Eastern Airlines and its machinists union are...

Eastern Airlines and its machinists union are $200 million apart on terms of a new contract, according to a company negotiator, even though the union says it has made a series of concessions. Meanwhile, the steadily shrinking Miami-based airline is considering abandoning Palm Beach International Airport, according to a published report. Eastern’s negotiators say the union’s latest proposal, made Wednesday, is “disappointing.” In a letter circulated to Eastern managers, chief negotiator Thomas Matthews claimed that the machinists’ proposal would cost the carrier $50 million a year, while the company was demanding $160 million in cost cuts.