TWA’s Assets to Make American Airlines World’s Largest

The sale of Trans World Airline’s assets to the parent company of American Airlines is expected to close today, making the Fort Worth carrier the largest in the world--for now. AMR Corp. will pay $742 million, pending a U.S. Bankruptcy Court’s approval, for TWA, plus the assumption of $3.5 billion in debt. All potential roadblocks to the deal were lifted last week with the end of court action pursued by former TWA creditors, including former TWA chairman Carl Icahn. On Friday, U.S. District Judge Sue Robinson denied the creditors’ request to delay the sale. An appeals court Saturday also denied the creditors’ request, TWA officials said. Regulatory approval was granted Friday by the Justice Department. American, the No. 2 carrier before the deal, will swap positions with No. 1 United Airlines, owned by UAL Corp. American’s newfound supremacy could be short-lived, though. The airlines will reverse positions again if United succeeds in its bid to obtain most of US Airways.