Hard Landing (88 page)

23.
squirmed and fidgeted: Griffin,
Chicago Daily News
, Apr. 28, 1976.

24.
a podium: Ferris 5/28/93 interview.

25.
“What the hell”: Luce 8/26/93 interview.

26.
“worked too hard”:
Ibid
Luce was the principal source of the dialogue reconstructed here. Ferris, though not confirming all of the words exchanged, does confirm secretly proposing an LBO at United at this time; he says employee groups would have been partners in the transaction.

27.
Ferris could see: Ferris 6/7/94 interview.

28.
“Well, Dick”: Luce 8/26/93 interview.

29.
“This is a takeover”:
Ibid
.

30.
“don’t make many mistakes”:
Ibid
.

31.
“shook the board”:
Ibid
.

32.
backlash on his hands: Babbitt 8/26/94 interview.

33.
still seething: Rick Dubinsky, speech to the Harvard Trade Union Program, Feb. 28, 1991.

34.
dead anyway: Ferris 5/27/93 interview.

35.
Chicago Action Plan: Testimony of Robert L. Crandall,
AMR Corp
. v.
UAL Corp.
, U.S. District Court, Southern District of New York, 91Civ.7773, Mar. 4, 1992.

36.
well over $100 million: Based on spending of $75 million after 1988, as disclosed in
ibid.
, plus $32 million paid to United for 12 slots in 1992.

37.
mattered immensely: Ferris 5/27/93 interview; Testimony of Donald J. Carty,
AMR Corp
. v.
UAL Corp.
, Mar. 4, 1992.

38.
giant soiree: “United and American Vie to Expand Share of Market at O’Hare Airport,” by Harlan S. Byrne,
WSJ
, Aug. 27, 1984.

39.
civic activities: Zeeman 7/23/93 interview.

40.
“Get along peaceably”: Letter from Jesse W. Ferris to Dick Ferris, Aug. 28, 1957.

41.
deeply hurt: Ferris 5/27/93 interview.

42.
pounding on tables: “Revolt at Allegis: How Labor and Wall Street Stopped Ferris,” by Mark Hornung,
Crains Chicago Business
, Nov. 30, 1987.

43.
“You match the American”: Ferris 5/27/93 interview.

44.
actually canceling: “The Dogfight Between United and Its Pilots,” by Carol Jouzaitis,
Chicago Tribune
, May 12, 1985.

45.
“lost his balance”: Luce 8/26/93 interview.

46.
Dick’s toughness: Carlson,
Recollections of a Lucky Fellow
, page 270.

47.
“love affair gone bad”: Zeeman 7/23/93 interview.

48.
role that wives played: “United Pilot Unity Starts at Home Front,” by Gary Washburn,
Chicago Tribune
, June 13, 1985.

49.
fully 1,000 pilots: First Officer David Cook, speech before United Pilots Teleconference, May 5, 1985.

50.
household finance: “Video Technology Rallies Striking United Pilots,” by Beth Ann Krier,
Los Angeles Times
, May 24, 1985.

51.
piggy bank:
Pan American World Airways, Inc., Financial Analysis, Lazard
Frères, Jan. 31, 1985.

52.
“Employees will not trust”:
Ibid
.

53.
“I want to talk”: Ferris 5/27/93 interview.

54.
commissioned a study:
Ibid
. Ferris’s thinking is also detailed in “The Pan Am-United Deal: Truly a ‘Win-Win’ Situation,” by Reggi Ann Dubin,
BW
. May 6, 1985.

55.
intervention of … Reagan: Carlson,
Recollections
, page 224.

56.
that was okay: Shugrue 9/8/93 interview.

57.
“The Continental situation”: Quoted in “Pan Am Reaches Back-to-Work Accord with Pilots; Mechanics Remain on Strike,” by William M. Carley,
WSJ
, Mar. 7, 1985.

58.
required a cushion; Acker 6/3/93 interview.

59.
“fucking believe it”: Zeeman 7/23/93 interview; Ferris 6/7/94 interview.

