Eastern Air Lines was America's most profitable airline — until Frank Lorenzo killed it

Eastern Air Lines was founded in 1926 as Pitcairn Aviation, carrying air mail between New York and Atlanta. In 1938, World War I ace Eddie Rickenbacker bought the airline from General Motors for $3.5 million and turned it into the most profitable post-war U.S. airline. Eastern launched the hourly Shuttle service in 1961, became the launch customer for the Boeing 727 in 1964, and by 1985 was the largest ATA airline by passengers, operating in 26 countries.

The airline's decline was driven by debt and labor conflict. Between 1977 and 1983, Eastern took on massive debt to buy Airbus A300s and Boeing 757s, paying $700,000 in interest every day. After deregulation in 1978, low-cost carriers undercut its fares. In 1985, Texas Air chairman Frank Lorenzo acquired Eastern. On March 4, 1989, Lorenzo locked out the mechanics' union demanding deep cuts. Pilots and flight attendants launched a sympathy strike, effectively shutting down the airline.

Eastern filed for Chapter 11 on March 9, 1989. To survive, it sold its prized East Coast Shuttle to Donald Trump for $365 million and its Latin American routes to American Airlines for $471 million. Neither was enough. On January 18, 1991, Eastern ceased operations. Five thousand of its 18,000 employees lost their jobs that day, and the airline was liquidated. Delta Air Lines acquired its Atlanta gates and many of its aircraft.