AMERICAN AIRLINES' STATEMENT ON TWA BANKRUPTCY FILINGS BY CERTAIN OTHER CARRIERS

American Airlines today made the following statement in response to reports that other carriers have filed with a bankruptcy court in Delaware, expressing interest in acquiring assets of Trans World Airlines:

"The bankruptcy proceeding is an open process, and we always recognized that other airlines might also express interest in TWA's assets. In this case, neither of the carriers filing comments has made an actual offer, and their comments suggest that they are interested simply in stripping valuable TWA assets without keeping the airline intact. This contrasts dramatically with American's offer.

"American Airlines has put forward a fairly priced package that calls for TWA to be integrated into American. This will provide continued opportunity for TWA's employees, a continued hub operation in St. Louis, and protection for the retirement benefits of TWA's employees. Furthermore, American is providing TWA with $200 million in debtor-in-possession financing to allow TWA to continue operating until our transaction is completed. Without that financing, TWA would have been forced to shutdown.

"We are confident that when the bankruptcy court weighs all of the alternatives, it will see American's bid as the superior proposal."