Oneworld to grow internally
Jan 8, 2001 | 3:38 pm
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Oneworld to grow internally
American Airlines plans to buy Trans World Airways (TWA).
The deal, if it goes through, would create a giant equivalent to the proposed merger of United Airlines and US Airways.
TWA, one of the the longest established names in US civil aviation, was the only commercial airline in the US to lose money in 1999, and its losses continued during 2000.
In 1999, TWA lost USD$353m. During the first three quarters of 2000 the airline reported losses of USD$115.1m.
American Airlines, which is a subsidiary of AMR, would the report says, buy TWA outright and retain all its 20,000 staff.
The deal would combine America's two hubs in Chicago and Dallas with TWA's hub in St. Louis.
The TWA acquisition could include an agreement with United Airlines to jointly operate a shuttle between Washington and Boston and New York.
According to the Post, TWA plans to file for Chapter 11 bankruptcy protection on Wednesday, the third time it has done so, as a precursor of American's takeover, which would be announced the same day.
The deal, whose price was not disclosed, also reportedly involves American buying a 49 percent stake in DC Air, a new carrier that is being crafted from the planned merger of United Airlines and US Airways.
To ease antitrust concerns, DC Air would have most of the takeoff and landing slots at Washington's Reagan National Airport now assigned to US Airways.
Sources said American does not plan to continue the TWA name.
Acquisition of TWA's St. Louis operation 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 deal, if it goes through, would create a giant equivalent to the proposed merger of United Airlines and US Airways.
TWA, one of the the longest established names in US civil aviation, was the only commercial airline in the US to lose money in 1999, and its losses continued during 2000.
In 1999, TWA lost USD$353m. During the first three quarters of 2000 the airline reported losses of USD$115.1m.
American Airlines, which is a subsidiary of AMR, would the report says, buy TWA outright and retain all its 20,000 staff.
The deal would combine America's two hubs in Chicago and Dallas with TWA's hub in St. Louis.
The TWA acquisition could include an agreement with United Airlines to jointly operate a shuttle between Washington and Boston and New York.
According to the Post, TWA plans to file for Chapter 11 bankruptcy protection on Wednesday, the third time it has done so, as a precursor of American's takeover, which would be announced the same day.
The deal, whose price was not disclosed, also reportedly involves American buying a 49 percent stake in DC Air, a new carrier that is being crafted from the planned merger of United Airlines and US Airways.
To ease antitrust concerns, DC Air would have most of the takeoff and landing slots at Washington's Reagan National Airport now assigned to US Airways.
Sources said American does not plan to continue the TWA name.
Acquisition of TWA's St. Louis operation 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.
