LONDON - One of the most evocative names in civil aviation, Trans World Airlines, may soon disappear for good as part of a complicated takeover deal reportedly being engineered by American Airlines.
The St Louis-based carrier, which began operations as Western Air Express in 1925, is expected to file for bankruptcy
this week as a first step towards being taken over by American Airlines.
It will be the third time that TWA, which has been ailing for years, has entered bankruptcy.
Neither company would comment on published reports about the deal. It was widely believed, however, that American Airlines would pay about $US2 billion ($4.4 billion) for TWA's assets. It would acquire its fleet of 200 jets, its hub in St Louis, Missouri, and would retain its workforce. But the TWA name would go.
The purchase would mark another giant phase of consolidation in the airline industry. American Airlines is also expected to announce that it will acquire 20 per cent of US Airways for another $US1.5 billion as well as 49 per cent of the yet-to-be launched DC Air.
American's manoeuvres would help clear the way for federal approval of the planned acquisition of US Airways by United Airlines. DC Air is to be created out of the United-US Airways deal. It would inherit most of the US Airways routes in and out of National Airport at Washington, DC.
If all these transactions occur, American would emerge with a 25 per cent share in the US domestic market, just behind the 26 per cent share that United would claim after ingesting US Airways.
TWA has not made a profit even during the economic boom times of the past two years. Its punishment, it appears, will be to join the ghosts of American aviation.
