Hard Landing (87 page)

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Authors: Thomas Petzinger Jr.

Tags: #Business & Money, #Biography & History, #Company Profiles, #Economics, #Macroeconomics, #Engineering & Transportation, #Transportation, #Aviation, #Company Histories, #Professional & Technical

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36.
“despondent since the death”: L.A. County Medical Examiner, Case No. 81-10225.
37.
“Why did you”: Reed interviews of 6/1/94 and 6/2/94. Ferris declined to discuss Feldman’s death.
38.
their first meeting: Bakes 5/12/93 interview; “Unfriendly Skies: Frank Lorenzo Tries to Navigate 3 Airlines Through Stormy Times,” by Roger Thurow,
WSJ
, Feb. 18, 1982.
39.
“Judging from these projections”: Bakes 5/12/93 interview.
40.
Fifteen percent: “Continental Air Lays Off 1,500, 15% of Employees,”
WSJ
, Jan. 26, 1982.
41.
give up $90 million:
Continental Airlines Preliminary Prospectus
, Mar. 18, 1983.
42.
“The fact is”: Letter from Frank Lorenzo to the Hon. Don Sebastiani, July 28, 1981.
43.
Lorenzo was eager: Bakes 5/12/93 interview.
44.
“going to be announcing”:
Ibid
.
45.
mother would later tell: The anecdote attributed to Wolf’s mother was told by her to a close acquaintance who prefers to remain anonymous.
46.
father walked out: Wolf detailed his early years in the 6/4/93 and 8/25/94 interviews.
47.
caught the attention: Casey 3/6/92 interview.
48.
walking down a … street: Gunn 4/28/93 interview.
49.
Wolf would take delight: Wolf 6/4/93 interview.
50.
Some of his peers: Baker 4/23/93 interview.
51.
wanted a promotion: Wolf 6/4/93 interview; Plaskett 1/14/93 interview.
52.
wanted to run something: Wolf 6/4/93 interview.
53.
“profound financial strengths”: Quoted in “Frank Lorenzo Lures a Copilot to Continental,”
BW
, Dec. 6, 1982.
54.
dry cleaner: Murray 9/4/93 interview.
55.
mastery of intricacy: J. Arpey 6/16/94 interview.
56.
sprawled on the floor: This story, heard by many Continental executives, was also reported in “Up in the Air,” by Mike Steere,
Chicago
, May 1991.
57.
One Sunday night: Bakes 6/16/94 interview.
58.
end runs around Wolf: Bakes 6/11/93 interview.
59.
calling him Steve: Murray 9/4/93 interview.
60.
“no plans to move”: Letter from Frank Lorenzo to the Hon. Don Sebastiani, July 28, 1981.
61.
month-to-month lease: Wolf 6/4/93 interview.
62.
Burr read aloud: Burr 9/16/93 interview.
63.
eagerly seeking: Bakes 6/11/93 interview; Burr 9/16/93 interview.
64.
“one more of Frank’s deals”: Burr 9/17/93 interview.
65.
“way to jab Frank”:
Ibid
.
66.
swamp Lorenzo:
Ibid
.
67.
had a child: Dawsey 9/17/93 interview.
68.
“a screwup”: Murray 9/4/93 interview, and Deposition of Richard E. Murray, U.S. Justice Department, CID No. 5087, June 22, 1983.
69.
“suppression of all Continental fares”: Memo from J. L. Ott to L. A. Iovinelli
et al
, “Subject: Continental Fares,” American Airlines, Dec. 1, 1981.
70.
sheepishly approached Murray: Murray 9/4/93 interview.
71.
“sworn to secrecy”:
Ibid
.
72.
meeting with Bob Crandall: Murray 6/11/93 and 9/4/93 interviews.
73.
“put them out of business”:
Ibid
Anne McNamara, the general counsel of American, said she was unaware of this conversation ever occurring. In his May 22, 1995, letter to the author, Crandall called Murray’s recollection “flawed and slanted.”
74.
wanted to join: Murray 9/4/93 interview.
75.
tales of tweaking:
Ibid
.
76.
smoking gun:
Ibid
.
77.
touch on Wall Street: Continental’s extensive financing moves are described in
Continental Airlines Preliminary Prospectus
, Mar. 18, 1983.
78.
“laid on all the charm”: Bakes 6/11/93 interview.
79.
fitting metaphor:
Ibid
.
80.
average Continental pilot: Wage rates and work rules are taken from Affidavit of Philip J. Bakes, Jr.,
In re Continental Airlines Corp.
, U.S. Bankruptcy Court, Southern District of Texas, Sept. 24, 1993.
81.
use of a private airplane: Bakes 6/11/93 interview.
82.
changed overnight:
