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 4 of 5)
6-16-2008 @ 9:43PM
Wayne said...
Frank Lorenzo well earned his title of the sleaziest
character ever to come down the pike. Thank God he is prohibited from EVER entering the airline arena
again. All too many people were misled by the media into believing it was the unions who brought down Eastern. Nothing could ever have been farther from the truth. It was Lorenzo's greed,
his criminal intent to seize Eastern's assets and in particular our System One Computer system that spelled our doom. As one of the 7,000 employees
left jobless in Atlanta after January 1991, Eastern remains to this day gone but never forgotten.
6-16-2008 @ 10:05PM
Lou Gerard said...
I am an airline brat, love the Eastern family. Spent many hours helping my Dad with homework and other related things. Liked nothing better than to go into work with him on a Saturday. Packed many a liquor kit (not telling how old I was) but knew they drank rum on the way to Puerto Rico. For those who used to fly EAL, thank you. We loved to earn our wings every day.
FYI: the Eastern family has chapters all over the US, and a monthly newspaper that keeps us up to date with news, meetings and memories of the past. I am proud to be a member of the Eastern family. And a family is truly what we are.
Lou Gerard
6-18-2008 @ 4:29AM
Wayne said...
I talk to so many young people these days who do not even remember what was once the greatest airline in this nation. Eastern succumbed to the greedy cravings of a crook of the highest order in January 1991. It was only 17 years ago but it seems like many decades to those of us here in Atlanta who loved this great airline and who saw our jobs ripped out from under us by a con artist named Lorenzo who got his grimy paws on Eastern solely for the sake of dismantling us and
hightailing it off with our System One Computer.
Eastern may now be long gone however she certainly will never be forgotten.
6-18-2008 @ 9:54AM
Bill Sparks said...
I worked for EAL in Miami from Mar 1957 until Dec 1974 starting as a Cleaner, then Ramp Service, finally Stores. Watched them build the new terminal and having to radio the tower to get permission to cross the runway before the road was built around the east end. Such pride I felt to be with the greatest airline in the world. Capt Eddie was a tough old cuss but he had our fullest loyality. We were one big family, for example; Frank Borman came into the cafeteria one day and sat at our table and talked with us guys during lunch. I was in Stores when we received our first DC-8. Stockroom floor was the only place with enough room for spare parts, what a mess! Connie 749's, 1049's, C, G. DC6's, DC7's, Martin404's, Convair440's, Electra's then jets. Remember the Elwert brothers, Gunther and Gearheart? Is it to late to prosecute Lorenzo and Texas Air? If AOL comes back hold my job please. ovation1974@aol.com
6-17-2008 @ 1:17PM
warren langham said...
My whole family worked for Eastern Airlines, and what a great airline it was. Our employee positions were pilot, weather department, two ramp agents, customer service rep. and ticket agent.
Frank Lorenzo is the one who ruined the airline. (Well, Borman didn't keep his word to the employees either) It seemed that Lorenzo just wanted to rape eastern of its assets, and give them to his pet airline continental. The exceptional computer reservations system, which wall street analysts valued at $250 - 400 million was sold to continental for $110 million, and then had to rent our previously owned computer system from continental each year for a large sum. The Shuttle was sold for nearly a half billion dollars, (according to the newspapers, that money never showed up on the books) and the other big asset(the south american route system) was sold to another texas airline (American). According to the Dateline Documentary, every time eastern bought fuel, it was technically bought at a marked up price from continental, whereever both of those airlines served the same city(many many outstation cities). Eastern was being drained as fast as possible. These are just a few of the many ways Lorenzo raped eastern. The eastern assets were bought with IOUs that meant nothing(remember Lorenzo's right hand man, the junk bond king - Michael Millken, who served time in jail, according to books on the subject.) , but the assets brought large sums of money for Frankie. Then the next step is file for bankruptcy and/or liquidation, washing one's hands of it all, before the employees can draw enough attention, quickly enough. "What a nice business plan that appeared to be."
