-- The International Association of Machinists and Aerospace Workers (IAM) filed formal objections today to the planned sale of TWA to American Airlines.
``Until TWA can provide more complete answers to our members' questions regarding this transaction, we have no choice but to formally object to the sale,'' said William O'Driscoll, District 142 President and Directing General Chairman. http://biz.yahoo.com/prnews/010228/dcw062.html
According to reports, TWA is extending the auction for the airline until Friday, when lawyers for the company are set to give their opinion in bankruptcy court in Wilmington, Del. The judge is expected to hand down a decision at the hearing
If the Icahn-led bid prevailed, Brian Freeman, the CEO of TWA Acquisitions, would reportedly take the helm of TWA, serving as the airline's chairman and chief executive.
Pilots at Trans World Airlines Inc. (OTC BB:TWAIQ.OB - news) would oppose any buyout deal financed by the carrier's former chairman, Carl Icahn, a top union representative said on Wednesday. http://biz.yahoo.com/rf/010307/n0743555.html
Leaders of the Allied Pilots Association, Association of Professional Flight Attendants and Transport Workers Union have jointly signed the following letter to AMR (NYSE: AMR - news) Chief Donald Carty:
March 28, 2001
Mr. Donald J. Carty
Chairman and CEO
American Airlines, Inc.
P.O. Box 619616, M.D. 5624
DFW Airport, TX 75261-9616
Dear Mr. Carty:
As the Presidents of the three unions on the property, we wish to inform you that we cannot support American's purchase of TWA assets. We do not come to this conclusion easily or quickly. On the contrary, we reach it only after careful consideration of the long-term best interests of all past, present and future members of the American Airlines community. The employee turmoil that typically accompanies airline mergers and acquisitions -- in particular, the difficulty of integrating workforces -- could have a seriously negative effect on the future well being of American Airlines.
Given that inevitable impact of an acquisition, it is imperative that management deals fairly with and recognizes the contributions of its employee groups. As you know, our unions have worked exceedingly hard with American's management to make our airline the industry leader it is today, but we have yet to receive the assurances from management concerning the benefits, job protections and career expectations that our members deserve. At the same time, American has committed itself to provide significant enhancements to TWA employees.
The employee groups we represent remain committed to building the world's leading airline. That end, however, can only be achieved if all facets of the organization participate in the creation of that airline and truly share in the benefits of that achievement. Thus far, that has not been the case. For this reason, and with a keen sense of disappointment, we cannot support this transaction.
Captain John E. Darrah John Ward James C. Little
President President Vice President and
Allied Pilots Association of Director of Air Transport
Association Professional Flight Division
cc: TWU Board of Directors
APFA Board of Directors
APA Board of Directors
AMR Board of Directors
A bankruptcy court this week approved about $230 million in settlements between Trans World Airlines and major creditors who had objected to American Airlines'(NYSE:AMR - news) acquisition of TWA in March.