TWA Sale Could Become Official Friday
Apr 3, 2001, 3:41 pm
#1
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Join Date: Oct 1999
Posts: 94
TWA Sale Could Become Official Friday
4/3/01 - Judge Refuses To Stop The Sale of TWA - The sale of WA's assets to American Airlines could close as early as Friday.U.S. Bankruptcy Judge Peter Walsh has denied motions to stay the sale of TWA to AMR Corp. The motions were filed by TWA creditors, former owner Carl Icahn and others objectors. Walsh advised the two airlines of his decision late Monday and TWA announced it Tuesday. Another hearing is scheduled before Walsh on Friday, where officials from both aviation companies say the deal could become official that day. American is buying most of TWA's assets including its St. Louis hub for $742 million, as well as assuming $3.5 billion in aircraft leases. Walsh indicated he plans to move quickly to close the sale, saying delaying the process would put TWA at risk of liquidation. He said in a 35-page decision that there was no evidence that creditors and other objecting parties would benefit from staying the sale. Once the deal closes, the TWA name won't go away immediately but will likely be phased out over a period of several months, officials from both airlines have said.
http://airtravel.about.com/travel/ai...lnewsaatwa.htm
http://airtravel.about.com/travel/ai...lnewsaatwa.htm
Apr 7, 2001, 1:22 pm
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Any news on Friday?
Apr 7, 2001, 4:33 pm
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..............................
Last edited by scruffy; Apr 18, 2004 at 5:45 pm
Apr 8, 2001, 6:53 pm
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Stage is set for end of TWA, birth of biggest U.S. airline
By Philip Dine And Cynthia Wilson
Of The Post-Dispatch
04/08/2001
The flight is landing.
After three-quarters of a century, venerable Trans World Airlines will cease to exist as an independent company on Monday, as it becomes part of American Airlines in a $4.2 billion transaction.
But even as one legacy ends, another may be starting.
American's acquisition of the St. Louis-based aviation pioneer, a deal set to close on Monday, will create the nation's largest airline.
"It of course is a bittersweet time for the folks at TWA, but at the same time it's a very happy time, because this is a good result for everyone involved," said Julia Bishop-Cross, a TWA spokeswoman.
"This is a good global solution. It preserves the jobs of nearly all of TWA's employees, it preserves the hub in St. Louis, which is good for St. Louis and good for Missouri, and it preserves the service that our passengers have come to rely on."
Things will change only gradually in the coming months, which will serve as a transition period for the merger of the companies and their work forces, Bishop-Cross said. During that period, TWA will be known as TWA-LLC. The LLC stands for limited liability corporation, a form of corporate structure.
"Nothing is going to change on Day One," she said. "You'll still walk up to a TWA counter at the airport, you'll be greeted by TWA employees and you'll board a TWA aircraft."
Customers will be able to buy TWA tickets, even for flights well into the future, and they will be honored, she said -- either on TWA planes or, if the companies have merged, on American flights.
It will likely take several years for all details of the merger to be completed, including the last aircraft to be repainted and assigned over to the American maintenance system.
"For the average customer, you're going to see it in months more than years," Bishop-Cross said. "There'll be slowly a merging of TWA into the American system, in the sense of signage going away and being replaced by American, in the sense of the operations being combined in the airports we both fly to."
A series of events combined to make possible Monday's closing, including last month's approval of the sale by a U.S. Bankruptcy Court judge in Wilmington, Del., and by antitrust officials at the Justice Department. A bankruptcy court ruling Friday on remaining matters cleared the way for closure of the deal.
Steven Cousins, a bankruptcy attorney representing the city of St. Louis and Lambert Field, said that an important element to Friday's Delaware court ruling was that "every dollar and cent owed the city of St. Louis will be paid at closing."
"TWA will pay the money for contracts and leases, with financing from American," Cousins said. That's important, he said, because St. Louis was "a large unsecured creditor."
In recent weeks, Missouri's two senators, Republican Christopher "Kit" Bond and Democrat Jean Carnahan, have warded off anti-merger legislation that could have threatened the deal. In persuading their colleagues to desist, the two Missourians have cited the need to protect TWA's jobs.
"TWA has been a major part of the St. Louis community and a major corporate citizen for decades," Carnahan's spokesman, Tony Wyche, said Friday. "But perhaps more importantly, the jobs the company has provided have been a foundation of the local economy. And while it's of course a little bit sad to see the TWA name moving on, it's great to see the employees of TWA carrying on."
