TWA's problems started way back during the end of Howard Hughes' tenure. when Tillinghast and Meyer took the airline away from Howie (for good reason), they diversified into TWA Corp. Monies made by the airline were being funneled into Century 21, Hilton hotels, Canteen catering, etc.

This starved the airline of much needed reinvestment in aircraft and infrastructure.

The Deregulation Act of 1978 changed the playing field of the legacy airlines and prompted the concept of hub and spoke. TWA had many mini-hubs and many prized International routes but never built any superfortresses to the likes of ATL, ORD, DFW, IAH. TWA just plain did not adapt well to the new playing field.

On or around 1985, both Carl Icahn and Fancisco Lorenzo showed up and entered into a bidding war for control of TWA. The TWA employees helped Carl Icahn take control over Frank Lorenzo who had already proven his greed for money and disregard for the working class. This proved fatal in the end.

Carl Icahn used TWA, period. Icahn took TWA private and it became part of Icahn Enterprises. The airline's assets were sold and the airline absorbed Icahn's debt from other ventures.

1986, saw the intergration of Ozark Airlines and a beefing up of STL over the likes of Kansas City-TWA's historic headquarters.

In the early 90's, Icahn was vaulted from the TWA boardroom, but like a case of genital warts, his removal did not mean he was gone. As part of the Bankruptcy he was given access to TWA's ticket stock for all flights not originating or destined to STL. This was called the Karabu ticket agreement. Essentially, through his wife's company, Lowestfare.com, he would sell TWA's tickets before TWA could at 40 cents on the dollar. This robbed TWA of much needed cash revenue.

In 1996, TWA suffered the mysterious loss of Flt 800 and a Summer SNAFU resulting from aircraft that were promised to the schedule but did not show up.

From 1996 to 2000, TWA limped along finacially, all the while the employees (who were now owners) re-invented TWA. New paint jobs, new planes, and an on-time record that finally unseated the incumbent, SWA for the first time in years.

Unfortunately, these efforts proved somewhat futile. During the latter months of 2000, TWA was running out of money and the Board of Directors and the CEO were shopping around the airline.

Three possible suitors emerged, America West, Boeing, and of course AMR Corp-American Airlines.

After review, AMR was chosen because of the promises made by then CEO Don Carty that all assets and most of the TWA jobs would be saved.

Most everyone that is on this message board knows the fate of TWA's employees to date. Sadly, only a couple thousand remain as part of AMR out of 24,000 that were employed during the asset transaction.

That is my account of what happened to TWA and why they are now a reminiscent chapter in the history of aviation.

Your mileage may vary,

FF
95 hire TWA
2nd Generation TWA