Pan Am Begins Shutdown As Strike Grounds Planes

Pan American Airways today began closing down its offices throughout the world, including Honolulu as a Transport Workers Union strike grounded its big air fleet.

Only skeleton staffs remained on duty.

Juan T. Trippe, board chairman of Pan American, announced this action after union negotiators rejected the company’s final offer early this morning.

However, negotiations were reopened in Washington, D.C., at 6 a.m. Hawaii time with the aid of Federal mediators.

Trippe said Pan Am’s final offer wold have increased pay and benefits by more than 5 per cent the first year and 10 per cent the second for flight pursers, stewards and stewardesses.

The resultant pay and benefits would have been the highest in the industry, he said.

In addition to the 12,000 union members, the strike will idle 8,000 other Pan American workers who have been suspended without pay, “effectively immediately,” until a settlement is reached, he said.

This includes more than 300 Pan Am employees in Honolulu who are not on strike.

Sales offices will remain open with skeleton staffs to help passengers arrange alternate accommodations.

The strike, which started here at 9 last night, stranded about 350 passengers, who were taken to the Hilton Hawaiian Village at the airline’s expense. Other passengers were notified by telephone that their flights were cancelled.

United Air Lines, the only other domestic airline that serves the California gateway cities, planned two extra flights tonight to move some of Pan American’s grounded passengers.

The first extra flight will leave for Los Angeles at 2 a.m. tomorrow.

A second extra section will fly to San Francisco at about 2:30 a.m. tomorrow.

United was working closely with Pan American reservations officials to set up flights, find crews and get out as many passengers as possible.

Both United flights to the West Coast were filled to capacity this morning, and all others today were expected to be, a United official said.

Northwest Airlines, which served the Pacific northwest gateway cities, has not scheduled any extra flights so far, an official said.