ContinentalEWR From United States of America, joined May 2000, 3762 posts, RR: 13 Posted (13 years 4 months 4 days 23 hours ago) and read 2733 times:
Today's New York Times reported that TWA has missed payments to its employee's pension plan and that a law
suit may be filed. The article also mentioned that TWA
has less cash on hand than last year at this time.
TWA has missed the greatest profit streak the US air
line industry has ever enjoyed. With the economy now
slowing sharply and demand for airline seats likely to
suffer as a result, I wonder what will happen to TWA.
ILUV767 From United States of America, joined May 2000, 3141 posts, RR: 8
Reply 1, posted (13 years 4 months 4 days 22 hours ago) and read 2458 times:
I think that TWA will file for chapter 11, and disapear. United or other carriers may try to pick up there JFK slots. In 10 years they will come back as a small regional carrier.
In order for them to make aprofit, they have to offer a better route structure. If they really want to keep STL, then do it, but add a hub in the west, with north and south operations, and of course make a southern hub. They need to be able to move people to and from citys other than St. Louis!
TWA From Iran, joined Sep 2010, 0 posts, RR: 0
Reply 2, posted (13 years 4 months 4 days 21 hours ago) and read 2447 times:
I pray that TWA will be just fine. I think they need to drop JFK, Remodel, and expand STL then Open a Hub in the west. Possibly PHX, or LAS. Only thing that concerns me is both airports are already congested as it is.
TWA From Iran, joined Sep 2010, 0 posts, RR: 0
Reply 3, posted (13 years 4 months 4 days 21 hours ago) and read 2433 times:
If TWA wants to make a southern Hub how about MCO? MCO is one of the most appealing cities in the World, and same with the airport. MCO has soooooooo much room to grow, and I think The Airport Authaurity would build TWA a new Terminal if they were serious about a Hub in MCO
AA737-823 From United States of America, joined Mar 2000, 5642 posts, RR: 11
Reply 4, posted (13 years 4 months 4 days 20 hours ago) and read 2413 times:
Eastern used to have a big hub at MCO, or was it MIA? No, I think it was MCO. That could be a profitable market for TWA. They could strike a deal with Walt Disney World and kick out Delta as the official Disney airline....
Gibberish From Switzerland, joined Sep 2000, 424 posts, RR: 2
Reply 7, posted (13 years 4 months 4 days 20 hours ago) and read 2375 times:
It would really be sad to see another former great airline go under again. But what exactly triggered their financial situation? I mean, they used to be a huge airline with lots of international (and domestic) routes. Do they even fly international anymore? I don't think so. Could it be that TWA800 is one of the reasons that they are in struggle? I would appreciate it if someone could inform me or give me some information.
Republic From Canada, joined Dec 2012, 0 posts, RR: 0
Reply 11, posted (13 years 4 months 4 days 18 hours ago) and read 2349 times:
Which airlines will benefit most by a TWA demise (which I hope does not happen)? Southwest would increase operations at STL. But that would still leave a big void. AA? ORD and DFW too close to open a new hub. CO? Not enough aircraft to open a new hub. UA? I hope not. DL? Finally give up a losing battle with AA at DFW and move what's left at DFW to Lambert? NW? MEM is not near the type of hub that other airlines have, so maybe a emphasis on STL? And my personal favorite, assuming they too survive, is Pan Am. Move from Mid America (BLV) to STL, but they don't have enough aircraft either. What do you think?
TWA has been on the ropes for quite some time. I'm sure the majors have contingency plans should TW go down and not be able to get up this time.
Ryanair From United Kingdom, joined Jul 1999, 654 posts, RR: 0
Reply 12, posted (13 years 4 months 4 days 18 hours ago) and read 2328 times:
TWA has very good money management, as a general trend the balance sheet keeps increasing in value despite their operating losses, this last quarter it's gone down but to take this one off as meaningful is premature.
The pensions issue at TWA is very complex from the Ichan days and now with Karabu (discussed at length before here). Missing payments may be connected to that whole mess in a strategic way so might not in truth be what it appears.
The reason TWA missed the current boom is Karabu allowing Ichans lowestfare.com to sell their tickets at give away prices thus devistating their income. There's no real way of knowing what will happen to TWA after Karabu expires, it might flurish with new planes and high yield (With lowestfare.com out of the picture) or might to be weak to withstand any general economic turbulance.
AATripleseven From United States of America, joined Jun 2000, 324 posts, RR: 0
Reply 13, posted (13 years 4 months 4 days 17 hours ago) and read 2321 times:
What is TWA's ultimate plan? I know they are expanding in the Caribbean and cutting down on European operations. They aren't ordering widebodies and I haven't seen dramatically increased domestic operations. JFK flights are being cut however should be kept because DL and AA are opening new terminals and up and coming jetBlue is posing a threat. Doesn't that indicate that something good is going on at JFK? Why are they bowing out and where are they going? I have a personal inerest in seeing that TWA survives but am confused on their master plan.
