Eastern airlines faces bankruptcy

- - Eastern Airlines Facing Bankruptcy In 1986, Eastern Airlines was in desparate trouble. The fourth quarter of 1985 had shown a $67.4 cardinal loss, and financi on the wholey experts had told bluff Borman, president and chief executive officer, that the airline had three choices: 1) a 20 percent give in cut for all union and noncontract employees. 2) Filing for Chapter 11 (bankruptcy) or 3) interchange the airline. On February 23, 1986, Easterns bestride of directors met to decide the fate of the company. Frank Borman, quickly odd his home in Coral Gables to Building 16 at Miami International Airport that sunlight evening, to discuss plans on economic system the airlines. The be on of directors had recessed for dinner following good afternoon session and was scheduled to convene at 7:30 p.m. At the earlier meeting, Wayne Yeoman, senior vice president for finance, had fatigued most of the time extinctlin ing the inside information of Texas Airs offer to secure Eastern. Frank Lorenzo and Frank Borman had been talking since December originally about(predicate) consolidating the computerized reserve systems, indeed , as Easterns problems deepen, about a possible sale. As Frank entered his office, he gear up his his loyal excutive coadjutor; Wayne Yeoman; and Dick Magurno, Easterns senior vice president for sub judice affairs.

For about 20 minutes the three discussed the fourthcoming meeting and the prospects for salve the airline. Negotiations were going to come sl ightly for ALPA and TWU but no assume f! rom the IAM. The IAM would not budge since Charlie Byran, top of the machinists union, stood firm against a 20 percent wage cut. At 7:30 the board meeting began with the discussion of the Texas Air offer, concentrating on some of the conditions committed to the depress of the company. More talk and hours dragged on. Finally word got out that ALPA was nearing... If you want to get a full essay, order it on our website: OrderCustomPaper.com

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