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52-509: Eastern was one of the " Big Four " domestic airlines created by the Spoils Conferences of 1930, and was headed in its early years by World War I flying ace Eddie Rickenbacker . It had a near monopoly in air travel between New York and Florida from the 1930s until the 1950s and dominated this market for decades afterward. During airline deregulation in the late 1970s and early 1980s, labor disputes and high debt loads strained

104-591: A "100 Days" advertising campaign, in which it promised to "become a little bit better every day". The ads were conceived by advertising agency Ogilvy & Mather in New York, and started being broadcast on June 17, 1990 during the prime-time hours in 33 markets around the United States. The ads featured Martin Shugrue, the airline's court-appointed trustee. While the campaign helped the company increase by 73%

156-644: A commuter airline in Upstate New York , was certificated in 1979 and transitioned to jets shortly thereafter. It merged into Piedmont in 1986. 1979–1991 was a highly turbulent time for legacy airlines – during this time 13 of the original 23 passenger jet legacy carriers vanished through merger and collapse as they struggled to adapt to the new environment. During this period, many legacy airline features developed as an adaptation to deregulation. Legacy carrier strategies included: Eastern and Pan Am proved unable to adapt, each collapsing in 1991. Including

208-532: A marketing campaign stressing its quality of service and its rank of highly experienced pilots. Unable to keep up, Borman agreed to the sale of the airline in 1986 to Texas Air , led by Frank Lorenzo , which had already purchased Continental Airlines and lost a bidding war for TWA to Carl Icahn . In February 1987, the Federal Aviation Administration imposed a $ 9.5 million fine against Eastern Air Lines for safety violations, which

260-746: A new image was adopted, which included the now famous hockey stick design, officially Caribbean Blue over Ionosphere Blue. Eastern was also the first US carrier to fly the Airbus A300 and the launch customer for the Boeing 757 . On April 30, 1961, Eastern inaugurated Eastern Air Lines Shuttle . Initially 95-seat Lockheed Constellation 1049s and 1049Cs left New York-LaGuardia every two hours, 8 am to 10 pm, to Washington National and to Boston . Flights soon became hourly, 7 am to 10 pm out of each city. No reservations or tickets were required; passengers could pay their fare in cash on board

312-572: A now defunct federal agency that tightly controlled almost all US commercial air transport during that period. As related below, many features associated with the legacy airline business model were actually developed not during the regulated era, but instead in the first decade or so of the deregulated era, as legacy carriers adapted to an unfamiliar competitive environment. As of 2024, there are four surviving legacy carriers, with Alaska Airlines and Hawaiian Airlines completing their merger on September 18, 2024: Legacy carriers do not include: While

364-428: A period of growth and innovation; for a time Eastern was the most profitable airline in the post-war era, never needing state subsidy. In the late 1950s Eastern's position was eroded by subsidies to rival airlines and the arrival of the jet age. On October 1, 1959, Rickenbacker's position as CEO was taken over by Malcolm A. MacIntyre , a brilliant lawyer but a man inexperienced in airline operations.' Rickenbacker's ouster

416-543: A sense, a carrier that was deregulated even before deregulation. Other important intrastate carriers included Pacific Southwest Airlines , Air California (later AirCal) and Air Florida , none of which survived the 1980s. While the CAB was legally unable to regulate intrastate carriers, from 1952, it chose not to regulate airlines flying "small" aircraft, leading to the growth of a deregulated air taxi or commuter airline segment decades before wider deregulation. Any US airline that

468-432: A smaller scale. Lorenzo initially sought a sale of the entire airline, and on April 6, Eastern agreed to be acquired by former Major League Baseball commissioner Peter Uberroth for $ 464 million. However, the transaction was terminated on April 12 after Lorenzo refused to give temporary control to a trustee. The sale process was then terminated on April 18, and Lorenzo proposed a sale of $ 1.8 million in assets that would allow

520-602: A spokesperson, was used until the mid-to-late 1980s. In 1975, Eastern was headquartered at 10 Rockefeller Plaza in Manhattan . After Frank Borman became president of Eastern Air Lines in late 1975, he moved Eastern's headquarters from Rockefeller Center to Miami-Dade County, Florida . Eastern's massive Atlanta hub was in direct competition with Delta Air Lines , where the two carriers competed heavily to neither's benefit. Delta's less-unionized work force and slowly expanding international route network helped lead it through

