Pan Am Found Racist by Filipino Judge

Pan American World Airways has been found guilty of racial discrimination in bumping a Filipino bank executive off an international flight in favor of an American three years ago in Manila. A Filipino judge recently found in favor of the bank executive, Nestor Kalaw, who sued Pan Am after the incident. The judge has ordered Pan Am to pay Kalaw the equivalent of $128,000.

The judge ruled, in a nine-page decision, that Pan Am was guilty of breach of contract `with attendant bad faith compounded twice over by a racial slur.'

But Pan Am public relations director James Arey said there was no justification for Kalaw's charge. "We are certainly going to appeal a decision like this because we feel our position was not in the wrong," he said.