FOR ESSAYS GURU ONLY

The Rise and Fall of Pan Am Airlines is a narrative concerning a once major industrial leader in air transport industry that finally collapsed under the pressures of financial insufficiency. Founded in 1927, Pan Am began operations as a passenger and mail services entity operating between Florida, Kay West, and Havana, Cuba (Mayo, Nohria, & Rennella, 2009). According to Mayo, Nohria, & Rennella (2009), the company became an industrial leader and was famed for its innovativeness that encompassed widespread uses of jumbo jets, jet aircraft, and computerized reservation systems for its passengers. Pam Am is also recognized as one of the founding members of IATA (International Air Transport Association).

However, despite the fame and many decades of experience and prowess, Pan Am finally filed for bankruptcy in 1991. According to Dallos & Gellene (1991), the company had a combined total of $2.1 billion worth of assets but had a greater gross total of $2.8 billion liabilities. The report provided in the court explained that the financial crises had resulted from three main causes. The first root of the problem was the Gulf crisis that resulted in increased fuel prices (Dallos & Gellene, 1991). The second cause involved economic crisis that negatively affected both the pleasure and business travels, thereby minimizing the number of customers and financial returns. The last cause was a terrorist attack on one of its flights while airborne that led to diminishing passengers and returns.

The purpose of this module is to determine the factors and the context in which the Pan Am rose and the precise circumstances that led to its fall. It will also be evaluating the aviation industry from the perspective of business and entrepreneurship in a bid to establish its uniqueness, or lack of uniqueness, which necessitate the use of business models in ensuring financial and operational sustainability. Therefore, this paper is relevant in identifying threats and providing recommendations to the American Aviation industry that seek to ensure sustainability and continuity of the enterprise.

References Dallos, R. E., & Gellene, D. (1991, January 9). Pan Am, a 50-Year Leader in Aviation, Goes Bankrupt : Economy: Carrier cites fuel costs, downturn and Flight 103 bombing. It says travelers will not be affected. Retrieved from Los Angeles Times Web site: http://articles.latimes.com/1991-01-09/news/mn-7223_1_fuel-costs Mayo, A. J., Nohria, N., & Rennella, M. (2009). Entrepreneurs, Managers, and Leaders: What the Airline Industry Can Teach Us About Leadership. New York: Palgrave Macmillan.