572-489: Is currently located) until its contracting route network forced Disney to switch to Delta shortly before Eastern's 1989 bankruptcy filing. The famous "Wings of Man" campaign in the late 1960s was created by advertising agency Young & Rubicam , and restored Eastern's tarnished image until the late 1970s, when former astronaut Frank Borman became president and it was replaced by a new campaign, "We Have To Earn Our Wings Every Day". The new campaign, which featured Borman as

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624-573: Is largely moot since they had little impact on the industry after deregulation. Of the 1978 scheduled passenger CAB carriers, as shown in the table referenced above, 23 flew jets: During the 1938–1978 regulated era, intrastate airlines were those that minimized participation in interstate commerce , most obviously by operating only within a single state, but also by measures such as not selling joint tickets with other carriers for itineraries that crossed state lines, not selling tickets in other states and so forth. By doing so, they sidestepped regulation by

676-934: The Caribbean . Delta Air Lines , Eastern's main competitor at Hartsfield–Jackson Atlanta International Airport , acquired many of Eastern's Lockheed L-1011 TriStar aircraft. USAir acquired 11 of Eastern's 25 Boeing 757-225 aircraft. Eastern pioneered hourly air shuttle services between New York City , Washington, D.C. , and Boston in 1961 as the Eastern Air Lines Shuttle . It took over Braniff International 's South American routes following Braniff's closure in 1982 and served London Gatwick in 1985 via its McDonnell Douglas DC-10-30 "Golden Wings" service. Although Eastern announced on its March 2, 1986 timetable that it intended to initiate service to Madrid , effective May 1, 1986, it never commenced. The only scheduled transatlantic service Eastern provided

728-467: The Miami and New York City areas. Later that month, Delta Air Lines acquired Eastern's gates at Atlanta, and Northwest Airlines acquired Eastern's gates at Washington National. Eastern Air Lines flew many different types of aircraft throughout its history. Several regional and commuter airlines provided passenger feed for Eastern via code sharing agreements with their aircraft liveries reflecting

780-695: The Transport Workers Union (TWU) called a sympathy strike, which effectively shut down the airline's domestic operations. Non-contract employees, including airport gate and ticket counter agents and reservation sales agents, could not honor the strike. Due to the lockout and sympathy strike, cancelled flights resulted in the loss of millions of dollars in revenue. As a result of the strike, a weakened airline structure, high fuel prices, an inability to compete after deregulation and other financial problems, Eastern filed for bankruptcy protection on March 9, which allowed Eastern to continue operating on

832-646: The Bahamas as part of this expansion. In 1973, Eastern purchased Caribair (Puerto Rico) , a small airline based in Puerto Rico which operated McDonnell Douglas DC-9-30 jets in the Caribbean. Eastern bought the Lockheed L-1011 TriStar and Airbus A300 widebody jets; the former would become known in the Caribbean as El Grandote (the huge one). Although Eastern had purchased four 747s,

884-468: The CAB and were able to be economically regulated instead by an agency of their state, most of which were more flexible than the CAB. However, despite not flying outside of Hawaii, Hawaiian Airlines and Aloha Airlines were CAB-regulated carriers during this era, and participated in the interstate airline system by, for instance, selling connecting tickets to elsewhere in the US. For many reasons, neither airline

936-603: The East. At the time, Eastern was the largest corporate employer in the Miami area and remained so after the cuts. John Nordheimer wrote in The New York Times that Eastern's prominence in the Miami area decreased as the city became a finance and trade center with a diversified local economy, instead of one based largely on tourism . During Lorenzo's tenure, Eastern was crippled by severe labor unrest that began long before

988-465: The Eastern mainline paint scheme. There were a number of brandings including: Eastern Express, Eastern Atlantis Express, and Eastern Metro Express. LIAT , a Caribbean-based airline, also operated Eastern Partner service. Eastern Express air carriers and their aircraft included: Eastern Atlantis Express was operated by Atlantis Airlines with BAe Jetstream 31 aircraft. Eastern Metro Express

1040-614: The Federal Aviation Administration. The new airline began service through charter and wet-lease flights out of Miami International in late 2014 with Boeing 737-800 jetliners painted in the classic Eastern "hockey stick" livery. The IATA and ICAO codes of the original airline, as well as its callsign, were used by the new iteration of Eastern Air Lines. After a sale to Swift Air , the trademarks were passed on to Eastern Airlines, LLC in 2018. On January 12, 2020, after nearly two decades of being officially defunct,

1092-461: The United States connecting mainly to Houston (IAH). Eric Schmitt of The New York Times said that the services were "a hybrid of late-night, red-eye flights and the barebones People Express approach to service." The holds of the aircraft were reserved for cargo such as express mail, machine tool parts, and textiles. Because of this, the airline allowed each passenger to take up to two carry-on bags. The airline charged $ 10 for each checked bag, which

