What Happened to TWA Airlines?

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The airline was founded in 1925, but assumed the TWA name after a merger with a competing airline in 1930. The merger was arranged by the post office to create one large mail carrier airline in the United States.

By the 1940s, TWA became one of the largest U.S. domestic passenger airlines, and in the 1950s and 1960s developed a strong international reputation.

By 2001, changes in the airline industry, financial difficulties and mismanagement led to repeat bankruptcy and sale of TWA to American Airlines.

Innovations

TWA was the first carrier to use some of the most popular and well-reviewed aircraft of its era, including the Douglas DC-3, Lockheed Constellation and Boeing 747.

Until 1941, Pan Am Airways had the exclusive right to international air travel for the United States. TWA's management, especially owner Howard Hughes, led the fight to break Pan Am's monopoly.

Disasters

On two separate occasions, separated by more than 50 years, disaster focused national attention on TWA's outdated air fleet. In 1931, the crash of TWA flight 599 killed famous Notre Dame football coach Knute Rockne. The crash was blamed in part on TWA's outmoded Fokker-model aircraft.

On July 17, 1996, an explosion blasted through TWA Flight 800. One of the most controversial crashes in air travel history, the cause of the crash has been debated both by air safety experts and by a large group of conspiracy-minded individuals. The National Transportation Safety Board concluded that the explosion probably occurred due to mechanical failure. At the time, TWA's had one of the oldest fleet of airplanes among major airlines.

TWA was the target of several terrorist plots. In 1974, a bomb on TWA flight 841 exploded shortly after liftoff, killing 88 people.

Financial Difficulties

Airline deregulation and the rise of low-cost airlines caused financial difficulties for TWA. In 1991 and again in 1995 the airline filed bankruptcy. The airline sold many of its assets to raise cash, limiting its ability to expand services or develop new markets. In the early 1990s, TWA signed several disadvantageous contracts with companies owned by former owner Robert Icahn. These contracts allowed outside entities to buy TWA tickets at a steep discount and sell them at a profit. In effect TWA was forced to compete not only with other airlines, but with discount sellers of its own seats.

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