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ICAHN STEPS OUT AT TWA; CONTROL NOW IN THE HANDS OF EMPLOYEES AND CREDITORS

 MT. KISCO, N.Y., Jan. 8 /PRNewswire/ -- Trans World Airlines, Inc. announced that effective with the signing of definitive agreements today, Friday, Jan. 8, financier Carl C. Icahn had relinquished all control and interest, and direction of the carrier now is solely in the hands of the two-man Management Committee appointed by TWA employees, unions and creditors.
 Mr. Icahn today resigned as chairman of TWA, and placed all of his stock in escrow. The transaction also saw Icahn proceed with his $200 million cash infusion to help support TWA's reorganization and plans to emerge from bankruptcy this spring.
 Employees earlier had pledged $660 million in wage and benefit concessions over three years in return for a 45 percent stake in TWA; and creditors had committed to forgive nearly $1 billion in debt for 55 percent ownership.
 Management Committee members Robin H.H. Wilson and Glenn R. Zander, both highly experienced airline managers with prior senior executive service with TWA, said in a joint statement, "The principal task for now is to quickly put behind us the problems of the past, and focus on working together to restore our good name and reputation for superior service quality. We will be striving to utilize our cost advantages to achieve an early return to profitability and reinvestment in the airline."
 Commenting on today's agreement, Mr. Icahn stated: "During my tenure, a troubled airline industry has put a number of major carriers out of business, all of which were in better shape than TWA was in 1986, the year I assumed control of the company. Happily, I was able to lead TWA through this difficult period. TWA is now uniquely positioned due to its new low cost structure to compete with the giants' of the industry. This is the case because of the terrible financial condition of the large airlines with their sky-high costs and the number of aircraft they are saddled with as a result of the plane buying frenzy of the last five years. Their actions have made them dinosaurs that might well give way to new low cost airlines."
 Mr. Icahn added: "Our infusion today of $200 million into TWA, if used wisely, combined with the concessions made by the unions and the creditors, should bring about a TWA that will not only survive, but prosper. I congratulate TWA's employees and new management team, and wish then smooth flying into the future."
 In a related action, TWA on Wednesday filed a petition with the bankruptcy court to extend the Jan. 12, 1993 date for filing of its reorganization plan to Feb. 17, 1993. Airline officials said they are proceeding with the preparation of the plan, and anticipate being able to file in advance of the new date, if approved by the court.
 -0- 1/8/93
 /CONTACT: Jerry Cosley, 816-464-7470, or Don Fleming, 914-242-3760, both of TWA Corporate Communications/


CO: Trans World Airlines ST: New York IN: AIR SU: PER RCN

LD-TM -- NY001 -- 3219 01/08/93 17:56 EST
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Publication:PR Newswire
Date:Jan 8, 1993
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