MIAMI — Eastern Airlines, faced with strike deadlines and loan defaults, today announced that it will be taken over by Houston-based Texas Air Corp., which already operates Continental Airlines and New York Air.
Eastern Chairman Frank Borman would reveal no details about the purchase offer but blamed an uncooperative union for forcing the sale.
"There is tremendous potential in this agreement to make Eastern a much stronger and more competitive airline," Borman said in a statement. "There is no question that the sale was in the best interests of our employees and shareholders." He said the only alternative would have been to file for bankruptcy.
It was not immediately clear whether Borman would play a role in the airline's affairs under Texas Air, although one pilot said, "We understand Borman is resigning."