Since many people believe Frankie will be in hell, that should be reason enough for people to look towards religion.
It would be very nice if the new Eastern Airlines is started up by former employees, otherwise, it just isn't the same. But if it starts up, I hope it goes well! I could be interested in applying for a job there even now.
6-18-2008 @ 2:36AM
Captain Kent Van Winkle said...
It is my belief, Frank Lorenzo was the main cause of the crash of our B-727 @ La-Paz Bolivia. He caused an untrained crew to be sent to fly into that very difficult airport @ 13,325 ft. above sea level without any concern for the safety of the crew or passengers. The Capt. of that flight failed a number of check rides in the month leading up to this crash. The procedure which had been set up by Eastern's very experienced Managers of flying for South America were not followed for this flight. This occurred because of Lorenzo's planned shortage of pilots @ the end of the month of Dec. The experienced manager of flying who should have supervised the flight was on another assignment flying a two engine ferry of a L1011. This very avoidable crash, ( not an accident, but murder, in my opinion ) was not fully investigated because of the location of the crash, on Mt Illimani @ 19, 600 ft. The victums of this crime or the aircraft were never recovered. This was the perfect crime ?
6-18-2008 @ 12:54AM
captrgf said...
I flew for Eastern Airlines for 17 years. I then retired from Airborne Express as a DC-9 Captain in 2005. I testified in the competence hearings of Frank Lorenzo on November 19, 1993 with my Congressman from Georgia. Our part in these hearings helped remove Mr. Lorenzo from the U.S. Aviation Industry. Eastern Airlines was not a labor management dispute. It was much more than meets the eye. My testimony is a matter of record in ther DOT before Judge Robert L. Barton Jr. Eastern Airlines plead guilty to 7 counts to defraud the United States Government in maintenance related guilty pleas. This is why as Eastern Airline Pilots we left our cockpits. My congressman also took me to the White House to seek redress of grievance in the First Amendment of our Bill of Rights. President Bill Clinton responded to me by personal letter. There is so much more to this story for the Families of Eastern Airlines. It may not look like it but the Families of Eastern Airlines, as Americans, have been very blessed. Look up HR 1231 November 1989. 500 Eastern emlpoyees lobbied 93 senators in three days and placed this bill on Priesident HW Bush's desk. We did this as Americans in the power of our citizen voice. We prayed on our busses before we departed them each day before we lobbied. "One Nation Under God" We know the meaning of this by personal experience.
6-18-2008 @ 7:36AM
JOHN said...
AS A RETIRED CAPTAIN OF EAL, I WOULD WORK FOR THEM FREE TO GET THEM IN THE AIR AGAIN.
6-18-2008 @ 10:36AM
Madeline Rao said...
I was with EAL at JFK & MIA for 29 years. First as a secretary and then crew schedule. I miss mostly the people of EAL. Eastern was a close knit family in those days. Wherever I traveled, I always felt at home where EAL was present. I still maintain many friendships from Eastern days. I was proud to be a part of that history. How sad we ended.
6-18-2008 @ 2:37PM
steve said...
My father ,mother, myself and one uncle all worked for EASTERN. I remember going out on the ramp as a kid, loving everything about it. I worked for U.S.Air after E.A.L.,and then United until 2004.There was nothing like the "family" we had at easter that could compare.Frank Lorenzo ruined the lives of about 80,000 people.If Eastern opened back up today,I would go load planes in a heartbeat,de-ice,do it all. I LOVED EASTERN AND STILL MISS IT!!!!!!!!!!!!!!!!
6-18-2008 @ 10:47PM
Carol said...
If there ever was a job that I loved it was the job with Eastern Airlines..started in Philadelphia and ended up in Baltimore...I raised two fine children on this job and if they would have me back I would go with a smile and in a heartbeat...Miss it terribly..though I went on the retire with US Airways..Eastern was never a thought away...it was such a shame for all the familes who felt such loyalty to Eastern to have it ripped out from under them..some one will have to answer one day
6-19-2008 @ 10:04AM
earl said...
i worked for eal from 1954 to when they went
under. i was in the system control department,
i was a chief flight dispatcher when i retired..
the best thing about working for eal was the people you worked with. everone had a good time
when you were not working.
i know a lot of people that went with other airlines
at the end ( i tried but at 55 i was too old) well
anyhow they said working for another airline was
just not the same.friendly people but not like
eal family)
6-22-2008 @ 6:48AM
Eugenia said...
