P.M. BRIEFING : Its Cash Position Halved, Pan Am May Sell Its Three-City Shuttle
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NEW YORK — Pan Am Corp., which earlier this week disclosed that its cash position had been halved in the first quarter, today said it may sell the Pan Am Shuttle linking Washington, New York and Boston to provide additional liquidity for its operations.
“This transaction along with additional sale and lease-back transactions . . . is being contemplated . . . to provide additional liquidity to support the operations of (the firm’s) principal subsidiary, Pan American World Airways,” Pan Am said in a statement.
The New York-based airline company, which has lost money each year since 1986, has in recent years sold off a string of assets including its headquarters building and its Pacific division to support its heavy operational losses.
The Pan Am Shuttle operates hourly service and has one direct competitor, the Trump Shuttle. Last June, New York investor Donald Trump bought the Trump Shuttle from Eastern Airlines for $365 million.
The announcement of a possible sale of Pan Am’s shuttle did not surprise airline analysts, who noted that the parent has seen its cash position deteriorate in recent months.
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