TWA President Resigns Post; New Structure Announced
NEW YORK (AP) _ Trans World Airlines Inc. announced Monday that its president has resigned and the company is restructuring its top management.
TWA, which was privatized on Oct. 24, said President D. Joseph Corr is resigning effective Nov. 30.
Corr won’t be directly replaced as president, the airline said. A new three-man ″office of the chairman″ will be created to combine both executive and operational functions.
The new office will consist of TWA’s current chairman and owner, financier Carl Icahn; Alfred Kingsley, a member of the board of directors; and Jerry Nichols, senior vice president for ground operations at TWA.
Under the new setup, Icahn will continue as chairman and chief executive officer, Kingsley will still be called a director and Nichols will become executive vice president.
About 15 vice presidents will report directly to the three-man team.
″This structure will do away with unnecessary layers of management, and will give much more autonomy and responsibility to the vice presidents in the field,″ Icahn said in a statement.
Corr will remain on the boards of both TWA and ACF Industries Inc., a railcar leasing company owned by Icahn. His future plans include the purchase of a company, as yet unnamed, in which Icahn expects to invest, TWA said.
Corr was recently mentioned in published reports as one of the parties interested in buying troubled Eastern Airlines from parent Texas Air Corp., which recently sold Eastern’s shuttle service to developer Donald Trump for $365 million in cash.
Last month, Icahn broke off efforts to acquire the rest of Eastern, after failing to structure a deal that would satisfy the airline’s militant unions.
Icahn said Monday that while he is happy with TWA’s financial turnaround since he took over the company, it still faces many challenges in the future.
″There was no question TWA must grow to thrive, and ... by far the most preferable way for the airline to grow is through acquisitions,″ he said.
Icahn also said that, unless TWA makes an acquisition of ″major importance″ - and possibly even if it does - the airline will order 30 to 60 new narrow-body planes in the next three to six months.
Mark Buckstein, the airline’s general counsel, said recently that TWA plans to lease or buy about 60 new aircraft to upgrade its aging fleet, at a cost of up to $1.5 billion.