PAN AM <PN> TO CUT AIRLINE MANAGEMENT COSTS
Pan Am Corp said its Pan American World
Airways unit will reduce management costs by 20 pct, or about
80 mln dlrs, through job cuts, salary freezes and other
measures.
    Pan Am also said it has asked its labor unions to help
lower costs by an additional 180 mln dlrs.
    The airline said it will eliminate 464 managment positions
and freeze all management salaries, a move that will save 30
mln dlrs a year.
    An additional 50 mln dlrs of expenses under management's
control will also be cut, it said without offering details.
    Pan Am said it is seeking a 20 pct pay cut from its unions.
    Pan Am vice chairman Martin R. Shugrue said in a statement,
"Management is leading the way, but with 40 pct of our
operating expenses represented by labor costs, we must have the
cooperation of our labor unions if we are to make additional
improvements to our 1987 operating plan."
    Shugrue asked Pan Am's unions to begin negotiations on the
pay cuts immediately.
 Reuter
