TW Sold???
Jan 8, 2001, 12:03 am
#1
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Original Poster
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Location: Danville, CA
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TW Sold???
Report: American To Buy TWA
.c The Associated Press
WASHINGTON (AP) - Trans World Airlines, the longest continuously flying name in
American commercial aviation, will file for Chapter 11 bankruptcy protection
this week, as a precursor to a being bought out by American Airlines, The
Washington Post reported in Monday's editions.
``We don't have anything to say about that,'' TWA spokeswomen Julia
Bishop-Cross told The Associated Press late Sunday night. Officials at
American, based in Fort Worth, Texas, also declined comment.
The Post, citing unidentified sources, said the deal includes American buying
49 percent of DC Air.
The Post said the deal will be announced Wednesday. Terms were not available.
The sale described could end TWA's decade-long struggle to turn a profit.
Of the nation's top airlines, TWA was the only carrier to lose money in 1999 -
$353 million, the worst financial performance since the airline's second
financial reorganization in 1995. It was on pace to do worse in 2000, despite
increasing revenues. Through the first three quarters, TWA lost $115.1 million.
The Post reported that American would purchase all of TWA's assets and keep all
20,000 of the carrier's employees. The deal would make American, a subsidiary
of AMR Corp., a comparable size carrier to the proposed United-US Airways
merger.
TWA's hub operation at Lambert Airport in St. Louis would give American a third
hub in the middle of the country. American already operates hubs at Chicago's
O'Hare International Airport and at Dallas-Fort Worth International Airport.
The sale continues a trend of consolidation in the airline industry that
started when United Airlines, the nation's largest carrier, announced plans to
buy US Airways. The Justice Department has yet to sign off on that merger, but
the department has approved an alliance between Northwest Airlines and
Continental Airlines.
The Post also reported that part of American's purchase of TWA could include a
deal with United to jointly operate the US Airways shuttle between Washington
to New York and Boston.
``This will handle most of the antitrust issues,'' Darryl Jenkins, a professor
at George Washington University told The Post. ``This one deal will make the
merger of United and US Airways likely.''
United Airlines spokesman Andy Plews declined to comment when reached late
Sunday by The Associated Press. US Airways spokesman Rick Weintraub said his
company had no comment on the report.
There is no telephone listing in Washington for DC Air, which is still in the
formation stage.
Tim Doke, vice president of corporate communications for American, also
declined to comment, saying: ``There is frequent speculation in the media about
various transactions in which American Airlines may or may not be involved and
we have a strict corporate policy not to comment on such rumors and
speculation. We are talking to lots of folks about lots of different things all
the time.''
------------------
danville 1K
.c The Associated Press
WASHINGTON (AP) - Trans World Airlines, the longest continuously flying name in
American commercial aviation, will file for Chapter 11 bankruptcy protection
this week, as a precursor to a being bought out by American Airlines, The
Washington Post reported in Monday's editions.
``We don't have anything to say about that,'' TWA spokeswomen Julia
Bishop-Cross told The Associated Press late Sunday night. Officials at
American, based in Fort Worth, Texas, also declined comment.
The Post, citing unidentified sources, said the deal includes American buying
49 percent of DC Air.
The Post said the deal will be announced Wednesday. Terms were not available.
The sale described could end TWA's decade-long struggle to turn a profit.
Of the nation's top airlines, TWA was the only carrier to lose money in 1999 -
$353 million, the worst financial performance since the airline's second
financial reorganization in 1995. It was on pace to do worse in 2000, despite
increasing revenues. Through the first three quarters, TWA lost $115.1 million.
The Post reported that American would purchase all of TWA's assets and keep all
20,000 of the carrier's employees. The deal would make American, a subsidiary
of AMR Corp., a comparable size carrier to the proposed United-US Airways
merger.
TWA's hub operation at Lambert Airport in St. Louis would give American a third
hub in the middle of the country. American already operates hubs at Chicago's
O'Hare International Airport and at Dallas-Fort Worth International Airport.
The sale continues a trend of consolidation in the airline industry that
started when United Airlines, the nation's largest carrier, announced plans to
buy US Airways. The Justice Department has yet to sign off on that merger, but
the department has approved an alliance between Northwest Airlines and
Continental Airlines.
