This post is part of a series on some of the most memorable companies that have disappeared.
With soaring fuel prices and declines in discretionary spending leading to bankruptcies and mergers among the airlines these days, one might forget that such things have often occurred in that industry since its early days. Take Eastern Air Lines, one of the first and longest-running of the so-called trunk carriers in the United States.
Eastern began as a mail carrier for the U.S. Postal Service in the mid-1920s but through acquisition and expansion came to dominate much of the domestic travel industry along the profitable East Coast corridor by the 1950s. Back then the company was widely known for its famous president, former World War I Ace, Eddie Rickenbacker.
The airline thrived into the 1970s, when it was one of the "big four" major U.S. airlines. In its time, Eastern pioneered the use of a worldwide computer reservation system and the all-jet mainline fleet. However, the carrier struggled after the Air Transportation Deregulation Act of 1978. Former astronaut turned CEO Frank Borman finally relented to corporate raider and union buster Frank Lorenzo's buyout offer in 1985. Valuable assets such as new aircraft, the East Coast shuttle service, lucrative fuel operations, and the worldwide travel agent computer system were sold off or shifted to Lorenzo's other carrier, Continental Airlines (NYSE: CAL). Deteriorating labor relations forced Eastern into bankruptcy in 1989, at the time the largest airline bankruptcy in U.S. history. The carrier ceased operations the day after the start of Operation Desert Storm in 1991.
At its height, Eastern was the free world's largest airline in terms of passengers carried, serving 26 countries on three continents, including Madrid; Mexico City; Nassau, Bahamas; and London. It had large hub operations at airports in Atlanta, Boston, Kansas City, Miami, New York, and San Juan, Puerto Rico. Eastern was also the official airline of Disney World for many years.
Eastern's groundbreaking and popular East Coast shuttle featured hourly flights between New York, Washington D.C., and Boston. Seat reservations were not required and seat assignments were not given. Eastern guaranteed availability -- in the event of a full flight, Eastern simply added another aircraft to the schedule.
Recent rumors have suggested that a Miami-based group may have acquired the Eastern name and trademarks with an eye toward reviving the carrier, perhaps as soon as 2009.
Let us know in the comments what you miss about Eastern. And be sure to check out other Companies That Have Vanished.











Reader Comments (Page 1 of 5)
6-06-2008 @ 7:44AM
James said...
Frank Lorenzo should have gone to prison for a long long time for what he did to EAL and the airline industry in general. Thank G-d, at least the US government permanently banned him from having anything to do with the airline business again.
RIP: EAL, Pan AM, Braniff
6-06-2008 @ 8:13AM
Brian said...
And the Chinese are said to be reviving MG and will start building the Brit beauties in 3 plants including Oklahoma. Will see it when we see it.
6-06-2008 @ 9:27AM
Robert said...
I remember "Youth Fares" we could go to New York from Boston for the night for under $20 each way...Great memories
6-06-2008 @ 10:59AM
Joseph Delfino said...
I remember so well. When i was dischared from the army in 1953 i applied for a job with Eastern and was hired. One of the proudest days of my life. I started at LaGuardia. Mr. Rickenbacker came to visit many times at the hanger and had very nice conversations. I will never forget the days i have worked for Eastern. I still remember most of the guys i worked with. I still have my wings. Would you believe i wish i was still working for Eastern.what a great, great airline it was.
6-06-2008 @ 11:13AM
mistermac said...
Was it not Eastern Airline employees that actually bought a Boeing 707 plane as a gift to the company in appreciation of their employment? I think this was before de-regulation when airlines were a pleasure to fly on,and the employees made each trip an experience to remember. What a gut wrenching experience air travel has become in to-days world.
6-06-2008 @ 11:48AM
Danse5555 said...
To Michael: I agree with you 100 percent. I worked for Eastern for 20 years in Woodbridge Reservations, and was a SystemOne specialist. I'll be with you when you buy that first ticket! Suzanne
6-06-2008 @ 12:46PM
Louis Baldwin said...
I began working for Eastern Airlines in 1978...At that time we were giving back to EAL 18 % of our salary to EAL coffers. We actually purchased many aircraft for EAL....
6-06-2008 @ 1:18PM
Mercy said...
My mom used to work for Easter Air Lines in Miami. I loved it... it was great until that MORON of Lorezo came and screwed things up... I hope he burns in HELL. If it comes back I will PROUDLY be in the first flight out The BEST airline and workers ever!!!
6-06-2008 @ 2:12PM
Laura said...
Lorenzo was the beginning of the end for Eastern Airlines. He used EAL's core assets, (ie. sold to
Texas Air, Eastern's reservation system, System
One. Eastern received an IOU and then had to pay
10 million dollars a year to use its own system.)
Frank Lorenzo was a ruthless corporate raider who slowly
dismantled a great airline for his own profit.
Eastern Airlines was an airline of quality...one of
America's finest carriers and I too would be proud
to work for EAL again, no salary necessary.
I still have my wings, and when I stand in line
to purchase a ticket, I will be wearing them.
6-06-2008 @ 4:35PM
Howard said...
