U.S. Airlines and Eastern Tribulations during 1988 Aerospace
U.S. Airlines and Eastern Tribulations during 1988 Aerospace was one of industrial disputes. Not every airline saw a rainbow on its horizon. Eastern Air Lines—a division of the Texas Air Corporation, run by Frank Lorenzo—suffered through another year of labor troubles. There was concern that the animosity expressed by management and labor might slowly erode the quality of the company’s operations, leading to a loss of patronage. As revenues continued to decline, Eastern took a drastic step, laying off some 4,000 employees and slashing its operations in several cities where the airline had historically been a presence. Such was the case in Kansas City, where Eastern radical retreat gave new life to Braniff, itself still struggling to return to prominence from bankruptcy several years before.
Meanwhile, in the spring the U.S. Department of Transportation investigated Texas Air’s financial health and management and conducted safety inspections of Eastern planes, as well as those of Lorenzo’s flagship company, Continental which had become a major competitor (ranked number four in passenger miles after United, American, and Delta). Continental, like Eastern, was operating at a deficit. The Transportation Department found that Texas Air’s management was competent and that both Eastern and Continental were being operated safely, although safety at Eastern could be threatened by its labor-management battle.
In October real estate developer Donald Trump announced that he would buy the Eastern shuttle, which flies between Boston, New York, and Washington, D.C., for $365 million. Barring a successful court challenge by labor, the deal was scheduled to be completed in mid-December. U.S. Airlines and Eastern Tribulations during 1988 Aerospace Indeed led to its final purchase after the United States department of Transport investigated its financial health.
- New Technology, New Airports for Aerospace in 1988 (egrejeen.wordpress.com)