As they say.."You can never reinvent the wheel". I am one of the first to say that the only thing that I miss in life are my EAL family. Even with my successful professional life after EAL (I quit before the Lorenzo disaster) I have not developed the friends and relationships that I have with EAL...believe me I have tried. I miss the unique group and the "Joie de vivre" that we all shared. There is no excuse for what Lorenzo did for money and what the government also allowed.
6-24-2008 @ 10:27PM
Russell Miller said...
Eastern was the greatest airline ever, this from a 1 million mile frequent flier veteran. The customer service always treated like you were the one they came to work for. Other airline employees were jealous of their good working atmosphere. Even when things started downhill, and even when the pilots started walking out, the customer service personnel still tried help their customers. Wow, today, "NICE" airline employees are hard to find, because of the enviorment in which they work.
6-25-2008 @ 4:08PM
Barbara Broadley said...
I have just discovered this site and have been transported back in time. I was a F/A with EAL from 1966-1981,(NY), then Tpa Res to1991. Eastern was a family and Lorenzo should have never been let in our house! I will carry the love of the job, my fellow workers, the layovers, the fun, the shared work ethic, the pride working for such a fine company always. I feel the same pride today, as then, that I was lucky to be hired by William DeVane, Mia. on my 21st birthday!!
6-25-2008 @ 11:45PM
jim said...
lorenzo is an EGOTISTICAL GREEDY WORTHLESS SCUMBAG!!! HE is the reason Eastern is no longer!!!
6-26-2008 @ 10:49PM
Marilyn said...
We flew Eastern Airlines from Pittsburgh to Florida many many times in our lives. They had the best food in the airline industry and the best service. I was awe struck when they went bankrupt and sorely disappointed when they ceased their service. If they can come back and keep the same service they had in the past, I can't wait until they are up and running again. Eastern was absolutely the BEST airline I have ever been on and we travel lots. They would definitely have my business.
6-27-2008 @ 5:34AM
Carolyn Swanson said...
Had George Bush Sr. given the go ahead to the National Mediation Board to initiate a Presidential Emergency Board in 3/89 or 11/89 perhaps the saga of EAL would have had a positive outcome. It seems Mr. Megalomaniac aka Frank Lorenzo had someone working on his side inside the White House. Therein lies the true crime. Read Aaron Bernstein's "Grounded Frank Lorenzo And The Destruction of Eastern Airlines." 1990 Simon and Schuster. The book chronicles the chaos and events that lead to the death of EAL. I was fortunate to receive my 20 year "hat in the ring" pin two days before the SAN station closed. I too as all the forementioned employees stated would volunteer to work for the new Eastern just to see and hear one of our aircraft rise from the ashes like a phoenix once again.
6-27-2008 @ 12:10PM
Nick said...
I fully agree that is a good book I have it too! I remember flying EAL from St. Louis to Sarasota FL to see my grandparents. Always good service and when they once ran behind on the ground the pilot made up time in the air and still got us back on schedule. EALs unions took consesion after consesion. I dont know where some of these people think that its because of the unions (must be preconcived notions about unions, btw I am a proud union employee) that caused the overturn of this company. It was the corp. greed that took it named Frank Lorenzo do your homework.
6-27-2008 @ 11:06PM
Bev said...
I UNDERSTAND THAT FRANK LORENZO WILL NOT DRINK FROM AN OPEN CONTAINER, WHILE ON A PLANE, AS WELL HE SHOULD NOT. HE IS AFRAID THAT SOMEONE WILL POISON HIM.
I AGREE WITH JIM'S COMMENTS.