Pan American World Airways filed for Chapter 11 bankruptcy protection on 26 February and "temporarily" ceased operations while the parent company seeks debtor-in-possession financing. The company is in default on aircraft lease payments of around $4 million and failed to make a $3.3 million security payment to Airline Reporting, which handles travel agency ticket sales and refunds.
While Pan Am's two airline subsidiaries, including the former Carnival Air Lines have entered Chapter 11, the parent has not, and "will continue to seek outside sources of financing, or a merger, to attempt to resuscitate the airline in the near future", it says. Pan Am says that it is in negotiation with possible sources of financing.
Pan Am had previously grounded its two remaining Airbus A300s and laid off employees.
Source: Flight International