I flew EAL from 1975 to the last day in 1991. Every week comuting from MIA to LGA, Monday at 0800 on Flight 892 and returning on Thurs afternoon. Same crews since 892 was a turnaround lovingly none as the motherhood flight, out by 8 back by 3. Went from pregnacies to high school with some of the flight attendants. It was truly Home Town Airline and I surley miss it.
6-07-2008 @ 7:22AM
dave said...
Eastern's problems became expanded during the first fuel price crunch. they were heavily leveraged and the net increase in operating costs were brutal.
Frank Borman took over but he couldn't turn it around.
This article would have been mor interesting if it talked about Eddie Rickenbacker or selling the shuttle to Trump. Remember the shuttle it was like riding the bus or a train, just get on!
6-07-2008 @ 10:12AM
Alan W Rollins said...
My father worked for EAL out of ATL and MCI. I remember him taking me to the airport and walking me out on the tarmac. You can't imagine the joy, pride and awe I felt as a child following my father around that great silver fleet...
I still remember the pita "lunch" served on the MCI/ATL flights. I think I was the only one that actually liked them!! Oh what I wouldn’t give to sit on that DC-9 now, riding stand-by, looking out my first class window…
Eastern Airlines was a great part of my life and I miss it. What ever happened to Charlie Bryan? Hates won't be hot enough...
6-07-2008 @ 10:47AM
JCUEVAS40 said...
estaern was my favorite airline when i first came to The U.S.A. i used to travel back and forth to the caribbean. It was sad to see it go away. Yes i hope it comes bac for good.
6-07-2008 @ 2:40PM
Jane said...
I was very proud to work in Eastern Res WDB and MIA when WDB closed. My sales were often in the top 10 of 5,000 agents nationwide. We brought in the money! When the IAM tried to organize us, 99% of the agents did not have the mindset to do it. I remember being told by management that we would receive the same pension benefits as unionized mechanics if we didn't organize. We remained non-contract. After 13 years with EAL, my pension is now $142 monthly. I'd be surprised if that's the what guys take home. I know a handful of EAL res people now in their 60's and 70's who live quiet lives of despair. I'm not thrilled with unions, but it makes one wonder how these women are looking at them now. Still, I miss Eastern.
6-07-2008 @ 6:27PM
Faye Tabb Haveard said...
My dad worked for Eastern Airlines for 32 years. I grew up flying standby, running around the airport and playing on the tarmac in Albany, GA.- (ABY) In 1971, when Eastern pulled out of Albany, he moved our family of 7 to Tallahassee, FL. - (TLH) to remain employed with Eastern. He truly loved the company. One of my uncles, Tony Bruner, and also one of my 2nd cousins, Doug Adams, also worked with him. He retired just 2 years before they went completely under. My uncle and cousin weren't as lucky. My parents lost their "lifetime" flying privileges and more importantly, their health insurance. What a sad day that was, and after over 30 years of loyal service. My 2 sisters and I have his 10, 20 & 30 year "hat and ring" service award pins. He was so handsome in his uniform. I also have his wings and name tag and will wear them proudly if I ever get to fly in an Eastern plane again. I also have an old (almost worn out) Eastern t-shirt. I do hope they revive the beautiful blue and silver company colors. If anyone remembers "TABB" - Myrlvin Tabb - He was my dad.
6-08-2008 @ 2:12AM
Gene Frye said...
I liked Eastern Airlines very much.
But isn't it interesting that none of the above comments mention the real reason they went out of business (forced out of business?)
I remember it so vividly. I was in almost every airport in the country and in EVERY airport, the union was there with their hatred of Lorenzo and FORCED Eastern out of business. How pathetic. The unions could not care less about whether the employees don't have a job. They are interested only in accomplishing their vendatta.
6-08-2008 @ 7:28AM
Michael said...
Dear Suzanne,
Thanks for the reply. We probably know each other as I worked for Flyfaire in Plantation, FL. We booked the hotels for vacation packages. I'm remember working with the Woodbridge office!
We were a big happy family back then to...Kathy, Dorothy, David, Tara, Lisa, Drew...Do any of these names ring a bell?? It's been a long time!
I hope to hear from you again. Take Care!!
Michael my0113@aol.com
6-08-2008 @ 9:04AM
Michael said...
I grew up with Eastern and will never forget the Whisper Jet and Whisper Liner. They were a true blue airline, pardon the pun. Should they start up again, I would be honored to purchase the first ticket regardless of the destination. I still have my wings and will never forget "The Wings of Man". If EAL should begin operating again, I would be proud to work for them for free!! I still remember how to used SystemOne!! Good Luck!!!
6-08-2008 @ 2:20PM
Lillian said...
I also worked for Eastern Air Lines in Miami. I worked in the air freight department doing the payroll & I too still remember some of the agents & ramp personell. I would be proud to work for Eatern Air Lines again. I was proud to work for a company that had the needs of the people and its employees in mind, but we must admit that after Frank Boreman, the ceo's that followed were not interested in the company anymore but on how to keep their own pockets full, no matter at what cost
6-08-2008 @ 4:28PM
ROGER C. PARKER said...
MY DAD WORKED FOR EASTERN AIRLINES FROM 1954 UNTIL THE END....IF ANYONE KNOWS THE WHERE ABOUTS OF JOHN BILL PARKER...PLEASE LET ME KNOW...THANK YOU...MY NAME IS ROGER C. PARKER