United Wins Bidding War for Prime Pan Am Assets : Airlines: The nation’s No. 2 carrier beat out American and Delta for the lucrative Latin American routes and blue chip landing slots.

The remnants of Pan American World Airways were put on the block in a bankruptcy court auction that stretched into late Monday night, and United Airlines emerged the big winner.

United, which had tried this summer to buy Pan Am’s route system in Latin America for almost $200 million, ended up paying $135 million in the auction that was ordered after Pan Am stopped flying last Wednesday.

The auction netted $160 million for Pan Am’s creditors, because Delta Air Lines bid $25 million for a route from New York to Mexico City.

In bidding that had gone on for hours in a packed courtroom, United, the nation’s second-largest air carrier, was able to beat out a bid of $155 million from American, the nation’s largest carrier, and Delta, the No. 3 carrier.

United’s $135-million bid was for a package that included most of Pan Am’s lucrative routes into Latin America, as well as takeoff and landing slots in New York, Washington and Chicago.

American and Delta teamed up hours earlier after United had made an offer of $84 million, which was greater than the combined total of bids made by several other airlines.

U.S. Bankruptcy Judge Cornelius Blackshear said he wanted to preserve as many jobs as possible, and United said it would also offers to up to 1,000 former Pan Am employees during the next two years.

Starved for money after years of losses and heavy debts, Pan Am collapsed last Wednesday, becoming the third big U.S. airline to die in bankruptcy court this year. Eastern Air Lines and Midway Airlines were the other two victims.

Delta’s abrupt decision to withdraw from a critical financing deal for Pan Am was a key part of the final death blow. Delta has denied acting improperly, but Pan Am’s creditors are suing the airline for damages.

Judge Blackshear put what was left of Pan Am on the block Monday, and the auction dragged through the late afternoon and into the evening.