The announcement of negotiations for American Airlines to purchase TWA is not good news for the DR. AA dominates fares to the DR and the reduction of players will mean AA will consolidate its dominant position in the DR that suffers from some of the highest fares in the region due to lack of competition. TWA had offered some great fares to the DR this winter season. The Washington Post (http://www.washingtonpost.com/wp-dyn/articles/A29892-2001Jan7.html) reported on Sunday that TWA plans to file for bankruptcy, leaving the way for AA to buy the company. As per the Washington Post, the purchase of TWA would make American comparable in size to the combined United and US Airways after the planned merger. The newspaper highlights that the acquisition of TWA’s St. Louis operations would give American a much-needed third mid-continent hub, along with the airports in Chicago and Dallas-Fort Worth. According to the Washington Post sources, the plan is to discontinue the TWA name. (8 January 2001)
