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.