Continental Airlines (NYSE: CAL) today
announced that it is immediately withdrawing its appeal of the preferential
treatment that American Airlines has sought in the TWA bankruptcy.
“We have stated repeatedly that we would step aside if American
unconditionally guaranteed that it would fulfill its promises to hire
substantially all of the TWA employees and protect retiree benefits,” said a
Yesterday at a hearing before the bankruptcy court, in response to
Continental`s concerns, TWA and American gave assurances that (1) they were
proceeding in good faith to complete the transaction they had publicly
described, (2) they were amending the legal documents to conform to the public
description, and (3) the American transaction would in fact save the jobs of
TWA`s employees and protect the benefits of TWA`s existing retirees, as
described in the Senate testimony of American`s CEO Donald Carty.
In addition, TWA told the Court that it was necessary to obtain approval
of the American transaction by March 9, in order to meet certain financial
obligations to aircraft lessors that are coming due on March 12, and that if
TWA fails to meet such obligations, it may be unable to continue to fly.
“While we are still concerned about American`s true intentions, we have
concluded, based on American`s assurances and commitments, that it is
appropriate to withdraw our objections at this time,” concluded the