I suppose AMR could operate TWA as a separate company, but it still cannot operate it under the AA code without consent of the Allied Pilot's Association. If they do formally bankrupt TWA and operate whatever the new company would be called, I guess they can abrogate the TWA ALPA contract at will. Shades of Frankie again?
I don't think that's going to happen. I don't think TWA can make a go of it anyway on it's own, even as a low cost carrier. With very few exceptions, that model has proven a failure. The whole purpose of the deal was synergy and growth American Airlines. The amount of ill-will that this would generate among both the American and TWA employee groups would be staggering, and very costly. $742 million bucks for a defunct airline, with old crap equipment owned and the decent stuff leased, is darn expensive. I think the CEO of AMR is now finds himself waist deep in a swamp, with only the employees of TWA and AAL to pull him out. I'll bet that the BOD is VERY UNHAPPY about his handling of this affair. If I were him, I'd stop playing shell games with the unions and start negotiating in good faith.