Trans World Airlines Inc. has reached key aircraft-leasing agreements that will help the financially troubled carrier survive the winter, an airline executive said Tuesday.
But the St. Louis-based airline’s chief financial officer, Robert Peiser, warned in an interview that the carrier could face a “potential” cash shortfall in February and March.
Peiser said the carrier had $107 million in cash as of Nov. 30.
“That’s a level that obviously is still not what I’d like it to be but is remarkably consistent with what it’s been over the last six months. . . .” he said.
Peiser said TWA is still in talks with debtholders on a plan to cut the airline’s debt by about $1 billion.
A shortfall could force the airline to take steps that include seeking an additional short-term loan or trying to sell advance tickets to corporate accounts, he said.
TWA is looking to boost its cash position by $30 million, Peiser said, adding that a lender has indicated a willingess to assist the company.
