Editing Trans World Airlines (section)

====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}}