Business History Books » Business Plans » TWA – advice sought
TWA – advice sought
Question:
>O.K. – I think I know the answer to this one, but… >I’ve got lots-o-miles - all on TWA. >I was hoping to save them for a planned trip in a year but >what do you all think the odds are of TWA still being >around in a year? >Will the miles (most likely) be transfered (bought) to another airline?
If you are really concerned, order an American Airlines partner award using your TWA miles. The trips cost more miles, but there is a better chance that AA will be around. Also, depending on where you want to go, there may be more places to take AA to than TWA. (Try taking TW to London.) Regards, The MITRE Corporation voice: (703) 883-7586 7525 Colshire Drive FAX: (703) 883-1397 McLean, VA 22102
Response:
O.K. – I think I know the answer to this one, but… (and if this was all discussed, excuse me – i’m brand spanking ew to this group) I’ve got lots-o-miles - all on TWA. I was hoping to save them for a planned trip in a year but what do you all think the odds are of TWA still being around in a year? Will the miles (most likely) be transfered (bought) to another airline? Thanks for your help.
Response:
>O.K. – I think I know the answer to this one, but… >I’ve got lots-o-miles - all on TWA. >I was hoping to save them for a planned trip in a year but >what do you all think the odds are of TWA still being >around in a year? >Will the miles (most likely) be transfered (bought) to another airline?
Well, in the last few months, TWA has cleared many of its major obstacles to get itself out of bankruptcy court. They have now negotiated a settlement regarding their pension plans, the creditors have agreed to a swap of debt for equity, the employees have agreed to pay cuts for equity, and last, and most symbolically, Carl Ichan has stepped down. So, it looks as though TWA will be out of bankruptcy in the next few months. So, they should survive at least a year, IMHO. BUT, the long term survival of the airline is far from guaranteed… they have a relatively small domestic route system and they have a VERY old fleet. There have been rumors on and off that USAir would try to buy TWA if British Air bought the 40% stake, but that has gone down the tubes. Anyone heard if they are still considering it under this new BA-USAir deal? If an airline buys all of TWA, there is a good shot that they will honor the FFB miles. But, if only parts are bought and the airline itself goes out of business… you’re probably out of luck, Greg — Greg Lyon Student Union Attorney General Washington University in St. Louis – Site of the First 1992 Presidential Debate