TWA – Another Case of Getting Big and Blowing It

Trans World Airlines traces its beginning in 1930 to the combination of for regional airlines in order to win airmail contracts from the postmaster general at the time. Early on, the airline associated itself with famous aviator Charles Lindbergh and called itself “the Lindbergh Line”. Also in 1930, TWA offered one of the first coast to coast all airplane services from new from New York to Los Angeles, with overnight layover in Kansas City. The company moved its headquarters to Kansas City for a time as a result.

TWA provided service between major cities in the United States, and eventually expanded its routes to include destinations in Europe, Asia, and the Middle East.

Tragedy

Unfortunately, in 1931 an air crash of a TWA Fokker airplane included famous Notre Dame football coach Knute Rockne. This was not only a public relations and financial blow to the airline, but also became the instrument of changing its entire fleet to all metal aircraft.

Tycoon Control

In 1937, billionaire Howard Hughes took control of Trans World Airlines. He and other associated investors ran the airline until 1960. During that time, they competed fiercely with Pan American Airways, which had been considered the flagship airline for America, a distinction that Hughes and TWA nearly succeeded in wresting away.

Challenges and Change

Over the years, TWA changed hands several times. In 1969, TWA was purchased by the Hilton Hotels Corporation, and in 1985 it was acquired by the airline investor and corporate raider Carl Icahn. Under Icahn’s ownership, TWA underwent significant restructuring and downsizing, including the sale of some of its assets and the laying off of thousands of employees.

In 1992, TWA filed for bankruptcy protection, and in 2001 it was acquired by American Airlines. The acquisition was completed just months before the September 11 attacks, which had a major impact on the airline industry. In the years following the attacks, American Airlines faced significant financial challenges, and in 2011 the company filed for bankruptcy.

As part of the bankruptcy proceedings, American Airlines announced that it would be phasing out the TWA brand and integrating its operations into the American Airlines brand. This decision was made in order to simplify the company’s operations and reduce costs.

Today, the TWA brand is no longer used by American Airlines, and the company operates under the American Airlines name. However, the TWA Hotel, which is located at John F. Kennedy International Airport in New York City, pays homage to the legacy of TWA and features a museum and other exhibits related to the airline’s history.

A Million Little Things

Trans World Airlines (TWA) faced a number of challenges over the years that contributed to its eventual failure. Here are a few key factors:

Competition: TWA faced intense competition from other major airlines, such as American Airlines, Delta, and United. These airlines had larger fleets, more extensive route networks, and greater financial resources, which made it difficult for TWA to compete effectively.

Financial difficulties: TWA struggled with financial difficulties throughout much of its history. The company had a high debt load, and its profitability was often affected by fluctuations in fuel prices and other economic factors.

Labor disputes: TWA had a history of labor disputes with its employees, including pilots, flight attendants, and ground workers. These disputes sometimes resulted in strikes and work stoppages, which disrupted the airline’s operations and hurt its financial performance.

Aging fleet: TWA’s fleet of airplanes was relatively old compared to those of its competitors. This made it more expensive to maintain and less fuel-efficient, which hurt the airline’s bottom line.

Security concerns: Following the terrorist attacks of September 11, 2001, the airline industry faced new security challenges and increased costs related to security measures. TWA, which was already struggling financially, was particularly vulnerable to these additional costs.

In the end, a combination of these factors contributed to TWA’s decline and eventual bankruptcy. The airline was unable to compete effectively in a crowded and increasingly competitive market, and was ultimately absorbed by American Airlines.

While Pan American got its start seven years earlier than trance world airlines, track TWA Survived 10 years longer than Pan Am. TWA was sold to American Airlines in 2001.