More than 15 years after it flew its last flight, Pan Am World Airways Inc. might soon finally be put to rest. Pan Am, once the most revered name in aviation, fell into bankruptcy protection in January 1991, a victim of a slumping economy and declining air traffic in the aftermath of the 1988 terrorist bombing of its Flight 103 over Lockerbie, Scotland. The airline ceased operations in December of that year and began liquidation proceedings.
After the bombing Pan Am sought damages from the Libyan government, whom it blamed for the attack, as well as Libya's national airline and two agents. Those civil actions were put on hold while Scottish authorities pursued criminal charges, which resulted in a conviction in 2004.
In the years since its filing Pan Am has wound down most of its operations, but the company's case has remained open pending its dispute with Libya. It finally negotiated a settlement with the north African nation, itself eager to mend relations with the West, in which Libya agreed to pay Pan Am $30 million.
The proceeds of that settlement could provide an unexpected windfall for Pan Am's workers. The airline said in a statement that by year's end it plans to distribute the settlement funds to administrative creditors, including 15,000 former employees.—Lou Whiteman
See AP story via Houston Chronicle
See PanAmAir.org
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