some kind of “proof of good health” to travel internationally – much like the certificate you need now to show you’ve had the required inoculations to enter certain regions prone to yellow fever, malaria, etc. Alternately, these “immunity passports” may be used to record negative coronavirus test results  (‘Face masks, blood tests and onboard janitors. Flying’s about to feel very different’, (Karen Gilchrist), CNBC Traveler, 17-May-2020, www.cnbc.com; ‘The era of peak travel is over’, (Sarah Khan), Vox, 22-Apr-2020, www.vox.com). 

Social distancing on planes, an oxymoron?
If we turn to the aircraft flights themselves, how will they work? Some of the world’s international carriers are considering removing the middle seat in jets (as a temporary move only) to enhance space between passengers. Ryanair is the first carrier to outlaw toilet queues, passengers are now required to raise their hand to request a toilet visit.

Transforming seats into anti-virus shelters
Airplane designers are exploring the possibilities of converting the present flying “sardine tins” into spaces that observe social distancing. ‘Janus’ seats are one option advocated by the Italian company Aviointeriors…a double-S shaped configuration which juxtaposes passenger seats in an opposing direction to each other. Passengers are also separated by a high transparent thermoplastic shield or screen. The company had an alternate design which retains the standard seating configuration but attaches a separating perspex screen to each seat (‘Aviointeriors proposes post-COVID-19 Janus seats’, (John Walton), Runway Girl Network, April 2020, www.runwaygirlnetwork.com). The designs are still in testing stage but one drawback is that glass dividers adds another hard surface to passenger space which may be infected by contaminated droplets. the view of Peter Harbison, CAPA Centre for Aviation chairman emeritus, is that the removal of middle seats won’t be sufficient to ensure the social distancing requirement on airplanes, that the outcome is not realistically attainable.

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(Image: Aviointeriors S.p.A.)

Hermetically-sealed flying?
Clearly, the level of on-board hygiene will need to ramped up post-corona. There’s talk about having cleaners on-board during flights, to target the plane’s tactile zones such as toilet doors. One objective airlines will definitely aim for is minimalism, they’ll want to radically pare back the on-board fringe items. Touchscreen entertainment might disappear, pre-packaged meals left on seats prior to boarding to avoid contact, the end of free drinks, etc (Gilchrist). 

The financial side
With all the uncertainty of what’s in store for future travel, one thing that will definitely  change is the economics of travel. From the consumer side, if airlines resort to removing seats, therefore capping the passenger load of a jet, it’s hard to imagine how that will not result in a ticket price hike. IATA has estimated that with aircrafts only two-thirds full, average fares would jump up to between 43 and 54 per cent. Airlines have reckoned that they need to fill 77 per cent capacity of the aircraft just to break even (Gilchrist). Travel industry pundits have indicated that most leisure travellers won’t be willing to pay more if the option of affordable travel is taken away (‘Social distancing on planes during coronavirus: Middle seat won’t stay empty for long’, (Dawn Gilbertson), Traveller, 04-May-2020, www.traveller.com.au).

Some industry insiders have predicted the end of over-tourism, reasoning that for financial reasons or because of the new layers of bureaucracy required, travellers will be less inclined to travel as frequently as before the crisis, and with it will we see the demise of the jet-setting lifestyle and the addictive travel pilgrim. It may be too premature to make such a dramatic call, the 9/11 terrorist attacks put many people off international flying, but not permanently, the industry bounced back its pre-2001 level eventually, and this is an industry that employs over 10 per cent of the global workforce (Khan).

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Certainly though, for the foreseeable future, tourists will probably think twice about venturing to the world’s most heavily populated destinations (Venice, Rome, Paris, New York, London, Dubrovnik, the Pyramids of Giza, the Acropolis, the Great Wall, etc.). A whole new generation of ‘agoraphobes’ may decide to avoid travelling during the peak season and seek out the less-travelled, remoter locations to holiday.

A respite from the ecological ‘footprint’ for Venezia and Plaza San Marco  
(Source: www.sites.middlebury.edu)

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Business travel to recede?
Another matter to ponder is whether business travel will be reduced when the Covid-19 dust settles, will professionals and business folk still travel O/S to exotic locations for conferences? The lockdowns and restrictions of the last few months meant that the overwhelming majority of conferences went virtual. Administrators are no doubt discovering that they can just as meaningfully conduct business meetings by Skype or by video-conferencing, without the need for everyone to be in the same room together. If so, this may well have a negative knock-on affect for economy class tickets (which are subsidised by business and first class) (‘How Much of Airlines’ Revenue Comes From Business Travelers?’, www.investopedia.com).

