This post is part of a series on some of the most memorable companies that have disappeared.
The story of Trans World Airlines is the story of American capitalism in the 20th century. Founded by aviation pioneers and scrappy entrepreneurs, TWA became one of the largest and most successful airlines in the world. It racked up numerous awards and distinctions and created a devoted base of customers and employees. Along the way, it also displayed the twisted corporate history typical of capitalism American-style, with plenty of buyouts and mergers and awkward transitions. Finally, it ended up the victim of vulture capitalists, who picked it clean and sold its carcass to a competitor. All in all, a heckuva ride.
The company got its official beginning in 1930, when Transcontinental Air Transport and Western Air Express merged to form Transcontinental & Western Air (T&WA). The merger was driven by one of the great motivators in American free market capitalism: the pursuit of lucrative government contracts. In this case, the contracts were for airmail transport and the new airline was soon rolling in federal dough, though not for long. The great Air Mail Scandal of 1934 brought an end to that arrangement and the airlines split up, although the name lived on.
From 1930 forward, TWA experienced some dramatic ups and downs. After a TWA crash killed Notre Dame coach Knute Rockne in 1931, the airline nearly went out of business. It survived though and went on to pioneer the use of many of the great aircraft of the 20th century, including the first (and only) DC-1, the Boeing Stratoliner, and the Lockheed Constellation. TWA also built some beautiful buildings, including the famous terminal at JFK in New York designed by Eero Saarinen. And TWA gained some noteworthy owners and managers along the way, most famously the reclusive though aircraft obsessed Howard Hughes, who lost control of the airline when his effort to upgrade to jets in the 1950s hit some financial turbulence.
TWA peaked in the early 1980s, when it was carrying over half of all passengers traveling from the U.S. to Europe. But deregulation and a lack of investment in new aircraft hit the airline hard, and the airline was acquired by Carl Icahn in 1985 in a hostile takeover. In classic form, Icahn took the company private in 1988, pocketing nearly $500 million for himself while saddling the company with $540 million in debt. Four years later, stripped of its most valuable assets (like the routes to London sold to American Airlines) and struggling with massive debt payments, TWA declared bankruptcy.
More difficulties followed. Icahn made a deal that allowed him to buy certain TWA tickets for 55 cents on the dollar, then sell them for his own profit, which he did relentlessly at Lowestfare.com, costing TWA hundreds of millions of dollars. Another bankruptcy in 1995 took care of that problem. Then TWA flight 800 exploded over the ocean near New York City in 1996, killing all 230 aboard. After that, TWA focused on domestic routes, but with decreasing success. Finally, American Airlines bought TWA in 2001, ending its run as an independent company.
Although it doesn't seem to be part of the official history of the company, Trans World Airlines was also a victim of the September 11 attacks against the United Sates. The airline had been struggling for years before that, but the attacks and the resulting turmoil in the airline industry were a final nail in the coffin.
Oddly enough, I took a TWA flight to Paris in early September, 2001. I didn't know it at the time, but it was one of the last TWA flights over the Atlantic.
My girlfriend and I were scheduled to return to the U.S. on September 17 on TWA. Most flights were canceled in the days after 9/11, so we knew we wouldn't be leaving on that day. But we went to the airport in Paris anyway -- we couldn't call TWA, since the phone lines were jammed -- and were amazed by what we saw. Thousands of people waited in lines, and many of them looked like they had been at the airport for days. I could hear loud American voices offering large sums of money to get on a plane back home or anywhere close. One group of travelers bought tickets to Mexico City and planned to rent or buy a car to get back home to Dallas. It was a pretty chaotic scene.
But at the TWA counter, the situation was different: there were no passengers at all. We walked right up to the counter and immediately spoke to the agents. We quickly found out why there was no one else there: TWA was no longer flying back to New York. In fact, TWA was no longer flying at all. So despite the fact that we had purchased round trip tickets on TWA and had flown to Paris on a TWA plane, we would not be flying home on one. We ended up flying home days later on American Airlines. But TWA was gone for good.
Let us know in the comments what you miss about TWA. And be sure to check out other Companies That Have Vanished.











Reader Comments (Page 1 of 2)
6-06-2008 @ 7:52AM
James said...
Carl Ichan should also be banned from any activity in the airline industry, just like Frank Lorenzo.
6-06-2008 @ 1:04PM
MP said...
