AMERICAN AIRLINES COMPLETES ACQUISITION OF TRANS WORLD AIRLINES
Combination Will Offer Greater Service to CustomersAnd Create New Job Opportunities
Business as Usual During Transition for TWA Employees, Passengers and Ticketholders
FORT WORTH, Texas – A new era in aviation history began today as American Airlines successfully completed its acquisition of most of the assets of Trans World Airlines, Inc. The combined company will offer travel to more than 300 cities worldwide on more than 900 aircraft, with an expanded and more convenient flight schedule.
Effective today, TWA will be operated by TWA Airlines LLC, a wholly owned subsidiary of American Airlines. In the near term, the two airlines will operate independently, including separate reservations systems, payroll systems, aircraft, procedures and policies. TWA employees, passengers and ticketholders will enjoy business as usual during the transition period. Following the transition period, TWA LLC will be fully integrated into American’s operations. Robert W. Baker, vice chairman of American Airlines, will assume the role of CEO of TWA LLC, and former TWA President and Chief Executive Officer Captain William F. Compton will serve as president.
Donald J. Carty, chairman and CEO of American Airlines, said, "Today, we celebrate a true milestone for the employees and customers of both American Airlines and TWA. The combination marks the beginning of a new era in aviation, as we bring together some of the most valuable assets and some of the best people in the industry.
The groundbreaking airline we are creating today will offer expanded service to customers and increased opportunity for employees, and will provide significant value to American Airlines shareholders."
Robert W. Baker said, "I am delighted to welcome TWA employees to the American family, and I look forward to working with Bill Compton to ensure a smooth transition. While we still have a lot of operational details to work out, I am extremely excited by the opportunity to bring together two of the industry’s best workforces and to begin to deliver benefits to our customers. It is important to emphasize that, for now, TWA passengers and ticketholders should expect no changes. TWA reservations centers, ticketing procedures, most Aviators policies and most Ambassador Clubs will continue to operate as normal. We’ll provide ample notice of any changes that will affect passengers."
Captain William F. Compton added, "Today marks the beginning of the next chapter in TWA’s storied history. I have known and admired American’s management team for many years, and I look forward to working with them to build a prosperous future for American Airlines. Significantly, this transaction ensures a continued presence in the communities TWA serves and continued opportunities for TWA employees."
American Airlines announced earlier this year that it had agreed to purchase substantially all the assets of Trans World Airlines, Inc. through a U.S. Bankruptcy Court proceeding for approximately $625 million in cash and the assumption of aircraft operating leases.
American Airlines, Inc.
American Airlines and its regional airline affiliate, American Eagle Airlines, together serve more than 240 cities in 49 countries and operate approximately 4,100 daily flights. American Airlines, which traces its beginnings to 1926, today operates a fleet of 720 modern jetliners and employs more than 103,000 people worldwide. American Airlines and American Eagle are both wholly owned by AMR Corp. (NYSE: AMR).
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I personally think that this will boost the UA/US merger. If AA and TW are allowed to merge, why not UA and US? I am sure this will increase competition in a certain extent. At least two giants competing against each other.
It is sad to see TWA leaving us though. How much longer for TWA?
All ideas are welcome!