Investors are betting defunct Pan Am can be reborn as a domestic carrier offering connections to foreign airlines and cut-rate fares, entrepreneurs behind the effort said Thursday.
Martin Shugrue, a former Pan Am executive perhaps best known for presiding over the shutdown of Eastern Airlines, teamed with a Miami real estate developer who bought Pan Am's name in 1993.The two issued an announcement Thursday promising more details at a press conference next week.
Shugrue's attempt to restart Eastern in 1994 failed for a lack of money. This time he's joined Charles Cobb, who paid $1.3 million for Pan Am's name in a Bankruptcy Court auction. The two are reportedly close to raising $30 million to fund the new airline.
Cobb has invested "several million" dollars in the new airline and said Thursday he would be its chairman with Shugrue running it as president and chief executive.
With a name known around the world, the new Pan Am is expected to look for business flying between major U.S. international airports, ferrying passengers to foreign airlines.
U.S. airlines already handle much of that traffic, but foreign carriers might be more eager to point their passengers toward a partner rather than a competitor like American or United.
Cobb said he has been trying to stitch together a network of foreign airlines to share marketing efforts such as frequent flier programs and airport lounges under the Pan Am name.
"One thing that was missing was domestic feed for the carriers," Cobb said.
The airline plans to offer international connections and fares about half the price of existing airlines. The operation still needs to get federal government approval.
Initially it would serve Miami, New York, Los Angeles, Chicago and San Francisco - a far cry from the days when Pan Am pioneered international air travel.
The Pan Am name is often considered as recognizable as Coca-Cola, and even years out of the public eye haven't erased the blue globe logo.
Next week's news conference is to be held in the MetLife Building, a Manhattan skyscraper many New Yorkers still call it by its former name - the Pan Am Building.