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The immediate cause of Seawell's trouble was buying National Airlines, which Pan Am obtained in 1980 for $394 million. The deal climaxed a longtime company effort to gain domestic routes to feed and complement its international runs. But after 18 months, Pan Am still has not resolved labor questions between itself and National, let alone taken advantage of whatever moneymaking opportunities exist along what were National's routes. Sloppy ground and air service on Pan Am domestic flights have also tarnished its once shining reputation. Moreover, National's employees have not learned to think globally. Says one Pan Am insider: "When a National person was asked for a reservation to Melbourne, he assumed it was Melbourne, Fla."
Airline analysts concede that Sea-well's troubles were largely due to the industry's general woes, but say that he compounded the unfavorable odds by poor judgment and an aloof management style. Said one Pan Am source: "He tried to run the company like a military operation." Seawell saw the path to glory in such risky ventures as rushing to make Pan Am the first U.S. airline to begin scheduled flights to Communist China.
Says one industry source: "If you took a hard pencil to that route, you'd say, 'No way.' " In a first step back from that policy, Pan Am this week is expected to announce a drastic reduction in many of its unprofitable routes.