Document:

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                          TABLE OF CONTENTS

Article                                                          Page

       1    Purpose of Agreement                                    2
       2    Scope of Agreement                                      2
       3    Status of Agreement                                     5
       4    Classifications of Work                                 6
       5    Examination(s) License(s)
              Requirements and Training                            20
       6    Seniority                                              27
       7    Hours of Service                                       42
       8    Overtime and Holidays                                  45
       9    Field Service                                          49
      10    Vacancies and Bidding                                  51
      11    Grievance Procedure                                    59
      12    System Board of Adjustment                             65
      13    Leave of Absence                                       70
      14    Safety and Health                                      73
      15    Free Transportation                                    76
      16    Vacations                                              78
      17    Sick Leave                                             84
      18    Longevity                                              86
      19    Shift Premium                                          87
      20    Benefits                                               89
      21    Wage Rules                                             95
      22    Apprenticeship Program                                 97
      23    General and Miscellaneous                              97
      24    Saving Clause                                          99
      25    Geographical Scope of Agreement                        99
      26    Union Security                                        101
      27    Layoff Pay                                            108
      28    Letters and Agreements                                111
      29    Effective Date and Duration                           246
            SCHEDULE A                                            247
            INDEX                                                 251

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THIS AGREEMENT is made and entered into this 1st day of August, 1999, in
accordance with the provisions of Title II of the Railway Labor Act, as
amended, by and between TRANS WORLD AIRLINES, INC., hereinafter referred
to as the "Company," and the INTERNATIONAL ASSOCIATION OF MACHINISTS AND
AEROSPACE WORKERS, hereinafter referred to as the "Union," and
representing in the United States, its territories and possessions
within the jurisdiction of the Railway Labor Act, as amended, all
employees of the Company comprising maintenance of equipment employees
and including all grades of Mechanics and Inspectors, Fire Inspectors,
Fleet Service Helpers, Ground Service Helpers, Cargo, Commissary, and
Stockroom employees, as certified by the National Mediation Board on
November 20, 1945, May 15, 1946, and September 23, 1949, and all
employees of the Company comprising the Guard personnel, as certified by
the National Mediation Board on May 22, 1946.

                                ARTICLE I

                          PURPOSE OF AGREEMENT

(a)  The purpose of this Agreement is, in the mutual interest of the
     Company and the employees, to provide for the operation of the
     services of the Company under methods which will further, to the
     fullest extent possible, the safety of air transportation, the
     efficiency of operation, and the continuation of employment under
     conditions of reasonable working hours, proper compensation, and
     reasonable working conditions. It is recognized by this Agreement
     to be the duty of the Company and the employees to cooperate
     fully, both individually and collectively, for these purposes.

(b)  No employee covered by this Agreement will be interfered with,
     restrained, coerced, or discriminated against by the Company, its
     officers, or agents, because of membership in or lawful activity
     on behalf of the Union, nor shall either the Company, its
     officers, or agents, or the Union, its officers, or agents,
     discriminate against any employee or member on account of race,
     color, creed, national origin, religion, sex (sexual harassment),
     age, handicap, or disability, veteran status including veteran,
     Vietnam era veteran or special disabled veteran status. This
     paragraph reaffirms the long standing mutual practice of both of
     the parties to this Agreement.

(c)  It is understood that wherever in this Agreement employees or jobs
     are referred to in the masculine gender it shall be recognized as
     referring to both male and female employees.

                               ARTICLE 2

                           SCOPE OF AGREEMENT

(a)  The Company agrees all work generally recognized as mechanical
     inspection work, mechanic's work, and helper's work performed in
     and about Company, shops, major stations, overhaul bases, line
     service stations. and other Company facilities including but not
     limited to mechanical work involved in dismantling, overhauling,
     repairing, fabricating, assembling, welding, and erecting all parts
     of airplanes,

2

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ARTICLE 2(A) (CONTINUED)

     airplane engines, radio equipment, computers on aircraft and
     digital readouts, cathode ray tube devices, cables and other
     electronic devices associated with such computers, electrical
     systems, heating systems, hydraulic systems, and machine tool work
     in connection therewith, and including the dismantling, repairing,
     assembling, and erecting of all machinery and mechanical devices
     and automotive and building maintenance and repair work, the work
     of Fire Inspectors, the work of Stores Clerks, and the work of
     Ramp Servicemen in the handling of stores stock, commissary
     supplies, mail. Express, cargo, and freight is recognized as
     coming within the jurisdiction of the International Association of
     Machinists and Aerospace Workers and is covered by this Agreement.

