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DOT APPROVES TRANSFER OF TWA’s OPERATING AUTHORITY TO AMERICAN

DOT APPROVES TRANSFER OF TWAÆS OPERATING AUTHORITY TO AMERICAN

   The U.S. Department of Transportation has approved the transfer of the interstate and foreign passenger and cargo operating authority of Trans World Airlines to American Airlines.

   The transfer enables American and its subsidiary, TWA Airlines LLC, which will operate TWA’s services until all operations have been merged into American, to acquire TWA’s domestic and international route authority.

   LLC plans to operate TWA’s current international operations to cities within the United States and Canada, the Caribbean, Mexico, the Mideast, Paris and London, as well as to continue operations at TWA’s St. Louis hub.

   American also plans to hire most of TWA’s employees, the DOT said.

   The carriers’ request for the transfer of authority was part of the planned acquisition of TWA’s assets by American.

   The DOT action follows a March 16 announcement that the U.S. Department of Justice would not oppose the acquisition on antitrust grounds.

   DOT expects final approval of the acquisition by the bankruptcy court and closing of the transaction in the near future.