P.M. Briefing : War Forces Cuts at Pan Am
NEW YORK — Pan Am Corp. said today it will cut 4,000 jobs and reduce service to Europe because of the sharp decline in air travel due to Persian Gulf War.
The struggling airline said it is not eliminating any European destinations but reducing the frequency of flights, combining destinations and using smaller airplanes.
“The precipitous decline in demand for transatlantic travel requires painful action,” Pan Am Chairman Thomas G. Plaskett said in a statement.
Pan Am said the total personnel cuts includes employee transfers and reductions related to Pan Am’s sale of its London routes to United Airlines.
The carrier said nearly all of the cuts will occur at its principal subsidiary, Pan American World Airways, which has reduced its transatlantic schedule more than 35%.
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