AIRLINES
From Times Staff and Wire Reports
Delta Loses Bid on Pan Am Lawsuit: The carrier lost its motion for dismissal of key parts of the suit Pan Am Corp. filed after the collapse of Pan American World Airways in 1991. U.S. District Judge Robert Patterson Jr. in New York instead ordered that a trial begin today to determine whether Delta Air Lines breached a contract obligating it to rescue Pan Am from Chapter 11 bankruptcy. Delta had sought to have the breach-of-contract claim dropped. Pan Am and its creditors allege that Delta reneged on a cooperation and financing agreement that could have spared the already bankrupt Pan Am from having to shut down.
