Eastern is back!

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Eastern is back!
24 years after its collapse, the iconic airline
brand is back. Is it here to stay?
By Luis Linares
M
PHOTO: CARY LIAO • DCA
ORE THAN 24 YEARS AFTER its original
namesake collapsed, with no announcement or
fanfare, the iconic Eastern Air Lines (EA) brand
has returned to the skies. On May 28, 2015, at 14:26
local time, flight 3145 departed Miami International
Airport (MIA) for a 42-minute journey to José
Martí International Airport (HAV) in Havana, Cuba. Flight
3146 was the return leg and landed back in Miami at 17:05.
the current rapprochement between the two countries will
inevitably lead to scheduled flights and probably threaten charter
operations. The resurrected Eastern operated its maiden flight
on behalf of MIA-based charter operator Havana Air Company.
The only things that marked this momentous occasion were a
special flyby and a traditional water cannon salute.
Two days after the first flight to Havana, flight 1941 departed
Miami at 06:00 for Ronald Reagan Washington National
Airport (DCA). Not only was this the airline’s first domestic
flight, it also celebrated the veterans of World War II and of the
Korean War living in South Florida, as part of a one-day ‘honor
flight’ to the capital. The 60 veterans returned to Miami at 20:17
on the evening of May 30 aboard flight 1945.
It might seem that the choice of destination was linked to the
recent thaw in relations between the United States and Cuba
but, in reality, charter flights between Florida and various Cuban
destinations have been around for almost 40 years. If anything,
Eastern’s initial charters from MIA consist of two daily
flights to HAV and weekly service to Santa Clara (SNU) and
Camagüey (CMW).
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EASTERN IS BACK! | AIRWAYS INDUSTRY
Eastern conducted all these flights with its first aircraft, a
145-seat Boeing 737-800, registration N276EA, which had
originally been delivered to Kenya Airways in 2006. The
aircraft, named ‘Spirit of Captain Eddie Rickenbacker’ for the
World War I hero and CEO of the original Eastern from 1938
to 1963, has 16 Business Class seats and 129 Economy ones.
Between 1942 and 1945, Eastern supported the World War
II effort by creating a Military Transport Division consisting
of Curtiss C-46 Commandos. In 1944, the Civil Aeronautics
Board allowed Eastern to compete for the prized New YorkBoston route, which had been an American Airlines (AA)
monopoly.
The airline should receive its second of 10 737s in July 2015,
when it would also announce new charter destinations. Eastern
is also scheduled to receive 20 Mitsubishi MRJ90 regional
jets starting in 2019, with options for 20 more. The company
also has options for 10 Boeing 737 MAX 8s, with deliveries
scheduled for 2022.
After World War II, Eastern began to augment its DC-3 fleet
with four-engined DC-4s and new, pressurized Lockheed
L-649 Constellations. It purchased various improved models of
the ‘Connie’ over the years, along with more advanced versions
of four-engined Douglas aircraft.
THE ORIGINAL EASTERN AIR LINES
Eastern Air Lines traces its heritage back to September 15, 1927,
to the founding of Pitcairn Aviation, an
2
airmail carrier owned by Harold Pitcairn
and based in Philadelphia. Air mail
service from New York to Atlanta, via
intermediate points, was inaugurated in
May 1928, and extended that December
to Miami.
In 1929, Pitcairn sold his airline
to Clement Keys’ North American
Aviation, a holding company that owned
interests in several airlines and aviation
enterprises. Pitcairn Aviation adopted
the name Eastern Air Transport on
January 15, 1930. World War I flying ace
Rickenbacker served as general manager.
The company inaugurated passenger
service in 1930, and soon the twinengine Curtiss Condor biplane became
the mainstay of the fleet.
In the 1950s, Eastern became the most important carrier in the
eastern United States. In 1956, it acquired Colonial Airlines,
a company with an impeccable safety record, having gone 25
years without a single fatality to a passenger or crew member in
PHOTO: EDDY GUAL • MIA
1
‘The Spirit of Captain Eddie Rickenbacker,’ EAL’s legendary founder, was pictured on final approach to
The Air Mail Act of 1934 authorized reWashington Reagan National Airport as flight EA1941.
2 EA called its Lockheed L-1011 Tristars ‘Whisperliners’ because of their efficient and quiet operations.
awarding of government mail contracts
to private carriers and established new
scheduled service. Eastern inaugurated service to Mexico City
rates for transporting mail. To meet the criteria for bidding
in 1957.
on these contracts, Eastern Air Transport changed its name
to Eastern Air Lines. The company gained airmail authority
Turbo-prop Lockheed L-188 Electras joined the fleet in late
extending northwest from Atlanta to Chicago and southwest
1958. With the onset of the jet age, Eastern received its first
from Atlanta to New Orleans, in addition to its original New
Douglas DC-8-21 in 1960 and its first Boeing 720 in 1961.
