This 9/11 "small event" is used as a scapegoat FAR more often than it should be given credit for. As far as impacting the airlines...9/11 just came at a bad time. The industry was already plunging to the ground and 9/11's contribution was minimal in the grand scheme of all factors involved (most rapid and well-funded new entrant expansion ever (B6), other LCC/new entrant expansion, INTERNET, crumbling economy, declining biz traffic, SARS, etc). Yes...9/11 DID have an impact and yes, it DID cause a further decline but weighing all factors...it was not 9/11 that should be blamed for all of this downsizing, scaling back, whatever you want to call it. It is unfortunate that it is the excuse used...but I guess it's far simpler to say 9/11 than to explain the complex myriad of items that truly are to blame for the collapse of the airline industry.
Back to TWA/AMR...even before 9/11 AA started to realize the complexities and additional expense of the TWA merger. This was one that looked great on paper but in reality was far more complex than could have been predicted. The fact that the acquisition came right at the beginning of the drastic industry slide is what led to the unforseen cutbacks. Did AMR management plan to actually scale back TWA staff and STL? We will never know for sure. All we can go on is their stated intentions and they wouldn't be stupid enough to state that they just wanted TWA for assets such as extensive international assets including leases, slots, and routes. Only Carty and a few other millionaires know the genuine intentions of the merger.