After passage of the Airline Deregulation Act in 1978, Texas International Airlines expanded significantly, reduced its costs by discontinuing unprofitable routes and replaced its outdated Convair turboprops with newer DC-9 aircraft. In 1982 Texas Air took over then debt-laden Continental Airlines, retaining Continental's better-known and less regional name. Continental Airlines, in moribund financial condition, succeeded in negotiating concession packages with all of its unions except for the International Association of Machinists (IAM). Because of the refusal of the IAM to renegotiate its contract, the company ultimately filed for Chapter 11 bankruptcy, which allowed Frank Lorenzo (President and chief executive officer), to reject the collective bargaining agreements with its various unions. Some believe that Lorenzo wanted the strike to justify the bankruptcy filing, so that he could get rid of the unions. Continental Airlines would again file bankruptcy in 1991, one month after Lorenzo left his position as CEO.
© dreamkeeper.info 2019