Pan Am Alters Plans in Wake of Carnival Air Buy

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NEW YORK -- Pan Am, which started service just over a year ago, is shifting its short-term goals in the wake of its acquisition of Carnival Air Lines.

The carrier's original game plan called for a fleet of Airbuses that would transport passengers arriving at New York on small and midsize European airlines to other major U.S. cities, including Miami, Los Angeles and San Francisco.

But Pan Am now is "phasing down" its Airbus fleet in favor of the 727s and 737s it acquired along with Carnival Air. It also has dropped out of the New York-Los Angeles market, where it met a formidable challenge from American Airlines, and it has shelved plans for a New York-San Francisco route.

Instead, it is focusing on north-south routes, as did Carnival, carrying passengers in the Northeast to Florida, Puerto Rico, the Bahamas and the Dominican Republic. Without its transcon routes, alliances with European carriers are less viable, and Pan Am appears to be focusing on building relationships in Latin America.

Donal McSullivan, senior vice president of sales, said Pan Am has 79 interline agreements ranging from basic through-baggage pacts to code-sharing deals and plans to seek at least 20 more. Its latest deal is with Saeta, an Ecuadoran line, that calls for Pan Am's Miami-New York flights to carry the EH code. It also has a code-sharing deal with AeroPeru.

All in all, the new Pan Am seems to be taking on the flavor of Eastern Airlines rather than that of its namesake. On Dec. 16, it will add Boston to its system with five daily flights to New York (Kennedy), a market served largely by regional lines, with onward service to Fort Lauderdale and Fort Myers, Fla., and San Juan, Puerto Rico.

McSullivan said the carrier was eying expansion in the Caribbean, another American Airlines stronghold. He noted that last February's minutes-long strike by American's pilots, which would have devastated the islands had it lasted longer, was a "wake-up call" for tourist boards in the region.

Those agencies were supportive of Pan Am's aspirations in the Caribbean, he said. Meanwhile, Carnival's flights ceased to carry the KW code on Nov. 16.

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