November 9, 1989 |
Texas Air Corp. said yesterday that its losses had increased to $158 million in the third quarter, the industry's peak season, from $114.1 million a year ago, reflecting the company's costly effort to rebuild its Eastern Airlines subsidiary. Eastern Airlines, whose unions have been on strike since early March, recorded a $185.2 million loss in the third quarter as it tried to restructure its operations. In the year-ago quarter, it lost $112.9 million. The airline's revenues tumbled to $305.
May 14, 1986 |
Texas Air Corp. has agreed to sell some takeoff and landing rights to Pan American World Airways at three East Coast airports, clearing the way for approval of Texas Air's proposed merger with Eastern Airlines, the Justice Department said yesterday. The agreement resolves competitive concerns raised by the Justice Department, said a statement by Deputy Assistant Attorney General Charles F. Rule of the antitrust division. The merger still must be approved by the U.S. Transportation Department.
February 22, 1990 |
Texas Air Corp., the nation's largest airline company, has agreed to sell half of its prized computer-reservation system for $250 million to General Motors Corp., the companies said yesterday. The deal with GM unit Electronic Data Systems Corp. marks the first time a non-airline company has participated in an airline reservation system, Frank Lorenzo, chairman of Texas Air (AMEX), said. He said the partial sale of System One was not intended to help bail out financially struggling Texas Air or to ease pressure caused by a yearlong strike and bankruptcy proceeding at its Eastern Airlines subsidiary.
March 7, 1990 |
After severely criticizing the proposal only last week, Texas Air Corp. said yesterday that it would seek court approval to pay its Eastern Airlines unit $280 million. The plan, proposed by the court-appointed examiner in Eastern's bankruptcy case, calls for the payments to settle charges that Texas Air shortchanged Eastern in a dozen business transactions. After the examiner, David Shapiro, announced the proposed settlement in bankruptcy court on Thursday, Texas Air and Eastern harshly criticized his report.
September 19, 1986 |
Texas Air Corp. yesterday moved a step closer to becoming the world's second-biggest airline when the federal government tentatively approved its purchase of Eastern Airlines. The U.S. Department of Transportation, which on Aug. 26 rejected the takeover, said "the acquisition's only competitive problem" had been solved by Texas Air's sale of some landing rights in New York and Washington to Pan Am Corp. The department had suggested that Pan Am needed additional rights to make its proposed Northeastern shuttle service competitive with those run by Eastern and New York Air, a Texas Air subsidiary.
October 6, 1988 |
A new $50 million agreement between Scandinavian Airlines System and Texas Air Corp. will strengthen the competitive positions of both companies, officials of the airlines said yesterday. Under Texas Air's agreement with SAS, announced Tuesday, the Scandinavian airline will lease airport gates in the New York area. Officials of the Port Authority of New York and New Jersey and airline industry analysts said yesterday that the deal could be a glimpse of the future, when more foreign carriers will share their routes in exchange for entry to the U.S. market.
July 8, 1986 |
Airline-industry analysts said yesterday that Texas Air Corp. might be the leading contender to acquire People Express Inc., but they cautioned that any potential marriage of the companies would face huge hurdles. The Wall Street Journal reported yesterday that Texas Air - the parent company of Continental Airlines and New York Air and the proposed buyer of Eastern Airlines - offered $12 a share for People Express over the weekend. Adding People Express to the Texas Air network might create a huge discount-airline system with a low-cost structure, but the merger would be open to challenge on anti-competitive grounds, several analysts said.
February 25, 1986 |
Frank Lorenzo has his work cut out for him if he expects to turn beleaguered Eastern Airlines into a profitable carrier, industry analysts say. But then, nobody believed he had much chance to succeed with Continental Airlines two years ago. Instead, Lorenzo brought the troubled carrier, which he took over in 1982, on an unprecedented but apparently successful trip through the perils of Chapter 11 of the Federal Bankruptcy Act. Now, Lorenzo's...
July 20, 1989 |
Texas Air Corp., owner of Continental Airlines and strike-bound Eastern Airlines, said yesterday that it had placed orders for up to 100 Boeing Co. aircraft worth as much as $2.8 billion. The Houston airline holding company said it had placed firm orders for 50 Boeing 737 aircraft and taken options for another 50. It said that the planes would be used by both Eastern and Continental. If all the options are executed, the deal would be worth $2.8 billion. Texas Air said the planes would replace older aircraft at Eastern and Continental and that financing would be arranged nearer the time when deliveries began in 1992.
September 16, 1986 |
People Express Inc., trapped in a cash squeeze after rapid growth as a pioneer of low-fare air travel, said yesterday it had agreed to be acquired by Texas Air Corp. of Houston for $125 million in securities. The purchase, which would include Texas Air's assumption of about $750 million of People Express debt, would establish Texas Air as the nation's biggest airline operator. The company already owns Continental Airlines and New York Air and is in the process of buying Eastern Airlines.