Airlines United States

American Airlines is threatening to put two airline trends on a collision course that could mean greater pain for already annoyed U.S. travelers: the carriers' desire to merge and organized labor's growing use of job actions that leads to canceled or delayed flights. American, the main unit of AMR Corp., did as many expected and proposed buying a smaller competitor. The company may announce as early as this week that it's acquiring near-bankrupt Trans World Airlines.

The prospect of only two airlines controlling half of U.S. air travel moved closer to reality Wednesday as AMR Corp., the parent of American Airlines, confirmed plans to buy Trans World Airlines Inc. and a big chunk of US Airways Group Inc. for a total of nearly $2 billion. American's deal follows plans by United Airlines and its parent, UAL Corp., to buy the majority of US Airways for $4.3 billion. Assuming all of the deals are completed, about 50% of U.S.

Mid-size carriers idling in the wake of the blockbuster merger proposals by American Airlines and United Airlines might look for a partnership that boosts global reach as much as it builds domestic service, industry experts say. All eyes are on Delta Air Lines, the biggest domestic carrier not part of two merger proposals that would make the world's two largest airlines, UAL Corp.'s United and AMR Corp.'s American, even bigger and more dominant in the $67-billion U.S. market.

Delta Air Lines Inc. on Thursday reported a sharp drop in earnings, short of Wall Street estimates, and said it is considering merging with other carriers to stay competitive. Meanwhile, UAL Corp., parent of No. 1 United Airlines, reported a fourth-quarter loss, reversing a year-earlier profit, citing higher fuel and labor costs. The performance was better than expected, however. Northwest Airlines Corp.

U.S. air travel delays and passenger dissatisfaction remain at an all-time high, according to a government report being released today that also shows potentially hazardous runway incidents sharply on the rise. The Transportation Department's Office of Inspector General found that consumer complaints rose 16% in the first 11 months of 2000 compared with the same period in 1999.

Citing record delays and a sharp increase in complaints, leading Senate advocates for better airline service are unimpressed with industry efforts to voluntarily resolve consumer problems and plan to introduce legislation today to ensure passenger rights. "The airlines have had their chance," said Sen. Ron Wyden (D-Ore.) in an interview about a yearlong industry initiative to boost service in key areas, including providing information on fares, scheduling and delays.

Continental and Delta airlines are involved in preliminary discussions about a possible merger in which Continental would acquire the much larger Delta, industry sources said Friday. The talks, a response to continuing consolidation in the airline industry, "are very informal, and they're still in the very early stage," a source said.

An independent group of investors said it plans to bid nearly$1 billion for Trans World Airlines, which is already the target of a bid by American Airlines. The newly formed Jet Acquisitions Group Inc. said it wants to preserve TWA as an independent airline. The group said it will propose the elimination of current debt, retention of current employees, modernization of facilities and substantial expansion.

Hours after the National Mediation Board released Northwest Airlines and its mechanics union from negotiations Friday, President Bush vowed to extend the cooling-off period by another 60 days if a contract agreement is not met. The board's release would have allowed mechanics to go on strike as early as midnight March 12, but Bush's extension would keep them on the job through mid-May.

The U.S. government scolded the nation's airlines Monday for coming up short in their voluntary effort to improve customer service and warned that air travelers will face another chaotic summer unless the carriers act quickly to better their performance. One in four flights were delayed, canceled or diverted last year--affecting 163 million U.S. passengers--and consumers' complaints have soared, according to a report by the Department of Transportation's inspector general.