Ibid
.
83.
“prepare for a strike”:
Ibid
.
84.
Lorenzo and Bakes were rejoicing: Bakes 6/16/94 interview.
85.
appellate court decision: Bakes 6/11/93 interview.
86.
“awfully big stick”: Quoted in “Continental Air Official Saw Chapter 11 as ‘Stick’ Against Unions, Hearing Told,” by Bryan Burrough,
WSJ
, Dec. 14, 1983.
87.
Lorenzo was nervous: Bakes 6/16/94 interview.
88.
“alarming rate”: The text of Lorenzo’s speech is attached as an exhibit to the Bakes affidavit of Sept. 24, 1993.
89.
veins were popping: Bakes 6/16/94 interview.
90.
“press the test”: Higgins 6/8/94 interview.
91.
all the head banging: Wolf 6/4/93 interview.
92.
perfectly modulated voice: Wolf’s manner on such occasions, described by many who have seen him speak over the years, was also observed by the author.
93.
stomach for … confrontation: J. Arpey 6/16/94 interview.
94.
“Frank is bashing them”: Wolf 6/4/93 interview.
95.
downright naive: Bakes 6/11/93 interview.
96.
no amount of concessions: Murray 9/4/93 interview.
97.
Lorenzo sat Wolf down: Wolf refused to discuss this meeting with Lorenzo. The dialogue is reconstructed from interviews with Bakes, Murray, and others who later spoke to Lorenzo and Wolf about the conversation.
98.
a severance check: Lorenzo told Murray that he gave Wolf a check for one year’s salary. Murray 9/4/93 interview.
99.
“take him very seriously”: Wolf 6/4/93 interview.
100.
Wolf then telephoned: Murray 9/4/93 interview.
101.
BMW sedan: Wolf 6/4/93 interview.
102.
somebody’s grave: Bakes 6/11/93 interview.
103.
“welfare agency”: Quoted in Thurow,
WSJ
, Feb. 18, 1982.
104.
Braniff II rates: Bakes 6/11/93 interview. The salary levels cited here are taken from “Bitter, Deadly Dogfights,” by John S. DeMott,
Time
, Oct. 10, 1983.
105.
“blow-your-mind number”: Bakes 6/11/93 interview.
106.
inserted “The New”:
Ibid
.
107.
deeply depressed:
Ibid
.
108.
admission of failure: Bankruptcy case testimony of Frank Lorenzo, cited in Burrough,
WSJ
, Dec. 14, 1983.
109.
“It’s your baby”: Bakes 6/11/93 interview.
110.
Just cut:
Ibid
.
111.
protesting the arbitrariness: Murray 9/4/93 interview.
112.
instantly joyous: Burr 9/16/93 interview.
113.
forces of good: Sullivan 6/8/94 interview.
114.
“don’t have enough”: Bakes 6/11/93 interview.
115.
“vilest enemy”: Quoted in Hopkins,
Flying the Line
, page 52.
116.
cheer went up: Bakes 6/11/93 interview.
117.
50 deep in Houston: DeMott,
Time
, Oct. 10, 1983.
118.
“threat of a strike”: “Continental Air Union Leaders for Pilots and Flight Aides Vote to Strike Tomorrow,” by George Getschow and Charles F. McCoy,
WSJ
, Sept. 30, 1983.
119.
instructed … Bruce Hicks: Bakes 6/11/93 interview.
120.
requisite training: Detailed in
60 Minutes
, CBS Television Network, Apr. 15, 1984.
121.
peculiar individual: Baxter’s behavior was described by his fellow ALPA leader in Houston, Dennis Higgins, in the 6/8/94 interview. Several elements of Higgins’s account were corroborated by Jim Sullivan, who was also an ALPA leader at Continental, in the 6/8/94 interview. In 1994 ALPA informed the author that it had no idea of Baxter’s whereabouts.
122.
“like wind shear”: Sullivan 6/8/94 interview.
123.
“Frank’s past lies”: Passage taken from an untitled memo to striking Continental pilots dated Nov. 18, 1983.
124.
head of an elk: This and other episodes of violence against Continental scabs are detailed in
Continental Airlines
v.
Air Line Pilots Association
, in Re: Continental Airlines Corp., U.S. Bankruptcy Court, Southern District of Texas, Houston Division, No. 83-2386-H3, Jan. 30, 1984.
125.
a U-turn … in San Antonio: Aspects of this incident were described in the Higgins 6/8/94 interview; First Amended Complaint,
Continental Airlines
v.
Air Line Pilots Association;
and “Militant Fliers: Pilots’ Bitter Strike Against Continental Changed Their Union,” by Leonard M. Apcar,
WSJ
, March 17, 1986.
126.
“with the gear up”: Babbitt 8/26/94 interview.

