Facebook Twitter

PAN AM SEEKS CASH, MAY SELL ITS PROFITABLE SHUTTLE LINES

SHARE PAN AM SEEKS CASH, MAY SELL ITS PROFITABLE SHUTTLE LINES

Pan Am Corp., in dire financial straits since the December 1988 Lockerbie crash, said Friday it is considering selling its profitable airshuttle service to raise money to support continued operations of its airline.

In a filing with the Securities and Exchange Commission, Pan Am said the shuttle sale, along with other deals including the sale of its German service, is being contemplated in order to provide additional liquidity to support the operations of its principal subsidary, Pan American World Airways.Pan Am said it has "determined to pursue the possible sale of, or other commercial transaction involving, the Pan Am Shuttle."

Pam Am spokeswoman Pamela Hanlon said the shuttle service between Washington, New York and Boston "has been consistently profitable since shortly after its start in October 1986."

Hanlon declined to say how much revenue the shuttle generates. She also declined to say what the asking price is, or what the sale might bring in. "I'm not going to speculate," she said.

The spokeswoman also would not comment on the state of Pam Am's attempts to link up with a larger airline such as Northwest Airlines, other than to say, "We've said publicly we need to link up with a larger airline."

Pan Am has been in trouble for the past year. Analysts say many of its more profitable business travelers avoided the airline after a terrorist bomb exploded in a Dec. 21, 1988 flight over Lockerbie, Scotland, killing all 259 passengers and crew in the crash.

The airline said passengers started to return late last year.

Pan Am stock was unchanged at $2.50 a share in late Friday afternoon trading on the New York Stock Exchange.