Eastern Airlines Picks Lorenzo as Chairman
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Texas Air Corp.’s boss, Francisco A. (Frank) Lorenzo, strengthened his hold over Eastern Airlines by becoming chairman of the carrier on Friday. Eastern’s board of directors also elected Phil Bakes president and chief operating officer of the airline.
Lorenzo, 46, has been chairman and chief executive of Texas Air since 1980. Texas Air’s $676-million purchase of Eastern, announced in February, was approved by the Department of Transportation last month and will make the Houston-based company the biggest airline operation in the country. Eastern’s chairmanship had been vacant since Frank Borman retired July 1.
Bakes, who replaces Joseph Leonard, has been president of Continental Airlines since 1984. Continental is also owned by Texas Air.
Lorenzo will remain in Houston, but Bakes, 46, is already in Miami and is in charge effective immediately, said Jerry Cosley, Eastern’s chief spokesman. The company also said that it is cutting 47 corporate officer positions to 16 but that nobody will be fired.
Eastern shareholders are expected to formally approve the Texas Air takeover at their Nov. 25 meeting.
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