York-Atlanta-Miami main line.
With the introduction of the Douglas DC-2 in 1934, Eastern’s
public relations department began referring to the company’s
airliners as ‘The Great Silver Fleet’. Eastern’s DC-2s were joined
two years later by the workhorse of the airways, the DC-3.
Captain Rickenbacker and his associates bought Eastern Air
Lines in 1938.
www.airwaysnews.com
On April 30, 1961, the company inaugurated the Eastern Air
Lines Shuttle, its L-1049C Super Constellations leaving every
two hours from La Guardia (LGA) to Washington National
(DCA), and from La Guardia to Boston Logan (BOS) between
08:00 and 22:00. This unprecedented service, still operated by
other airlines to this day, soon became every-hour-on-the-hour
from 07:00 to 22:00.
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AIRWAYS INDUSTRY
The highly respected Rickenbacker retired, at age
73, on December 31, 1963, after having been at
the helm for 25 years.
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PHOTOS: EDDY GUAL • MIA
Eastern became the first operator of the legendary
Boeing 727, which it had helped to develop. The
first 727 flight originated in Philadelphia, stopped
at Washington, and then proceeded on to Miami,
on February 1, 1964. Two years later, Eastern
received its first DC-9.
Eastern became a transcontinental carrier in
1967, when it introduced service to Portland and
Seattle/Tacoma. On September 21, 1969, Eastern
also began to fly to Los Angeles.
4
5
3 As the Airbus A300 fleet had to keep
its composite sections painted in white,
EA opted to introduce a scheme called
‘white-colored hockey stick’ in lieu of its
silver livery. Pictured above, the white color
scheme is seen on one of its L-1011s.
4 Eastern was the first operator of the
Airbus A300 in the United States after
leasing four units as an in-service trial.
Frank Borman, ex-astronaut and then
CEO, was so impressed that the A300
consumed 30% less fuel than the Tristars
that he ordered 23 of the type. It’s been
said that this decision opened the doors
of the American market to Airbus, largely
dominated, at that time, by Boeing and
McDonnell Douglas.
5 In 1978, Eastern became the launch
customer of Boeing 757. The first commercial
flight of the type took place on January 1,
1983, on the Atlanta to Tampa route.
6 A ‘Routes of Eastern Air Lines’ map from
August 1, 1959.
66 | AIRWAYS | September 2015
When it joined the widebody club, the carrier
ordered the Lockheed L-1011 Tristar. Prior to
the L-1011 deliveries, Eastern had begun jumbo
jet service with leased Boeing 747s. The carrier’s
first 747 service took place in January 1971, from
New York to Miami.
Expansion continued into the Caribbean with the
purchase of Puerto Rico-based Caribair in 1973.
Its next widebody purchase was the Airbus A300
in 1977, making Eastern the first US Airline to
order the new European aircraft in a unique deal
in which the airline tried the planes out for free.
In the 1970s, Eastern was using a polished-silver
scheme, but the A300 wore white because some of
its composite components could not be polished.
Years later, In 1983, Eastern became the launch
customer of the Boeing 757 as well.
In 1975, Frank Borman, the former astronaut
and retired USAir Force colonel, became CEO
of Eastern Air Lines and moved the headquarters
from New York to Miami. He had joined the
company in 1969 as a special adviser and had
played a personal role in the search and rescue
effort of Flight 401, a brand new L-1011, after
it had crashed in the Florida Everglades on
December 29, 1972. He helped injured survivors
into helicopters. The tragic accident—the first
crash of a widebody—was the result of poor
resource management by the cockpit crew after
they had become preoccupied with a faulty
landing gear light during approach. Borman
would run the company until 1986.
Three years after Borman had assumed his CEO
duties, the US enacted the Airline Deregulation
Act of 1978—which would significantly alter the
airline playing field and, over the years, separate
FRANK LORENZO
“A ruthless strategist
and self-made
multimillionaire
whose youthful
face was appearing
on the covers of
magazines, including
Business Week and
Time, Continental
Airlines chairman
Frank Lorenzo would
soon be described
by Barbara Walters
as the “most hated
man in America.”
Handsome, tan,
impeccably dressed,
and prematurely
gray, he remains a
poster child of the
“decade of greed,” a
hero to an emerging
breed of financers
who whould make
vast fortunes slashing
jobs and destroying
companies. By
the time Hillblom
purchased his first
share of UMDA,
Continental
was already in
bankruptcy—less
than two years after
Lorenzo had acquired
it. (A few years later,
he would take over
Eastern Air Lines
and drive it out of
existence entirely.)
