Trans World Airlines

In many ways, Trans World Airlines never fully recovered from the United States recession
of the early 1990s. By 1995, while most large airlines were reporting large profits amidst the
country’s largest economic expansions, TWA fell further behind crippled by a large debt load
with regulators adding to the pressure by requiring significant upgrades in aircraft and
equipment in the near future. Slipping into bankruptcy seemed the only viable solution for the
airline to have a chance at survival. TWA operated for 5 years under bankruptcy protection.
As for now it has two bidders to purchase the failing enterprise. After consideration of
upgrade requirements, competition, regulatory issues and airline structure, it is advised better
to sell TWA to one of the available bids.
And TWA should go for the first bidder, Jet Acquisitions Group of Scottsdale who offered
$889 million and agreed to remain it as independent entity.