                                                                             
we have recently witnessed that once beaches have been reopened to the public, it is virtually impossible to police distance restrictions on packed beachfronts
Emirates have taken a different tact, trialling a rapid “10-minute” blood test at the departures gate (insiders have questioned whether this would be feasible to implement at high-volume times (Gilchrist)
operators already indicating they will move to vacant middle seats include Southwestern, Delta, American and Qantas – the Australian carrier later reneged on this claiming the risk of Covid infection on an aircraft was minimal (‘Qantas passengers angered after airline reintroduces the middle seat’, 20-May-2020, www.news.com.au/)
that said, some airlines may, for the immediate period, offer travellers discounted fares and deals to reignite interest in overseas travel … “struggling operators (will) incentivize flyers to return to the skies” (Gilchrist)

What Happens to the World’s Airplanes After they are Grounded During the Pandemic?

Aviation history, Commerce & Business, Public health,, Travel

think most people, outside the industry, think the answer to this question would be “not a lot”. Unfortunately for the airlines, being grounded, being not able to utilise their assets to realise revenue, is only the start of the problems. In April it was estimate by the industry researcher Cirium that there were over 16,000 commercial passenger aircraft no longer flying – around 62% (the numbers would not have decreased since then) [‘Here’s What You Do With Two-Thirds of the World’s Jets When They Can’t Fly’, (Anurag Kotoky, David Stringer & Ragini Saxena), Bloomberg, 17-Apr-2020, www.bloomberg.com]. The severity of the blow to the airline industry internationally can hardly be understated, coming soon after IATA (International Air Transport Association) predicted (in December 2019) a US$29.3bn net profit for 2020 [http://airlines.iata.org].


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The norm under coronavirus: flights with a handful of passengers  (Photo: Jennifer Flowers / AFAR

Put simply, while the primary income from the airlines’ raison d’être, the loss of paying passengers, dries up, the fixed costs, the invariables, don’t go away for both the airports and the airlines. Let’s take the airports first, they make look deserted when you glimpse images of them on the internet or television, but they haven’t closed down altogether, they haven’t morphed into ghost towns. Airports still have infrastructure and most still run at least a limited service of domestic flights, and on the international scene, though closed for tourism, emergency flights still happen. So, with people and the coronavirus still around, the airports need upkeep. Surface cleaning with virus and bacteria killing disinfectants, hand-sanitising stations, etc. 

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A Californian “desert dormitory” for grounded jets (Photo: Mark Ralston / AFP via Getty Images)

The immediate problem for airlines in the Covid-19 crisis is where to put the multitude of grounded jets. The optimal place, leaving other considerations aside for a minute, is determined by climate. Aircrafts on the ground, exposed to the elements for any significant length of time, will do best in a dry climate with low humidity. This places the major airlines of Eastern Asia with their wetter, steamier climes at a disadvantage. Conversely, Australia’s great interior continental deserts are a favourable location. QANTAS and some other international airlines have accordingly parked their jets in Alice Springs (Central Australia)✫. In America [‘Parking in a pandemic: Grounded planes scramble for storage space’, (Paul Sillers), CNN, 22-Mar-2020, www.cnn.com]. Similarly, in America, US airlines have sought out long-term storage facilities in the hospitable desert environments of western USA [‘What It Takes for an Airline to Ground Its Fleet Amid Coronavirus’, (Jessica Puckett), Conte Nast Traveler, 31-Mar-2020, www.cntraveler.com].

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Delta jet, Pinal Airpark (reliever airport), Arizona (Photo: Rebecca Sasnett, Arizona Daily Star)

A lot of European airlines are not so lucky, forced to use the local airports in Europe where some of the runways have been decommissioned to make way for the grounded planes. Aircraft parking in some of the European hubs can also be exorbitantly expensive, charging up to US$285 an hour (although the cost varies greatly from location to location). Sometimes the remotely located (long-term) storage facilities are referred to as aircraft ‘boneyards’❈ [‘Aircraft Boneyards, MRO & Storage Facilities in Europe’, Airplane Boneyards, www.airplaneboneyards.com].

