Business Notes Airlines

"We are very sorry to advise you Pan American Airways has suspended operation. All flights are canceled . . . "

In the end, it was as straightforward as that -- a recorded message greeting passengers when they called the Pan American World Airways reservation desk last Wednesday. After 64 years, the aviation pioneer was grounded for good. The airline's five unions had just agreed to $43 million in concessions, but that was not enough. Pan Am was counting on Delta Airlines for an additional $25 million. But Delta, which had come up with $115 million to keep Pan Am flying in recent weeks in exchange for 45% of the company, refused to pay any more. Desperate, Pan Am's lawyers and bankers scrambled fruitlessly for fresh cash, reportedly begging TWA chairman Carl Icahn for a relatively paltry $15 million in a late-night call. Fat chance: TWA has said it will seek bankruptcy protection early next year.