The Nation - News from May 14, 1989

An investment group that includes two Ronald Reagan Administration officials has entered the bidding for troubled Eastern Airlines, according to a newspaper report. Former Defense Secretary Frank C. Carlucci would temporarily be in charge of Eastern and Joseph Wright Jr., a former director of the Office of Management and Budget, would be involved, the New York Times said. Options trader Joseph Ritchie, who now heads the bidding group, declined to reveal the size of the offer but said it would give the troubled carrier’s unions a bigger stake in the airline than did a bid led by former baseball commissioner Peter V. Ueberroth, the newspaper said. Eastern has been virtually grounded since its machinists union went on strike in March.