Eastern airlines faces bankruptcy
Title: Eastern airlines faces bankruptcy
Category: /Business & Economy
Details: Words: 1242 | Pages: 5 (approximately 235 words/page)
Eastern airlines faces bankruptcy
Category: /Business & Economy
Details: Words: 1242 | Pages: 5 (approximately 235 words/page)
- -
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
showed first 75 words of 1242 total
You are viewing only a small portion of the paper.
Please login or register to access the full copy.
Please login or register to access the full copy.
showed last 75 words of 1242 total
pay decrease. Charlie
went off on a huddle with his lawyers and returned to reject the
proposal.
At 3 a.m. Eastern Airlines sold the company to Texas Air with
a vote to sell was 15 to 4. All four union directors. Byran
included included against the merger.
The major management problem concerned here is that
management was unable to get the IAM union to negotiate proposal
in wage deceases which lead to the selling of the company.