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Slide Notes

Eastern was one of the "Big Four" domestic airlines created by the Spoils Conferences of 1930, and was headed by World War I flying ace Eddie Rickenbacker in its early years. It had a near monopoly in air travel between New York and Florida from the 1930s until the 1950s and dominated this market for decades afterward. Labor disputes and high debt loads strained the company in the late 1970s and early 1980s under the leadership of former astronaut Frank Borman. Frank Lorenzo acquired Eastern in 1985 and moved many of its assets to his other airlines, including Continental Airlines and Texas Air. After continued labor disputes and a crippling strike in 1989, Eastern ran out of money and was liquidated in 1991. American Airlines obtained many of Eastern's routes from Miami to Latin America and the Caribbean, while Delta Air Lines, Eastern's main competitor at Hartsfield Airport in Atlanta, acquired many of Eastern's Lockheed L-1011 aircraft.
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Kyle's Bankrupt Company Project

Published on Dec 14, 2015

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1.

EASTERN AIRLINES

Eastern was one of the "Big Four" domestic airlines created by the Spoils Conferences of 1930, and was headed by World War I flying ace Eddie Rickenbacker in its early years. It had a near monopoly in air travel between New York and Florida from the 1930s until the 1950s and dominated this market for decades afterward. Labor disputes and high debt loads strained the company in the late 1970s and early 1980s under the leadership of former astronaut Frank Borman. Frank Lorenzo acquired Eastern in 1985 and moved many of its assets to his other airlines, including Continental Airlines and Texas Air. After continued labor disputes and a crippling strike in 1989, Eastern ran out of money and was liquidated in 1991. American Airlines obtained many of Eastern's routes from Miami to Latin America and the Caribbean, while Delta Air Lines, Eastern's main competitor at Hartsfield Airport in Atlanta, acquired many of Eastern's Lockheed L-1011 aircraft.
2.

MOST SUCCESSFUL

In 1938 World War I flying ace Eddie Rickenbacker bought Eastern from General Motors. The complex deal was concluded when Rickenbacker presented Alfred P. Sloan with a certified check for $3.5 million. In March 1939 Eastern had 15 weekday departures from Newark (six to Washington, five to Miami and one each to Richmond, Atlanta, Houston and San Antonio), two from Chicago to Miami, one from Tampa to Atlanta and one from Tallahassee to Memphis. Those flights and their returns were Eastern's whole scheduled operation; it fit on one page in the Airways Guide. Then as later, Eastern was the fourth largest airline in the country by passenger-miles.
The Great Silver Fleet 1939
3.

HOW IT FAILED

Eastern began losing money as it faced competition from no-frills airlines, such as People Express, which offered lower 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.

An Eastern Air Lines Electra at Washington National Airport in 1975.
4.

HOW IT COULD OF BEEN SAVED

They could of lowered their prices. They reason they didn't last was because the competitors were cheaper or they could of started a rewards program so that people had a reason to fly with them



An Eastern Air Lines Lockheed L-1011-1 at Miami International Airport. (1989)

Jason Woodson

http://phwoodson.blogspot.com/