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When Eastern airlines was close to going bankrupt, management approved a proposal to drastically cut airfares, so that flights would be profitable only if they

When Eastern airlines was close to going bankrupt, management approved a proposal to drastically cut airfares, so that flights would be profitable only if they flew at 90% capacity (the average capacity at the time for most airlines was 70%). Is this strategy good for creditors (bondholders?) for shareholders? Please explain briefly.

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