     The Company hereby recognizes the Union as sole and exclusive
     bargaining agent for all employees of the Company working within
     the limits of the United States who are designated as Guards. The
     Company agrees that all work involving the guarding of certain
     gates, entrances, and other designated posts in and about Company
     premises, the patrolling of designated areas, the punching of
     watchman's clocks, or other similar assigned duties involving
     internal security and protection of Company property is recognized
     as coming within the jurisdiction of the International Association
     of Machinists and Aerospace Workers, and is covered by this
     Agreement. Wherever the Company operates a baggage claim facility
     exclusively for the use of its passengers, and/or the passengers
     of another carrier to whom it has sublet such facility or part
     thereof, and the Company requires the guarding of such facility,
     TWA-IAM Guards will be used. Wherever the Company operates an air
     freight terminal exclusively for the use of its customers, and/or
     the customers of another carrier to whom it has sublet such
     facility or part thereof, and the Company requires the guarding of
     such facility, TWA-IAM Guards will be used. Whenever the Company
     deems it necessary to assign personnel to alleviate congestion of
     pedestrian or vehicular traffic, TWA-IAM Guards will be used. It
     is understood and agreed that the provisions of this paragraph as
     it relates to the baggage claim facility and pedestrian and
     vehicular traffic shall not be applicable if the Company's
     requirement of the guarding of these facilities does not exceed
     sixty (60) days, provided that the Company first advises the
     President - General Chairman of District 142. International
     Association of Machinists and Aerospace Workers, that such
     requirement exists.

(b)  Employees covered by this Agreement shall be governed by all
     reasonable rules, regulations, and orders previously or hereafter
     issued by the Company which are not in conflict with the terms and
     conditions of this Agreement and which have been made available to
     the affected employees prior to becoming effective. Nothing in
     these rules and regulations and/or this Agreement shall be
     construed to limit or deny to any employee herein covered any
     rights or privileges to which he may be entitled under the
     provisions of the Railway Labor Act, as amended, or to deny him
     recourse to any action he might have pursuant to any other
     applicable Federal statute.

(c)  It is agreed that all work covered by this Agreement shall be
     performed by employees in the classifications specified herein,
     except that at other than major stations or overhaul bases on
     shifts where there is not sufficient work as herein described
     for

                                                                      3

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ARTICLE 2(C) (CONTINUED)

     Ramp Servicemen to justify the assignment of an employee coming
     within such classification, any employee who is in the same or
     higher pay bracket may be assigned to do the work. At stations
     other than major stations or overhaul bases, on shifts where Ramp
     Servicemen are assigned and there is not sufficient work to
     justify the assignment of an additional employee in such
     classification, any employee covered by the Agreement who is in
     the same or higher pay bracket may be assigned to do the work.

     Except at overhaul bases, employees in the same or higher pay
     bracket may be assigned to do the work of Fire Inspectors where
     there is insufficient Fire Inspector work to justify the
     assignment of an employee so classified.

     The number of employees in each classification will be established
     by the Company in accordance with the normal requirements of the
     service. Employees will normally perform the work of their
     classification; however, it is recognized that at major stations
     (1) where more than the scheduled number of flights are on the
     ground at one time, (2) in cases of emergency where it is
     necessary in order to maintain operating requirements, or (3)
     where work within their regular classification is not available
     any employee who is in the same or higher classification may be
     assigned to the performance of work normally performed by the
     classifications of Fleet Service Helper, Ramp Serviceman, or
     Janitor. In this event it is understood, however, that employees
     outside the classifications covered by this Agreement will not be
     assigned to perform this work if employees in the same or higher
     classifications covered by this Agreement are available and can be
     assigned without interfering with their regular duties. When an
     employee is assigned to work outside his classification, another
     employee in a different classification shall not perform the
     regular duties of the employee so assigned. If the Union doubts
     the fairness of the assignment, it may invoke the grievance
     procedure for settlement of the matter.

     The total mechanical work force and the number of mechanics
     necessary in each specialty will be established in accordance with
     the normal workload requirements. Mechanics will confine their
     work to their specialty except (1) the Company may assign
     mechanics to any mechanical work even when work within their
     specialty is available; and (2) during abnormal operating
     conditions mechanics may be assigned to any work in the same or
     lower pay classification other than that to which they are
     normally assigned, to the extent necessary to maintain operations
     and flight schedules, even when work within their regular
     assignment is available.

(d)  A Technical Service Location shall mean a station at which the
     Company regularly schedules Check C's or other major modification
     work and any other required maintenance work.  A Line Maintenance
     station shall mean one that will perform routine line maintenance
     and other checks below the Check C level.

     Technical Service Locations shall be staffed with the maintenance
     classifications and specialties necessary to perform the required
     work, including, but not limited to:

4

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ARTICLE 2(D) (CONTINUED)

          Lead Systems Technician
          Crew Chief Inspector
          Inspector
          Crew Chief Mechanic
          Mechanic
          Crew Chief Stores Clerk
          Stores Clerk
          Crew Chief Fleet Service
          Fleet Service
          Crew Chief Janitor
          Janitor

     The following stations are Technical Service Locations: JFK/LGA,
     MCI, LAX and STL.

     The parties mutually agree that the four (4) hour work rule does
     not apply to the maintenance staffing at Technical Service
     Locations.

