I WOULDN’T VOTE FOR FRANK LORENZO IF HE WAS RUNNING FOR DOG CATCHER…OR CARLY FIORINA FOR THAT MATTER
I remember it all too well; I was filled with excitement because after having been replaced by a computer from my technical illustrator job I had interviewed with Eastern Airlines and was hired on the spot. They needed somebody like myself who spoke several languages and I spoke four as well as having a college degree.
I was told to wait for the contract and all the paperwork in the mail the following week and I went home thinking that I was going to have a career with an airline…my dream of traveling and having a well paying job would come true.
I waited and nothing came in the mail; but I did see the news that Eastern was laying off hundreds of employees. Then the other shoe dropped: Eastern was bankrupt and would cease to exist. Everyone spoke about the reasons: some blamed the unions, other the competition for lower fares but one came across loud and clear…it was the actions of Frank Lorenzo that sealed the fate of the airline. Mr. Lorenzo played an active role in the US aviation industry, particularly after its deregulation in 1978. The Lorenzo team engineered the acquisition and turnaround of several carriers, as well as the start-up of New York Air, Inc., in 1980. In addition, in the 1980’s the team was responsible for the creation of the modern-day Continental Airlines with its well-located hubs and efficient cost structure.
The public, however, just wanted cheap fares. Unable to keep up, in 1986, Borman sold the airline to Frank Lorenzo. Under Lorenzo's tenure, Eastern was crippled by severe labor unrest. Asked to accept deep cuts in benefits, Eastern's machinists striked. Lorenzo sold Eastern's shuttle service to real estate magnate Donald Trump in 1989.
Unable to keep up, Borman agreed to the sale of the airline in 1986 to Texas Air, led by Frank Lorenzo. Lorenzo (who was named as one of Time Magazine's 10 "worst bosses of the century") was known as a ruthless corporate raider and union buster. He had already purchased Continental and lost a bidding war for TWA to Carl Icahn.
On January 13, 1982, Air Florida Flight 90 crashed into Washington, DC's 14th Street Bridge and fell into the Potomac River shortly after taking off. A total of 70 passengers, 4 crew, and 4 motorists on the bridge were killed. The crash was due to an anti-icing system being left off, which caused an inaccurately high engine pressure ratio (EPR) indication at an extremely low power setting, and the crew's failure to either abort the takeoff or apply maximum engine power. The crash prompted modifications to Air Florida's pilot training regarding anti-ice systems. The FAA also required revised aircraft de-icing procedures at airports.
The current Republican nominee for the United States Senate representing California. Fiorina served as chief executive officer of Hewlett-Packard from 1999 to 2005 and previously was an executive at AT&T and its equipment and technology spinoff, Lucent. She currently serves on the boards of several organizations.
Fiorina was considered one of the most powerful women in business during her tenure at Lucent and Hewlett-Packard. The spinoff, from HP, of Agilent Technologies – which had been initiated by her predecessor, Lew Platt – was completed shortly after she joined the company in 1999. Under her leadership, in 2002, the company completed a contentious merger with rival computer company Compaq. In 2005, Fiorina resigned as CEO of Hewlett-Packard.
HP wanted to use Compaq’s purchase of DEC in 1998 to give it some more advantages in the services field.
Unfortunately, the merger didn’t wind up going as smoothly as HP had hoped. So badly in fact, that it was one of the key reasons why then-CEO Carly Fiorina was driven from power and the company was nearly lead to a breakup. You can see how badly it went from some of the headlines on News.com about HP since 2001:
What is not mentioned in any of the articles I have read so far both for Frank Lorenzo and Carly Fiorina is that both these CEOs walked away with millions of dollars from the dissolution of several airlines for Lorenzo and for Fiorina after she was driven from power.
You see, both Lorenzo and Fiorina were terrible CEOs…they were…shall we dare say…INCOMPETENT? But what they were good at was being LIQUIDATORS and in the process secured some very generous severance packages and golden parachutes.
Thousands of people lost their jobs due to the incompetence and greed of these individuals…would you vote for either one if they ran for office? Fiorina is is running.
SOURCE: http://www.savoycap.com/mgmt.htm
http://en.wikipedia.org/wiki/Carly_Fiorina
http://wapedia.mobi/en/Eastern_Air_Lines#1.
