PAN AM AIRBORN AGAIN AS LONG-HAUL, LOW-FARE LINE

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Former Pan Am World Airways executive Martin Shugrue is bringing back the established carrier brand, scheduled to take off July 4.

Now called Pan Am-The New Airline, it will embark from New York and marry the concepts of low fares with full service on long-haul flights to Los Angeles, San Francisco and Miami.

MORE ROUTES PLANNED

The carrier plans to add Chicago and San Juan, Puerto Rico, within a year.

A $4 million to $5 million spot TV campaign from Weller, O'Sullivan, Zuckerman & Lightcap, New York, is planned to start in June. The agency said it will choose a media-buying agency this week, so media details are incomplete.

"When you get a brand name like this-the best known in air travel-it makes it easy," said Ken Lightcap, a partner at the agency. "Still, you need to distinguish it from the past airline.

"Now, it will lead the charge to low-fare air travel since no one has done it transcontinentally."

LOW FARES ON LONG HAUL

The low-fare concept is now almost exclusively tied to short-haul service and has exploded in recent years with carriers such as Southwest Airlines, ValuJet and other start-ups.

The new airline is spearheading the Pan Am Alliance, a group of small, international carriers that fly to the U.S. and are not already affiliated with domestic airlines.

Mr. Lightcap said 15% of Pan Am's seats for the year are already sold to a half-dozen of those carriers.

The airline will sell first-class seats at coach prices and will discount coach prices 25% to 50%.

Agency Partner George Zuckerman worked with Mr. Shugrue when he lead both Continental Airlines and Eastern Airlines and Mr. Zuckerman worked for N.W. Ayer & Partners and Ogilvy & Mather.

The former Pan American World Airways stopped flying in 1991.

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