TWA Says It’s Not Ready to Bid for Eastern Airlines
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NEW YORK — Trans World Airlines Inc. announced Tuesday that it is not prepared at this time to submit a formal bid for strikebound Eastern Airlines.
Takeover strategist Carl C. Icahn, chairman of TWA, has held numerous discussions with officials of Eastern’s unions and had been widely expected to make a bid for the Miami-based airline. TWA said in a statement that it needs more time to discuss with its unions the feasibility of integrating the two carriers’ work forces.
U.S. Bankruptcy Judge Burton R. Lifland has set today as a deadline for all interested bidders to submit offers for Eastern or its Northeast shuttle service to the federal bankruptcy court, which must approve any sales.
Eastern has been under Chapter 11 bankruptcy protection from creditors since March 9, five days after the start of a machinists union strike that was supported by pilots and flight attendants.
In a separate development, Eastern and the American Society of Travel Agents agreed on a plan to reimburse travel agents for cash refunds on Eastern tickets given to customers before March 10. At a news conference in New York, they asked the bankruptcy court to approve the plan.
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