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DOJ will not object to buyout from American!

DOJ will not object to buyout from American!

 
Old Mar 16, 01, 1:46 pm
  #1  
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Join Date: Oct 1999
Location: Third planet from the Sun
Posts: 6,987
DOJ will not object to buyout from American!

The DOJ has given the green light to American to buy TWA. TWA and this forum will soon be history.

I flew TWA many times in the 70's and will miss them---I wish everyone working for TWA the best of luck with their new airline.
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Old Mar 16, 01, 2:47 pm
  #2  
 
Join Date: Oct 2000
Location: Alexandria, VA, USA
Posts: 140
Wonder how much longer this TWA board will be here... Just got back from vacation from LAS. Was upgraded out and back, from what I could tell service will still superb. Many of the flight attendents were wearing AA pins already. Anyways.... the news forwarded from AIRWISE:

Mar 16, 2001

The United States Justice Department today announced it will not challenge American Airlines' proposed acquisition of TWA.

The department's Antitrust Division put out a brief statement saying it had decided to let the transaction go forward after investigating the merger and taking into account TWA's bankrupt condition.

Under the proposed deal, American would pay USD$742 million for most of TWA's assets, including up to 190 planes and the St. Louis hub.

It also would pay USD$82 million for a 49 percent stake in DC Air, a minority-owned start-up of United and US Airways that would serve 44 markets out of Washington's Reagan National Airport.

Just this week the CEO of TWA told a federal bankruptcy court he would be forced to liquidate his carrier if a sale for most of its assets to AMR Corp.'s American Airlines was not approved.

American's bid includes the assumption of USD$3.5 billion in aircraft leases.

The deal will reshape the industry.

TWA, which traces its roots to the 1925 founding of Western Air Express, once catered to popes and movie stars and was owned at one time by Howard Hughes.

The airline hasn't turned a profit since 1988 and has filed for bankruptcy twice before.

Accounting for TWA's business, the new American would control 22.6 percent of the airline market, congressional investigators have estimated.

TWA has 20,000 employees, and American officials have said that American would offer jobs to all 17,600 unionized workers, including about 2,300 pilots.


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