Why did Eastern Air Lines go bankrupt?

The Flight Detective
a plane flying in the sky

Eastern Air Lines was once one of the largest airlines in the United States, with its origins dating back to the 1920s. The airline went bankrupt in early 1991 after a number of turbulent years of high debt and labour unrest.

It’s always a huge loss to the staff and travelling public when an iconic carrier goes bust. On the face of it, the story of Eastern’s demise seems pretty straightforward, but the seeds of decline were sowed long before the final years.

Eastern Air Lines Bankrupt Video

Bright Sun Films on YouTube create videos on bankrupt organisations or abandoned facilities. They have recently released a video on what happened to Eastern Air Lines.

This 20 minute presentation provides a decent history of the airline, touching accurately on all the salient points. When you consider today’s airlines with their nationwide coverage, seeing the route map with everything on one side of the country is interesting!

The introduction of the Airbus A300 was a great thing for the European manufacturer, but the debt added by that purchase right around US airline deregulation was arguably the beginning of the end. Of course, during the 1980s Frank Lorenzo entered the picture and it went downhill from there.

After strikes and various elements of mismanagement, the airline finally shut down. It was a sad end for what was once a beloved airline.

Overall Thoughts

I still think the blue on white Eastern livery is one of the most beautiful to ever grace an aircraft. The simplicity and clean lines are just really appealing to me.

While I never got to fly with the airline, I certainly know about them, as they left a legacy to the industry as a whole. Their support of the Lockheed L-1011 during the Rolls-Royce engine issues could well have saved that entire programme for example.

Did you ever fly with Eastern? What were they like? I’d love to hear your experiences. Thank you for reading and if you have any comments or questions, please leave them below.

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Featured image by Clinton Groves on AirlineFan.com via Wikimedia Commons.

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Christian

I grew up in Miami and one of the neighborhood kids’ father was a corporate lawyer for Eastern so we got a little more insight than a lot of the general public. The rest I gathered through local news or my youthful years as a travel agent. The video is pretty accurate and provides a fairly good context. It doesn’t really go into the competition aspect very much. A lot of Eastern’s bread-and-butter routes after deregulation were suddenly challenged by newcomers charging money-losing prices like $79 Miami – to LaGuardia. For an upstart with extremely low costs the situation was… Read more »

JSD

I was a frequent passenger on Eastern, and it was rare that I wasn’t happy with my dealings with them. There are many who will say how horrible the staff were towards the end, as well as the horrid state of their aircraft. I never found that to be true, and I flew with them until they went under.The Air Shuttle between BOS/LGA/DCA was well run, and when a second section for a flight was being staged using a Lockheed Electra, I opted for the slight delay to fly that amazing aircraft. I have only fond memories of the airline.

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