The airline deregulation law of 1978 aggravated its position, forcing Eastern into a competitive low-fare environment in which its high cost of operation put the airline at a decided disadvantage. Its all-important Atlanta hub placed it in direct competition with Delta Air Lines, a more profitable company that avoided labor wars and built a far-reaching route system through the acquisition of other carriers.
Eastern was rolling along when the 1980s started, under its new president, former astronaut Frank Borman. In 1980, a Caribbean hub was inaugurated at San Juan (then still named Isla Verde International Airport). In 1982, Eastern acquired the Braniff International 's South American route network. And while this all was going on, Eastern enjoyed splitting their fleet between their "silver colored hockey stick" livery (the lack of paint reduced weight by a hundred pounds) and their "white colored hockey stick" livery (on its Airbus-manufactured planes, whose metalurgy required paint).
In 1983, Eastern became the launch customer of Boeing 's new aircraft, the Boeing 757. It would become an invaluable asset to the airline until its later days. In that same year, Eastern re-introduced services to Ponce, Puerto Rico, using Fairchild Swearinger planes under the name Eastern Metro Express. The Eastern Metro Express operation wasn't limited to Ponce, however, as, under that name, Eastern began services from its San Juan hub to Mayaguez and several other smaller Caribbean communities, from New York's JFK International Airport to several northeastern cities, and from Miami to many cities around the South.
Eastern began losing money as it faced competition from no-frills airlines, such as People Express, which offered drastically reduced fares. In an attempt to differentiate itself from its bargain competitors, Eastern began a marketing campaign stressing its quality of service and its rank of highly experienced pilots. The public, however, just wanted cheap fares. Unable to keep up, in 1986, Borman sold the airline to Frank Lorenzo. Under Lorenzo's tenure, Eastern was crippled by severe labor unrest. Asked to accept deep cuts in benefits, Eastern's machinists striked. Lorenzo sold Eastern's shuttle service to real estate magnate Donald Trump in 1989. The machinists were soon joined on the picket line by the pilots. Due to the strike, flights were cancelled, resulting in lost revenue for the airline. As a result of the strike and other financial problems, Eastern filed for bankruptcy protection on March 9.
The coup de grace for Eastern, it can be said, was the 1990 Gulf War. At a nice profit, Eastern sold its Central and South American route network to American Airlines and its transatlantic route network to Continental Airlines. With the higher oil prices and the public's fear of flying at the time, Eastern's sales kept suffering, and Eastern had their last flight in January 1991, officially shutting down on January 18. Lorenzo had suffered the same luck he suffered as chairman of the board in his previous airline company, Texas International.
Eastern was rolling along when the 1980s started, under its new president, former astronaut Frank Borman. In 1980, a Caribbean hub was inaugurated at San Juan (then still named Isla Verde International Airport). In 1982, Eastern acquired the Braniff International 's South American route network. And while this all was going on, Eastern enjoyed splitting their fleet between their "silver colored hockey stick" livery (the lack of paint reduced weight by a hundred pounds) and their "white colored hockey stick" livery (on its Airbus-manufactured planes, whose metalurgy required paint).
In 1983, Eastern became the launch customer of Boeing 's new aircraft, the Boeing 757. It would become an invaluable asset to the airline until its later days. In that same year, Eastern re-introduced services to Ponce, Puerto Rico, using Fairchild Swearinger planes under the name Eastern Metro Express. The Eastern Metro Express operation wasn't limited to Ponce, however, as, under that name, Eastern began services from its San Juan hub to Mayaguez and several other smaller Caribbean communities, from New York's JFK International Airport to several northeastern cities, and from Miami to many cities around the South.
Eastern began losing money as it faced competition from no-frills airlines, such as People Express, which offered drastically reduced fares. In an attempt to differentiate itself from its bargain competitors, Eastern began a marketing campaign stressing its quality of service and its rank of highly experienced pilots. The public, however, just wanted cheap fares. Unable to keep up, in 1986, Borman sold the airline to Frank Lorenzo. Under Lorenzo's tenure, Eastern was crippled by severe labor unrest. Asked to accept deep cuts in benefits, Eastern's machinists striked. Lorenzo sold Eastern's shuttle service to real estate magnate Donald Trump in 1989. The machinists were soon joined on the picket line by the pilots. Due to the strike, flights were cancelled, resulting in lost revenue for the airline. As a result of the strike and other financial problems, Eastern filed for bankruptcy protection on March 9.
The coup de grace for Eastern, it can be said, was the 1990 Gulf War. At a nice profit, Eastern sold its Central and South American route network to American Airlines and its transatlantic route network to Continental Airlines. With the higher oil prices and the public's fear of flying at the time, Eastern's sales kept suffering, and Eastern had their last flight in January 1991, officially shutting down on January 18. Lorenzo had suffered the same luck he suffered as chairman of the board in his previous airline company, Texas International.
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