Trans World Airlines Inc. and American Airlines Monday plunged into the bidding for parts of bankrupt sister Pan Am Corp., offering a $310 million package for key operations and routes divvied up between them.
TWA Chairman Carl Icahn, whose own airline has been flirting with bankruptcy itself, said the proposal would save 14,000 to 15,000 jobs at Pan Am.The proposal was almost certain to incite a bidding struggle for what remains of Pan Am, one of the oldest and best-known U.S. airlines that pioneered commercial aviation but has been foundering badly for months.
Earlier this month, Delta Air Lines offered $260 million for largely the same operations that the TWA and American package seeks. If Delta's offer is accepted, it could have a major impact on international travel from the Salt Lake International Airport. Delta offers 161 departures daily from Salt Lake City.
"Regardless how they (acquisition deals) fall together, Salt Lake City will be provided with improved air service and most of that will relate to better connections for international traffic," airport director Louis Miller said Monday.
Delta spokesman Neil Monroe said the airline had offered what he described as a fair package to Pan Am. He declined to speculate on whether Delta would now amend its offer because of the TWA-American proposal.
United Airlines and Northwest Airlines also have been nosing around the leftovers.
Pan Am, which filed for Chapter 11 bankruptcy in January, offers one flight daily from Salt Lake City. Trans World Airlines provides three flights daily and American Airlines provides 11 departures.
TWA said in a statement that its $310 million proposal includes $280 million cash and $30 million in ticket liabilities. TWA said it would obtain $250 million of the financing from American and would split up purchased routes with American.
Under the offer, American would get Pan Am's East Coast shuttle and Pan Am routes between the United States and Spain, Portugal and Italy.
TWA would get the Frankfurt operation and routes between London, Miami and Detroit.