     When there is a need to eliminate a Technical Service Location,
     or to transfer work between Technical Service Locations, the
     Company will provide the IAM with sixty (60) days notice, and the
     matter will be discussed and resolved by the President/Directing
     General Chairman of District Lodge 142 and the Senior Vice
     President of Maintenance and Engineering. Such changes are to be
     planned and executed in a manner that is consistent with the
     operational needs and efficiencies and minimizes the disturbance
     of employee seniority rights. The IAM will not unreasonably
     withhold its agreement to such a change.

     If a satisfactory resolution is not reached within the sixty (60)
     day period, the question whether the proposed change is justified
     by the above criteria will be submitted to the System Board of
     Adjustment and heard on an expedited basis within a sixty (60) day
     period.

                               ARTICLE 3

                          STATUS OF AGREEMENT

(a)  This Agreement supersedes any and all agreements existing or
     previously executed between the Company and any Union or
     individual, affecting the craft or class of employees covered by
     this Agreement, except Letters of Understanding and Supplemental
     Agreements found in Article 28 of this Agreement.

(b)  The Company will notify the Union promptly in writing in case of
     consolidation, merger and route swap affecting work covered by IAM
     Agreements, or in the event the Company purchases, acquires, or
     absorbs another airline or portions thereof, or in the event the
     Company or portion thereof is acquired by another airline.

                                                                      5

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ARTICLE 3(B) (CONTINUED)

     All provisions of this Agreement shall be binding upon the
     successors or assigns of the Company.

     The Company and this Union will meet without delay and negotiate
     for proper provisions for the protection of employee(s) seniority
     and other property rights, in the event that any of the above
     occur.

(c)  All matters not covered by this Agreement or the Railway Labor
     Act, as amended, shall remain exclusively and without limitation
     within the prerogatives of Management.

                               ARTICLE 4

                        CLASSIFICATIONS OF WORK

(a)  (1)  Lead Systems Technician

          The work of a Lead Systems Technician will consist of and
          include providing as related to Aircraft Maintenance,
          necessary technical knowledge, guidance and direction to
          other classifications in trouble-shooting complex aircraft
          systems, locating and correcting trouble and malfunctions,
          coordinating with foremen and Crew Chief Mechanics, and, as
          assigned, monitoring the performance of routine work. The
          Lead Systems Technician classification is not intended to
          replace the Crew Chief Mechanic in any way. However, the
          Lead Systems Technician may coordinate the activities
          outlined in this paragraph with any number of employees. He
          will also coordinate his activities with station or location
          management and/or with engineering and flight crews and
          other functions as appropriate. He will perform on-the-job
          training and will conduct classroom training as directed.
          See Lead Systems Technician letter, Article 28, Page 115.

     (2)  Crew Chief Flight Simulator Technician

          The work of a Crew Chief Flight Simulator Technician shall
          consist of and include, and he shall be responsible for
          leading, directing and assigning the work of other employees
          of the Flight Simulator Technician classification to the
          satisfaction of the Company and must hold the necessary
          license as is required for the Flight Simulator Technician.
          A Crew Chief Flight Simulator Technician will give on-the-
          job training and instruction to Flight Simulator Technicians
          whenever such training and instruction is required by the
          Company. If any checking, reviewing and verification of work
          sheets and forms related to Flight Simulator Technicians'
          work is necessary, it will be done by a Crew Chief Flight
          Simulator Technician. In addition, a Crew Chief Flight
          Simulator Technician will be responsible for, and his duties
          shall consist of and include. coordinating of work,
          consistent with the overall work plan established by the
          Company. He shall also be familiar with the duties of the
          Flight Simulator Technician

6

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ARTICLE 4(A)(2) (CONTINUED)

          classification and will be capable of performing such
          duties. He will assist his group in the performance of such
          duties provided such assistance does not interfere with the
          performing of his primary responsibilities as described
          above and provided further, that while he is performing
          Flight Simulator Technician's work his primary duties are
          not assumed by others. A Crew Chief may be assigned to
          coordinate the work of other Crew Chiefs. In such instances,
          he may or may not have other employees assigned to him.

          The Crew Chief shall be required (on a non-exclusive basis)
          to demonstrate proper work methods, conduct on-the-job
          training, and conduct meetings or indoctrinate employees in
          new or revised operational Procedures.

          The Crew Chief Flight Simulator Technician will coordinate
          as between the Flight Simulator Technicians in his group and
          vendor or Company representatives. A Crew Chief Flight
          Simulator Technician shall not supervise or direct the
          working force other than Flight Simulator Technicians.

     (3)  Flight Simulator Technician

          The work of a Flight Simulator Technician shall consist of
          and include any and all maintenance, modification, trouble-
          shooting, repair, and overhaul of any type of electronic or
          mechanical devices, including all types of computers and
          associated apparatus, used for training flying personnel
          under simulated flying conditions. In addition this work
          shall include the trouble-shooting, identification, and
          repairing malfunctions of such apparatus and simulators.

