Phil Bakes

The $464-million deal to sell strike-bound Eastern Airlines to former baseball commissioner Peter Ueberroth collapsed today and TWA's Carl Icahn quickly expressed renewed interest in buying the troubled airline. Ueberroth and Phil Bakes, president of Eastern, called a news conference in New York "to explain why their efforts to complete a purchase of Eastern Airlines by the Ueberroth group have been unsuccessful." In the meantime, Trans World Airline Inc. Chairman Carl Icahn said unions at Eastern had asked him to make a bid for the company.

Phil Bakes resigned Friday as president and chief executive of Eastern Airlines, as a court-appointed trustee replaced parent Texas Air Corp. as head of the airline. Bakes, a long-time cohort of Texas Air Chairman Frank Lorenzo, urged Eastern employees to support trustee Martin R. Shugrue Jr., who was appointed Wednesday by U.S. Bankruptcy Judge Burton R. Lifland.

Texas Air Corp.'s boss, Francisco A. (Frank) Lorenzo, strengthened his hold over Eastern Airlines by becoming chairman of the carrier on Friday. Eastern's board of directors also elected Phil Bakes president and chief operating officer of the airline. Lorenzo, 46, has been chairman and chief executive of Texas Air since 1980.

Eastern Airlines, bankrupt and strikebound, proposed Monday to shrink itself by more than one-third in a drastic selloff of assets that it declared would lead it out of bankruptcy by Sept. 1 and back to profitability next year. Unveiling its financial plan to creditors, the airline called for big cutbacks in its fleet, employment and the roster of cities it serves. Eastern proposed to sell off $1.8 billion in assets, about one-third of the total, and to repay more than one-third of its debt.

Phil Bakes resigned Friday as president and chief executive of Eastern Airlines, as a court-appointed trustee replaced parent Texas Air Corp. as head of the airline. Bakes, a long-time cohort of Texas Air Chairman Frank Lorenzo, urged Eastern employees to support trustee Martin R. Shugrue Jr., who was appointed Wednesday by U.S. Bankruptcy Judge Burton R. Lifland.

Former baseball commissioner Peter V. Ueberroth said Saturday that members of his group of investors, including current officials at other airlines, may replace some of Eastern Airlines' top management if the planned $464-million purchase of the troubled carrier goes through. Ueberroth, speaking to reporters in Beverly Hills, said specific plans for management changes had not been drawn up yet. But Phil Bakes, Eastern's current president and chief executive, may be among those replaced if a new management team is brought in. Ueberroth said "I don't know" when asked if Bakes is likely to remain at the airline.

Eastern Airlines, bankrupt and strikebound, proposed Monday to shrink itself by more than one-third in a drastic selloff of assets that it declared would lead it out of bankruptcy by Sept. 1 and back to profitability next year. Unveiling its financial plan to creditors, the airline called for big cutbacks in its fleet, employment and the roster of cities it serves. Eastern proposed to sell off $1.8 billion in assets, about one-third of the total, and to repay more than one-third of its debt.

Eastern Airlines, taking drastic action to cut mounting losses, said Friday that it will drop nearly 12% of its flights, eliminate as many as 4,000 jobs, stop flying to 14 airports--including those at San Diego, Las Vegas and Lake Tahoe--and sell an unspecified number of airplanes. The airline said it will stop using Kansas City as a hub airport, although it will continue flying to the Missouri city. It will retain its other two principal hubs--in Miami and Atlanta.

The airline's new management plans wage reductions of 30% to save the financially troubled carrier an estimated $490 million a year, President Phil Bakes said. Leaders of two Eastern unions criticized the announcement as part of an effort to intimidate employees under the new ownership of Texas Air Corp., and they said they had no plans to take cuts on valid contracts. Bakes declined to speculate on what action the Miami-based carrier might take if the unions refuse to accept cuts.

The $464-million deal to sell strike-bound Eastern Airlines to former baseball commissioner Peter Ueberroth collapsed today and TWA's Carl Icahn quickly expressed renewed interest in buying the troubled airline. Ueberroth and Phil Bakes, president of Eastern, called a news conference in New York "to explain why their efforts to complete a purchase of Eastern Airlines by the Ueberroth group have been unsuccessful." In the meantime, Trans World Airline Inc. Chairman Carl Icahn said unions at Eastern had asked him to make a bid for the company.

Former baseball commissioner Peter V. Ueberroth said Saturday that members of his group of investors, including current officials at other airlines, may replace some of Eastern Airlines' top management if the planned $464-million purchase of the troubled carrier goes through. Ueberroth, speaking to reporters in Beverly Hills, said specific plans for management changes had not been drawn up yet. But Phil Bakes, Eastern's current president and chief executive, may be among those replaced if a new management team is brought in. Ueberroth said "I don't know" when asked if Bakes is likely to remain at the airline.

Eastern Airlines, taking drastic action to cut mounting losses, said Friday that it will drop nearly 12% of its flights, eliminate as many as 4,000 jobs, stop flying to 14 airports--including those at San Diego, Las Vegas and Lake Tahoe--and sell an unspecified number of airplanes. The airline said it will stop using Kansas City as a hub airport, although it will continue flying to the Missouri city. It will retain its other two principal hubs--in Miami and Atlanta.

Texas Air Corp.'s boss, Francisco A. (Frank) Lorenzo, strengthened his hold over Eastern Airlines by becoming chairman of the carrier on Friday. Eastern's board of directors also elected Phil Bakes president and chief operating officer of the airline. Lorenzo, 46, has been chairman and chief executive of Texas Air since 1980.

Eastern Airlines, nearing the seventh month of its strike, on Wednesday said it will add an additional 101 daily flights Oct. 1 and is ahead of its rebuilding schedule. The announcement of new flights, most between Florida and Northeast cities, came a day before Eastern officials were scheduled to make a presentation in New York to creditors on their rebuilding plan.