What made Eastern GO Under?

[FD109]

my boss used to teach flt engr's at eastern

then he was 727 FO there.

a few months ago he said that the mechanics were paid a pretty good hourly rate but they wanted more.

????? Was he trying to make a point?

 

[Boeingman]

The assumption and idea that Lorenzo stripped EAL assets and "gave" them to CAL is false.

The EAL assets that went to CAL were first sold to TAC (Texas Air Corp.) and then leased to CAL at userous market rates to upstream cash. We were stuck with the A300's that bled the company for years after EAL's demise.

 

[FD109]

The assumption and idea that Lorenzo stripped EAL assets and "gave" them to CAL is false.

The EAL assets that went to CAL were first sold to TAC (Texas Air Corp.) and then leased to CAL at userous market rates to upstream cash. We were stuck with the A300's that bled the company for years after EAL's demise.

You're absolutely correct. Lorenzo also charged Eastern usurious rates for using our own assets (like System One) after selling them to TAC. Lorenzo screwed every company he came into contact with.

By the way, is Continental still using System One?

 

[Boeingman]

By the way, is Continental still using System One?

I think it was sold to EDS in the early 90's.

 

[FD109]

I think it (System One) was sold to EDS in the early 90's.

Now that you mention it, I think you're right about System One being sold to EDS. It would be interesting to know how much it was sold for and what the form of payment was.

The 100 million in TAC junk bonds that was used to "pay" EAL for System One (valued at 600 million in 1986 according to the bankruptcy court) come due in 2007 and the proceeds will go into Eastern's estate at that time. That is, if those bonds have any value at all at that time.

 

[Boeingman]

Now that you mention it, I think you're right about System One being sold to EDS. It would be interesting to know how much it was sold for and what the form of payment was.

The 100 million in TAC junk bonds that was used to "pay" EAL for System One (valued at 600 million in 1986 according to the bankruptcy court) come due in 2007 and the proceeds will go into Eastern's estate at that time. That is, if those bonds have any value at all at that time.

I really don't remember any particulars about the S1 deal. I didn't realize TAC had future obligations to the EAL estate. I thought that TAC was dissolved some years back.

It would be nice if the EAL estate went after Frank and the other TAC officer's personal assets to back any pending obligations.

 

[FD109]

I really don't remember any particulars about the S1 deal. I didn't realize TAC had future obligations to the EAL estate. I thought that TAC was dissolved some years back.

It would be nice if the EAL estate went after Frank and the other TAC officer's personal assets to back any pending obligations.

The due date for the bonds is of historical interest only. Im sure TAC's responsibility for anything has long ago been eliminated.

If you or I had pulled some of the TAC/CAL/EAL swindles, you can bet they'd come after us, but former Presidents who aided in the swindles get airports in Texas named after them and former airline managers seem to be immune from any responsibility no matter what.

 

[Boeingman]

The due date for the bonds is of historical interest only. Im sure TAC's responsibility for anything has long ago been eliminated.

If you or I had pulled some of the TAC/CAL/EAL swindles, you can bet they'd come after us, but former Presidents who aided in the swindles get airports in Texas named after them and former airline managers seem to be immune from any responsibility no matter what.

I think it was a prelude to the widespread pilfering and corporate theft we see rampent today.

 

[jsoceanlord]

i think my boss was feeling burned out on being a piston cargo dog and he felt if the mechanics hadn't wanted more than the $20 odd an hour they were getting, my boss would be a rich A 300 Capt now

 

[publisher]

FD109

FD109

Are you actually reading anything in my posts.

What I have said is that Lorenzo showed up after the airline had a fatal wound.

No one else showed up at all. You can say it could have been saved but just who showed up to do that. No One.

If you think their costs and structure was like everyone else, give me some numbers. I think their maintenance cost was one of the highest ever according to ATW.

You can blame Lorenzo if you want, he stripped the assets but who was the alternative savior that was rejected.

The people I referred to that crossed are not my hero's. Just people. People who I refuse to condem.

I am not a scab because I have no interest in being a union member or any job that tells me that I have to be one. Frankly anyone who wants to label another individual like that is not going to be any friend of mine anyway.

People make all kinds of decisions in life to take care of their families. People who condem those people and rant that they do not want them on their jump seat, well, that is not your seat to determine. Like the idiots that say that it is their flying someone is taking. Let me clue you in, it is not yours.

Lorenzo was an easy guy to dislike. Dislike him. He did not come to save the old Eastern, the president did not come to save the old Eastern, and neither did anyone else