Thwarting the nesting birds (Photo: Reuters / Elijah Nouvelage)

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When happens with the planes taken out of service and parked? Although not in current use, they still have to be maintained so that they are ready when the airways open up again. Planes are subjected to regular, heavy mechanical maintenance checks, the hydraulics and the flight control system needs to be finely monitored. When the aircrafts are being stored long-term, the process followed has been described as a kind of ”aeronautical embalming” (Sillers) – fluids require to be drained (to prevent rusting of the landing gear), as the jets are housed al fresco everything needs to be covered and/or protected – the engine intakes and exhaust areas, external instruments, the tyres, the windows, the entire airframe (to prevent corrosion). Maintenance staff also have to check the planes for bird-nests and incursion from insects (grilles are sometimes affixed to keep birds outs). Every two weeks the wheels need to be rotated and the batteries reconnected (Sillers; Kotoky et al). Yes, it’s true to say that aircraft maintenance and storage firms are busy at the present time.

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To try to offset, at least partly, the crippling hit from of the coronavirus crisis, the loss of multi-billion dollars by the industry, some airline companies have switched their (unused) passenger jets to become freight-carriers (in addition to using their usual freighters). Scoot, for instance, in February commenced bi-weekly hauls from Singapore to Nanjing and Guangzhou transporting air cargo only. Cathay Pacific carries freight on passenger-less flights from Hong Kong to three Chinese cities∅ [‘Airplanes Without Passengers Start Coronavirus Recovery’, (Will Horton), Forbes, 10-Mar-2020, www.forbes.com]

 

EndNote: In March, even after extensive international flight restrictions had come into effect, a number of airlines were still undertaking their scheduled flights with zero passengers on board. One of the reasons for such a seemingly nonsensical practice was to abide with EU regulations which require the airlines to fulfil their allotments or risk losing the flight slots [‘Why Airlines Are Flying Empty Ghost Planes’, ((Caroline Delbert), Popular Mechanics 11-Mar-2020, www.popularmechanics.com].

 

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✫ north of five billion dollars’ worth of aircraft enjoy the arid air of Alice Springs Airport (from SilkAir 737s to Singapore 380s) [‘How expensive will air travel be after the Covid-19 crisis?’, (Cynthia Drescher), CNN, (14-May-2020), www.cnn.com]
❈ quite apt for housing a lot of the older, less-efficient planes, which will be retired and either be sold-off or used for parts and then scrapyarded
∅ there’s precious little upside for the airline industry at the moment, but one positive for the jets still in the air is the record low world oil prices at the present

The Pan Am Journey – the Singular and Boundless Vision of One Man, Juan Trippe

Aviation history, Biographical, Commerce & Business, Regional History

Pan American World Airways, or as it was universally known in its peak, Pan Am, is a name that is no longer displayed on the flight indicator boards of international airports across the globe. However up to the Eighties it was one of the premier names in the international airline industry.  At the top of it’s game the airline was completing up to 214 flights from the US to Europe a week (1964) [‘Juan Terry Trippe, Founder of Pan Am World Airways and InterContinental Hotels’, Stanley Turkel (PDF, 2006), www.ishc.com].

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From the ground up

Like quite a few young, middle class American men during the Great War, Tripp gravitated towards a future in the air, at first aspiring to be a navy pilot. After the war he transitioned from running a failed taxi service into a small regional air transport company. Trippe’s drive to succeed led him within a few years to merge his group with two other similar-sized ones to form Pan American Airways Inc.

The New Jersey-born businessman came up with a steady stream of novel ideas for innovation in the airline industry – which however required money. Prospects were bright though as new airline ventures were a good selling point. As William Stadiem explains, flying in the “Roaring 20s” was “the high-tech startup of its time!” Financiers, including members of the Rockefeller and Vanderbilt families, were all too willing to bankroll Trippe’s burgeoning airline industry ambitions [William Stadiem, Jet Set: The People, the Planes, the Glamour, and the Romance, in Aviation’s Glory Years (2014)].

By 1927 Trippe had started to assemble the rudiments of a fleet of aircrafts, initially with a brace of tri-motored Fokkers supplemented by some ageing surplus floating boats which he converted into the Pan American Flying Clippers (Trippe was a pioneer of these multi-engine seaplanes). Thus modestly began Pan Am’s first air mail service to the Caribbean (maiden flight in a 65-horsepower Seagull – Key West Florida to Havana) which paved the way for further Pan Am incursions into the region. Expansion followed innovation – from the West Indies he moved into Central and South America, and the foundations were laid for a global transport business✲.AB50588C-D96D-45A9-B209-4EA072696C99

Eschewing managerial orthodoxy

As textbook BUS101 management orthodoxy goes, Tripp was far from the desired model. His inclination was not to delegate and he was given to making unilateral decisions without consulting – much to the chagrin of his boards of directors [‘Juan Trippe and Pan Am’, (Richard Branson), Time, 07-Dec-1998, www.content.time.com]. What he was really exceptional at though, was anticipating the market in air travel, working out usually before anyone else what the next big thing was going to be…and going for it totally!