60.
Ferris … readily agreed: Gitner 3/31/93 interview. Ferris, in the 6/7/94 interview, confirmed quickly accepting Acker’s price, although not before he had conducted a quick and discreet due-diligence review.

61.
emotionally wrenching: Acker 6/3/93 interview.

62.
“could always argue”: Coleman 2/16/94 interview.

63.
could not imagine: Crandall 9/1/93 interview.

64.
Ferris knew the timing: “Pan Am Agrees to Sell United Its Pacific Unit,” by William M. Carley and Harlan S. Byrne,
WSJ
, Apr. 23, 1985.

65.
high gear: “United Tries to Keep ’Em Flying During Strike’s War of Nerves,” by Carol Jouzaitis and Gary Washburn,
Chicago Tribune
, May 23, 1985.

66.
casual slacks: “United Chief Takes Two-Tiered Pay Show ‘on the Road,’ ” by Bill Barnhart and Sally Saville Hodge,
Chicago Tribune
, Mar. 13, 1985.

67.
intimidating my pilots: Ferris 5/27/93 interview.

68.
satellite production: ALPA, United Pilots Teleconference, May 5, 1985. The author viewed a videotape of the production.

69.
agreed to b-scales: “There’s No Turning Back at United,” by Aaron Bernstein and Ellyn E. Spragins,
BW
, June 3, 1985.

70.
50 percent of capacity: “United Airlines, Pilots’ Union Agree to Hold Talks with Mediators in Strike,” by Harlan S. Byrne,
WSJ
, May 20, 1985; “Pilots Go on Strike at United,” by James Warren and Carol Jouzaitis,
Chicago Tribune
, May 17, 1985.

71.
lodging the strikebreakers: ALPA’s countertraining operation in Denver was described in the Babbitt 8/26/94 interview and the Higgins 6/8/94 interview.

72.
“nuclear reactor”: Babbitt 8/26/94 interview.

73.
double agents: Higgins 6/8/94 interview.

74.
Haas … expressed reservations: Zeeman 7/23/93 interview; Ferris 6/7/94 interview.

75.
Six showed up: Byrne,
WSJ
, May 20, 1985.

76.
30 management pilots:
Ibid
.

77.
Twenty-four-hour security: Ferris 5/27/93 interview. Ferris also described the acts of intimidation against strikebreakers.

78.
“I am the chairman”: Quoted in “ ‘Friendly Skies’ Now Cloudy,” by Carol Jouzaitis and Gary Washburn,
Chicago Tribune
, June 23, 1985.

79.
“back to the Dumpster”: Babbitt 8/26/94 interview; “Settlement Pleases United’s Chief Exec,” by Gary Washburn,
Chicago Tribune
, June 21, 1985.

80.
Ferris would … deny: Ferris 5/27/93 interview.

81.
“ALPA can’t win”: Warren and Jouzaitis,
Chicago Tribune
, May 17, 1985.

82.
called his senior managers: Zeeman 6/23/93 interview.

83.
“tank of gasoline”: Luce 8/26/93 interview.

84.
“not a strike”: Zeeman 7/23/93 interview.

85.
“pile of cash”: Olson 6/28/94 interview.

86.
landed in London: Ferris 6/7/94 interview; Zeeman 7/23/93 interview.

87.
Ferris’s own managers: Marianne Lazarus 6/10/93 interview.

88.
“own the world”: Ferris 5/27/93 interview.

Chapter 11: Gloom over Miami

1.
direct electronic tie-in: “The Other Reason Frank Lorenzo Wants TWA,” by Chuck Hawkins,
BW
, Dec. 30, 1985.

2.
30,000 travel agencies: U.S. Department of Justice,
1985 Report to Congress on the Airline Computer Reservation System Industry
, Dec. 20, 1985.

3.
“competitive raison d’être”: Robert L. Crandall, written statement, U.S. Congress, House Aviation Subcommittee, June 23, 1983.

