N777UA
Topic Author
Posts: 566
Joined: Thu Mar 25, 2010 10:06 pm

Did TWA Have A Chance?

Sun Nov 02, 2003 11:03 am

Just a question, with all the STL TWA talk around here:

If the American buyout had not taken place, is there any way TWA could have survived on its own?

My guess would be maybe, IF 911 hadn't occurred, but since it did occur, then I don't think they would have.
 
DeltaGuy
Posts: 3965
Joined: Wed Sep 12, 2001 5:25 am

RE: Did TWA Have A Chance?

Sun Nov 02, 2003 11:12 am

Would have liked to see it keep living, it was one of the last real, old school named airlines, from lineups like Eastern, Western, Pan Am, etc.

Before 9/11, maybe it could have treaded around like UAL is. After, not a chance...even the strong airlines were reduced to beaten souls.

RIP TWA

DeltaGuy
"The cockpit, what is it?" "It's the little room in the front of the plane where the pilot sits, but that's not importan
 
desertjets
Posts: 7586
Joined: Fri Feb 18, 2000 3:12 pm

RE: Did TWA Have A Chance?

Sun Nov 02, 2003 11:24 am

Even w/o 911 it is likely that TWA would not have survived. Even during the flush economy of the late 90s were other airlines were raking in the cash, TWA struggled to have a handful, and I do mean a literal handful, of profitable quarters (I believe there may have only been one or two). With poor credit ratings and an ambitious (though needed) fleet renewal program their costs were too high. Throw in their inability to hedge fuel costs when they spiked in the summer of 2000 they were done.
Stop drop and roll will not save you in hell. --- seen on a church marque in rural Virginia
 
trnswrld
Posts: 1081
Joined: Sat May 22, 1999 2:19 am

RE: Did TWA Have A Chance?

Sun Nov 02, 2003 11:24 am

No one will ever know. All someone could do is speculate, and most will agree that 9-11 would have been the nail in the coufin for TWA. The last couple years of TWA's life was starting to actually look pretty promising with all there new aircraft, a new excellent color scheme, and a vastly reworked route structure. Some people might also forget that TWA was not forced into any liquidation either, this was a planned agreement between AA and TWA to merge. Even though I would LOVE to see TWA still flying, it would have been very very tough for them to make it through what 9-11 did to the economy and the aviation economy more specifically. Think of it this way, much stronger airlines such as UAL, AA, USair, and now DL are all struggling to hold on and they went into 9-11 in a lot better shape financially than TWA. So, make your own conclusion but I think you get what im getting at Smile/happy/getting dizzy
I will miss TWA

[Edited 2003-11-02 03:28:53]
 
Alpha 1
Posts: 12343
Joined: Sat Feb 03, 2001 12:12 am

RE: Did TWA Have A Chance?

Sun Nov 02, 2003 11:25 am

If B747-437B could have gotten a hold of it, it'd still be around today.  Big grin
 
B747-437B
Posts: 8777
Joined: Thu May 30, 2002 6:54 am

RE: Did TWA Have A Chance?

Sun Nov 02, 2003 11:36 am

If B747-437B could have gotten a hold of it, it'd still be around today.

Thanks for your vote of confidence Alpha1, but even the most optimistic members of our consortium wouldn't argue your position!  Smile

If Jet Acquisitions Group had succeeded in acquiring TWA in March 2001 as we had hoped, our business plan projections would have put us the most vulnerable from a cashflow standpoint towards the end of the summer travel season in early September with cash on hand from unflown revenue being at its lowest point while capital spending was just picking up.

As a result it is my belief that similar to Midway, we would not have had sufficient liquidity to resume operations on September 15, 2001 and the airline would simply have shut down at that time. Even if we had been able to scrounge together enough cash to keep going then, the industry-wide revenue crisis for the next two quarters would have virtually assured liquidation once the bailout money dried up.

If we had acquired TWA and 9/11 had not happened, then yes, I think TWA would have stood a fighting chance. I think our business plan was solid, our management team was able and our financing was in place. But world events have a way of scuttling even the best laid plans and there is no point dwelling on past hypotheticals.
"The A340-300 may boast a long range, but the A340 is underpowered" -- Robert Milton, CEO - Air Canada
 
atrude777
Posts: 4258
Joined: Wed Aug 13, 2003 11:23 pm

RE: Did TWA Have A Chance?

Sun Nov 02, 2003 12:40 pm

Now see here I am confused.......

Did AA and TWA MERGE? or did AA BUY TWA. I thought it was the bought....so therfore....whether or not 9/11 happened TWA wouldn't be around anyway!!!

Alex.
Good things come to those who wait, better things come to those who go AFTER it!
 
B747-437B
Posts: 8777
Joined: Thu May 30, 2002 6:54 am

RE: Did TWA Have A Chance?

Sun Nov 02, 2003 12:48 pm

Did AA and TWA MERGE? or did AA BUY TWA

Neither.

AA acquired "substantially all assets" of TWA in an auction conducted by the US Bankruptcy Court after TWA filed Chapter 11.

TWA as an entity ceased to exist after the sale was complete. AA transferred all the assets to a seperate company, a subsidiary of AMR Corporation called "TWA, LLC" and operated the assets there until they were merged into American Airlines.
"The A340-300 may boast a long range, but the A340 is underpowered" -- Robert Milton, CEO - Air Canada
 
atrude777
Posts: 4258
Joined: Wed Aug 13, 2003 11:23 pm

RE: Did TWA Have A Chance?

Sun Nov 02, 2003 12:56 pm

OHHHHH My bad, when I saw ur post. I thought you worked for AA, but looking back I realized you were for a different company. I am sorry. I sure wish you had aqcuired TWA, would have been nice to see them going!!!! I love TWA, as I live near STL!!

Alex.
Good things come to those who wait, better things come to those who go AFTER it!

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