Lorenzo would
become so hated that
he and his executives
required a security
detail to walk through
their own hangars.”
— King Larry: The
Life and Ruins of a
Billionaire Genius. By
James D. Scurlock
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EASTERN IS BACK! | AIRWAYS INDUSTRY
the weak from the strong. Deregulation fostered a
low-fare boom, which, given its high operating costs,
hurt Eastern. At the same time, labor relations within
the company became progressively conflictual.
Eastern still managed to grow, most notably with
the acquisition of Braniff ’s South American routes
in 1982. In 1985, the airline peaked, flying to 26
countries on three continents, and was using the DC10 for its longest routes and its short-lived service
to London Gatwick. The purchases of the 757s
and A300s resulted in a significant amount of debt.
Borman had figured that the efficient 757 would be
vital during a rise in oil prices, but these remained low
during most of the 1980s. Meanwhile, competition
grew stiffer.
Weighed down by $2.5 billion in long-term debt and
deteriorating labor relations, Borman agreed to sell
Eastern Air Lines to Texas Air, led by Frank Lorenzo,
in 1986 for $676 million. Lorenzo had already
purchased Continental and had gained a reputation
as a corporate raider and union buster. Various safety
violations resulted in a $9.5 million Federal Aviation
Administration (FAA) fine in February 1987. Eastern
began a three-year retreat in 1988, dismissing 4,000
employees and reducing West Coast service. The
company had to sell aircraft, and Texas Air transferred
many core assets to Continental in terms that were
very unfavorable to Eastern.
On March 4, 1989, Lorenzo locked out mechanics
and ramp employees unwilling to accept deep cuts
in pay and benefits. Pilots and flight attendants
followed with a sympathy strike, which non-contract
employees did not honor. The labor moves resulted
in canceled flights and heavy daily financial losses.
That same year, Lorenzo sold the pioneering Eastern
Air Lines Shuttle to Donald Trump. Inevitably, the
strike, debilitated structure, rising fuel costs, lost
competitiveness, and financial losses led, on March
9, 1989, to bankruptcy proceedings. Lorenzo ran the
airline with non-union employees, but the courts
took away his control.
FAST FACTS
EASTERN AIR LINES (1927-1991)
During its 60+ years of existence, Eastern Air Lines and its predecessor, Pitcairn Aviation,
operated the following aircraft types:
Fleet
Type
Pitcairn Mailwing (various versions)
Cutiss Kingbird
Curtiss Condor, model CO (or 18)
Curtiss Condor T-32
Douglas DC-2
Lockheed L-10B Electra
Douglas DC-3
Douglas DC-4
Lockheed L-649 Constellation
Lockheed L-749 Constellation
Lockheed L-1049 Super Constellation
Lockheed L-1049C, Super C Constellation
Lockheed L-1049G, Super G Constellation
Martin 404
Douglas DC-6B
Douglas DC-7B
Convair 440
Lockheed L-188 Turboprop Electra
Douglas DC-8 (-21,-50,-54F,-55F models)
Douglas DC-8 (-61,-63 models)
Boeing 720-025
Boeing 727 (-100 model)
Boeing 727 (-200 model)
Douglas DC-9 (-14 model)
Douglas DC-9 (-31 and -32 models)
Douglas DC-9 (-51 model)
Boeing 747 (-121 model)
Lockheed L-1011 TriStar
Airbus A300
Douglas DC-10
Boeing 757 (-225 model)
Number
45
15
6
9
14
5
86A
34B
14
7
14
16
10C
60
10D
50
20
40
21
23
15
75
99
15
81
26
5
43
34
3
25
Additional DC-3s were inherited from Colonial Airlines through merger in 1956
Additional DC-4s were inherited from Colonial Airlines through merger in 1956
EA also operated 11 L-049, 1 L-1049E, and 5 L-1049H models of the Constellation on short term leases.
D
Additional DC-6s were inherited from Mackey Airlines through merger in 1966
A
B
C
This list includes aircraft both owned and leased (some leases were short term). In addition, several
other aircraft types served with the company in small numbers over the years.
Source: “EASTERN: An Airline and its Aircraft”, by R.E.G. Davies.
Marty Shugrue took over operations in a futile effort
to try to reverse the negative cash flow. The final blow
came from the first Gulf War, which resulted in a spike
in oil prices and a subsequent drop in air traffic. By
January 1991, the airline was almost out of operating
money. Its last flights took place on January 18, 1991.
Eastern ceased operations at midnight on January 19,
resulting in the loss of 18,000 jobs, mostly in Miami
and New York.
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AIRWAYS INDUSTRY
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PHOTOS: CHRIS SLOAN
THE WINGS OF MAN UNFURLED AGAIN
After the demise of the original Eastern, a
court-appointed trustee and administrator were
able to preserve the Eastern Air Lines name and
trademarks to allow for a future relaunch.
