Borman had a serious problem on his hands before he lost control of Eastern to Lorenzo. But it was still the number three airline in the country. Lorenzo took over EAL and used it like a "parts car", cannabalizing it by transferring assets to Continental, a newly labor-free enviroment, via his holding company. Borman was running a problematic airline, but Lorenzo was just dismantling it, at the expense of the employees and shareholders. Guess what his most effective tool was?
Bankruptcy.
Bankruptcy.
