TWA Loses Suit Over Icahn’s Discount Tickets
Trans World Airlines Inc. lost its lawsuit alleging that Omega World Travel Inc. violated an agreement by selling discounted TWA tickets from a travel agency owned by financier Carl Icahn. Under TWA’s 1995 bankruptcy reorganization plan, Icahn’s Global Discount Travel Services Inc. was allowed to sell as much as $610 million in tickets over eight years for discounts of up to 25%. In return, TWA didn’t repay a $190-million loan owed to Icahn, who was its chairman for eight years until 1993. TWA sued Omega last year, saying the Fairfax, Va.-based travel agent violated its responsibilities to TWA by selling the discounted tickets for Global. TWA said Omega could only sell tickets at prices the airline authorized, and it sought up to $3.4 million in damages. A federal judge in St. Louis rejected TWA’s lawsuit last week, clearing the way for travel agents to continue to market Icahn’s discounted tickets. TWA spokesman Jim Brown said the St. Louis-based carrier is considering an appeal.