          Non-contract personnel, including vendor representatives,
          may direct Flight Simulator Technicians in the work required
          during the initial installation of flight simulators and
          associated apparatus including computers and their systems.
          Such personnel will normally assign the physical aspects of
          work on developmental installations to Flight Simulator
          Technicians and will direct such assignments consistent with
          the Company rights under vendor warranties. The Company and
          the Union jointly recognize the developmental status of such
          equipment to be an integral part of such initial
          installation and the consequent necessity to utilize
          engineering and vendor personnel therein.

          The Company will advise the Union of the nature, extent, and
          anticipated duration of warranties and engineering or vendor
          assistance on Company property, for the purpose of initial
          installation of aircraft simulators or associated equipment
          and apparatus and computers and their systems.

          The Flight Simulator Technician shall be responsible for the
          loading of programs, in any and all types of computers
          integrally associated with flight simulators, for
          maintenance purposes and flight training purposes. The
          Flight Simulator Technician will also assist in
          troubleshooting programs in use and debugging new or
          modified programs.

                                                                      7

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ARTICLE 4(A)(3) (CONTINUED)

          Flight Simulator Technicians must hold a General Radio-
          telephone license or higher. Flight Simulator Technicians
          will be required to give on-the-job instruction to other
          Flight Simulator Technicians.

          Work shifts of Flight Simulator Technicians shall be
          established to comply with Article 7(e).

     (4)  Crew Chief Inspector

          The work of a Crew Chief Inspector shall consist of and
          include leading, directing and assigning the work of
          Inspectors and performing such inspection work as may be
          required to the satisfaction of the Company. In addition, a
          Crew Chief Inspector will be responsible for on-the-job
          training and checking and reviewing work sheets and forms
          (including verification of completed work sheets and forms
          in cases of Check "C" and base overhaul) related to
          Inspector's work as set forth under the Inspector
          classification covered by this Agreement. A Crew Chief
          Inspector shall not supervise or direct the working force
          other than Inspectors. A Crew Chief may be assigned to
          coordinate the work of other Crew Chiefs. In such instances,
          he may or may not have other employees assigned to him.

          The Crew Chief shall be required (on a non-exclusive basis)
          to demonstrate proper work methods, conduct on-the-job
          training, and conduct meetings or indoctrinate employees in
          new or revised operational procedures.

     (5)  Inspector

          The work of an Inspector will consist of and include the
          overall inspection of Company aircraft (including power
          plant) in connection with major repairs and overhauls at
          those points on the Company's system where such work is
          performed. At those points where Inspectors are employed,
          the work of Inspectors shall include special checks and
          special inspections including eddy current, magna flux,
          ultrasonic, zyglo, x-ray (x-ray to be performed by
          Inspectors at the overhaul base only), and comparable
          processes except that the reading and interpretation of the
          x-ray prints shall be performed by non-contract employee(s).
          The work of Inspectors will include the inspection of
          materials, parts, and subassemblies as necessary. An
          Inspector must be capable of performing the inspection work
          assigned to the satisfaction of the Company, and must hold
          valid Federal licenses for his assignment as set forth in
          Article 5. He shall be selected from the Mechanic or higher
          classification, and will not supervise or direct the working
          force.

          At those points on the Company system where Inspectors are
          employed and where the Company's policies and procedures as
          published in its manuals require the presence of an observer
          on test flights conducted for maintenance or

8

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ARTICLE 4(A)(5) (CONTINUED)

          engineering reasons, Inspector or Inspectors (as required)
          shall accompany such test hops as an observer unless
          prohibited by Federal regulations. The Company reserves the
          right to assign additional non-IAM contract observers to
          such test flights as it may see fit at the option of local
          Management and/or other Management levels in the Technical
          Services Division.

     (6)  Crew Chief Mechanic

          The work of a Crew Chief Mechanic shall consist of and
          include, and he shall be responsible for, leading,
          directing, and assigning the work of other employees of the
          Mechanic classification to the satisfaction of the Company
          and must hold valid Federal licenses as required for his
          assignment as set forth in Article 5.

          A Crew Chief Mechanic may be required to sign for his own
          work and the work of others in his group (not including work
          historically performed by Inspectors) provided, however,
          that such signing shall not relieve any other members of his
          group from responsibility for the work he performed or from
          being required to sign appropriate Company work records.

          A Crew Chief Mechanic will also give on-the-job instructions
          and training to Mechanics when such training and instruction
          is required by the Company. If any checking, reviewing and
          verification of work sheets and forms related to Mechanic's
          work is necessary, it will be done by a Crew Chief Mechanic.
          A Crew Chief Mechanic will be required to review aircraft
          log books. In addition, a Crew Chief Mechanic will be
          responsible for, and his duties shall consist of and include,
          coordinating of work and scheduling and issuing of any and all
          work cards related to Mechanic's work, consistent with the
          overall work plan established by the Company.

