TWA to Lease 20 to 25 Jets, Icahn Says

Carl C. Icahn, Trans World Airlines Inc. chairman, said Friday that the airline will lease $500 million worth of McDonnell Douglas Corp. MD-80 aircraft.

Icahn said TWA is in the final stages of negotiations and should announce shortly an order for 20 to 25 MD-80 jets.

Icahn made the statement while discussing TWA at Texaco Inc.’s annual meeting here.

He did not elaborate, but the disclosure of the orders was believed to be aimed at deflecting critics who say he has used the airline for his own short-term goals and not invested in its future.

Icahn said the order would not affect the financing for his proposed Texaco bid because the planes would be leased.

Icahn is seeking to seat himself and four other nominees on Texaco’s 14-member board, and has pledged to use his TWA cash flow, if needed, to finance a takeover of Texaco.

TWA, which Icahn acquired control of in 1985, has improved results through acquisitions and by cutting costs, but has one of the oldest fleets in the airline industry.