TWAneedsNOhelp From , joined Dec 1969, posts, RR:
Reply 14, posted (13 years 4 months 4 days 17 hours ago) and read 2326 times:
There are several reasons why TWA has missed out on the current airline boom and continues to lose money.
1) The most common answer is the Karabu Ticketing Agreement, which allows Carl Ichan, past TWA owner, to buy any ticket on TWA for 55% of its listed fare. Ichan than resells the tickets through his Lowestfare.com website at 75% of listed fare and in the process decimate TWA's yields on tons of flights. In fact much of the JFK-Europe pulldown has been because these flights were full of pax travelling on Karabu tickets and TW could fill the plane and make no money.
2) TWA is a shadow of its former self operationally, but as big as its former self costwise. Because of stringent union work rules and intensive gov't labor laws TW still maintains and pays for a tremendous infrastructure in Europe with 40 employees working at stations that see 2 flights daily, with their own expensive equipment and real estate. For this reason, TW has been rapidly closing stations in Italy, Spain, and Potugal as this is the only way to lay off inefficient staff.
3) Even here in America, because of union agreements TW has several obsolete clauses that the IAM insists upon that keep TWA bleeding money. TWA's Hangar 12 at JFK is a tremendous cost but rarely used. TWA's Maintance and Overhaul Base in Kansas City also is much too inefficient to be used profitably. There are tons of other work rules that TWA suffers from that its competitors don't.
4) Reputation. TWA still suffers from its early 90s and mid 80s repuatation as a dowdy carrier with late flights, old facilities, and decrepit planes. TWA has worked hard over the last 3 years to retire its entire fleet of 747, 727, and L1011 while replacing these planes with brand new 757s and 717s. Also TWA has retired in large amounts old DC9s and 767-200s and added newer but used MD80s and 767-300ERs.
5) Becuase of Karabu, TWA has been shuned in the alliance dating game and only recently signed agreements with America West, Air Europa, Air Malta, and Kuwait Airways.
6) TWA's JFK hub has been under attack from oneworld, SkyTeam, and Star alliances and its domestic flights are still being threatened by JetBlue's ultra low fares. JFK-PBI/FLL and LGA-PBI were ended after JB started flights. However, these operations were really from a different time when pax from around teh country flew to JFK to meet nightime flights aboard Tristars and 747s to Europe.
The good news is TWA has been rebounding. The new agreements mentioned above will add to revenue, the Karabu agreement is set to expire on 30 Sep 2003, and TWA to add revenue to already constant costs TWA has expanded by opening "focus citys" at SJU and LAX. Additionally TWA has signed agreements with several travel aggencies to run weekend charters from JFK, BOS, and EWR to the Carribean in exchange for guarranteed profit on all flights. Also, TWA's operational performance is superior to that of any other American airline over the last 2 years and despite recent Winter weather at Lambert, TWA is focused on running a tight ship.
It is my opinon TWA will do fine in the long run. A new widebody order is rhumored as is a Pacific expansion at its LAX Focus City. New Chataqua regional jets at STL are improving TWE service and TW's recently signed agreements with American Eagle at JFK and LAX will only put more pax on TW flights to the Carribean, Israel, and West Coast.
ContinentalEWR From United States of America, joined May 2000, 3762 posts, RR: 13
Reply 15, posted (13 years 4 months 4 days 17 hours ago) and read 2308 times:
TWA does not have enough cash to order new planes, open a west coast hub (as someone suggested), re-
model STL, and so forth.....TWA is limping along. As
long as demand remains high (largely due to spillover
from UA, DL, and NW because of their labor problems)
and provided the domestic economy doesn't tip into
recession, TWA can survive. A recession, even a
mild one, a drop in demand, will spell the end for
TWA. It has few remaining assets to dispose of to
N960AS From Switzerland, joined Apr 2000, 466 posts, RR: 7
Reply 17, posted (13 years 4 months 4 days 16 hours ago) and read 2290 times:
No, no, no TWA can't go! I understand they are in major trouble, but no they have to 'suck it up' until September 30th 2003 when they're free of that stupid Karabu.
About the West Coast hub I agree they couldn't do that. However with code shares and decent partners they might be able to get more pax on flights out of LAX. If America West code shares for TWA that's LAS and PHX (plus CMH?) flights to feed LAX. Alaska is a TW partner but if they start code sharing? Then that adds PDX, SEA, SFO, BOI, EUG, ANC and many Western Mexican destinations to feed flights. And that is all in addition to AA Eagle flights. If they finally start LAX-BOS that will add to JFK and DCA which are pretty important markets from LAX they'd be be pretty big on LAX-East Coast routes and DCA is an exclusive route.
