Eastern Airlines Facing Bankruptcy
In 1986, Eastern Airlines was in desparate trouble. The fourth quarter of 1985 had shown a $67.4 million loss, and financially experts had told Frank Borman, president and chief executive officer, that the airline had three choices: 1) a 20 percent pay cut for all union and noncontract employees. 2) Filing for Chapter 11 (bankruptcy) or 3) Selling the airline. On February 23, 1986, Eastern's board of directors met to decide the fate of the company.
Frank Borman, quickly left his home in Coral Gables to Building 16 at Miami International Airport that Sunday evening, to discuss plans on saving the airlines. The board of directors had recessed for dinner following afternoon session and was scheduled to convene at 7:30 p.m. At the earlier meeting, Wayne Yeoman, senior vice president for finance, had spent most of the time outlining the details of Texas Air's offer to buy Eastern. Frank
Lorenzo and Frank Borman had been talking since December originally about consolidating the computerized reservation systems, then , as
Eastern's problems deepen, about a possible sale.
As Frank entered his office, he found his his loyal excutive assistant;
Wayne Yeoman; and Dick Magurno, Eastern's senior vice president for legal affairs. For about 20 minutes the three discussed the fourthcoming meeting and the prospects for saving the airline. Negotiations were going to come around for ALPA and TWU but no break from the IAM. The IAM would not budge since Charlie Byran, head of the machinist's 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 attached to the buying of the company. More talk and hours dragged on. Finally word got out that ALPA was nearing an agreement. The meeting recessed for an hour.
During the recess Frank needed to get Charlie's surport on the 20 percent pay cut, otherwise the company was going to sold. He told Charlie to come up to his office. Frank told Charlie, " we've been at this since 83' and you have to recognize it can't go on. I have every reason to believe that the pilots and flight attendants are going to give us what we need. I know it's more difficult for you because your contract is not open. But I know you have a sense of history. We have a very good opportunity to cure this airline, and if you just understand this, in the long run you'll come out a stronger, more admirable person. Choose the harder right instead of the easier wrong, and
The story Fahrenheit 451, talked about strength v. frailty, dishonesty, and self improvement. Having strength is not always good, and being weak will not last forever. Everything is not always as it seems. An education can give someone a higher curve above others. Ignorance is bliss, but intelligence is a
and gain strength with all experiences that you go through. This is evident when Ulti...
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Several large scale, interrelated conditions have affected the airline industry over the past several years in such a manner that every carrier has had to respond in order to remain viable and competitive.
The stewardess then directed me towards the back, away from the cockpit. I looked at my ticket and at what seat I'd be sitting in. I had to duck in and around people putting their luggage into the upper compartments and look for my number on the back of my seat that matched my ticket stamp. As I walked past one of the windows, I glanced out and saw the right wing. It somehow gave me reassurance that I'd be fine and I'd soon be having the time of my life. "I'll soon be in the air."
Flying thousands of feet up in the sky is a dream of many young children, but very few actually end up as a pilot when they grow up. Commercial airline pilots will always be needed, but many people do not even think about choosing this as a career. Pilots have extremely important jobs. They must fly people place to place with no problems while at the controls of thousands of pounds of metal and flammable fuel, not to mention the many passengers. A pilot’s job is very risky, but it is also very rewarding.
This is the number one fundamental life precept that you must understand, accept and be totally faithful to, if you're going to be happy and successful.
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