When Pan Am launched its Eastern-corridor shuttle service five months ago at New York City's La Guardia Airport, the renovated Marine Air Terminal was festooned with balloons and filled with champagne-sipping customers and curious onlookers. Lately, though, Pan Am's handsome art deco terminal has been far too quiet and not at all festive. Although the carrier poured $4 million into an aggressive advertising campaign aimed at challenging rival Eastern Airlines, which has dominated flights on the Washington-New York- Boston axis for 25 years, Pan Am has been struggling to get its shuttle service off the ground.
Only about 30% of passengers...