This concept remains the cornerstone of air travel today, but an update was made in the wake of 1978’s Airline Deregulation Act. This legislation opened the field for other airlines to gain a foothold, and so Pan Am’s finances took a tremendous hit, according to Simple Flying. The effect was exacerbated by the reduction in passenger numbers that was a result of the rising inaccessibility, and so cost, of fuel. As in any industry, being forced to increase costs of goods and services can be fatal as it drives customers towards alternatives. When said alternatives were rising in prominence, as they were, it resulted in something of a perfect storm for Pan Am.
Early in the 1980s, measures to rectify the financial situation, involving making 5,000 members of staff redundant and ceasing services that were not profitable. “The Delhi Hong Kong sector has been unprofitable for a number of years largely because of competition and lack of traffic,” the company stated to Flight Global. It seemed that Pan Am could not obtain more assets or release burdensome ones.
Then the tragic Lockerbie bombing of December 1988 proved to be a devastating blow to the company.
Stay connected with us on social media platform for instant update click here to join our Twitter, & Facebook
We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.
For all the latest gaming News Click Here
For the latest news and updates, follow us on Google News.
Denial of responsibility! NewsAzi is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
