Assessing the Airline Fallout
 

Better frequent-flier programs, more convenient schedules, higher fares.

American would immediately become a stronger presence along the lucrative and crowded East Coast, allowing it to compete more effectively with Delta Air Lines and United Airlines, which is seeking government approval for its purchase of the bulk of US Airways. And with American and United planning to operate jointly one of the shuttles servicing Boston, New York and Washington, the two giant airlines would have new muscle to compete for corporate travel contracts. The deal is bound to heighten the battle for passengers in the region with Delta Air Lines, which provides the other shuttle service and is strong on many north-south routes along the East Coast.
http://www.nytimes.com/2001/01/09/business/09FLY.html


AND:

UAL's United Airlines and AMR Corp.'s American Airlines' plans to swap and even share some assets may help resolve regulators' antitrust concerns about other acquisitions the two are pursuing, but the proposed rearranging of the airline industry has done little to waylay fears about the growing impact of consolidation.

American is close to a deal to acquire faltering Trans World Airlines Inc., the nation's eighth-largest carrier, taking on assets and potential liabilities with a total value of nearly $2 billion, people involved in the transactions said. American's deal with TWA is contingent on a filing under Chapter 11 of the U.S. Bankruptcy Code by the St. Louis airline, so that leases and debt can be renegotiated.
http://public.wsj.com/sn/y/SB978995579341533810.html

The biggest shifts will probably take years to play out, analysts said.
http://www.nytimes.com/2001/01/10/business/10FLY.html


Audio & Webcast of TWA News Conference:
www.twa.com



Deal Could Leave Little Sky for Also-Rans:
http://www.nytimes.com/2001/01/10/business/10AIR.html

Analysis: Complex Airline Deals May Draw Antitrust Watchdogs:
http://www.nytimes.com/2001/01/10/business/10TRUS.html



AND: Mr. Icahn has a long-term contract to sell millions of dollars worth of T.W.A. tickets at steep discounts that he negotiated in 1993 in exchange for a $190 million loan. The contract, which expires in September 2003, is now worth more than $250 million, one Wall Street analyst estimated.

American executives said that they thought they could cancel Mr. Icahn's contract as part of T.W.A.'s bankruptcy. "That is one of the contracts we are not interested in being party to," Mr. Carty said yesterday.
http://www.nytimes.com/2001/01/11/business/11AIR.html


AND:

Tomorrow, Thursdays WSJ carries a story suggesting Carl Icahn may provide financing to TWA, raising the prospect he could emerge as a bidder. http://www.flyertalk.com/forum/frown.gif


[This message has been edited by doc (edited 01-10-2001).]

AMR Corp.'s American Airlines called its plans to pay $1.8 billion to acquire Trans World Airlines and a chunk of US Airways Group Inc. beneficial to consumers, because it sets up a dogfight between two huge airline networks.
http://public.wsj.com/sn/y/SB979183169910935806.html

Robinson approved the request, despite the objections of billionaire corporate raider Carl Icahn. Icahn, TWA's former owner who retains a lucrative ticket deal with the carrier, also offered to provide debtor financing.

TWA spokesman Mark Abels said Thursday the airline had not received any kind of written proposal for financing from Icahn since the financier presented his offer to the court, and because the deal with American has already been negotiated, it was the best choice.
http://biz.yahoo.com/apf/010111/twa_bankru_2.html

Financier Carl Icahn is threatening to sue AMR Corp.'s (NYSE:AMR - news) American Airlines to preserve a lucrative contract he has with Trans World Airlines Inc. (AMEX:TWA - news), potentially adding another obstacle to American's planned buyout of TWA.
http://biz.yahoo.com/rf/010112/n12456102_2.html

AND: In the wake of recent deals that would consolidate the airline industry in the hands of a few giant carriers, the Clinton administration plans to issue a last-minute call to police the industry more closely.
http://www.nytimes.com/2001/01/16/business/16AIR.html

[This message has been edited by doc (edited 01-16-2001).]

Carl Icahn, the billionaire financier who formerly ran Trans World Airlines Inc., is reportedly trying to line up partners for a rival bid against American Airlines' deal for the financially ailing carrier's assets.

Icahn's attorney, Edward Weisfelner, told The Dallas Morning News in Tuesday's editions he would not reveal the identity of any third party his client has contacted to join his bid.

http://biz.yahoo.com/apf/010116/icahn_twa.html

Financier Carl Icahn, Trans World Airlines one time boss, is discussing with third parties a rival bid for the ailing carrier in competition with American Airlines, his attorney has said.
http://news.airwise.com/stories/2001/01/979726776.html

Also, TWA's one-fourth stake in the Worldspan reservation service, which has been described as the airline's only solvent asset, could be bid on separately, with American making a starting offer of not more than $200 million. Whatever price American offered would be subtracted from its overall TWA bid.

The Worldspan change -- negotiated in the early-morning hours before Saturday's hearing -- was considered a significant concession to Northwest, which has been talking with TWA about such a purchase since 1992. A Northwest attorney, however, said the airline still did not feel the playing field was even and would not comment on whether a bid would be made.
http://public.wsj.com/sn/y/SB980640610621903863.html

Two airlines have inquired about 35 106-seater Boeing 717 jetliners on order from troubled Trans World Airlines Inc. which may come back on the market if a proposed merger with American Airlines parent AMR Corp. goes ahead.

AirTran Holdings Inc., which like TWA ordered 50 of the airplanes, and Midwest Express Holdings Inc. have said they might snap up TWA's 717s, which could be available at attractive prices.
http://news.airwise.com/stories/2001/02/981285531.html

Here's a probably naive thought. At O'Hare yesterday, I counted 45 airlines in operation there, mostly at terminal 5. Yes, I know that most domestic flights are operated by United and American, but if United can fly from Tokyo to Beijing, can't other nation's airlines fly from Chicago to LA, or even Dubuque?
I know this is all related to international treaties, etc and is MUCH easier said than done. But couldn't international airlines eventually provide domestic competition in principle?

Yes, in prinicple for sure! I'd welcome it too! http://www.flyertalk.com/forum/smile.gif


Delta Air Lines Inc. (DAL.N) argued on Wednesday that further mergers should be allowed to counter the ``huge duopoly'' threatened by United Airlines' and American Airlines' plans to absorb US Airways and ailing Trans World Airlines.
http://www.nytimes.com/reuters/busin...lines-com.html