American set to acquire TWA

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One of the most storied names in the airline business, TWA ,aka Trans World Airlines, could be phased out as American Airlines is reportedly on the brink of acquiring the troubled carrier whose name dates to 1930. Reports today said a deal could be announced this week where American, in a bid to keep up with United Airlines, would acquire TWA--giving it a third important mid-continent hub in St. Louis and some valuable overseas routes. The reported deal would also ease regulators' skepticism of United's proposed merger with US Airways--another noted aviation brand on its way out the door--since American would grow large enough to more effectively compete with the new United. Plus, separate reported arrangements call for American to acquire a large minority stake in DC Air, an airline that would be created from some of US Airways's assets at Washington's Reagan National Airport, and for the Dallas-based airline to jointly operate what is now the US Airways Shuttle along the East Coast with United. American and TWA both declined comment.

Copyright January 2001, Crain Communications Inc.

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