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NEW STREAMLINED TWA TO BE FULLY OPERATIONAL BY OCT. 25

 NEW STREAMLINED TWA TO BE FULLY OPERATIONAL BY OCT. 25
 MT. KISCO, N.Y., Sept. 8 /PRNewswire/ -- Trans World Airlines, Inc. (TWA) announced today a winter schedule effective Oct. 25 that will significantly streamline its operation. The new operating plan, coupled with implementation of agreements calling for a 15 percent wage, benefit and work rule concession by all U.S. employees in exchange for a 45 percent equity stake in the airline, will result in a revitalized TWA.
 The plan calls for a reallocation of TWA's resources for return to profitability via an enhancement of its service product, a reduction in unproductive capacity and an increased emphasis on strong business markets. As the airline fare structure, industry demand and the U.S. economy improve, the second phase of the plan will be implemented which provides for substantial growth on TWA's operations and acquisition of aircraft appropriate to today's market conditions. This plan provides the basis for the plan of reorganization which TWA intends to submit to the bankruptcy court with the support of its employees and creditors.
 The winter schedule will provide more than 700 daily flights to and from 62 domestic and 18 international cities. There will be emphasis on serving domestic markets with narrow bodied aircraft concentrating on TWA's strengths at the JFK, St. Louis and Atlanta hubs. New service from Boston and Houston will be introduced to TWA's successful Atlanta hub on Oct. 25. The wide-bodied fleets will be utilized where market demand justifies the capacity. TWA will continue with strong presence in all its major international markets with the exception of four cities: Istanbul, Moscow, Copenhagen and Stockholm. Eight domestic cities -- Austin, Palm Springs, Ontario (California), Sioux City, Sioux Falls, Syracuse, Tucson and Salt Lake City -- will have TWA service suspended as a result of waning revenue owing to the weak economy. Trans World Express (TWE) will increase service to Sioux City while continuing current service to Syracuse.
 TWA will also be revitalized by the implementation of agreements calling for a 15 percent wage, benefit and work rule concession by all U.S. employees in return for 45 percent equity stake in the revitalized airline once a plan of reorganization has been confirmed. The arrangement with employees is complemented by an agreement with TWA Creditors, who have agreed to exchange approximately $1 billion in debt and restructure their remaining debt, for the remaining 55 percent of the common equity plus debt securities and preferred stock (also upon confirmation of a plan or reorganization). These agreements are pending ratification by respective union membership (expected within the next 30 days), Federal Bankruptcy Court approval (expected to be heard on Sept. 10) and completion of negotiations with other parties such as TWA Chairman and CEO Carl C. Icahn and the Pension Benefit Guaranty Corporation. The fulfillment of these goals will put TWA on track for the filing of our plan of reorganization with the bankruptcy court.
 The new operating plan for TWA includes a reduction of fixed costs, including payroll, and consolidation of facilities in order to maximize all resources. Therefore, a reduction in the employee work force through a variety of means including furlough and early retirement incentives will occur in conjunction with the Oct. 25 streamlined schedule.
 With the full support of its employees and creditors, and a new strategic operating plan, TWA will be positioned with very favorable operating costs to concentrate on its primary objective...to provide quality air transportation of high value to the traveling public.
 -0- 9/8/92
 /CONTACT: Don Fleming of Trans World Airlines, Inc., 914-242-3760/ CO: Trans World Airlines, Inc. ST: New York IN: AIR SU:


LR-OS -- NY049 -- 7050 09/08/92 13:44 EDT
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Publication:PR Newswire
Date:Sep 8, 1992
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