"Grounded: Frank Lorenzo and the Destruction of Eastern Airlines" by Arron Bernstein (USAIRWAYS?)


Aug 19, 2002
"Hmmmm....They say that history repeats itself , I've heard".......Lets hope that this is not the case with "U". History should be something to learn from...not a benchmark for repeated mistakes. I hope the only thing USAirways ever has in common with Eastern is, the handful of former EA 757's we lease....and of course the good people U got from EA's downfall. I hope CO's CEO Gordon Bethune's book "Worst to First" is more of an example to set our goals by....I hope we are just granted the chance!!![:)]
There is a book worth reading called, "Grounded: Frank Lorenzo and the Destruction of Eastern Airlines" by author Aaron Bernstein/ Beard Books...
A passage states that "for a few brief & discordant years Frank Lorenzo was the boss of the biggest conglomerante in the free world combining- Eastern Airlines, Contiential Airlines, Frontier & PeopleExpress into the Texas Air Corp, financing his empire with junk bonds....."
It also states that Mr Lorenzo at Continental Airlines filed for Chapter 11 bankruptcy despite the airlines $60 million dollars in cash reserve, in order to abrogate his contracts with unions...
In the book Barbara Walters once referred to Frank Lorenzo, "as the most hated man in America"...
Hmmmm.... They say that history repeats itself, I've heard....
[:knockout:] [:knockout:] [:knockout:]
called the Texas Air case.
But things have changed since then, ie., new laws.
Certainly the CWA attorneys know this too.

I have a copy of the book and I especially like the chapter titled "SOB" for small obscure bureau, a reference to the NMB.
Reservation Agent:

Since the first strike at Continental the bankruptcy laws have been changed in regard to action the debtor-in-possession can take against labor and management has provided the Courts with Section 1113 language for those unions who have restructuring or tentative agreements.

But, the risks are high for US Airways' employees, especially since Siegel told employees last week and John Luth was quoted in the Washington Post they expect other offers for the company.

People like Marvin Davis and Carl Icahn are lurking, the company has received liquidation offers or at least offers for pieces of the company, and the creditors are upset at being stiffed, when with reason to believe if all stakeholders had reached restructuring accords bankruptcy may have been avoided.

We'll know more shortly, with the September 10 hearing to obtain emergency relief from labor contracts, the September 23 clause in the TPG MOU, and the Courts September 26 hearing to decide whether or not to grant the remaining $425 million in DIP financing and to entertain other outside financing bids, which if they occur will hopefully be labor friendly.