
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, July 26, 1990                   TAG: 9007260201
SECTION: BUSINESS                    PAGE: A-11   EDITION: METRO 
SOURCE: Associated Press
DATELINE: NEW YORK                                LENGTH: Medium

EASTERN, MANAGERS INDICTED

Eastern Airlines and several of its top maintenance managers were charged Wednesday with conspiring to falsify safety and maintenance records to avoid costly flight delays and cancellations.

"This indictment is about failure to maintain aircraft, both regular maintenance and parts that are faulty," U.S. Attorney Andrew J. Maloney said in announcing the charges. "The motivation was to get the airplanes into the air. An airline only makes money with planes in the air."

The federal grand jury indictment is unprecedented in the airline industry and adds to Eastern's woes as it seeks to regain passengers, build service and reorganize under federal bankruptcy protection after a bitter strike.

None of the alleged violations caused accidents or injuries, authorities said.

The 60-count indictment charges conspiracy to defraud the government, wire fraud, falsification of documents and obstruction of justice. It names the airline and nine high-level managers, including Edward Upton, the former vice president of maintenance and engineering.

Until a few days ago, five of the defendants were still employed as maintenance supervisors by the airline, Maloney said. A 10th employee will be named in a separate document, he said.

Maloney said the violations took place from July 1985 to October 1989 at Kennedy and LaGuardia airports in New York, Hartsfield International Airport in Atlanta and Eastern headquarters in Miami.

In a statement, the Miami-based airline said that during the past two years it had taken "full corrective action under the scrutiny of the Federal Aviation Administration."

"Today there is no question that Eastern is safe. Eastern has its share of problems - operating a safe airline is not one of them," the statement said.

FAA Administrator James B. Bussey said the airline now meets the agency's safety standards.

At a news conference Tuesday, Martin Shugrue, appointed by a federal bankruptcy judge to run the airline, said Eastern would admit fraudulent maintenance and record-keeping practices but not conspiracy.

He termed the purported violations "ancient history."

During the 10-month investigation, a federal grand jury uncovered a pattern of top airline managers ordering that maintenance not be performed on aircraft but that records be falsified show that it was, Maloney said.

by CNB