Business transparency was not part of the Trippe management style…his early inroads in the industry owed a lot to his “stealthy lobbying for U.S. mail licences”, which gave Pan Am a precious legup! [Harold Evans, Gail Buckland & David Lefer, They Made America, (2004)]. Trippe took a ruthless approach to competition and was not adverse to doing secret deals to outmanoeuvre his airline rivals [‘Juan Trippe Revolutionized Trips By Air With Pan Am’, (Scott S Smith), Investor’s Business Daily, 09-Oct-2014, www.investors.com].

Pan Am at times resorted to outright bribery to stay ahead of the pack, eg, offering several 100 thousand dollars to a Mexican president to block rival American Airlines’ bid for landing rights in the US’ southern neighbour [‘Juan Trippe’s Pan Am’, (Ann Crittenden), New York Times, (Archives), 03-July 1977, www.nytimes.com].

Thoroughly innovative Juan

By continually expanding the scope of Pan Am’s operations, creating many new routes, Trippe opened up both the Atlantic and the Pacific to air travel❂. Trippe’s list of innovations in the industry are legion  – including the pioneering of round-the-world commercial flights; the introduction of cockpit electronics allowing Pan Am pilots to fly in any weather; he also came up with “fly now, pay later” plans; his personnel came up with an advanced (computerised) reservations system first [Stadiem, op.cit.;   ‘Dead Airlines And What Killed Them’, (Jean Folger), 25-Jun-2010, Investopedia, www.investopedia.com].3165D89F-A045-4A1A-940C-F2CE1BE1E35F

Before Laker Air there was …

Perhaps Trippe’s greatest legacy however was the pivotal role he played in making affordable air tourism a reality to everybody. When Trippe and Pan Am entered the still embryonic industry,  seats were expensive and airline passengers tended to be exclusively from the well-off sectors of society. The airline ‘biz’ was run by a cartel called IATA (the International Air Transport Association) who contrived to maintain airline prices at a high level [Scott, op.cit.].

The first discount king of airlines

The Pan Am boss’ idea was to introduce a new class of passenger, “tourist class”, slashing the round-trip fare from New York to London by half (to US$275). The cartel reacted by trying to impede the US maverick’s move. British airports were closed to all Pan Am flights with tourist seats (Pan Am was forced to switch its European flights to remote Shannon Airport in Ireland). Pan Am managed eventually to get round the cartel’s net, it’s tourist class proved so popular that IATA caved in and accepted the reality of it [Branson, loc.cit. ; Smith, op.cit.]. Trippe’s actions thus brought air travel within the reach of ordinary people.

Airline entrepreneur and “friends with benefits”

Part of Trippe’s success owed a lot to influential people in high places…he benefited from a personal rapport with presidents like FDR and Truman. In fact, far from it being exclusively a triumph of free enterprise, federal government cooperation and support were integral to Pan Am’s overall success in the business [Crittenden, loc.cit.]. 

JT Trippe & CA Lindbergh (Source: The Trippe Family)02852001-7C9A-469E-9375-60D9D44E153E

Juan Trippe had the nous to surround himself with the right people from the start…in 1927 he ‘headhunted’ the (then) most marketable figure in world aviation, famed pilot Charles Lindbergh, to work for Pan Am (Lindbergh’s Continental survey flights helped establish the company’s early trade routes✥).

Another key figure within the company was its chief engineer Andre Priester who wrote the specifications for Pan Am’s flying boats. Priester set and maintained the airline’s meticulous safety standards [‘Pan Am Series – Part XLVIII: Skygods’, (Jpbtransportation: the Blog and Website of James Patrick Baldwin), 15-Feb-2015, www.jpbtransconsulting.com]. Staff training and airline safety were things Trippe refused to take shortcuts with – insisting on a high level of training for his pilots, flight crews, mechanics and support staff [Folger, loc.cit.].