4.
ways to play games: “Aerial Combat: Major Airlines, Tired of New Lines’ Inroads, Cut Fares, Woo Public,” by Francis C. Brown III,
WSJ
, Feb. 28, 1986.

5.
concentration of terminals: Hopper 10/13/93 interview.

6.
“Whether bias exists”: Michael Gunn, American Airlines, presentation to 1984 marketing meeting.

7.
greater motive: Hawkins,
BW
, Dec. 30, 1985.

8.
gypsies play cards:
Ibid
.

9.
walked away: Bakes 6/11/93 interview.

10.
“no intent or motive”: Quoted in “Continental Air Wins Defense of Chapter 11,” by Bryan Burrough,
WSJ
, Jan. 18, 1984.

11.
judge would soon accept: “Judge in Texas Air Unit’s Case Says Talk of Job Came Weeks After His Rulings,” by Jonathan Kwitny,
WSJ
, Oct. 6, 1986.

12.
imploring Bakes: Bakes 6/11/93 interview.

13.
inferiority complex: A number of Lorenzo’s former associates used these terms to describe his ambivalence about cutting Continental’s levels of cabin service.

14.
jumped all over Bakes: Bakes 6/16/94 interview.

15.
marketing innovations:
Ibid
.

16.
“airport of the future”:
Ibid
.

17.
“wasting money on this shit”:
Ibid
.

18.
pictured in
Business Week:
“Continental Is Soaring Out of Chapter 11,” by James R. Norman,
BW
, July 7, 1986.

19.
“a real high”: “Continental Air’s Lorenzo Has New Image with Aides a Year After Chapter 11 Filing,” by Bryan Burrough,
WSJ
, Sept. 24, 1984.

20.
30 percent of his time: Bakes 6/16/94 interview.

21.
same budget hotel: “Continental Air Reorganization Plan Is Accepted by Most of Firm’s Creditors,” by Mark Zieman,
WSJ
, Sept. 6, 1985.

22.
“running the zoo”: Quoted in Gibney,
Washington Monthly
, June 1986; “Lost in Space,” by Rowland Stiteler,
Florida
, Nov. 1, 1987.

23.
moved to restrict: Smaby
et al.
, May 1987.

24.
Within hours: By Barber’s recollection, Borman privately first issued his Chapter 11 threat about two days before the Continental Chapter 11, although there is little doubt that Continental’s icebreaking maneuver emboldened Borman to take his threat public.

25.
“à la Continental”: Quoted in “Future of Eastern Air Lines Hinging on Chief’s Credibility with Unions,” by Margaret Loeb and Thomas E. Ricks,
WSJ
, Sept. 29, 1983.

26.
fanned out: Magurno 3/11/94 interview.

27.
intimidate … its customers: Gibney,
Washington Monthly
, June 1986.

28.
“Borman, Resign Now”: “The Fall Crisis at Eastern,” by Paul J. Baicich,
Labor Research Review
, Winter 1984.

29.
teach some reason: Magurno 3/11/94 interview.

30.
Crisp … made a point: Bryan 5/13/93 interview.

31.
Bryan would later admit:
Ibid
.

32.
“largest experiment”: Gibney,
Washington Monthly
, June 1986.

33.
“extensive employee participation”: “Frank Borman’s Most Difficult Days,” by Leslie Wayne,
NYT
, Feb. 17, 1985.

34.
“off by 10 years”: Kelleher 6/14/94 interview.

35.
“war is over”: Quoted in “Eastern’s Kansas City Hub Is Proving to Be a Bright Spot,” by Gary Conn,
WSJ
, Apr. 20, 1984.

36.
dying inside: Borman admitted to his secretly negative feelings in Deposition of Frank Borman,
In the Matter of Preliminary Investigation of Texas Air Corp.
, U.S. Department of Transportation, Docket No. 45581, Apr. 26, 1988.

37.
so much “crap”: Borman 1/29/94 interview.

38.
had shaken him: Barber 6/21/94 interview.

39.
“the only pilot”: Frank Borman, transcribed remarks to Eastern ALPA Master Executive Council, Miami, Aug. 19, 1985.