CHICAGO - Trans World Airlines Inc. announced yesterday that it has reached an agreement with American Airlines Inc. in which American will acquire substantially all of TWA's assets.
At the same time, TWA said it had filed for Chapter 11 bankruptcy.
The fate of TWA could impact expansion plans at both the St. Louis and Kansas City, Mo., airports. The acquisition could be a plus for St. Louis, because American is better rated than TWA.
Two bond deals for Lambert-St. Louis International Airport worth more than $500 million have been put on hold after it was reported Monday that American would acquire TWA, which has a dominant role at the airport.
Darlene Greene, comptroller of St. Louis, said "at first glance ... the transaction between American and TWA appears to be positive for everyone."
Green noted however that there are many details to be worked out and that the city is awaiting additional information regarding the transaction.
Kansas City plans to issue $110 million of bonds to upgrade its airport's facility, debt which was supposed to be secured by TWA lease payments. Local market players say market analysts suggest that it's likely American would keep TWA's facilities at the airport.