          The Crew Chief Mechanic shall also be familiar with the
          duties of the Mechanic classification and will be capable of
          performing such duties. He will assist his group in the
          performance of such duties provided such assistance does not
          interfere with the performing of his primary responsibilities
          as described above and provided further, that while he is
          performing Mechanic's work his primary duties are not assumed
          by others. A Crew Chief may be assigned to coordinate the work
          of other Crew Chiefs. In such instances, he may or may not have
          other employees assigned to him.

          The Crew Chief shall be required (on a non-exclusive basis)
          to demonstrate proper work methods, conduct on-the-job
          training, and conduct meetings or indoctrinate employees in
          new or revised operational procedures.

     (7)  Mechanic

          The work of a Mechanic shall consist of and include any and
          all work generally recognized as Mechanics' work performed
          in and about Company shops,

                                                                      9

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ARTICLE 4(A)(7) (CONTINUED)

          maintenance bases, overhaul bases, and Company buildings,
          including but not limited to mechanical work involved in
          dismantling, overhauling, repairing, fabricating,
          assembling, welding, and erecting all parts of airplanes,
          airplane engines, radio equipment, electrical systems,
          temperature control systems, hydraulic systems,
          communications systems, modifications, electronic systems,
          instruments systems, computers on aircraft and digital
          readouts, cathode ray tube devices, cables and other
          electronic devices associated with such computers, and
          related components (in connection with aircraft maintenance
          and testing), and machine tool work, in connection
          therewith. In addition the work of a Mechanic shall include
          trouble-shooting, assisted as necessary by the Crew Chief
          Mechanic and when not in conflict with the terms of this
          Agreement, by Management.

          The work of a Mechanic shall also include engine runups and
          that work of a type generally recognized as a mechanic's
          work in the conversion of aircraft from one configuration to
          another. In addition, the work of a mechanic shall include,
          but not be limited to, taxiing, towing and pushout of all
          aircraft, servicing of de-icing equipment, de-icing of
          aircraft, operation of de-icing equipment when used for
          deicing of aircraft and/or in connection with other work
          generally recognized as mechanic's work. Such work shall
          also include the dismantling, repairing, assembling,
          modifying and erecting of machinery, mechanical devices,
          public address systems, T.V. monitors (transmitters and
          receivers), ground two-way radio ramp communications
          equipment, security equipment, automotive equipment,
          building maintenance and repair work.

     (8)  Crew Chief Stores Clerk

          The work of a Crew Chief Stores Clerk shall consist of
          and include, and he shall be responsible for, leading,
          directing, and assigning the work of other employees of the
          Stores classification to the satisfaction of the Company. A
          Crew Chief Stores Clerk may be required to sign for his own
          work and work of others in his group provided, however, that
          such signing shall not relieve any other member of his group
          from responsibility for the work he performed or from being
          required to sign appropriate Company work forms and/or
          records.

          A Crew Chief Stores Clerk will also give on-the-job
          instruction and training to Stores Clerks when such training
          and instruction is required by the Company. If any checking,
          reviewing and verification of work forms or records related
          to Stores Clerk work is necessary, it will be done by a Crew
          Chief Stores Clerk. In addition a Crew Chief Stores Clerk
          will be responsible for, and his duties shall consist of and
          include, coordinating of work and scheduling and issuing of
          any and all work forms consistent with the overall work plan
          established by the Company.

          The Crew Chief Stores Clerk shall also be familiar with the
          duties of the Stores classification and will be capable of
          performing such duties. He will assist his group in the
          performance of such duties provided such assistance does not
          interfere with the performing of his primary responsibility
          as described above

10

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ARTICLE 4(A)(8) (CONTINUED)

          and provided further that while he is performing Stores work
          his primary duties are not assumed by others. A Crew Chief
          may be assigned to coordinate the work of other Crew Chiefs.
          In such instances, he may or may not have other employees
          assigned to him.

          The Crew Chief shall be required (on a non-exclusive basis)
          to demonstrate proper work methods, conduct on-the-job
          training, and conduct meetings or indoctrinate employees in
          new or revised operational procedures.

