CARNIVAL AIRLINES has agreed to merge with start-up carrier Pan American World Airways, and to operate under the Pan Am name.
While negotiations continue, Pan Am will pursue plans to gain its own operator's certificate and to launch low-fare services between Miami, New York and Los Angeles. When the merger is complete, the airlines will combine operations.
Miami-based Carnival operates 26 aircraft on predominantly scheduled services to the North Eastern USA, California and the Caribbean. The profitable, privately held, airline - linked to the Carnival cruise line- has been up for sale for some time. Under the deal, principal shareholder Mickey Arison will become one of the largest stakeholders in Pan Am.
Ex-Pan Am chief, operating officer, Martin Shugrue is behind the plan to relaunch the airline (Flight International, 7-13 February, P9) with three leased Airbus A300s. Carnival's attractions include its similar routes and fleet (it operates eight A300s) says Pan Am, which will pay cash assume debt and offer stock to Carnival shareholders under the deal.
Pan Am has already announced global marketing alliances with Cayman Airways, Dominica's APA International, Egyptair, Icelandair, Royal Jordanian, Mexico's TAESA Airlines, Air Ukraine and Venezuela's Viasa.
Source: Flight International