And in recent days, the unions at TWA agreed to waive contractual provisions that could have held up the deal. Attempts to stop the sale by former TWA owner Carl Icahn and others were also denied in two federal courts.
"The biggest asset that American purchased in this transaction is the experience of the TWA employees," said Joe Tiberi, spokesman for the International Association of Machinists. The union represents 16,000 TWA workers, including mechanics and flight attendants.
Scott Sherrin, a spokesman for the Air Line Pilots Association, which represents TWA's pilots, agreed.
Still, most of TWA's pilots have mixed emotions, he said.
"Many of our pilots have worked here all their lives. It's bittersweet. There will be added security being part of a carrier like American, but at the same time a big name in aviation will eventually disappear."
American's unions have voiced concerns about how TWA's workers will be integrated into American's work force. Despite the decision by the American pilots union to join with the other two major unions at American to oppose the transaction, "ultimately, we hope (the acquisition) proves beneficial for all concerned," said Gregg Overman, a spokesman for the Allied Pilots Association.
But Overman noted that the transaction is more complicated from the American pilots' and other employees' perspective.
"We've never made a secret of our preference to grow internally, rather than by acquisition. But that's a moot point now," Overman said. "We're focused on what we have to do next as an organization and that's to try to come to an agreement with AMR management." AMR is the parent company of American Airlines.
The pilots and AMR management will meet through the weekend to negotiate amendments needed to the union's labor contract to help make the acquisition successful.
If an agreement is not reached by close of business Tuesday, the union will ask the National Mediation Board to help with the negotiations.
Court action Saturday
TWA officials said an appeals court on Saturday had denied a request by creditors to delay American Airlines' buyout of the company.
The 3rd U.S. Circuit Court of Appeals in Philadelphia did not make public any ruling.
"We were advised of that," said Mark Abels, TWA's chief spokesman. "It enables us to continue toward completing the transaction on Monday."
The court did grant a request by the Equal Employment Opportunity Commission that even after closing, EEOC's discrimination claims against TWA remain alive until heard by a court, according to Steven Cousins, a lawyer representing St. Louis and Lambert Field.
And the court gave parties to the transaction until 10 a.m. Monday to respond to a $13 million judgment sought by an Israeli labor union representing TWA employees. The airline is shutting down its operations in Israel.
=======
Passengers
When will TWA go away?
There won't be a mad rush to paint over TWA's familiar red logo. After the papers are signed to close the transaction, TWA will become TWA Airlines LLC, which will operate as an American Airlines subsidiary during the transition period as the two airlines' operations are combined. Once both carriers' operations are merged, TWA Airlines LLC will go away and become American Airlines. American says it doesn't know how long the transition will take. Federal competition rules stipulate that American Airlines can't even examine some of the integration issues until after the deal closes.
What do they have to do other than just lump both airlines' assets together?
American Airlines will have to replace TWA's federal operating certificate that allows it to fly with American's operating certificate. That means American will have to train TWA pilots, mechanics, and other workers in its operating procedures. American says that will take a while. Computer systems at both airlines will have to learn to talk to each other and other business workings must also be combined.
Will there be a problem if I buy a TWA ticket now, or if I'm holding a TWA ticket?
No. The only difference is, at some point, you will be flying on an American Airlines flight instead of TWA.
Will the cost for airline tickets out of Lambert Field go up when TWA is bought out?
Experts differ. Some say competition from Southwest and a two-year rate-cap as part of United's deal with US Airways will cause fares to hold steady or drop. Others say tickets could become a little more expensive, due to less competition from major carriers.
Lambert Field and St. Louis
Will I still be able to get nonstop and direct flights out of Lambert Field?
Yes. American officials have said that they would continue TWA's use of Lambert Field as a hub. Also, American has service to more destinations than TWA.
What about Lambert's planned expansion?
Airport and American Airlines officials say the acquisition won't affect expansion at Lambert Field, which should proceed as planned.
Frequent fliers
What happens to my TWA frequent-flier miles?
All miles and elite status for TWA's Aviators members are expected to be honored, but some privileges and benefits may be lost. American expects Aviators to remain in place for some months, maybe up to a year. Aviators members will be given a deadline for either using miles through TWA's plan, or those miles will be transferred to American's program. The TWA miles won't arbitrarily go away, American says.
