Eastern Airlines Facing Bankruptcy

      In  1986, Eastern Airlines was in  desperate
  trouble.  The fourth
quarter  of  1985 had shown  a  $67.4  million  loss,  and financially  experts
had told Frank Borman,  president  and  chief executive  officer,  that the
airline had three choices:  1) a  20 percent  pay  cut for all union  and
noncontract  employees.   2) Filing for Chapter 11 (bankruptcy) or 3) Selling
the  airline.  On February 23,  1986, Eastern's board of directors met to decide
the fate of the company.

      Frank  Borman,  quickly  left his home in  Coral  Gables  to Building 16
at Miami International Airport that Sunday evening, to discuss plans on saving
the airlines.  The board of directors  had recessed for dinner following
afternoon session and was  scheduled to  convene at 7:30 p.m.   At the earlier
meeting,  Wayne  Yeoman, senior  vice  president for finance,  had spent most of
the  time outlining the details of Texas Air's offer to buy  Eastern.  Frank
Lorenzo   and  Frank  Borman  had  been  talking  since   December originally
about  consolidating  the  computerized   reservation systems,  then ,  as
Eastern's problems deepen,  about a  possible sale.

     As Frank entered his office,  he found his his loyal excutive assistant;
Wayne Yeoman;  and Dick ...