Today in History

January 18, 1991

Eastern Airlines Ceases Business

The 1980's were not kind to the legacy airlines. Deregulation brought onto the market a number of upstart airlines such as People Express. Legacy airlines like Eastern Airlines suddenly faced competition from the first wave of so-called "no-frills" carriers. Eastern was the largest employer in the Miami, Florida area and the company passed through a succession of managerial and financial maneuvers in an attempt to meet the challenge of the new operating environment. Ultimately, the company could not operate in the face of lower fares, union strikes, and poor management. On March 9, 1989, Eastern filed for bankruptcy protection. The downward momentum, however, was too strong. On January 18th, 1991, the company ceased operations permanently.