With a little help from his (fellow capitalist) friends

Trippe in retirement freely acknowledged the help he received from United Fruit Company…the powerful US banana multinational assisted Pan Am early on to establish a presence in Latin America, thanks to United Fruit’s unique(sic) insider knowledge of the region’s states and its capacity to open doors to various governments [ibid.]. Trippe and Pan Am also prospered from cultivating a good friendship and working relationship with long-time Boeing head Bill Allen.

Enter the jet age

By the 1950s the heyday of “prop-liners” (propellor-driven aircraft) had come to an end. Jet liners were the future,  trouncing ‘props’ for both aircraft speed and carrying capacity…and as ever Trippe got in at the ground floor! Trippe immediately bought up big on Boeing 707s and the first 707 Pan Am commercial flight took place in 1958 (NY-Paris)✮. He then got to work on making it more economical by figuring out how to reduce the jet’s seat-mile cost [Branson, op.cit.].

While going full-tilt into 707s Trippe was already looking beyond…to the 747, the jumbo-jet. As Evans et al observes, Trippe had “an almost clairvoyant grasp of the future (and a) determination to find aircraft to fit that vision” [Evans,  Buckland &  Lefer, op.cit.]. Unfortunately for Trippe, the antennae didn’t work as desired every single time and a few missteps had serious ramifications for the long-term future of Pan Am (see below).

1st InterContinental: Belém (Brazil)

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Pan Am ‘accommodates’ – airport to hotel…

Inevitably, the holistic approach Trippe brought to the airline industry✢ led him to capitalise on the airline ‘s success by directly entering the hospitality field… connecting the dots between passenger  transportation and accommodation. With government encouragement from US president FD Roosevelt, Trippe began InterContinental Hotels & Resorts in 1946 as a subsidiary of Pan Am…the first international hotel was situated in Belém, Brazil. Between 1946 and 1996 there were 222 I-C Hotels doing business worldwide (>90% of them outside the US) [Turkel, loc.cit.].

Changing fortunes

Pan Am – once a ‘Titan’ of the airways – is no more, what then led to its demise? Some observers trace the seeds of its eventual fall to the late 1940s – years before the company had reached the peak of its powers. Earlier in the Thirties, during Pan Am’s formative first decade, Trippe lobbied the US government, advocating his “chosen instrument” theory (by which Washington would designate a single air carrier for all foreign flights). Pan Am in fact secured this special status, initially with the awarding of a 10-year mail contract by the US Postmaster-General. Eventually though other carriers were green-lighted to enter the overseas field and started to claw back Pan Am’s advantage [Smith, loc.cit.]. Postwar, competitors such as Howard Hughes’ Trans-World Airlines (TWA), Braniff and North West Orient were allowed to enter Pan Am’s routes in South America and Asia, and contest it’s semi-official monopoly✧ over those regions [‘Pan-American World Airways: the rise and fall of a 20th century cultural icon’, (06-Jan-2017), www.seanmunger.com]. The “catch-up” had commenced.

However when Pan Am sought to establish a competitive foothold domestically in the late Forties, the US government flatly rejected its request to start a connecting domestic route network [‘Lots of Reasons Why Pan Am Failed’, (Robert J Byrne), Washington Post, 25-Jan-1992, www.washingtonpost.com]. This setback proved a critical handbreak on Pan Am’s expansion into the profitable US internal passenger market.

 Pan Am logo, the “blue meatballs”65E47663-1881-4115-AAC6-F4CBBCA0E7BA

In 1968 Juan Trippe stepped down as company president, however he remained active and influential in Pan Am’s executive decision-making, maintaining an office in the company’s headquarters. Pan Am still looked in solid business shape, it has 40,000 employees and was flying seven million passengers a year to some 86 countries. Trippe’s unflagging desire and capacity for change and innovation was to be a “two edged sword”, sparking Pan Am’s upward trajectory but also contributing to its ultimate decline. Not content with the revolutionary 707, Trippe cajoled the jet manufacturers to design a new “jumbo jet” capable of carrying in excess of 180 passengers⊡. The 747 answered this ‘need’, with the first commercial flight of a Pan Am 747 taking place in 1970. Trippe employed a similar stratagem with the Kennedy Administration which was reluctant (because of the exorbitant cost involved) to embrace the next level up, the SST-2707 supersonic jet. By signalling  that he intended to purchase five Anglo-French Concorde planes, Trippe pressured President Kennedy into launching the American Supersonic Transport project. But this was one instance where Trippe’s ‘hunch’ was badly off target. The Boeing 2707 proved so problematic (and costly) that the project was dropped altogether in 1971.