     (9)  Stores Clerk

          A Stores Clerk will do all work generally recognized as the
          routine duties of a Stores Clerk in and about the Company
          storerooms and stockrooms, except as provided in the Dining
          Service Agreement. The duties of a Stores Clerk shall
          include the delivering of parts and materials at overhaul
          bases and other locations on the system where mechanics do
          not accomplish this work. The duties of a Stores Clerk shall
          also include the driving of trucks in transporting stores
          supplies. At those locations where Stores Clerks are
          employed they shall transport Company parts, materials
          supplies, and stationery materials between Company
          facilities within a city or metropolitan area. Materials,
          etc., waybilled or labeled to a specific location within the
          metropolitan area would be considered en route until it
          reaches the final destination. The Company may require
          Stores Clerks to transport U. S. and Company mail. Building
          maintenance and automotive parts, supplies and/or materials
          will be inventory received, ordered and issued by Stores
          Clerks. Stores Clerks will also be responsible for the
          replenishment of all self service stock. At major stations
          and overhaul bases, all parts, materials, supplies and
          stationery materials, will be delivered by Stores Clerks.
          Deliveries to any office facilities which are part of such
          stations or bases will be let a point designated by the
          Company. (With respect to the handling of stationery
          materials at the Overhaul Bases, refer to the attached
          Letter Page 139.) At locations other than major stations and
          overhaul bases any deliveries by Stores Clerks will be to a
          point designated by the Company. It is clearly understood
          and agreed that all parts, materials supplies and stationery
          materials (specifically excluding ticket stock) shall be
          delivered directly to the Company stockroom at locations
          where Stores Clerks are employed. The preparation and
          forwarding of A.O.G.'s to transportation, the receipt from
          transportation and forwarding to the user, is the duty of a
          Stores Clerk. All required labeling and documentation in
          connection with ordering, receiving, issuing and shipping as
          well as the preparation and maintenance of required records
          (specifically excluding Kardex posting) will be performed by
          Stores Clerks.

          At all locations on the TWA system that do not maintain
          Dining Service Units, the following shall apply: (a) At
          those facilities where TWA employs Stores Clerks, any
          Company inventory taking place at the caterer's facility,
          including any inventory of Company materials delivered to
          the caterer's facility direct from the vendor will be
          performed by Stores Clerks. Should the Company

                                                                     11

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ARTICLE 4(A)(9) (CONTINUED)

          require that materials delivered directly to the caterer be
          received by Company personnel, such personnel shall be
          Stores Clerks. (b) The movement of Commissary items to
          caterers from airport locations will be performed by Stores
          Clerks. Stores Clerks are to be employed at the Overland
          Park Training Center (Hostess Academy) and Surplus Sales
          where the Company maintains its Surplus Sales facilities. In
          addition, Stores Clerks will be employed at the Jack Frye
          Building (Flight Simulator Building), and new facilities
          such as the KCI Administrative Building will be staffed with
          Stores Clerks as required.

          At locations where Stores Clerks are not employed, all
          work described above will be performed by the Mechanic
          classification unless the amount of work involved herein and
          other normal Stores Clerks functions exceed four (4) hours
          on a shift. In such event a Stores Clerk will be employed.

          (See letter Page 137 for additional detailed Stores Clerk
          duties.)

     (10) Crew Chief Fire Inspector

          The work of a Crew Chief Fire Inspector shall consist
          of and include, and he shall be responsible for, leading,
          directing, and assigning the work of other employees of the
          Fire Inspector classification to the satisfaction of the
          Company. A Crew Chief Fire Inspector may be required to sign
          for his own work and the work of others in his group
          provided, however, that such signing shall not relieve any
          other member of his group from responsibility for the work
          he performed or from being required to sign appropriate
          Company work forms.

          A Crew Chief Fire Inspector will also give on-the-job
          instruction and training to Fire Inspectors when such
          training and instruction is required by the Company. If any
          checking, reviewing and verification of work forms related
          to Fire Inspectors' work is necessary, it will be done by a
          Crew Chief Fire Inspector. In addition a Crew Chief Fire
          Inspector will be responsible for, and his duties shall
          consist of and include, coordinating of work and scheduling
          and issuing of any and all work forms consistent with the
          overall work plan established by the Company.

          The Crew Chief Fire Inspector shall also be familiar with
          the duties of the Fire Inspector classification and will be
          capable of performing such duties. He will assist his group
          in the performance of such duties provided such assistance
          does not interfere with the performing of his primary
          responsibility as described above and provided, further,
          that while he is performing Fire Inspectors' work his
          primary duties are not assumed by others.

          Where a Crew Chief Fire Inspector is employed, he, as well
          as the Fire Inspectors, will assist in the training of
          employee volunteer fire brigades and direct such employees
          in fire fighting activities when required. A Crew Chief

12

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<PAGE>

ARTICLE 4(A)(10) (CONTINUED)

          may be assigned to coordinate the work of other Crew Chiefs.
          In such instances, he may or may not have other employees
          assigned to him.

          The Crew Chief shall be required (on a non-exclusive basis)
          to demonstrate proper work methods, conduct on-the-job
          training, and conduct meetings or indoctrinate employees in
          new or revised operational procedures.

