Pan American World Airways has edged closer to reviving its scheduled services following bankruptcy court approval for a plan to shift control of the ill-fated low-cost start-up to a US railway company.
The deal would see Guilford Transportation, which operates the largest regional rail system in the north-eastern USA, acquire two Boeing 727-200s and a 737-200 for $24.5 million.
That would allow Pan Am to pay off its major creditor, Nations Bank, which it owes $20.5 million. Pan Am ticketholders will also receive small refunds.
The original Pan Am ceased operations in 1991 but was revived in 1996 and bought Carnival Air the following year before foundering again this year.
It halted scheduled services in February but continues charter flights with a skeleton staff of 130, down from 1,400.
Source: Flight International