Employees
Will workers keep their jobs?
American has given assurances that most of TWA's 20,000 employees, including nearly all union-represented workers, will be hired by American and will get their new employer's higher wages once they are absorbed into American's work force. American said this week that about 70 employees so far have been told they won't be offered jobs.
Reporter Phil Dine:\
E-mail: [email protected]\
Phone: 202-298-6880\
Reporter Cynthia Wilson:\
E-mail: [email protected]\
Phone: 314-340-8159
http://home.post-dispatch.com/channe...pper=A-section
By Philip Dine And Cynthia Wilson
Of The Post-Dispatch
04/08/2001
The flight is landing.
After three-quarters of a century, venerable Trans World Airlines will cease to exist as an independent company on Monday, as it becomes part of American Airlines in a $4.2 billion transaction.
But even as one legacy ends, another may be starting.
American's acquisition of the St. Louis-based aviation pioneer, a deal set to close on Monday, will create the nation's largest airline.
"It of course is a bittersweet time for the folks at TWA, but at the same time it's a very happy time, because this is a good result for everyone involved," said Julia Bishop-Cross, a TWA spokeswoman.
"This is a good global solution. It preserves the jobs of nearly all of TWA's employees, it preserves the hub in St. Louis, which is good for St. Louis and good for Missouri, and it preserves the service that our passengers have come to rely on."
Things will change only gradually in the coming months, which will serve as a transition period for the merger of the companies and their work forces, Bishop-Cross said. During that period, TWA will be known as TWA-LLC. The LLC stands for limited liability corporation, a form of corporate structure.
"Nothing is going to change on Day One," she said. "You'll still walk up to a TWA counter at the airport, you'll be greeted by TWA employees and you'll board a TWA aircraft."
Customers will be able to buy TWA tickets, even for flights well into the future, and they will be honored, she said -- either on TWA planes or, if the companies have merged, on American flights.
It will likely take several years for all details of the merger to be completed, including the last aircraft to be repainted and assigned over to the American maintenance system.
"For the average customer, you're going to see it in months more than years," Bishop-Cross said. "There'll be slowly a merging of TWA into the American system, in the sense of signage going away and being replaced by American, in the sense of the operations being combined in the airports we both fly to."
A series of events combined to make possible Monday's closing, including last month's approval of the sale by a U.S. Bankruptcy Court judge in Wilmington, Del., and by antitrust officials at the Justice Department. A bankruptcy court ruling Friday on remaining matters cleared the way for closure of the deal.
Steven Cousins, a bankruptcy attorney representing the city of St. Louis and Lambert Field, said that an important element to Friday's Delaware court ruling was that "every dollar and cent owed the city of St. Louis will be paid at closing."
"TWA will pay the money for contracts and leases, with financing from American," Cousins said. That's important, he said, because St. Louis was "a large unsecured creditor."
In recent weeks, Missouri's two senators, Republican Christopher "Kit" Bond and Democrat Jean Carnahan, have warded off anti-merger legislation that could have threatened the deal. In persuading their colleagues to desist, the two Missourians have cited the need to protect TWA's jobs.
"TWA has been a major part of the St. Louis community and a major corporate citizen for decades," Carnahan's spokesman, Tony Wyche, said Friday. "But perhaps more importantly, the jobs the company has provided have been a foundation of the local economy. And while it's of course a little bit sad to see the TWA name moving on, it's great to see the employees of TWA carrying on."
And in recent days, the unions at TWA agreed to waive contractual provisions that could have held up the deal. Attempts to stop the sale by former TWA owner Carl Icahn and others were also denied in two federal courts.
"The biggest asset that American purchased in this transaction is the experience of the TWA employees," said Joe Tiberi, spokesman for the International Association of Machinists. The union represents 16,000 TWA workers, including mechanics and flight attendants.
Scott Sherrin, a spokesman for the Air Line Pilots Association, which represents TWA's pilots, agreed.
Still, most of TWA's pilots have mixed emotions, he said.
"Many of our pilots have worked here all their lives. It's bittersweet. There will be added security being part of a carrier like American, but at the same time a big name in aviation will eventually disappear."
American's unions have voiced concerns about how TWA's workers will be integrated into American's work force. Despite the decision by the American pilots union to join with the other two major unions at American to oppose the transaction, "ultimately, we hope (the acquisition) proves beneficial for all concerned," said Gregg Overman, a spokesman for the Allied Pilots Association.
