Newspaper article THE JOURNAL RECORD

Eastern Airlines Sale Talks Bog Down over Union Agreements

Newspaper article THE JOURNAL RECORD

Eastern Airlines Sale Talks Bog Down over Union Agreements

Article excerpt

NEW YORK (AP) - Talks aimed at selling Eastern Airlines bogged down Monday as its parent Texas Air Corp. balked at accepting tentative agreements reached between Eastern unions and buyers led by Peter V. Ueberroth, sources close to the situation said.

Ueberroth and representatives from Eastern, Texas Air and its unions met Monday with U.S. Bankruptcy Judge Burton Lifland following a weekend of secret talks aimed at beating a deadline tonight for setting terms to get Eastern's striking unions back to work.

Those deadline is a condition of the Ueberroth group's agreement to buy Eastern, which has been largely grounded since March 4 due to a strike by Machinists that has been honored by most of its pilots and flight attendants.

Lifland, who is overseeing Eastern's reorganization under federal bankruptcy law, must approve any sale of the airline.

But although sources said the Ueberroth group and the unions had reached tentative agreements in their weekend talks, Eastern and Texas Air attorneys emerging from a day-long meeting at the Manhattan bankruptcy court indicated there was no overall accord.

``There's no agreement,'' said David Boies, an attorney representing Texas Air., as he emerged from the meeting and left the courthouse. ``I will tell you there will be no agreement tonight.''

There was no immediate comment from the unions or Ueberroth.

Sources familiar with the weekend talks had indicated a formal announcement on an agreement could be made Monday but declined to elaborate, due to a news blackout on the talks.

Separately, a federal appeals court upheld injunctions barring New York metropolitan-area commuter rail workers from striking in sympathy with Eastern employees. …

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