The Post also reported that part of American's purchase of TWA could include a
deal with United to jointly operate the US Airways shuttle between Washington
to New York and Boston.
``This will handle most of the antitrust issues,'' Darryl Jenkins, a professor
at George Washington University told The Post. ``This one deal will make the
merger of United and US Airways likely.''
United Airlines spokesman Andy Plews declined to comment when reached late
Sunday by The Associated Press. US Airways spokesman Rick Weintraub said his
company had no comment on the report.
There is no telephone listing in Washington for DC Air, which is still in the
formation stage.
Tim Doke, vice president of corporate communications for American, also
declined to comment, saying: ``There is frequent speculation in the media about
various transactions in which American Airlines may or may not be involved and
we have a strict corporate policy not to comment on such rumors and
speculation. We are talking to lots of folks about lots of different things all
the time.''
------------------
danville 1K
Jan 8, 2001, 12:23 am
#2
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Wow! I bought a life membership in the Ambassador's club earlier this year with the hopes tha AA would buy TW!
Jan 8, 2001, 1:13 am
#3
Join Date: Apr 2000
Location: Between SNA and ONT
Posts: 1,486
I'll forgo the copyright lecture ...
Not that I have any insider knowledge, but The Washington Post generally doesn't report things that aren't true. And I will truly be sad if TW is to be sold off and discarded.
More than that, this whole situation looks like UA and AA splitting up the U.S. aviation market ... maybe this industry, at least, would've been better off had Al Gore won.
Four majors by 2002.
Not that I have any insider knowledge, but The Washington Post generally doesn't report things that aren't true. And I will truly be sad if TW is to be sold off and discarded.
More than that, this whole situation looks like UA and AA splitting up the U.S. aviation market ... maybe this industry, at least, would've been better off had Al Gore won.
Four majors by 2002.
Jan 8, 2001, 1:29 am
#4
Join Date: May 1998
Posts: 6,790
Originally posted by motnot:
. . . The Washington Post generally doesn't report things that aren't true. . . .
. . . The Washington Post generally doesn't report things that aren't true. . . .
Jan 8, 2001, 5:10 am
#5
Join Date: Aug 1999
Location: HHQ
Programs: AA-2MM Lifetime Platinum
Posts: 772
The big question: Will TWA Frequent Flier Miles Transfer to American Miles?
Jan 8, 2001, 9:24 am
#6
Join Date: Feb 2000
Location: NYC&RIC-AA LT PLT w/3.9mm
Programs: Ex-BA Silver; Ex-UA Premier
Posts: 1,135
Based on all prior acquisitions like this Eastern>CO, PA>Delta, Piedmont>US, etc, the FF miles will be recognized by the acquirer.
However, I wouldn't be too sure there will not be a "requalification" requirement to move a life Aviators Club membership to Admirals Club.
I had a Life membership in the EA Ionosphere Club. I cannot remember hearing anything from CO until several months after the demise of EA. Then they offered to transfer and continue life membership in their Presidents Club if I made 4 (?) RT flights within 6 months. At that time CO service was the pits and EWR not much better, so I passed on the offer. I seldom fly CO, so I have not missed much. However, in the case of AA, it would be easy to requalify.
However, I wouldn't be too sure there will not be a "requalification" requirement to move a life Aviators Club membership to Admirals Club.
I had a Life membership in the EA Ionosphere Club. I cannot remember hearing anything from CO until several months after the demise of EA. Then they offered to transfer and continue life membership in their Presidents Club if I made 4 (?) RT flights within 6 months. At that time CO service was the pits and EWR not much better, so I passed on the offer. I seldom fly CO, so I have not missed much. However, in the case of AA, it would be easy to requalify.
Jan 8, 2001, 9:25 am
#7
Join Date: May 2000
Location: Raleigh, NC USA
Posts: 290
When the Reno Air deal went through the miles from Reno were posted as bonus miles into AA accounts. As an employee my question will be: have the pilots approved this or are we in for another rough ride. I wonder how much sick time I have built up? http://www.flyertalk.com/forum/frown.gif