Eastern's employees went on strike in 1989, that temporarily shut down the airline for a couple months. By August 1989 they were back up to 70-80% of the pre-strike operations level with new employees and employees who crossed the picket lines.
About 1-2 months after the employees went on strike and the airline was temporarily shut down Eastern filed for Chapter 11 bankruptcy protection, they then began reoperating during their bankruptcy. In 1990 the bankruptcy court and Eastern's creditors took control of Eastern and threw Lorenzo and Texas Air out, the court put former CO
Executive Martin Shegrue in charge.
He started building the "new" Eastern, they were selling assets such as their North East Shuttle, Latin American/Miami hub, JFK
Maintence facility, Philadelphia hub, aircraft etc. to generate cash for their reorganization. They hoped to reorganize and exit bankruptcy as a low cost carrier based out of ATL
(where they moved their headquarters), however the mounting losses forced the creditors to refuse to loan Eastern any more money so in January 1991 Eastern shut down for good.
So there were actually two shut downs, the first in 1989 when Eastern's employees went on strike, the airline relaunched about 80% of their pre-strike operation with new employees and employees who crossed the picket lines. In 1990 when Lorenzo and Texas Air were forced out of Eastern the employees who were picketing Eastern called off their strike and asked to return to work.
However by that time it was too late.
During their bankruptcy reorganization they sold off many assets to generate cash to keep afloat in hopes of pulling out of bankruptcy.
They sold their North East shuttle to Donald Trump.
Their Latin America routes to American
Their Philadelphia hub to Midway
maintenance base to AA
And several aircraft including 2 DC-10s to CO
, which were some of the last DC-10s CO
operated untill 2001.
After Eastern was shut down the last time in 1991 the bankruptcy court auctioned off their remaining assets.
hub went to CO
, who sold it to US Air around late 1992.
hub went to NWA, who sold it to US Air around late 1992.
Some of their L1011s went to DL
, who bought gates and other facilities at ATL
I followed Eastern closely, I have many articles and video tapes about their journey from 1989 to their end in 1991.