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1144-589: The acquisition. Asked to accept deep cuts in pay and benefits, on March 4, 1989, Lorenzo locked out Eastern's mechanics and ramp service employees, represented by the International Association of Machinists and Aerospace Workers (IAM). Concerned that Lorenzo's successful breaking of the IAM would do the same to the pilots' and flight attendants' unions, the pilots represented by Air Line Pilots Association (ALPA) and flight attendants represented by

1196-574: The air carrier subsequently being acquired by Eastern in 1973. In 2011, a group purchased the intellectual property, including trademarks, of Eastern Air Lines and formed the Eastern Air Lines Group. The group announced in early 2014 that it had filed an application with the United States Department of Transportation for a Certificate of Public Convenience and Necessity, which will be followed by certification with

1248-707: The airline in the years to come. Lower oil prices failed to materialize and the debt created by this purchase coupled with the Airbus A300 purchases in 1977 contributed to the February 1986 sale to Frank Lorenzo 's Texas Air . At that time, Eastern was paying over $ 700,000 in interest each day before they sold a ticket, fueled, or boarded a single aircraft. Starting about 1985, Eastern offered "Moonlight Specials", with passenger seats on overnight flights scheduled for cargo from thirty freight companies. The flights, which operated between midnight and 7 am, served 18 cities in

1300-903: The airline to continue operating independently. In May 1989, Eastern sold its East Coast shuttle service to real estate mogul Donald Trump for $ 365 million. Trump continued operating the service as the Trump Shuttle . In August, Eastern signed a deal to sell sixteen DC-9 aircraft and gates in Philadelphia, Washington, and New York to Midway Airlines for $ 210 million. In May 1990, American Airlines acquired Eastern's Latin American routes and related assets for $ 471 million. After several failed attempts at obtaining creditor approval for restructuring plans, Lorenzo lost control of Eastern in April 1990, when former Continental president Martin Shugrue

1352-508: The company under the leadership of former astronaut Frank Borman . Frank Lorenzo acquired Eastern in 1985 and moved many of its assets to his other airlines, including Continental Airlines and Texas Air Corporation . After continued labor disputes and a crippling strike in 1989, Eastern ran out of money and was liquidated in 1991. American Airlines obtained many of Eastern's routes from Miami International Airport to Latin America and

1404-592: The delivery slots were sold to Trans World Airlines ( TWA ) when Eastern decided to purchase the L-1011. Due to massive delays in the L-1011 program, mainly due to problems with the Rolls-Royce RB211 engines, Eastern leased two Boeing 747-100s from Pan Am between 1970 and 1972 and operated the aircraft between Chicago and San Juan as well as from New York to Miami and San Juan. The RB211 programme might easily have foundered in 1971 if it had not been for

1456-523: The earlier shutdowns of Braniff in 1982 (see above) and Wien Air Alaska in 1984, by 1991, four former CAB jet passenger airlines ceased operating. Added to the nine legacy jet carriers that merged and 13 of the 23 CAB legacy jet passenger airlines exited by 1991, leaving only 10 left, of which three were small (Alaska, Aloha and Hawaiian): Malcolm A. MacIntyre Malcolm A. MacIntyre (January 28, 1908 – May 6, 1992 ), born in Boston, Massachusetts ,

1508-517: The exception of Alaska Airlines . A complete list of CAB-regulated scheduled airlines in 1978, the last year of the regulated era, is available in the Civil Aeronautics Board article. Those are the legacy carriers as of the start of the deregulated era. For completeness, there is also a list of the charter carriers from the same year (known as "supplemental air carriers"). Whether the supplemental airlines count as legacy carriers

1560-462: The first flight of the renewed Eastern Airlines landed at JFK airport, heralding a new era for the brand name. Legacy carrier#Defunct legacy carriers In the United States , a legacy carrier is an airline that was once economically regulated by the Civil Aeronautics Board (CAB) during the period of airline regulation 1938–1978 or can trace its origin to one that did. The CAB was

1612-476: The flight. If a plane filled up at departure time, another plane was rolled out to carry any extra passengers. Internationalization began as Eastern opened routes to markets such as Santo Domingo and Nassau, Bahamas . Services from San Juan, Puerto Rico 's Luis Muñoz Marín International Airport were expanded. In 1967, Eastern purchased Mackey Airlines , a small air carrier primarily operating in Florida and

