Customer bookings accelerate 12.8% to 2,197,000, but cargo is down by 12.6% to 32.58 million FTKs. Revenues rise 7.8% to $263.51 million, but expenses jump 18.4% to $281.01 million. The previous years gains are turned into losses: $17.49 million (operating) and $19.77 million (net).
The employee population is slashed 15.6% in 1997 to 1,350. Executive-class service replaces first-class service in January. The new product is marketed primarily to corporate passengers. In late winter, merger discussions with Shugrue of Pan American World Airways (2) resume as Shugrue once again seeks to accelerate his carrier’s expansion plans.
After marathon negotiations on March 19-20, Shugrue is able to announce on March 21 that the new Pan Am will acquire CAL. Carnival’s majority owner Mickey Arison will invest $30 million in the combined company, thus gaining 42% shareholding. Chairman/CEO Wertheim resigns on April 17 and is succeeded by President Vecci.
On May 22, the company’s FunPass becomes a partner in Pan Am’s WorldPass frequent flyer program. Carnival flight attendants vote to join the Association of Flight Attendants union on May 29. The next day, the two merging carriers agree to code-share flights as of May 30.
Consolidation and integration of the two companies occupies the remainder of the year. On July 8, Chairman Vecci resigns to accept a senior executive position with Northwest Airlines; he is succeeded by former Eastern Air Lines Vice President Lee Steele.
On July 18, Carnival secures $25 million in revolving credit to assist with the costs of the merger. The funds are guaranteed by Pan American World Airways (2) and Carnival’s principal shareholder, Mickey Arison.
On September 4, the company inaugurates direct B-737-4Q8 services from MacArthur Airport in Islip, New York, and Southwest Florida International Airport at Ft. Myers via Orlando.
In early September, the DOT grants an exception to PAA-2 to complete its stock acquisition of Carnival even before the government completes its review of the merger of the two airlines.
The takeover by PAA-2 is officially completed on September 26, the first anniversary of the new Pan Am. The Articles of Merger are filed with the Florida Secretary of State. Meanwhile, Carnival Corporation Vice Chairman/Chief Financial Officer Howard Frank is elected to the board of directors of Pan Am Corporation. Plans are announced for the launch of a joint World Wide Web site later in the year.
Revenue figures are provided for Carnival’s last three independent quarters. These show operating income down 1.3% to $203.94 million, while expenses are up a huge 33.7% to $283.67 million. The operating loss reaches $79.73 million and a net $82.35-million net loss is suffered.
By fall, the combined workforce has been reduced to the figure given above. Having encountered financial reversals, Pan Am in October grounds its long-haul Airbus A300B4 fleet and halts flights from New York to Los Angles. Hereafter, it concentrates on operating its merged Pan Am and Carnival network of routes from the Northeast to Florida and the Caribbean.
With completion of the merger of the two carriers’ reservations systems on November 16, both airlines operate all flights under the well-known “PA” code. Carnival, however, retains its DOT and FAA certificates.
Boardings through integration decline 5.1% to 2,085,000.
CAROLINA AIR TRANSPORT: United States (1933-1935). Joseph Musleh and George M. Keightly establish CAT at Greenville, South Carolina, in the spring of 1933 to offer all-cargo services to southeastern destinations. Keightly of Jacksonville, Florida, supplies the Ford Tri-Motor 4-AT-50 that he had acquired from the Curtiss Flying Service of Boston (New England) at the close of the previous year.
The Ford 4-AT-51 is purchased from Curtiss Flying Service of New York on April 7 and undergoes modification, including the fitting of a large cargo door built by the plane’s manufacturer. With Musleh at the controls, the 4-AT-50 commences company revenue flights on May 15. When the aircraft enters service on November 10, it is dedicated to the transport of a race horse on a special charter that continues until May 15, 1934.
CAT maintains services for two more years. The 4-AT-50 is lost in a landing accident at Asheville, North Carolina, on June 15, 1935, leaving the 4-AT-51 to soldier on until it is sold to two Pittsburgh brothers on July 1, 1936.
CARPATAIR (CARPATHIAN AIR TRANSPORT): 7 Rarier Lo-rand 40, Budapest, 1185, Hungary; Phone 373 (0422) 529 365; Fax 373 (0422) 529 367; Code KC; Year Founded 1999. Carpatair is set up at Chisinau in the spring of 1999 as the regional affiliate of Moldavian Airlines. Scheduled flights linking Moldavia and Budapest are operated with a Yakovlev Yak-40 wet-leased from the parent, A new hub is later established at Timisoara, Romania.
As Crossair, Ltd. continues to eliminate its SAAB 340A fleet, arrangements are completed by Carpatair in the spring of 2000 for the dry-lease of two of the Swedish-built turboprops. With the arrival of the second Swiss aircraft in June, new regional services are launched from Timisoara to the Italian cities of Bergamo, Verona, Treviso, Trieste, Bologna, and Firenze.
World History
