Warning: Use of undefined constant referer - assumed 'referer' (this will throw an Error in a future version of PHP) in /usr/home/essaywo/public_html/essays on line 102

Warning: Use of undefined constant host - assumed 'host' (this will throw an Error in a future version of PHP) in /usr/home/essaywo/public_html/essays on line 105

Warning: Cannot modify header information - headers already sent by (output started at /usr/home/essaywo/public_html/essays:102) in /usr/home/essaywo/public_html/essays on line 106

Warning: Cannot modify header information - headers already sent by (output started at /usr/home/essaywo/public_html/essays:102) in /usr/home/essaywo/public_html/essays on line 109
Eastern Airlines Facing Bankruptcy - Example Papers

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 ...

Want to read the rest of this paper?
Join Essayworld today to view this entire essay
and over 50,000 other term papers

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 ...

Get instant access to over 50,000 essays.
Write better papers. Get better grades.

Already a member? Login

CITE THIS PAGE:

APA
MLA
Chicago
Turabian

Eastern Airlines Facing Bankruptcy. (2003, December 26). Retrieved January 22, 2025, from http://www.essayworld.com/essays/Eastern-Airlines-Facing-Bankruptcy/501

"Eastern Airlines Facing Bankruptcy." Essayworld.com. Essayworld.com, 26 Dec. 2003. Web. 22 Jan. 2025. <http://www.essayworld.com/essays/Eastern-Airlines-Facing-Bankruptcy/501>

"Eastern Airlines Facing Bankruptcy." Essayworld.com. December 26, 2003. Accessed January 22, 2025. http://www.essayworld.com/essays/Eastern-Airlines-Facing-Bankruptcy/501.

JOIN NOW

Join today and get instant access to this and 50,000+ other essays

PAPER DETAILS

Added: 12/26/2003 02:38:07 PM
Category: Economics
Type: Premium Paper
Words: 1250
Pages: 5

Save |