TWA was the only airline I flew to Europe......once I flew World Airways and it was a TWA plane with the name changed.......have never flown since TWA went out of business......what a wonderful airline she was!!!
6-06-2008 @ 8:54PM
Juanita said...
Mr. Icahn, u suck!!! Anyone who supports or believes in him is sick! Down with the corporate raider, up with the people. TWA rocks! The women who worked the L-1011's and then some!!!
6-07-2008 @ 1:29PM
gloria said...
Carl Ichan should be banned from buying any company to throw away people like left overs. It should be illegal to buy a company put millions in your pocket and then suck it dry. TWA employees worked hard to keep the airline afloat, God bless everyone of them.
6-08-2008 @ 4:57PM
zanedy said...
Carl Icahn distroyed TWA, and many peoples lives. I new people that had worked for years at TWA who died of health issues because they lost their health insurance due to Icahn. He says that what he does is "Part of the game". Well explain that to the families that lost their loved ones.
To add insult to injury. American bought TWA, after promissing to Congress that they would keep TWA's employees, and honor TWA retirees benefits. Congress approved the merger on that condition. The day that the merger took place, I received a letter from American stating that I would no longer recieve my benefits. In addition, American layed off ALL of the TWA employees over the next few years, then refused to hire them back. That's what good our tax money did when we bailed American out.
6-08-2008 @ 7:49PM
Daisy said...
I loved TWA, and especially the JFK terminal that Eero Saarinen. If you look at travel in old Hollywood movies, more often than not, TWA was the airline. Before Reagan's deregulation of the airline industry, air travel stood for elegance, class, and grace. I can remember flying as a child and dressing up because it was a big deal to travel by air. Nowadays, airline travel is worse than a cattle car. Nobody has respect for the airlines or airline travel. Icahn is scum of the earth. He ruins everything he touches for his own personal gain.
Ronald Reagan ruined air travel in this country, or maybe even the world. What did Reagan have against air traffic controllers and airlines? He is the real reason why our airlines go belly up and why we can't even get a free snack on a plane. Airlines used to have commissaries to cook all their food, and getting a pillow or blanket wasn't only for the first class passengers, but for every seat on the plane. Flight attendants were not just waiters or waitresses in the sky, they were trained professionals who didn't need to have conflict resolution skills to control passengers. They have been downgraded to "handling" passengers instead of helping them. It is a disgrace.
My father spent his life working at TWA, and I am thankful that he didn't live to see it disappear, or to see what air travel has become.
6-09-2008 @ 2:53PM
fred said...
All of you are just mad because you did not or could not do what Mr. Ichan dad the intelligence to get away with. Quit hating!
6-09-2008 @ 7:58PM
Mike Richmond said...
If you live in St. Louis and travel often, you miss TWA sorely. I have been flying regularly (now twice a week minimum) for 30 years. All on business. And I can testify about the American takeover of TWA.
American has reduced flights out of St. Louis to the point that you have to be flying to a major city to get any service and most of the flights are on commuter jets. If you want to fly American, chances are, you will have to fly through Dallas or Chicago. But if you check the rates, chances are you will fly someone else.
6-14-2008 @ 11:43PM
thomracina said...
I was a passionate TWA flyer, and still miss it. I was in Cairo with a friend on 9/11, having flown there business class on TWA, with no way to get home. After many calls to friends in Ambassador Clubs in the US for help, I went to the airport, talked a machine-gun-armed guard into letting me go to the TWA offices (which they said were gone), and found the lonely station manager in a space that looked like a bomb had hit. She had tried to find us (we were in Jordan) to warn us there would be no bus class flight home, rebooked us on Air France--in coach, as soon as seats became available (everyone was wanting out of the Middle East). Because we couldn't leave for days, I got to know her, told her about my novel that had just been published back home called Hidden Agenda which featured TWA and a pivital scene in an Ambassador Club. The day were were to finally leave, she punched a few keys, removing us from Air France and putting us in those First Class pods that British had just started flying. "Let American pay for it," she said as we bid her goodbye, and it was the best trip of our lives. Even whe it was gone, TWA was good to me. Every time I sip espresso from one of the old TWA First Class china cups at home, I remember it fondly, olus all the friends I made at that company, especially that wonderful gal in Cairo who gave us such a great ending. Thom Racina
6-20-2008 @ 8:46AM
Ed Jones said...
