Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SUNDAY, July 15, 1990 TAG: 9007150020
SECTION: NATIONAL/INTERNATIONAL PAGE: A7 EDITION: METRO
SOURCE: The New York Times
DATELINE: NEW YORK LENGTH: Short
Prosecutors and Eastern's lawyers will meet Monday to discuss a plea bargain, the lawyers said.
They said Eastern was expected to agree to plead guilty to some charges.
The charges, which are expected to name more than seven current or former employees of Eastern, involve work performed in early 1989.
The investigation does not focus on Eastern's current practices, which comply with federal regulations, said Fred Farrar, a spokesman for the Federal Aviation Administration.
Eastern, a subsidiary of Continental Airlines Holdings Inc., filed for Chapter 11 bankruptcy in March 1989 after its machinists struck and its pilots and flight attendants honored the picket lines. That led to a sharp decline in passenger traffic and revenues and compounded Eastern's financial problems.
Eastern closed its maintenance base at Kennedy Airport last year after the FAA fined it $839,000 for "faulty maintenance."
The FAA regularly fines airlines for such violations. It is extremely rare for criminal charges to be filed.
The expected indictments follow a 10-month investigation. They are expected to include wire fraud, obstruction of justice and making false statements.
Martin Shugrue, the court-appointed trustee of Eastern, said all the workers under investigation had either left the airline or were no longer working in the maintenance department.
by CNB