     (11) Fire Inspector

          The work of a Fire Inspector shall consist of and include
          all work recognized as Fire Inspector's work, including, but
          not limited to, inspection and testing of all fire
          prevention and control equipment such as hoses, nozzles,
          sprinkler systems, valves, extinguishers, pumps, ladders,
          fire carts, fire wagons, etc., and including the replacement
          of necessary parts in fire extinguishers. They shall operate
          all fire prevention and control equipment and stand by
          during jobs involving a fire hazard when necessary. Fire
          Inspectors will assist in the training of employee volunteer
          fire brigades and direct such employees in fire fighting
          activities when required. Fire Inspectors will operate all
          pumping equipment; make observations for wind direction,
          ceiling, and visibility; and inspect plant facilities for
          fire and safety hazards. They shall administer first aid to
          personnel when required. A Fire Inspector will not perform
          any mechanical work of any nature.

     (12) Crew Chief Ramp Serviceman

          The work of a Crew Chief Ramp Serviceman shall consist of
          and include, and be shall be responsible for leading,
          directing, and assigning the work of other employees of the
          Ramp Service classification to the satisfaction of the
          Company. A Crew Chief Ramp Serviceman may be required to
          sign for his own work and the work of others in his group
          provided, however, that such signing shall not relieve any
          other member of his group from responsibility for the work
          he performed or from being required to sign appropriate
          Company work forms.

          A Crew Chief Ramp Serviceman will also give on-the-job
          instruction and training to Ramp Servicemen when such
          training and instruction is required by the Company. If any
          checking, reviewing and verification of work forms related
          to Ramp Service work is necessary, it will be done by a Crew
          Chief Ramp Serviceman (unless it is performed by a higher
          classification under this Agreement). In addition a Crew
          Chief Ramp Serviceman will be responsible for, and his
          duties shall consist of and include, coordinating of work
          and scheduling and issuing of any and all work forms
          consistent with the overall work plan established by the
          Company.

          The Crew Chief Ramp Serviceman shall also be familiar with
          the duties of the Ramp Service classification and will be
          capable of performing such duties.

          He will assist his group in the performance of such duties
          provided such assistance does not interfere with the
          performing of his primary responsibility as

                                                                     13

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<PAGE>

ARTICLE 4(A)(12) (CONTINUED)

          described above and provided, further, that while he is
          performing Ramp Service work his primary duties are not
          assumed by others. A Crew Chief may be assigned to
          coordinate the work of other Crew Chiefs. In such instances,
          he may or may not have other employees assigned to him.

          The Crew Chief shall be required (on a non-exclusive basis)
          to demonstrate proper work methods, conduct on-the-job
          training, and conduct meetings or indoctrinate employees in
          new or revised operational procedures.

     (13) Ramp Serviceman

          The work of a Ramp Serviceman will consist of and include
          the transporting and handling of all commissary, food,
          beverages, liquors, passenger service kits, supplies and
          equipment, to and from the aircraft; including the preflight
          check of all such items on board the aircraft. The Ramp
          Serviceman will do all necessary work relative to the
          preparation of the plane's service equipment for flight. A
          Ramp Serviceman's duties will also include the loading and
          unloading of aircraft galleys, the performance of errands in
          connection with commissary and the transporting of
          commissary and food service equipment to and from the
          aircraft. The Ramp Serviceman will also be responsible for
          work involving the cleanliness of the commissary at such
          points and times Janitors do not perform such work under the
          terms of this or the TWA-IAM Dining Service Agreement.

          It is further intended that the Company will not be obliged
          to change existing caterer operations except to the extent
          that Ramp Servicemen be employed to handle all commissary
          movements from caterer's truck to Company aircraft and vice
          versa at the following stations: SFO, ORD, STL, PIT, BOS,
          LAS, EWR, PHL, DCA, IAD, PHX, DEN, IND, CMH, and DAY. As
          soon as possible, but not later than six (6) months from
          October 18, 1976, Ramp Servicemen will also handle all
          commissary movements from caterer's truck to Company
          aircraft and vice versa at those stations not enumerated in
          this paragraph.

          The work of a Ramp Serviceman will include the handling of
          baggage. Ramp Servicemen will also handle and operate all
          passenger loading stairs and mobile lounges owned or
          operated by the Company. The assembly and disassembly of
          prefabricated kennels and shipping containers will be
          performed by Ramp Servicemen.

          The work of a Ramp Serviceman will include all work in
          connection with all loading, unloading, and handling of all
          mail, express, cargo, and air freight, also the crating,
          uncrating, and recrating of all shipments in and about
          Company facilities, wherever for any reason, it is necessary
          to do so. In addition, he will perform all work connected
          with the palletizing and depalletizing, including the
          loading, unloading, buildup, breakdown, and tiedown of all
          pallets, igloos and containers, at any Company owned and/or
          occupied facilities. The Company shall furnish the necessary
          tools for accomplishment of the above, and the Ramp
          Serviceman shall not be permitted the use of other tools.

14

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<PAGE>

ARTICLE 4(A)(13) (CONTINUED)

          The work of a Ramp Serviceman shall consist of and include
          driving all types of trucks, tractors, Company operated
          flight crew buses. and automotive equipment, the servicing
          of aircraft and automotive equipment with fuel, oil, and
          water, the greasing of automotive and ground equipment,
          operation of bulk fuel stations and portable air
          conditioners. He will maintain equipment used in his work in
          a clean safe condition: however, he shall not perform any
          mechanical work of any nature. It is further agreed and
          understood that he may be required to perform other work of
          a general utility nature.

