Why did Pan American World Airways collapse?

Pan American World Airways was indeed an 'American dream' with having the best connectivity around the world but what made it file for bankruptcy in 1991? Read on below!

1. Petrol crisis

With Pan am being the launch customer of the 707 and 747, In 1973 Pan Am found itself in deep trouble after a high rise in petrol prices with the airline spending whooping amounts of money to fuel up a 747 which was going to be half empty because of low passenger demand.

2. Inability to run domestic routes in USA itself.

Even after taking over some domestic airlines in USA, The airline was never able to fly profitable routes within USA.

3. Distrust from common man and lawsuits.

On 21st December 1988 Pan Am flight 103 a Boeing 747, was flying from Frankfurt to Detroit via London and New York. Whilst on London-New York leg the flight was blown to pieces due to a bomb killing all on board as well as people in Lockerbie (where it crashed) the causalities where way more as the jet was full of fuel and full of passengers as they were returning to their homes to celebrate Christmas. After this Pan Am became the 737 MAX (just an analogy) of that time also due to sudden hike in fuel prices, lack of passengers as they didn't trust the airline, the airline just could not make profit!

As well as they also received law suits accounting to a whopping $300 million and fine from the FAA (Federal Aviation Administration) because the security has been compromised.

Eventually in 1991 when Pan Am lost a whopping $3 million per day (as claimed by Delta Airlines) on 4th December Pan American World Airways filed for bankruptcy.

End of an Era. (October 19 1927- December 4 1991)

Fun facts

It was America's first international airline.

It promised people that it'll fly them to the Moon!

What do you think? If you had a chance would you ever fly the iconic airline which ones called itself "The most experienced airline" ?

Agree/Disagree from any of my points? feel free to let me know in the comments or by sending me an email.

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Image credit- Panam.org