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1664-430: The liberalized era) can be viewed as legacy carriers in contrast to airlines such as Ryanair , Wizz Air , and so forth. Prior to 1979, the CAB regulated its carriers as a cartel, strictly limiting competition between them and setting uniform fare levels nationally. Such fare levels were above those that would prevail in a free market, as proven by comparison with fares charged by less-regulated intrastate carriers during

1716-451: The longer flights, like the non-stops from Chicago and New York City to Miami . The DC-8s were joined in 1962 by the Boeing 720 and in 1964 by the Boeing 727-100 , which Eastern (along with American Airlines and United Airlines ) had helped Boeing to develop. On February 1, 1964, Eastern was the first airline to fly the 727. Shortly after that, "Captain Eddie" Rickenbacker retired and

1768-631: The number of bookings, it did not stop the company from going bankrupt. Ultimately, Eastern Airlines stopped flying at midnight on Saturday, January 19, 1991. The previous evening, company agents, unaware of the decision, continued to take reservations and told callers that the airline was not closing. Following the announcement, 5,000 of the 18,000 employees immediately lost their jobs. Of the remaining employees, reservation agents were told to report to work at their regular times, while other employees were told not to report to work unless asked to do so. The Eastern shutdown eliminated many airline industry jobs in

1820-477: The owner of North American Aviation , purchased Pitcairn. In 1930, Keys changed the company's name to Eastern Air Transport . After being purchased by General Motors and experiencing a change in leadership after the Airmail Act of 1934, the airline became known as Eastern Air Lines. By 1937, Eastern's route system stretched from New York to Washington, Atlanta, and New Orleans, and from Chicago to Miami. In

1872-454: The regulated era. CAB carriers thus entered deregulation with a legacy of high costs. The history of the legacy carriers following deregulation is in significant part the story of their struggle with this legacy, their efforts to cut costs and to compensate for such costs through various business model adaptations. One indication of this long-term struggle is that of the surviving US legacy carriers, all have gone through bankruptcy since 1978 with

1924-485: The same year, it operated 20 daily flights and returns, every hour on the hour, between New York and Washington; the flight time was one hour, twenty minutes, one-way. In 1938, World War I flying ace Eddie Rickenbacker bought Eastern from General Motors. The complex deal was concluded when Rickenbacker together with Sidney Shannon presented Alfred P. Sloan with a certified check for US$ 3,500,000 (equivalent to $ 75,760,000 in 2023). Rickenbacker pushed Eastern into

1976-668: The steadfast support of Eastern Airlines, one of the major launch customers for the Lockheed TriStars. The President of Eastern was Sam Higginbottom , who never wavered and thereby acquired some criticism. Just before Walt Disney World opened in 1971, Eastern became its "official airline". It remained the official airline of Walt Disney World and sponsored a ride at the Magic Kingdom park ( If You Had Wings in Tomorrowland where Buzz Lightyear's Space Ranger Spin

2028-557: The term "legacy carrier" is most often used in a US context, it is possible to speak of legacy carriers elsewhere, since tight airline regulation was once the global norm and following US airline deregulation, many other countries went through some kind of airline deregulation. Non-US carriers with origins that precede liberalization can be viewed as legacy carriers. For instance, in Europe, flag carriers such as British Airways , Iberia , Lufthansa , and Air France (with origins well before

2080-446: The turbulent period following deregulation in 1978. In 1980, a Caribbean hub was started at Luis Muñoz Marín International Airport (known at the time as "Isla Verde International Airport") near San Juan, Puerto Rico . In 1982, Eastern acquired Braniff 's South American route network. By 1985, Eastern was the largest ATA airline in terms of passengers and operated in 26 countries on three continents. During this era, Eastern's fleet

2132-595: Was Secretary of the Air Force , invited MacIntyre to serve as Under Secretary of the Air Force . MacIntyre held the Under Secretary position for two years. In 1959 he resigned to become president of Eastern Air Lines . In 1964 he became executive vice president of Martin Marietta Corporation where he worked until he retired in 1973. MacIntyre played four years of lacrosse while at Yale and

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2184-484: Was Miami to London Gatwick, commencing on July 15, 1985, and discontinuing the following year, in 1986, replaced with codeshare flights from Atlanta on British Caledonian Airways . Eastern Air Lines was a composite of assorted air travel corporations, including Florida Airways and Pitcairn Aviation . In the late 1920s, Pitcairn Aviation won a contract to fly mail between New York City and Atlanta, Georgia on Mailwing single-engine aircraft. In 1929, Clement Keys ,

