CAROL LIN, CNN ANCHOR: It is finally official in the airline industry. We're expecting a formal announcement in about two hours that American Airlines is taking over Trans World Airlines. TWA confirmed this morning it is filing for bankruptcy protection first. CNN's Charles Zewe has the latest now from American Airlines' home base at the Dallas-Fort Worth Airport. Hi, Charles.</s>CHARLES ZEWE, CNN CORRESPONDENT: Good morning from Dallas-Fort Worth. Very quiet here right now. We're at the Gate C32, where they're checking in for the Pittsburgh flight this morning. People not talking about this deal at all, at least for the most part. This will affect perhaps as many as half of all airline passengers in the United States if it goes through. The deal expected to be announced by Don Carty, who's the chairman, chief executive officer of American Airlines at a 10:00 Eastern time news conference in New York. From what we understand, the deal will involve American assuming $3 billion in leases on TWA aircraft and then paying an additional $500 million for TWA's assets. More importantly to the 20,000 TWA employees, almost all of them, we understand from both American and TWA, will be offered employment in the combined American Airlines. American saying that it expects to have rapid approval of this deal, but there are some serious concerns by congressmen and federal regulators on whether this deal might violate U.S. antitrust laws. Beyond that, American consumer groups and travel agency groups are saying that it could result in a gigantic consolidation of the seven major U.S. air carriers into only three because this is a complex deal involving five airlines: American, TWA, and it also involves American purchasing 20 percent of the assets of US Airways and about half of a spinoff airline called DC Air. It will all be subjected to federal regulatory approval, and perhaps even a challenge in federal bankruptcy court once TWA files for its bankruptcy petition. Carol, back to you.</s>LIN: All right, thank you very much. Charles Zewe standing by watching a big deal developing today in the airline industry.
TWA Confirms Bankruptcy Plans, Agreement to Buyout From American