Editing Eastern Air Lines (section)

===Turmoil===
[[File:Boeing 727-25 N8125N EAL JFK 17.09.70 edited-3.jpg|thumb|An Eastern [[Boeing 727|Boeing 727-25]] outside the terminal at [[John F Kennedy Airport]] in 1970]]
[[File:Douglas DC-8-21 N8608 EAL MIA 19.10.70 edited-3.jpg|thumb|An Eastern [[Douglas DC-8|Douglas DC-8-21]] at [[Miami International Airport]] in 1970]]
[[File:Lockheed L-1011-1 N328EA EAL MIA 18.07.76 edited-3.jpg|thumb|Eastern's [[Lockheed L-1011 TriStar|Lockheed TriStar]] ''Whisperliner'' landing at [[Miami International Airport|Miami]] in 1976]]
[[File:Douglas DC-9-51 N406EA EAL DCA 26.06.82 edited-2.jpg|thumb|A 1982 photo of a [[McDonnell Douglas DC-9]], a stretched DC-9-51 model, which served Eastern from 1965 until the airline's closure]]
[[File:Eastern Air Lines Airbus A300 at St Maarten December 1986.jpg|thumb|A Eastern [[Airbus A300]] at [[Princess Juliana International Airport|Saint Maarten]] in 1986]]
In 1975, Eastern was headquartered at [[Rockefeller Plaza|10 Rockefeller Plaza]] in [[Manhattan]].<ref>''World Airline Directory''. Flight International. March 20, 1975. "[http://www.flightglobal.com/pdfarchive/view/1975/1975%20-%200548.html 484]. Retrieved on October 3, 2009.</ref> After Frank Borman became president of Eastern Air Lines in late 1975, he moved Eastern's headquarters from [[Rockefeller Center]] to [[Miami-Dade County, Florida]].<ref name=mmbgeog/><ref>Bernstein, Aaron. ''Grounded: Frank Lorenzo and the Destruction of Eastern Airlines''. Beard Books, 1999. p. 22. [https://books.google.com/books?id=k4Y94lYVuqkC&dq=Eastern+Airlines+headquarters+%22Rockefeller+Center%22&pg=PA22 22]. Retrieved on August 28, 2009.</ref>

Eastern's massive [[Hartsfield–Jackson Atlanta International Airport|Atlanta]] hub was in direct competition with [[Delta Air Lines]], where the two carriers competed heavily to neither's benefit. Delta's less-unionized work force and slowly expanding international route network helped lead it through the turbulent period following [[Airline Deregulation Act|deregulation]] in 1978.

In 1980, a Caribbean hub was started at [[Luis Muñoz Marín International Airport]] (known at the time as "Isla Verde International Airport") near [[San Juan, Puerto Rico]]. In 1982, Eastern acquired [[Braniff International Airways|Braniff]]'s South American route network. By 1985, Eastern was the largest ATA airline in terms of passengers<ref>[https://airlines.org/wp-content/uploads/2014/08/1986.pdf ''1986 Annual Report of the U.S. Scheduled Airline Industry'' (PDF)]. Air Transport Association. June 1986. p.&nbsp;11.</ref> and operated in 26 countries on three continents.

During this era, Eastern's fleet was split between their "silver-colored hockey stick" livery (the lack of paint reduced weight by 100 pounds) and their "white-colored hockey stick" livery (on its [[Airbus]]-manufactured planes, which required paint to cover the aircraft's composite skin panels).

In 1983, Eastern became the launch customer of [[Boeing]]'s [[Boeing 757|757]], which was ordered in 1978. Borman felt that its low cost of operation would make it an invaluable asset to the airline in the years to come. Lower oil prices failed to materialize and the debt created by this purchase coupled with the Airbus A300 purchases in 1977 contributed to the February 1986 sale to [[Frank Lorenzo]]'s [[Texas Air]]. At that time, Eastern was paying over $700,000 in interest each day before they sold a ticket, fueled, or boarded a single aircraft.

Starting about 1985, Eastern offered "Moonlight Specials", with passenger seats on overnight flights scheduled for cargo from thirty freight companies. The flights, which operated between midnight and 7 am, served 18 cities in the United States connecting mainly to Houston (IAH). Eric Schmitt of ''[[The New York Times]]'' said that the services were "a hybrid of late-night, red-eye flights and the barebones [[People Express Airlines (1980s)|People Express]] approach to service." The holds of the aircraft were reserved for cargo such as express mail, machine tool parts, and textiles. Because of this, the airline allowed each passenger to take up to two carry-on bags. The airline charged $10 for each checked bag, which was shipped standby. The airline charged between 50 cents and $3 for beverages and snacks. Bunny Duck, an Eastern flight attendant quoted in ''The New York Times'', said that the passengers on the special flights were "a cross section of families, college kids, illegal aliens and weirdos from L.A.".<ref>Schmitt, Eric. "[https://www.nytimes.com/1987/03/09/nyregion/overnight-flight-bargain-for-spontaneous-travelers.html?pagewanted=1 OVERNIGHT FLIGHT - BARGAIN FOR SPONTANEOUS FLYERS]". ''[[The New York Times]]'', 9 March 1987. Retrieved on 2010-04-30.</ref>

Eastern began losing money as it faced competition from [[low cost airline|no-frills]] airlines, such as [[People Express Airlines (1980s)|People Express]], which offered lower fares. In an attempt to differentiate itself from its bargain competitors, Eastern began a marketing campaign stressing its quality of service and its rank of highly experienced pilots.