Enter Edward J. Wegel, an airline and aerospace
executive with nearly 30 years of experience at
carriers like Pan Am, Atlantic Coast Airlines,
Chautauqua Airlines, Tower Airlines, and the
Mesa Air Group. The original bankruptcy estate
came to him in 2007 and asked him to put
together a business plan to get Eastern off the
ground. Wegel and his partners fashioned a plan
and raised capital in the summer of 2008, but the
start of the economic recession in September of
that year put the ambitions on hold.
Wegel brought back the plan in 2010 and did
not look back. On December 19, 2014, Wegel,
as president and CEO of the new Eastern Air
Lines, was aboard the ‘Spirit of Captain Eddie
Rickenbacker’ during its delivery flight to
Miami—once again the location of Eastern’s
headquarters, as it had been for the original
from 1975 to 1991. The delivery culminated with
an emotional celebration attended by former
employees of the original Eastern as well as by
those of the new airline.
68 | AIRWAYS | September 2015
FAST FACT
Eastern Air Lines
was the largest
private employer in
Miami-Dade until it
filed for bankruptcy
and stopped flying
in 1991.The airline’s
gigantic hub at
Miami International
Airport (MIA) was
the predecessor
to the current
American Airlines
hub, which has
now become the
main gateway to
the Americas and
one of the country’s
largest commercial
aviation and cargo
centers.
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7
8
9
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Edward Wegel delivers a speech at the arrival event of the first Eastern Air Lines aircraft to Miami.
Marilyn Cabrera (L), a former Eastern flight attendant (FA), with the airline’s original uniform, stands next to a model sporting the new ones.
Miami-Dade Country Airport Director Emilio Gonzalez (L) presents a historic photograph from 1948 to Eastern Air Lines President and CEO Edward Wegel (R).
A water-cannon salute welcomes the first Eastern Air Lines Boeing 737-800 aircraft to Miami after it had performed a low fly-by over Runway 8L.
Also in attendance and speaking at the event were Manny Diaz,
former Miami mayor and now board member of the new Eastern;
Miami-Dade County Mayor Carlos Gimenez; Miami-Dade
County Airport Director Emilio Gonzalez; Mitsubishi President
and COO Teruaki Kawai; Boeing Vice President of Marketing
Randy Tinseth; Vice President of American Sales of CFM
International Doug Izarra; and Miami Archbishop Thomas
Wenski, who blessed the new aircraft.
Wegel foresees EA being the number two carrier in MIA,
behind AA, with 30 to 40 aircraft flying to Latin America and
the Caribbean.
The new corporate headquarters are located in Building 5A
on NW 36th Street, at the former Eastern Operation Center
at MIA. Miami had served as a hub and headquarters for the
original Eastern from 1975 to 1991, when the carrier had ceased
operations; the airline had been the city’s largest employers
during that era.
From mid-April to May 4, 2015, the new EA conducted proving
runs required by the FAA in order to get its Part 121 Air Carrier
Operating Certificate (AOC). During this process, the aircraft
visited airports in Colorado Springs (COS), Rickenbacker’s
birthplace of Columbus (CMH), Dallas Love Field (DAL), Islip
(ISP), San Antonio (SAT), San Juan (SJU), and Santo Domingo
(SDQ). The US Department of Transportation (DOT) granted
the required foreign charter authority to Eastern in May 2015.
www.airwaysnews.com
Nine pilots made up the first class to graduate in February. A
second class, consisting of 10 pilots, was on track to graduate by
June. In addition, the first class of FAs graduated in February,
and a second on May 13, the same day the FAA granted the
AOC.
Wegel expects that EA will continue to have a charter division
after introducing scheduled flights sometime next year, after
another round of equity raising. He has not disclosed further
details on scheduled operations, such as the business model the
airline will adopt, but he did say: “We are not an LCC [lowcost carrier]. We have the benefits of a legacy airline brand with
new entrant costs.”
At press time, EA is introducing service between New York
( JFK) and Port of Spain, Trinidad to provide extra lift for
Caribbean Airlines. The second Boeing 737-800 (configured
with an all-economy layout) will perform all Cuban flights. The
third, a 737-700, will fly the Florida Panthers team through its
NHL season.
Historically, nostalgic relaunches have not been kind to airlines.
Reincarnations of Pan Am (PA), National (NA), Braniff (BN),
and, most recently, PeopleExpress (PE) (Airways, January
2015), have resulted in failure.
Regardless, we wish the new Eastern Air Lines nothing but the
best as it once again graces the skies! –LL
September 2015 | AIRWAYS | 69
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