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Morning News

Passengers at Dallas-Fort Worth Intl. Airport Weigh in On Proposed TWA Buyout

Aired January 10, 2001 - 10:01 a.m. ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

DARYN KAGAN, CNN ANCHOR: Let's go ahead and begin with the proposed buyout of TWA and what it means to the employees, to the stockholders, and, of course, to the customers of those two airlines. We're going to go live to the news conference once it gets under way. And, again, we expect that to start at any moment.

First, though, while we wait, let's check in with CNN's Charles Zewe. He's at the Dallas-Fort Worth Airport, the hub of American Airlines.

Good morning, Charles.

CHARLES ZEWE, CNN CORRESPONDENT: Good morning again from Dallas, Daryn. This is American's home base. It's the biggest single operation. Right now, people getting ready to go to Wichita this morning here at Gate C32, people waiting, trying to figure out what is going on with this big deal with American.

American, of course, buying 75-year-old TWA today declaring its bankruptcy. For the third time, TWA saying it can't -- it needs protection from its creditors. This time, however, the TWA board yesterday approving a buyout by American which will involve American paying about $3 billion or assuming $3 billion of leases on TWA aircraft, and then coming up with about $500 million to buy TWA's assets: its gates, its other equipment, its -- all of its -- everything that's involved with running an airline.

The TWA's 20,000-plus employees have been told that most of them will have jobs under the reformed airline. The big question, however, is how this will affect consumers, as you just said. Many people wondering whether this will mean restrictive flights.

This is a group of people going to Steamboat Springs, you told me.

UNIDENTIFIED MALE: Right.

ZEWE: And you've been keeping up with this talk about American buying TWA. And there seems to be a good deal of concern by consumer groups that there might be far fewer flights and far less price competition.

UNIDENTIFIED MALE: Well, in Little Rock, for instance, we have to either catch Delta to Atlanta, American to Dallas, TWA to St. Louis to start our trip, so I would think we would lose some coverage in Little Rock, which is, of course, most important to us.

ZEWE: Do you feel sort of helpless in this?

UNIDENTIFIED MALE: Oh, I've been helpless most of my life. But, yes, I have no control over this.

ZEWE: How about you sir?

UNIDENTIFIED MALE: What's that?

ZEWE: What do you think of this proposed deal? Are you worried about losing flights or having to face higher prices when you do travel?

UNIDENTIFIED MALE: I don't think we'll have higher prices. If they let the free enterprise system work, Southwest Airlines will keep them lined up.

ZEWE: Southwest Airlines is, of course, a major price competitor -- thank you very much -- of American on most of these routes. And that's one concern of consumer groups, that TWA, which had been offering discount fares on coast-to-coast flights, won't be there anymore and that prices will likely head up -- Daryn.

KAGAN: Charles Zewe in Dallas, the Dallas-Fort Worth International Airport, thank you very much.

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