Two Pan Ams, 707 & 747 (source: Boeing)

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The ill-timed expansion into 747s: Capacity overload

Trippe, always striving to be ahead of the curve, placed his order for the new 747s before they were designed, let alone off the assembly line! On this occasion the economy brought him and the company unstuck. The timing of the introduction of 747s, 1970, was not great – coinciding with a recession! Trippe didn’t foresee the 1973 oil crisis, which blew out the costs for maintaining the fleet of jumbos – fuel prices skyrocketed after the Middle East energy backlash [Folger, loc.cit.].

The state of Pan Am’s finances in the early Seventies was not propitious for taking on something of the magnitude of the 747. Commencing from 1969-70 Pan Am experienced seven straight years of losses. By 1977 the company’s long-term debt amounted to a disquieting $727 million! The financial burden on Pan Am was too much – and the problem was compounded by one of Trippe’s successors as company head (Najeeb E Halaby) who bumped the   order of 747s from Trippe’s original 25 up to 33 aircrafts [Crittenden, loc.cit.].

Other developments in the world added to the company’s woes. The spate of terrorist incidents involving Pan Am, culminating in the 1988 Lockerbie tragedy, damaged the company’s reputation and precipitated a decline in travel numbers [Folger, loc.cit.].

Deregulation

Another setback for Pan Am came in the late 1970s with industry deregulation. The legislation of course brought more competition for Pan Am into the game, but this time coming from the big international airline players. Deregulation also meant that Pan Am could now at last enter the American domestic market, and it acquired National Airlines which unfortunately failed at a time Pan Am was in need of a financial “pick-me-up” [Smith, loc.cit.].

When the end came for Pan Am, it came fairly abruptly – in 1991. Pan Am offices everywhere simply closed their doors, virtually overnight. Rising costs of operation, falling market share, a trough in passenger numbers (a further blow in this respect was brought on by the 1990 Gulf War which led to a fall-off in international travellers) [Folger, loc.cit.].  There was a failure to make preparations  for a smooth transition for Pan Am after the head’s departure. Trippe, having been so dominant and instrumental in the company’s success over four decades, was negligent in not planning for a long-term successor to himself [Byrne, loc.cit.]. This hurt Pan Am during the rocky days ahead when it was in desperate need of clear-headed, astute leadership.

Footnote: in the 1920s and 30s Juan Trippe was one of a handful of great US airline pioneers – the elite list also included CR Smith (American Airlines), WA Paterson (United Airlines), Eddie Rickenbacker (Eastern Airlines) and Collett E Woolman (Delta Airlines).

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PostScript: Pan Am’s broader role

Under Trippe, Pan Am’s planes could be called upon when required to provide service outside it’s core commercial role. This happened in war, both hot and cold (eg, active role of Pan Am Clippers in WWII; humanitarian trips during the 1948-49 Berlin evacuation; collecting “refugees from communism” in Cuba during the early years of the Castro regime). Trippe also came to the rescue of his fellow “captain of industry” Henry Ford in 1931, by flying the Brazilian military into the remote Amazon to put down a worker revolt in the Fordlândia rubber plantation.

 

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✲ in addition to a purely business opportunity, Trippe’s focus on this region was to help forestall the establishment of a German (and possibly also a French) airline service to the Panama Canal (in which the US held a strategic interest),  [Sean Munger, op.cit.]

❂ by the 1970s the Pan Am publicity arm was able to boast that it was “the World’s Most Experienced Airline”

✥ often taking him to inassessible places in South and Meso-America where Trippe’s workers would follow, having the arduous job of hacking out landing strips from the dense jungle [Smith, loc.cit.]

✮ in very quick time BOAC, QANTAS, Air France and Lufthansa, among others, rushed to embrace 707s. In 1959 the Douglas company debuted its DC-8, virtually a copy of the 707 [Stadiem, loc.cit.]

✢ in the early years Trippe had even helped build airports in the jungles of Latin America to fit in with the new air routes planned for Pan Am

the hotel chain was sold to an English conglomerate, Grand Metropolitan, after Trippe’s death in 1981

✧ Pan Am’s role at that time has been described as the US’ “unofficial flag carrier”, [George C Larson, ‘Moments & Milestones: Birth of the Clippers’,  Air & Space Smithsonian, Nov 2010, www.airspacemag.com]

⊡ skillfully Trippe played the big manufacturers (Boeing, Douglas and Lockheed) off against each other, manipulating them into commiting to an even larger jet before they were ready to build it! [Smith, loc.cit.]