NEW YORK -- Investor Carl Icahn pledged $400 million to his travel
company Lowestfare.com "to either build or buy an airline."
Talks to establish a new airline are in progress, according to a
statement by Icahn, who was TWA's chairman and principal investor
from 1986 to 1992.
Citing reduced competition and "inordinately high prices" in the
industry, Icahn said, "There has never been a greater opportunity
for a well capitalized, low-cost airline."
The move is a bold answer to the question of whether Lowestfare
is a sustainable business without its access to discounted TWA
inventory.
A federal judge earlier this month canceled Icahn's Karabu
agreement with TWA, which gave him access to discounted
tickets.
In a statement, Icahn took issue with claims by TWA executives
that the Karabu agreement was part of the reason for TWA's
failure.
"TWA blamed the ticket agreement in part for its financial
condition, but we believe we provided a great deal of business that
the airline would never have otherwise realized," he said.