Financial Problems
Due to the short runway at Trenton-Mercer Airport, the airline served Philadelphia for a short time, but consolidated its flights back to Trenton, New Jersey in early 1999 when Delta Air Lines terminated their contract to handle ground services.
By 1999, the airline faced some performance concerns as well as financial trouble. In July 1999, the airline terminated several senior managers including its CEO.
The financial problems were exacerbated by the purchase of two new Boeing 737-700 aircraft in 1997. Service issues created tension with its customers, resulting in large numbers of complaints filed with the FAA. In 1999, two passengers in Greensboro who feared being stranded in Greensboro refused to get off an airplane forcing the captain to call authorities.
While the airline's management refused to file for bankruptcy, in October 1999, three creditors filed a petition for involuntary bankruptcy in an effort to force the airline to liquidate. The airline ceased operations not long afterwards. One of the 737-700 aircraft was acquired by Southwest Airlines.
Read more about this topic: Eastwind Airlines
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