TWA To Acquire 20 Boeing 757 Jetliners

ST. LOUIS, Feb. 12, 1996 -- Trans World Airlines, Inc. (AMEX: TWA) today announced it will acquire 20 new Boeing 757-200 aircraft, 10 to be purchased and 10 to be leased, and will have the ability to secure options for up to 20 additional 757 twinjets, The Boeing Company has confirmed. All the aircraft will be powered by Pratt & Whitney PW 2037 engines.

The first new aircraft delivery is scheduled for July 1996 with two additional deliveries in 1996. The new planes to be delivered in 1996 and 1997 will replace fourteen L-1011 jets currently operated by TWA. The remaining 757s will replace smaller standard-body aircraft that TWA plans to retire when their leases terminate.

TWA announced it has secured financing for all aircraft it has ordered.

There will be twelve 757 deliveries in 1997, two deliveries in 1998 and three deliveries in 1999. Delivery dates for the option aircraft have not been set.

Ten of the aircraft, including all three 1996 deliveries, will be obtained through International Lease Finance Corporation (ILFC), with an initial 10-year lease. Prices and detailed terms of the leases were not disclosed. In addition, TWA will purchase 10 aircraft directly from Boeing. The agreement also allows TWA to take options on as many as 20 additional aircraft at a later date.

"The 757 is an ideal fit for our fleet, which already includes 15 twin-engine Boeing 767 widebodies," said Jeffrey H. Erickson, TWA president and chief executive officer. "Together, these two aircraft types will fill our need for medium-sized aircraft. The 757 and 767 are common cockpit aircraft, meaning that, with minimal additional training, pilots can fly the two types interchangeably. This kind of staffing flexibility, along with the fuel efficiency of twin-engine operation and the easy maintainability of the 757, will give us greatly improved operating efficiency compared to the Lockheed L- 1011 widebody that the 757 replaces in our fleet."

"We're encouraged by TWA's financial restructuring and improved financial performance," said Ron Woodard, president of Boeing Commercial Airplane Group. "We're delighted TWA chose the 757 as the mainstay of their fleet modernization program. It's a tribute to our family of airplanes that TWA sees a combination of the 767s they already fly and these new 757s as providing the right sizes, flexibility and performance. We're confident that the 757's low operating cost and passenger appeal will contribute to TWA's future success. We look forward to continuing our already long-standing relationship."

ILFC President and Chief Executive Officer Steven F. Udvar- Hazy said, "TWA's decision to lease 10 new Boeing 757s from ILFC and to enter into a commitment with Boeing for additional 757s is a reflection of the dynamic and positive growth of the airline. We worked closely and in a proactive way with TWA's management to develop and implement this important fleet modernization.

"ILFC has a long history of working with TWA and we presently lease three Boeing 767s to the airline," Udvar- Hazy also said. "The 757 fleet will significantly improve the efficiency and competitiveness and TWA's operations. We are proud to play a major role in supporting their growth as one of the leading airlines of North America."

In addition to acquiring PW2037 engines with the aircraft, TWA also will purchase two spare engines and 15 engine modules from Pratt & Whitney. Engine modules are component parts of the engine that "snap in," making repairs which typically require disassembling the engine speedier and more cost efficient. The airline also will contract with Pratt & Whitney for a PW2000 engine module support program to cover all of the new 757 aircraft engines.

"The new management team at TWA has done an exceptional job positioning the airline for long-term growth," said Robert Wolfe, president of Pratt & Whitney's Large Commercial Engine unit. "TWA was one of Pratt & Whitney's earliest customers, and that relationship has remained strong throughout the years. We are really pleased that, as TWA moves into the 21st century, it has once again shown confidence in Pratt & Whitney dependable engines."

TWA's entire fleet will become Pratt & Whitney-powered with the 757 replacement of remaining L-1011s.