But Overman noted that the transaction is more complicated from the American pilots' and other employees' perspective.
"We've never made a secret of our preference to grow internally, rather than by acquisition. But that's a moot point now," Overman said. "We're focused on what we have to do next as an organization and that's to try to come to an agreement with AMR management." AMR is the parent company of American Airlines.
The pilots and AMR management will meet through the weekend to negotiate amendments needed to the union's labor contract to help make the acquisition successful.
If an agreement is not reached by close of business Tuesday, the union will ask the National Mediation Board to help with the negotiations.
Court action Saturday
TWA officials said an appeals court on Saturday had denied a request by creditors to delay American Airlines' buyout of the company.
The 3rd U.S. Circuit Court of Appeals in Philadelphia did not make public any ruling.
"We were advised of that," said Mark Abels, TWA's chief spokesman. "It enables us to continue toward completing the transaction on Monday."
The court did grant a request by the Equal Employment Opportunity Commission that even after closing, EEOC's discrimination claims against TWA remain alive until heard by a court, according to Steven Cousins, a lawyer representing St. Louis and Lambert Field.
And the court gave parties to the transaction until 10 a.m. Monday to respond to a $13 million judgment sought by an Israeli labor union representing TWA employees. The airline is shutting down its operations in Israel.
=======
Passengers
When will TWA go away?
There won't be a mad rush to paint over TWA's familiar red logo. After the papers are signed to close the transaction, TWA will become TWA Airlines LLC, which will operate as an American Airlines subsidiary during the transition period as the two airlines' operations are combined. Once both carriers' operations are merged, TWA Airlines LLC will go away and become American Airlines. American says it doesn't know how long the transition will take. Federal competition rules stipulate that American Airlines can't even examine some of the integration issues until after the deal closes.
What do they have to do other than just lump both airlines' assets together?
American Airlines will have to replace TWA's federal operating certificate that allows it to fly with American's operating certificate. That means American will have to train TWA pilots, mechanics, and other workers in its operating procedures. American says that will take a while. Computer systems at both airlines will have to learn to talk to each other and other business workings must also be combined.
Will there be a problem if I buy a TWA ticket now, or if I'm holding a TWA ticket?
No. The only difference is, at some point, you will be flying on an American Airlines flight instead of TWA.
Will the cost for airline tickets out of Lambert Field go up when TWA is bought out?
Experts differ. Some say competition from Southwest and a two-year rate-cap as part of United's deal with US Airways will cause fares to hold steady or drop. Others say tickets could become a little more expensive, due to less competition from major carriers.
Lambert Field and St. Louis
Will I still be able to get nonstop and direct flights out of Lambert Field?
Yes. American officials have said that they would continue TWA's use of Lambert Field as a hub. Also, American has service to more destinations than TWA.
What about Lambert's planned expansion?
Airport and American Airlines officials say the acquisition won't affect expansion at Lambert Field, which should proceed as planned.
Frequent fliers
What happens to my TWA frequent-flier miles?
All miles and elite status for TWA's Aviators members are expected to be honored, but some privileges and benefits may be lost. American expects Aviators to remain in place for some months, maybe up to a year. Aviators members will be given a deadline for either using miles through TWA's plan, or those miles will be transferred to American's program. The TWA miles won't arbitrarily go away, American says.
Employees
Will workers keep their jobs?
American has given assurances that most of TWA's 20,000 employees, including nearly all union-represented workers, will be hired by American and will get their new employer's higher wages once they are absorbed into American's work force. American said this week that about 70 employees so far have been told they won't be offered jobs.
Reporter Phil Dine:\
E-mail: [email protected]\
Phone: 202-298-6880\
Reporter Cynthia Wilson:\
E-mail: [email protected]\
Phone: 314-340-8159
http://home.post-dispatch.com/channe...pper=A-section
Apr 8, 2001, 7:16 pm
#5
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American said this week that about 70 employees so far have been told they won't be offered jobs.
[This message has been edited by tvl4free (edited 04-08-2001).]
Apr 8, 2001, 8:49 pm
#6
Join Date: Jan 2000
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Rumor on planebusiness.com is that most of the 70 employees not offered jobs were either former AA employees that had been laid off for performance reasons or former AA employees who left AA without giving AA the full two weeks notice (e.g., TWA announced a new pilot's class, and the AA pilots had to quit without the proper notice in order to attend the class).