==== Sale to Texas Air ====
Unable to keep up, Borman agreed to the sale of the airline in 1986 to [[Texas Air]], led by [[Frank Lorenzo]], which had already purchased [[Continental Airlines]] and lost a bidding war for TWA to [[Carl Icahn]].

In February 1987, the [[Federal Aviation Administration]] imposed a $9.5 million fine against Eastern Air Lines for safety violations,<ref>"[http://www.encyclopedia.com/doc/1P2-7998449.html EASTERN WILL PAY $9.5M FINE]". ''[[Associated Press]]'', Washington D.C., February 11, 1987. Retrieved on March 16, 2010</ref> which was the largest fine assessed against an airline until [[American Airlines]] was fined $24.2 million in 2010.<ref>"[https://www.reuters.com/article/idUSTRE67P3TU20100826 Record $24.2 million fine proposed for American Airlines]". ''[[Reuters]]'', Washington D.C., August 26, 2010. Retrieved on August 26, 2010</ref> Eastern's FAA violations all occurred prior to the acquisition by Texas Air.

In 1988, Phil Bakes, the president of Eastern Air Lines, announced plans to lay off 4,000 employees and eliminate and reduce service to airports in the [[Western United States]]; he said that the airline was going "back to our roots" in the East. At the time, Eastern was the largest corporate employer in the Miami area and remained so after the cuts. John Nordheimer wrote in ''The New York Times'' that Eastern's prominence in the Miami area decreased as the city became a finance and trade center with a diversified local economy, instead of one based largely on [[tourism]].<ref>Nordheimer, John. "[https://www.nytimes.com/1988/07/24/us/cuts-by-eastern-shaking-miami-in-many-ways.html Cuts by Eastern Shaking Miami In Many Ways]". ''[[The New York Times]]''. Sunday July 24, 1988. New York Edition Section 1, Page 14. Retrieved on August 28, 2009.</ref>

====Liquidation====
During Lorenzo's tenure, Eastern was crippled by severe labor unrest that began long before the acquisition. Asked to accept deep cuts in pay and benefits, on March 4, 1989, Lorenzo [[Lockout (industry)|locked out]] Eastern's mechanics and ramp service employees, represented by the [[International Association of Machinists and Aerospace Workers]] (IAM). Concerned that Lorenzo's successful breaking of the IAM would do the same to the pilots' and flight attendants' unions, the pilots represented by [[Air Line Pilots Association, International|Air Line Pilots Association]] (ALPA) and [[flight attendant]]s represented by the [[Transport Workers Union of America|Transport Workers Union]] (TWU) called a sympathy strike, which effectively shut down the airline's domestic operations. Non-contract employees, including airport gate and ticket counter agents and reservation sales agents, could not honor the strike. Due to the lockout and sympathy strike, cancelled flights resulted in the loss of millions of dollars in revenue.<ref>{{Cite web |title=Company Turbulence - Page 4 |url=https://airlinesalary.com/eastern-airlines-files?start=3 |access-date=2024-11-04 |website=airlinesalary.com}}</ref>{{Citation needed|date=August 2009}}

As a result of the strike, a weakened airline structure, high fuel prices, an inability to compete after deregulation and other financial problems, Eastern filed for [[bankruptcy]] protection on March 9,<ref>{{cite book| last=Bernstein| first=Aaron| title=Grounded: Frank Lorenzo and the Destruction of Eastern Airlines| publisher=Simon and Schuster| year=1990| location=New York| page=166| isbn=0-671-69538-X}}</ref> which allowed Eastern to continue operating on a smaller scale. Lorenzo initially sought a sale of the entire airline, and on April 6, Eastern agreed to be acquired by former Major League Baseball commissioner [[Peter Uberroth]] for $464 million. However, the transaction was terminated on April 12 after Lorenzo refused to give temporary control to a trustee. The sale process was then terminated on April 18, and Lorenzo proposed a sale of $1.8 million in assets that would allow the airline to continue operating independently.<ref name=":0">{{Cite journal |last1=Weiss |first1=Lawrence A. |last2=Wruck |first2=Karen H. |date=1996-09-23 |title=Information Problems, Conflicts of Interest and Asset Stripping: Chapter 11's Failure in the Case of Eastern Airlines |url=https://papers.ssrn.com/sol3/papers.cfm?abstract_id=60064 |journal=Harvard Business School Working Paper No. 97-013, And/Or INSEAD Working Paper 96/48/AC|ssrn=60064 }}</ref>

