AMERICAN AIRLINES RECEIVES DEPARTMENT OF TRANSPORTATION APPROVAL FOR ACQUISITION OF TWA
AMERICAN AIRLINES
RECEIVES DEPARTMENT OF TRANSPORTATION APPROVAL FOR ACQUISITION OF TWA
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April 6, 2001, FORT
WORTH, Texas – American Airlines announced today that it has received notice
that the United States Department of Transportation has approved the transfer
of passenger certificates from Trans World Airlines, Inc. to American Airlines
and its subsidiary, TWA Airlines LLC. This transfer, which includes interstate
and foreign scheduled passenger certificates and other authorities currently
issued to TWA, represents the successful completion of another step in
American’s acquisition of TWA. |
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Donald J. Carty, chairman and CEO
of America Airlines, said, "We’re gratified by DOT’s quick response to
our application for the transfer of these certificates. The Department’s
action affirms the benefits of this transaction to the flying public and
recognizes TWA’s position as a failing carrier. This transaction protects
thousands of TWA jobs and will create tremendous new career opportunities
for TWA and American employees. It also will allow us to provide an even
broader network for our customers. We look forward to closing this transaction
on Monday."
Under the deal, American would pay
USD$742 million for St. Louis-based TWA and assume USD$3.5 billion in TWA
debt. TWA officials said the buyout, which
would make American the nation's largest airline, is on course to be completed
Monday. The buyout must still be approved tomorrow in U.S. Bankruptcy Court
in Wilmington, Del. U.S. District Judge Sue Robinson
denied a request by TWA creditors to delay the sale, announced January
10, the same day TWA filed for bankruptcy for the third time in a decade.
