The carrier would also keep its Latin American routes, which have been profitable.

We went into this deal with the full idea that the Latin American routes were a very valuable property.

Latin routes account for 16 percent of Pan Am's revenue and are important to its survival.

Eastern said it would operate the Latin American routes for several months, until the buyer was ready to begin service.

Other reductions will be made when American takes over the Latin American routes on July 1.

He cited the Latin American routes, which Eastern acquired in 1982 and have been kept as an independent subsidiary.

Air Comet took over the Latin American routes, but has now ceased operations as well.

Pan Am's Latin American routes are a bright spot, earning $10 million last year.

The carrier is also trying to buy some of the Latin American routes owned by Eastern Airlines.

During labor negotiations last year, Pan Am threatened to sell its Latin American routes.