In May 1989, Eastern sold its East Coast shuttle service to real estate mogul [[Donald Trump]] for $365 million. Trump continued operating the service as the [[Trump Shuttle]]. In August, Eastern signed a deal to sell sixteen DC-9 aircraft and gates in Philadelphia, Washington, and New York to [[Midway Airlines (1976–1991)|Midway Airlines]] for $210 million.<ref>{{Cite web |last= |first= |date=1989-08-03 |title=Eastern, Midway Deal Signed: Eastern Airlines signed... |url=https://www.latimes.com/archives/la-xpm-1989-08-03-fi-1012-story.html |access-date=2023-10-15 |website=Los Angeles Times |language=en-US}}</ref> In May 1990, [[American Airlines]] acquired Eastern's Latin American routes and related assets for $471 million.<ref name=":0" />

After several failed attempts at obtaining creditor approval for restructuring plans, Lorenzo lost control of Eastern in April 1990, when former Continental president Martin Shugrue was appointed as trustee to manage Eastern's reorganization. A report prepared by David Shapiro, an examiner appointed by the bankruptcy court overseeing Eastern's bankruptcy filing, concluded that Eastern was shortchanged by Texas Air in numerous transactions between the two. For example, Texas Air bought assets like System One, a computer reservation operation, from Eastern at a price far below market value.<ref>{{cite news |last1=Salpukas |first1=Agis |title=Continental Takes Offer By Investor |url=https://www.nytimes.com/1992/07/10/business/company-news-continental-takes-offer-by-investor.html |access-date=19 March 2021 |work=The New York Times |date=10 July 1992}}</ref> Eastern tried to remain in business in an attempt to correct its cash flow, but to no avail.<ref>{{cite news |title=Eastern looks better with Lorenzo gone |url=https://news.google.com/newspapers?nid=1291&dat=19900420&id=eRdUAAAAIBAJ&pg=5814,1592666 |access-date=September 3, 2012|newspaper=Boca Raton News |date=April 20, 1990}}</ref>

Under bankruptcy, Eastern launched a "100 Days" advertising campaign, in which it promised to "become a little bit better every day". The ads were conceived by advertising agency [[Ogilvy (agency)|Ogilvy & Mather]] in New York, and started being broadcast on June 17, 1990 during the prime-time hours in 33 markets around the United States. The ads featured Martin Shugrue, the airline's court-appointed trustee.<ref>{{Cite web |title=Eastern's unusual ads are getting noticed |url=https://www.tampabay.com/archive/1990/07/15/eastern-s-unusual-ads-are-getting-noticed/ |access-date=2024-10-23 |website=Tampa Bay Times |language=en}}</ref> While the campaign helped the company increase by 73% the number of bookings, it did not stop the company from going bankrupt.<ref>{{Cite news |last=Foltz |first=Kim |date=October 8, 1990 |title=New Eastern Commercials Drop Executive's Star Role |url=https://www.nytimes.com/1990/10/08/business/media-business-advertising-new-eastern-commercials-drop-executive-s-star-role.html |access-date=October 23, 2024 |work=[[The New York times]] |page=D8}}</ref>

Ultimately, Eastern Airlines stopped flying at midnight on Saturday, January 19, 1991. The previous evening, company agents, unaware of the decision, continued to take reservations and told callers that the airline was not closing. Following the announcement, 5,000 of the 18,000 employees immediately lost their jobs. Of the remaining employees, reservation agents were told to report to work at their regular times, while other employees were told not to report to work unless asked to do so.<ref name=nyt-shutting>{{cite news |last1=Salpukas |first1=Agis |title=Eastern Airlines Is Shutting Down And Plans to Liquidate Its Assets |work=[[The New York Times]] |date=January 19, 1991 |url=https://www.nytimes.com/1991/01/19/business/eastern-airlines-is-shutting-down-and-plans-to-liquidate-its-assets.html |access-date=August 28, 2009}}</ref> The Eastern shutdown eliminated many airline industry jobs in the [[Miami]] and [[New York City]] areas.<ref name="PanAmdead">{{cite news |last1=Salpukas |first1=Agis |url=https://www.nytimes.com/1991/12/05/business/its-cash-depleted-pan-am-shuts.html |title=Its Cash Depleted, Pan Am Shuts |work=The New York Times |date=December 5, 1991 |access-date=August 28, 2009}}</ref>

Later that month, [[Delta Air Lines]] acquired Eastern's gates at Atlanta, and [[Northwest Airlines]] acquired Eastern's gates at Washington National.<ref name=":0" />