Airlines: A Highflyer Runs Out of Fuel

A Highflyer Runs Out of Fuel

The race for passengers and profits in the deregulated airline industry claimed another victim last week when Northeastern International Airways filed for bankruptcy. More than 200 stranded passengers angrily demanded refunds at the airline's Fort Lauderdale ticket counters. The move followed staff cuts, canceled flights and missed paychecks at the company.

Started in 1982 by Stephen Quinto, 49, a Florida cargo pilot, Northeastern began with one aging DC-8 that ferried passengers between Fort Lauderdale and Islip, Long Island, near New York City. In two years the airline expanded to 17 destinations, including Chicago and Los Angeles, mostly by undercutting prices charged...

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