I was a TWA pilot and lived through the Icahn era. Management felt Carl Icahn could save the company from going out of business. A cheap and easy fix with new cash. That failed and Carl raided the company for a lousey few bucks he later lost
6-23-2008 @ 12:29PM
TheBee said...
We flew our daughters to and from Salt Lake City on TWA. It was the least expensive ticket we could buy to get them home from Indiana University. However, they encountered very rude TWA employees in St. Louis, more than a few times and we decided it was better to pay more per ticket and fly them home on Delta. They were always treated courteously by Delta employees. I, for one, was not surprised when TWA ceased to exist.
6-24-2008 @ 5:46PM
Essie Hough said...
What do I remember about TWA??? Having worked for TWA nearly 30 years I remember FUN!!!....even under the most difficult circumstances, as a family unit, we managed to find some humor. TWA Personnel were so family oriented. We all worked together and traveled together and had the best times of our lives. TWA was the very best there was and ever will be. Everything about TWA was class. Once Upon a time wll never come again!
6-27-2008 @ 10:49AM
Bob said...
All I hope for Mr. Ichan is a very slow and painful death....soon.
6-27-2008 @ 11:08AM
Bob said...
Lets hope that Carl and Fred pass away slow and painfully.
6-28-2008 @ 10:16AM
Barry Marple said...
In the 60's and 70's, while in the military, TWA was my airline of choice. Back then, the TWA name stood for excellence in operation and professionalism. But that seems to also be a thing of the past. I lost track of how many round-trip flights I made with TWA from Rome to JFK and then from Newark to Tulsa. In my 22 years of military service I was involved with aviation in a flying status. Since the end of TWA I've not flown and I doubt I ever will. I refuse to be treated like cattle. TWA is but a memory but for me its good memories.
6-29-2008 @ 11:47PM
Teri said...
I started a national consulting business and flew TWA out of STL at least twice a month for years. I got to know the ground and flight crews and enjoyed them tremendously. They were great people who genuinely cared about their company and passangers.
I was horrified to watch one man's greed (Ichan) utterly destroy so many lives. May God be just with his soul. After 9/11 finished the company, I decided to retire.
When I need to fly now, I fly "cheap". Service is a thing of the past, so why pay for what no longer exists.
7-03-2008 @ 11:20AM
Harvey said...
as a retired 29 year vet of TWA, I read the story with obvious keen interest; and while thought and memory provoking....I wondered-"will anybody really care?". I was gratified to see that there were many gratious comments. My heartfelt thanks to my fellow TWA comrads who worked long and hard and sometimes even perished to get passengers and packages "from point A to point B'. They are the real heroes of this all too short trip down memory lane that included for me CMH, PIT, STL, MCI, SFO, LAX, LHR, MXP and LGA & JFK.
7-10-2008 @ 12:01PM
Katherine said...
TWA flew me on my first trip to Europe in 1962. Everyone was dressed in lovely clothing and exhibited excellent manners. The passengers were all treated with courtesy and friendliness. No pushing, shoving, muscle shirts, cutoffs, flip flops, huge suitcases filled with "kitchen sinks", and riff- raff enough to think you are travelling on Tobacco Road.
Today, unless you can afford to fly first-class, you are subjected to all kinds of indignities. Airline food is a thing of the past. Lucky to get some water.
If trains only crossed the Atlantic and Pacific!!!!
7-11-2008 @ 4:20PM
N said...
To the person who says we should have been as smart as Mr. Ichan, apparently you did not work at TWA. You did not lose most of your pension. Mr. Ichan sucked the life out of TWA and my father who worked there for over 30 yrs. TWA was a wonderful company - it is so missed by many.
7-15-2008 @ 11:55AM
baronessm said...
I started my airline career with TWA back in 1982. I worked in several different TWA stations and Cities during that time and was with them all the way to the end with AA taking over. For those of us who lived through the Icons and Lorenzos, we know all to well of the sacrifices (many personal) that employee's had to endure. I agree that it's nice to hear so many positive comments about TWA. I know so many, (myself included), who were literally sick to see it come to such an end. In the end though, I can honestly say that I can't totally put it of on "Good Ole American Capitalist or Capitalism" altogether. If memory serves me correctly, TWA's unions weren't the best friend any of us could have. At the end of the day, if the truth get's told, the union was in bed with the company. This, (along w/800), was the final nail in TWA's coffin. Since my departure from TWA, I have since worked at AA, DL and NW. After NW filed bankruptcy I decided to call it quits! The industry isn't and will never be the same. Very sad :-(