Editing Trans World Airlines (section)

===1990s===
In 1990, Icahn's pressing need for additional capital forced him to sell the airline's [[London Heathrow Airport|Heathrow]] operations to American Airlines about the same time that Pan American World Airways sold its Heathrow operation to United.<ref>{{cite news|last1=Shapiro|first1=Eben|title=American Airlines Agrees to Buy London-U.S. Routes From T.W.A.|url=https://www.nytimes.com/1990/12/17/business/american-airlines-agrees-to-buy-london-us-routes-from-twa.html|work=The New York Times|date=17 December 1990|archive-date=21 December 2016|access-date=20 February 2017|archive-url=https://web.archive.org/web/20161221041259/http://www.nytimes.com/1990/12/17/business/american-airlines-agrees-to-buy-london-us-routes-from-twa.html|url-status=live}}</ref>

====1992 bankruptcy====
Tillinghast's analysis overlooked the possible implications of the transpacific industry and the [[Air cargo|specialized air freight market]]. Based on available reports, there are allegations that he purportedly articulated the perspective that the Pacific area and the freight business exhibit a deficiency in financial performance. The primary aim of their endeavor was to diminish the scale of the airline to achieve financial sustainability.<ref>{{usurped|1=[https://web.archive.org/web/20201125112528/https://airlinefiles.com/twa-files?start=4 TWA Files - airlinefiles]}} ''airlinefiles.com''</ref> These two oversights are said to have been the undoing of TWA, in addition to Sandro Andretta's resignation in December 1991.

[[Airline deregulation]] hit TWA hard in the 1980s. TWA had badly neglected domestic U.S. expansion at a time when the newly deregulated domestic market was growing quickly. TWA's holding company, Trans World Corporation, spun off the airline, which then became starved for capital. The airline briefly considered selling itself to renowned [[corporate raid]]er [[Frank Lorenzo]] in the 1980s, but ended up selling to yet another corporate raider, Carl Icahn, in 1985. Under Icahn's direction, many of its most profitable assets were sold to competitors, much to the detriment of TWA.<ref>{{cite news|last1=Salpukas|first1=Agis|title=Icahn on T.W.A. Woe: 'We're at Crossroads'|url=https://www.nytimes.com/1990/02/10/business/icahn-on-twa-woe-we-re-at-crossroads.html|work=The New York Times|date=10 February 1990|archive-date=27 September 2016|access-date=20 February 2017|archive-url=https://web.archive.org/web/20160927122317/http://www.nytimes.com/1990/02/10/business/icahn-on-twa-woe-we-re-at-crossroads.html|url-status=live}}</ref> Icahn was eventually ousted in 1993, though not before the airline was forced to file for bankruptcy on January 31, 1992.<ref>{{cite web|url=http://law.justia.com/cases/federal/appellate-courts/F3/134/188/562438/|title=In Re Trans World Airlines, Incorporated, Debtor.travellers International Ag, Appellant/cross-appellee Inappeal No. 97-7037, v. Trans World Airlines, Incorporated; Official Committee Ofunsecured Creditors for Trans World Airlines, trans World Airlines, Incorporated Appellant/cross-appellee, 134 F.3d 188 (3d Cir. 1998)|work=Justia Law|access-date=2014-02-20|archive-date=2014-02-23|archive-url=https://web.archive.org/web/20140223011636/http://law.justia.com/cases/federal/appellate-courts/F3/134/188/562438/|url-status=live}}</ref>

Negotiations continued until a deal was reached on 24 Aug. 1992. In that deal, Icahn had to pay TWA $150 million, the employees reduced compensation by 15% over the next three years, and the creditors forgave $1 billion in debt. When TWA emerged from bankruptcy in Nov. 1993, employees owned 45% of the company. Jeffrey H. Erickson took over as president in 1994, moved its headquarters to St. Louis, and sponsored the [[Trans World Dome]].<ref name=Karash/>{{rp|68,70,76}}

====1995 bankruptcy====
When Carl Icahn left in 1993, he arranged to have TWA give Karabu Corp., an entity he controlled, the rights to buy TWA tickets at 45% off published fares through September 2003. This was named "the Karabu deal".<ref>{{cite web |url=http://contracts.onecle.com/lowestfare/twa-ticket-1995-06-14.shtml |title=Sample Contracts – Karabu Ticket Program Agreement – Trans World Airlines Inc. and Karabu Corp. – Competitive Intelligence for Investors |publisher=Contracts.onecle.com |access-date=2013-08-18 |archive-date=2013-05-16 |archive-url=https://web.archive.org/web/20130516131833/http://contracts.onecle.com/lowestfare/twa-ticket-1995-06-14.shtml |url-status=live }}</ref> The ticket program agreement, which began on June 14, 1995, excluded tickets for travel which originated or terminated in St. Louis, Missouri. Tickets were subject to TWA's normal seat assignment and boarding pass rules and regulations - they were not assignable to any other carrier and were not endorsable. No commissions were paid to Karabu by TWA for tickets sold under the ticket program agreement.