2236-399: Was a commuter carrier before 1979 therefore also escaped CAB regulation. A prominent example of a CAB-era commuter carrier survives today: the large regional airline SkyWest, which first started operating in 1972 as a commuter carrier. One CAB-era commuter airline made a post-deregulation impact at a mainline level and merged into a legacy carrier: Empire Airlines started in the mid-1970s as

2288-622: Was a first-team All-American his senior year. He continued to play at Oxford where he won three letters. In 1931, he toured the United States with an Oxford-Cambridge team which defeated both Army and Navy . While in England, he was selected three times to the All-Star English team. He coached Yale's lacrosse team when he returned for law school. In 1966, he was inducted into the National Lacrosse Hall of Fame . He

2340-647: Was an American lawyer and hall of fame lacrosse player. He attended Yale University and Oxford University before returning to Yale Law School to receive his J.S.D. After receiving his law degree he became a practicing attorney in New York City where he specialized in corporate law and performed legal services for American Airlines . During World War II he served in the Military Air Transport Service where he became acquainted with James H. Douglas, Jr. In 1957 Douglas, who

2392-456: Was an intrastate carrier. For instance, it was determined in the courts that an intrastate carrier was essentially legally impossible in Hawaii. Federally-controlled waters start three miles offshore, which made most flights between islands subject to federal regulation. Southwest started operations in 1971 and from 1971 thru 1978 was a Texas intrastate carrier, escaping CAB regulation. It was, in

2444-543: Was appointed as trustee to manage Eastern's reorganization. A report prepared by David Shapiro, an examiner appointed by the bankruptcy court overseeing Eastern's bankruptcy filing, concluded that Eastern was shortchanged by Texas Air in numerous transactions between the two. For example, Texas Air bought assets like System One, a computer reservation operation, from Eastern at a price far below market value. Eastern tried to remain in business in an attempt to correct its cash flow, but to no avail. Under bankruptcy, Eastern launched

2496-657: Was largely due to his reluctance to acquire expensive jets as he underestimated their appeal to the public. A new management team headed by Floyd D. Hall took over on 16 December 1963, and Rickenbacker left his position as director and chairman of the board on December 31, 1963, aged 73. In 1956, Eastern bought Colonial Airlines , giving the airline its first routes to Canada. In November 1959, Eastern Air Lines opened its Chester L. Churchill-designed Terminal 1 at New York City's Idlewild International Airport , later renamed John F. Kennedy International Airport . In 1960, Eastern's first jets , Douglas DC-8-21s , started to take over

2548-830: Was operated by Metro Airlines and was based at Eastern's Atlanta (ATL) hub operating British Aerospace BAe Jetstream 31 and de Havilland Canada DHC-8-100 Dash 8 turboprops. Eastern Partner was operated by a Caribbean-based airline, Leeward Islands Air Transport , with turboprop service between Eastern's San Juan hub and Antigua , St. Kitts and St. Maarten . Eastern also worked closely with another Caribbean-based airline, Caribair (Puerto Rico) . The June 13, 1967 Eastern system timetable lists connecting flights operated by Caribair Convair 640 turboprops with service between Eastern's San Juan hub and St. Croix and St. Thomas. By 1970, San Juan-based Caribair had become an all-jet airline operating McDonnell Douglas DC-9-30 aircraft serving fourteen Caribbean islands as well as Miami with

2600-513: Was shipped standby. The airline charged between 50 cents and $ 3 for beverages and snacks. Bunny Duck, an Eastern flight attendant quoted in The New York Times , said that the passengers on the special flights were "a cross section of families, college kids, illegal aliens and weirdos from L.A.". Eastern began losing money as it faced competition from no-frills airlines, such as People Express , which offered lower fares. In an attempt to differentiate itself from its bargain competitors, Eastern began

2652-436: Was split between their "silver-colored hockey stick" livery (the lack of paint reduced weight by 100 pounds) and their "white-colored hockey stick" livery (on its Airbus -manufactured planes, which required paint to cover the aircraft's composite skin panels). In 1983, Eastern became the launch customer of Boeing 's 757 , which was ordered in 1978. Borman felt that its low cost of operation would make it an invaluable asset to

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2704-493: Was the largest fine assessed against an airline until American Airlines was fined $ 24.2 million in 2010. Eastern's FAA violations all occurred prior to the acquisition by Texas Air. In 1988, Phil Bakes, the president of Eastern Air Lines, announced plans to lay off 4,000 employees and eliminate and reduce service to airports in the Western United States ; he said that the airline was going "back to our roots" in

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