JFK makes me sad! I hate to see one of my favorite airlines loosing lots of money at my favorite airport serving my favorite city. However as long as the can still make money on transcons to CA, STL, MIA, MCO, SJU and the rest of the Caribbean I'm happy. It is depressing that the European flights are dropping like flies, but as long as they keep alive (and keep CDG!) then ok.
I'm rambaling, so I'm going to say good afternoon and the best wishes to TWA!
TWAneedsnoHelp: I wish I was alive for those glory days of TWA flying to many flights to Europe on L10s and 747s. Oh well.
Zrs70 From United States of America, joined Dec 2000, 3011 posts, RR: 9
Reply 19, posted (13 years 4 months 4 days 16 hours ago) and read 2275 times:
Having recently become a life member of the Ambassador's Club, I am hoping that a larger airline with a greater club network merges with TW. I would really get a bang for my buck there! Still, it's quite sad comparing a current timetable to one from 15 years ago.
TWAneedsNOhelp From , joined Dec 1969, posts, RR:
Reply 20, posted (13 years 4 months 4 days 15 hours ago) and read 2263 times:
America West and TWA recently announced a widescale codeshare agreement that puts TW code on west coast flights from PHX and LAS and HP code on midwestern hops from STL. See news and new route map at: http://www.TWA.com.
Add to the rhumors about the widebody order two more domestic codeshares. Should be exciting....
DCA-ROCguy From United States of America, joined Apr 2000, 4467 posts, RR: 34
Reply 21, posted (13 years 4 months 4 days 9 hours ago) and read 2221 times:
Ditto to Russ...TWA is a survivor. They've survived worse crises than a couple of missed pension payments. They'll get those made somehow. 2003 and the death of the evil Karabu vampire are on the way.
I get the impression that TWA's unions don't understand that TWA is no longer a major carrier and should not be expected to maintain 40-plus staffs at foreign stations, or inefficient old maintenance complexes. Survival is at stake. TWA will pull through, but the unions in my view have been almost as bad as Icahn. TWA has better things to spend its precious money on then featherbedding or dreams of past glory.
New dreams beckon, and TWA needs freedom to chase them.
Acvitale From United States of America, joined Aug 2001, 922 posts, RR: 11
Reply 24, posted (13 years 4 months 4 days 1 hour ago) and read 2228 times:
I am here...
First COEWR is a fool to predict the demise based on the current situation. Oil is down $10 a barrel this week alone.
TWA has been in tighter cash poisitions before. They are a survivor airline and will continue to survive.
The new planes and West Coast operations that COEWR says there is no money for are all ready occurring. LAX traffic continues to grow with a 60% increase since last year and the Caribbean continues to grow as well.
No new planes... Hmpphh.. Are you blind? In the last 5 years alone.... 27 Brand new 757-200s 15 717-200s 24 brand new MD83s 3 brand new 767-300ERs and then the newer (but used catagory includes) 5 767-300ERs and 47 MD83s. The A318,319,320 are due on property in 2003.
TWA is better than any other major in operational numbers holding the highest operation completion and the highest on time numbers for three years running.
As for growth. TWA is now #2 in the Caribbean with only AA having more traffic.
As for comparing old timetables to new ones... Well TWA is flying more RPMs to more destinations than anytime in the past. Better double check the destination list and the number of flights. Just because they are not flying 747s to Europe hardly means they are dead. It is easy to stereotype and hard to look at the facts when it debunks your beliefs. Yes cash is tight. The payments to the 401K are contractually permitted to be deferred. The IAM and ALPA know that. The ALPA union acknowledged it. The IAM is negoiating a contract starting January. I believe they are posturing. It is a large part of their antiquated work rules that put TWA where it is today (along with Icahn and Hughs and others) The JFK hanger situation is one major example. Others are catering trucks requiring a TWA mechanic on board and mechanics being required for walk arounds and push backs. (Of course this may make TWA safer then other majors with only 1 accident (TWA800) in 20 years, (Many claim TWA 800 was a missle and coverup not the wiring)
Also the MCI maint. base has had a lease signed that includes a 300 million bond issue that will result in the base being upgraded and overhauled... That will make it much easier for TWA to subcontract work as well as do its own with upgraded facilities and tooling..
My take is TWA will survive.. Many have called for TWAs demise over the last 13 years. They have all been wrong. Wall Street said they would lose 1.63 a share last quarter they were off .26 a share.
In 2003. Ameriflot, Unitafolt, and the financially ailing TWA.
: Dont forget Deltaflot which with the new livery applied all over will be more "flot" than ever!