Chapter 10: Breaking Ranks

1.
“Superman of Now”: Herrmann,
Anne Morrow Lindbergh
, page 201.
2.
official history: Hopkins,
Flying the Line
, page 23.
3.
“a man’s job”: Saint-Exupéry,
Wind, Sand and Stars
, page 166.
4.
had to be accompanied: Boase,
The Sky’s the Limit
, page 68.
5.
airlines’ farm club: U.S. Department of Transportation,
Labor Relations and Labor Costs in the Airline Industry: Contemporary Issues
, May 1992.
6.
a barnstormer: The facts of Behncke’s life were taken principally from Hopkins,
Flying the Line
.
7.
“Public safety calls”: Quoted in
ibid.
, page 21.
8.
went to Behncke’s head:
Ibid., passim
.
9.
“the pilot’s life”: Quoted in Solberg,
Conquest of the Skies
, page 174.
10.
“getting to be a pilot”: Quoted in “United Boss Dreams of Piloting a 747,” by Dick Griffin,
Chicago Daily News
, Apr. 28, 1976.
11.
how to fly: Ferris 5/27/93 interview.
12.
starting flag:
Ibid
.
13.
“He listens”: Quoted in “United President Takes to Skies for Fun, Profit,” by Todd Fandell,
Chicago Tribune
, Sept. 22, 1976.
14.
“fearless Dick Ferris”: “Businessmen in the News,”
Fortune
, May 1977.
15.
Boeing 767 jet: Ferris 5/28/93 interview.
16.
failed to gain: Carlson,
Recollections
, pages 209-10.
17.
losing an engine: Ferris 6/7/94 interview.
18.
Ferris gave money: “United’s Pilots Borrow Ferris’s Idea to Whip Up Unity,” by Bill Barnhart and Sally Saville Hodge,
Chicago Tribune
, May 8, 1985.
19.
“your golf games”: Quoted in “Friendlier Skies? United Airlines Hopes Pilots’ Vote This Week Will Be Turning Point,” by John Curley,
WSJ
, Aug. 10, 1981.
20.
“blue skies” contract: “Management, Labor Debate Work Issues,” by James Ott,
Aviation Week
, Sept. 7, 1981; “United Takes on the Upstarts,” Oct. 19, 1981.
21.
“a new era”: “United Air Pilots Clear Pact Granting Carrier Job-Rule Concessions,” by John Curley,
WSJ
, Aug. 14, 1981.
22.
“Eighty to 90 percent”: Richard J. Ferris,
Distinguished Executive Lecture
, Krannert Graduate School of Management, Purdue University, 1979.

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