TWA [Trans World Airlines]

TWA -evah TWA TWA Trans World Airlines, Inc. One City Centre 515 N. 6th Street St. Louis, Missouri 63101 Jeffrey H. Erickson President and Chief Executive Officer August 4, 1995 Mr. Harold M. Ickes Assistant to the President and Deputy Chief of Staff The White House 1600 Pennsylvania Avenue, N.W. Washington, D.C. 20500 Dear Mr. Ickes: I am writing to inform you of some great news: late yesterday, our prepackaged plan of reorganization was confirmed by the U.S. Bankruptcy Court in St. Louis. The Court's confirmation effectively concludes our bankruptcy proceeding and clears the way for the formal implementation of our financial restructuring in mid-August. I am extremely pleased to report that the prepackaged reorganization went quickly and according to plan. This is due in large part to the strong support for the plan expressed by our creditors and employee-owners, as well as the hard work of our dedicated senior management team. As you know, the restructuring decreases our outstanding debt by approximately $500 million and significantly reduces our interest expense. This substantial improvement in our balance sheet combined with the solid progress we continue to make in reducing our operating costs dramatically enhances TWA's financial strength and ability to compete. Proof of our improved competitiveness is in our second quarter 1995 financial results: for the first time since 1990, TWA earned both a net profit and an operating profit in the same quarter. And that was before the benefits of our restructuring were reflected in our results. Our positive second quarter results are a good first step towards our long-term goals of financial stability and consistent profitability -- both of which are key to the successful implementation of our strategy to become the airline of choice for the value- conscious business traveler and the price-conscious leisure traveler. Now we intend to