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Potential 717 Setback In AA/TWA Merger

Wed Jan 10, 2001 2:48 am


I got this off Bloomberg:

Seattle, Jan. 9 (Bloomberg) -- Boeing Co. could strengthen
its competitive position yet have orders canceled if AMR Corp.'s
American Airlines acquires Trans World Airlines Inc. and certain
assets of US Airways Group Inc., the Wall Street Journal reported.
While American officials have said they intend to remain a
Boeing-only jet operator, they don't want the 100-seat 717 jets
TWA had ordered from Boeing, the newspaper said. TWA has already
received 15 of the 50 jets it ordered.
Seattle-based Boeing is making no change in its financial
guidance to investors because the carriers haven't acted on their
plans, a spokesman told the newspaper.
While rival Airbus Industrie also may lose TWA orders for
75 of its small A320 planes, Airbus officials have signaled that
they plan to defend the value of their order contracts in any
court proceedings or transactions, the newspaper said.

(WSJ 1/9 A6)

Ask the impossible to achieve the best possible
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RE: Potential 717 Setback In AA/TWA Merger

Thu Jan 11, 2001 5:57 am

TWA is in bankruptcy and all contracts can be nullified.
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RE: Potential 717 Setback In AA/TWA Merger

Thu Jan 11, 2001 6:37 am

I don't know if it'd make economic sense, but I say American ought to ditch their F100s and replace them with the 717s, if they do merge.
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RE: Potential 717 Setback In AA/TWA Merger

Thu Jan 11, 2001 6:45 am

Reason is simple: AA is thinking in long view terms -- aircrafts needed for future need to be bigger.

If F100s have been the right capacity for the '90s, it sure doesn't mean that 717 can substitute them forever.

More and more people travel every year.

F100s need to be replaced by 73NGs, which will be flying F100 routes with more capacity for next couple of decades to come.

Makes sense?