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TWA ANNOUNCES REVISED O'HARE TRANSACTION WITH AMERICAN AIRLINES

 TWA ANNOUNCES REVISED O'HARE TRANSACTION WITH AMERICAN AIRLINES
 MOUNT KISCO, N.Y., May 12 /PRNewswire/ -- Trans World Airlines, Inc. (TWA) announced today that it has renegotiated an agreement with American Airlines, Inc. to sell 40 slots and three gates at Chicago O'Hare International Airport for a $500 million zero coupon note payable in monthly installments over 20 years. This transaction replaces an agreement made with American Airlines in December 1990 to sell these gates and slots which would have been rejected by TWA in bankruptcy court.
 At the time of the sale to American Airlines in 1990, it was determined that TWA's operation at O'Hare Airport was only marginally profitable given growing competition and market dominance by American and United Airlines. Carl Icahn, chairman of TWA commented, "the sale of these gates and slots is in keeping with our strategy to deemphasize marginally profitable routes and build on our mini hub concept which produces low-cost, high-value alternatives for the business flyer."
 In keeping with this strategy, TWA is holding discussions with Midway Airport officials to shift most of its Chicago operation to Midway with approximately 25 flights serving St. Louis and other TWA destinations. However, according to the agreement with American, rights to use certain slots and facilities at O'Hare will be retained by TWA for 20 years allowing continued service from O'Hare to its successful JFK hub.
 This agreement is subject to satisfaction of various closing conditions including approval of the bankruptcy court.
 -0- 5/12/82
 /CONTACT: Don Fleming of TWA, 914-242-3760/ CO: TWA; American Airlines ST: New York IN: AIR SU:


SH-SM -- NY088 -- 9249 05/12/92 15:27 EDT
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Publication:PR Newswire
Date:May 12, 1992
Words:273
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