[[File:TWA Boeing 747-100 N93119 Marmet.jpg|thumb|left|In its heyday, TWA operated a large fleet of Boeing 747 aircraft. This aircraft, N93119, would later explode mid-air as [[TWA Flight 800]].]]
By agreement dated August 14, 1995, Lowestfare.com LLC, a wholly-owned operating subsidiary of Karabu, was joined as a party to the ticket program agreement. Pursuant to the ticket program agreement, Lowestfare.com could purchase an unlimited number of system tickets. System tickets are tickets for all applicable classes of service which were purchased by Karabu from TWA at a 45% discount from TWA's published fare. In addition to system tickets, Lowestfare.com could also purchase domestic consolidator tickets, which are tickets issued at bulk fare rates and were limited to specified origin/destination city markets and did not permit the holder to modify or refund a purchased ticket. Karabu's purchase of domestic consolidator tickets was subject to a cap of $70 million per year based on the full retail price of the tickets.

On most TWA flights, Karabu could buy at a heavy discount and then sell a certain portion of all TWA's available seats. As a result, TWA was hamstrung by the high proportion of heavily discounted seats that had been sold and was essentially left with no control over its pricing. It could not afford to discount any of its seats, and if TWA wanted to increase revenue on busy routes by putting a larger plane into service, Karabu would only claim more seats. TWA was losing an estimated $150 million a year in revenue due to this deal.

To ameliorate the Karabu deal, TWA went in and out of bankruptcy in 1995.<ref>{{cite news|title=TWA to Emerge from 2nd Bankruptcy : Airlines: Cost cuts have made the firm lean. But it needs revenue to survive stiff competition.|url=https://www.latimes.com/archives/la-xpm-1995-08-23-fi-38107-story.html|work=Los Angeles Times|date=23 August 1995|archive-date=2024-12-04|access-date=2024-08-14|archive-url=https://web.archive.org/web/20241204085015/https://www.latimes.com/archives/la-xpm-1995-08-23-fi-38107-story.html|url-status=live}}</ref>

TWA entered its second bankruptcy on June 30, 1995. When TWA emerged in August 1995, employee ownership was reduced to 30%, but the company was relieved of $0.5 billion of its $1.8 billion debt.<ref name=Karash/>{{rp|70,76}}

====Short turn-around====
[[File:OneCityCenterStLouisMO.jpg|thumb|One City Centre in downtown St. Louis, which at one time served as the headquarters of TWA]]
By 1998, TWA had reorganized as a primarily domestic carrier, with routes centered on hubs in St. Louis and New York. Partly in response to [[TWA Flight 800]] and the age of its fleet, TWA announced a major fleet renewal, ordering 125 new aircraft. TWA paid for naming rights for the new [[Trans World Dome]], home of the then [[St. Louis Rams]], in its corporate hometown.<ref name="Rams Naming Rights">{{cite web |title=Flying Away: TWA, Rams Agree To Void Namimg Deal For Dome |url=https://www.sportsbusinessdaily.com/Daily/Issues/2001/03/01/Facilities-Venues/Flying-Away-TWA-Rams-Agree-To-Void-Namimg-Deal-For-Dome.aspx |website=Sports Business Journal |date=March 2001 |access-date=May 18, 2020}}</ref> In June 1994, its headquarters moved to One City Centre in downtown St. Louis.<ref>"[https://web.archive.org/web/19990501152845/http://www.twa.com/about_twa/at_ct_phone_dir.html Contact TWA]." ''Trans World Airlines''. May 1, 1999. Retrieved on May 18, 2009.</ref><ref>Brown, Lisa R. "[http://www.bizjournals.com/stlouis/stories/2009/07/13/story4.html Lewis Rice eyes move to One City Centre]." ''[[St. Louis Business Journal]]''. Friday, July 10, 2009. Retrieved on August 18, 2009.</ref>

TWA's fleet-renewal program included adding newer and smaller, more fuel-efficient, longer-range aircraft such as the [[Boeing 757]] and 767 and short-range aircraft such as the [[McDonnell Douglas MD-80]] and [[Boeing 717]]. Aircraft such as the Boeing 727 and 747, along with the [[Lockheed L-1011]] and older DC-9s, some from Ozark and the 1960s, were retired. TWA also became one of the early customers for the [[Airbus A318]] through [[International Lease Finance Corporation]]. TWA, had it continued operating through 2003, would have been the first U.S. carrier to fly the type.{{Citation needed|date=May 2009}}

TWA had international code-share agreements with [[Royal Jordanian Airlines]], [[Kuwait Airways]], [[Royal Air Maroc]], [[Air Europa]], and [[Air Malta]]. In 1997, a code-share agreement was signed with [[Air Ukraine]] with plans to begin service between Paris and Kyiv by 1999. Domestic code-share with [[America West Airlines]] was started, with long-term plans for a merger considered.

The airlines' routes were also changed; several international destinations were dropped or changed. The focus of the airline became domestic with a few international routes through its St. Louis hub and smaller New York (JFK) and San Juan, [[Puerto Rico]] hubs. Domestically, the carrier improved services with redesigned aircraft and new services, including "Pay in Coach, Fly in First", whereby coach passengers could be upgraded to first class when flying through St. Louis. Internationally, services were cut. European destinations eventually were limited to London and Paris; and in the Middle East, to [[Cairo]], [[Riyadh]] and [[Tel Aviv]].{{Citation needed|date=May 2009}}