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Eastern Airlines Faces 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 dinner following afternoon session and was scheduled
to convene at 7:30 p.m. At the earlier meeting, Wayne Yeoman,
senior vice president for finance, had spent most of the time
outlining the details of Texas Air's offer to buy Eastern.
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