          The handling and acceptance of all freight, cargo, mail and
          express, etc., mentioned in this classification, and the
          preparation and handling of related forms, including the
          receipt, checking and inventorying, labeling and warehouse
          routing of all freight shipments, cargo, etc., which have
          been tendered to the Company will be performed by Ramp
          Servicemen, on a dock delivery basis, and/or channeled
          through the appropriate Company warehouses, except as
          otherwise provided under the terms of the letter from D. J.
          Crombie to J. J. Schwind on Page 141. The on airport
          transporting of all the above mentioned cargo, etc., between
          all hangars, shops, mail facilities, express facilities.
          aircraft, warehouses and trucks (except as expressly defined
          in the Stores classification), etc., shall be performed by
          Ramp Servicemen. The Ramp Serviceman shall operate and
          handle all job related automated equipment, in addition he
          shall operate all equipment owned or leased by the Company,
          in performing the above job function. Ramp Servicemen may
          also input and retrieve data from computers which they use
          for the accomplishment of their work.

          At Technical Service locations, the work of a Ramp
          Serviceman will include the servicing and cleaning of
          station equipment. including equipment used in the
          performance of his duties. (Present Technical Service
          locations are JFK/LGA, LAX, MCI and STL.) At other than
          Technical Service locations, the work of a Ramp Serviceman
          will include the work specified in paragraph (a)(18) of
          Article 4. When there is a need for adding or eliminating a
          station or stations from the Technical Service locations
          listed above, the method to be used in effecting such
          changes, insofar as such change affects the employee(s)
          rights created by this Agreement, will be discussed and
          resolved with the President - General Chairman. District 142
          prior to such changes being implemented. Such change is to
          be planned and effected in a manner which will minimize the
          disturbance of the employee(s) seniority rights.

     (14) Mechanic Helper

          The work of Mechanic Helper shall include the performance of
          simple repetitive jobs such as moving parts and equipment
          exclusive of stores stock, cleaning out oil tanks, and other
          duties now recognized as work of Mechanic Helper. Should the
          Company desire to expand this classification to other simple
          repetitive jobs, or to locations other than Engine Overhaul
          - KCI, or to assist mechanics, it shall, prior to such
          expansion secure the agreement of District 142 of the Union.

                                                                     15

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<PAGE>

ARTICLE 4(A) (CONTINUED)

     (15) Crew Chief Guard

          The work of a Crew Chief Guard shall consist of and include,
          and he shall be responsible for, leading, directing and
          assigning the work of other employees of the Guard
          classification to the satisfaction of the Company. A Crew
          Chief Guard may be required to sign for his own work and the
          work of others in his group, provided however, that such
          signing shall not relieve any other member of his group from
          responsibility for the work he performed or from being
          required to sign appropriate Company work records.

          A Crew Chief Guard will also give on-the-job instruction and
          training to Guards when such training and instruction is
          required by the Company. If checking, reviewing and
          verification of work sheets and forms related to Guard work
          is necessary, it will be done by a Crew Chief Guard. In
          addition a Crew Chief Guard will be responsible for, and his
          duties shall consist of and include coordinating of work and
          scheduling and issuing of any and all work cards related to
          Guard work, consistent with the overall work plan
          established by the Company.

          The Crew Chief Guard shall also be familiar with the duties
          of the Guard classification and will be capable of
          performing such duties. He will assist his group in the
          performance of such duties provided such assistance does not
          interfere with the performing of his primary responsibility
          as described above and provided further that while he is
          performing Guard work his primary duties are not assumed by
          others. A Crew Chief may be assigned to coordinate the work
          of other Crew Chiefs. In such instances, he may or may not
          have other employees assigned to him.

          The Crew Chief shall be required (on a non-exclusive basis)
          to demonstrate proper work methods, conduct on-the-job
          training, and conduct meetings or indoctrinate employees in
          new or revised operational procedures.

     (16) Guard

          A Guard shall be defined as an employee, a majority of whose
          work assignment consists of all Company required guarding of
          gates, entrances, or other posts in and about Company
          premises, patrolling areas, punching watchman clocks, use
          and monitoring of electronic audio and video security
          devices, and all other similar work generally recognized as
          that of guard personnel.

     (17) Crew Chief Fleet Service Helper

          The work of a Crew Chief Fleet Service Helper shall consist
          of and include, and he shall be responsible for leading,
          directing, and assigning the work of other employees of the
          Fleet Service classification to the satisfaction of the
          Company. A Crew Chief Fleet Service Helper may be required
          to sign for his own work and

16

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<PAGE>

ARTICLE 4(A)(17) (CONTINUED)

          the work of others in his group provided, however, that such
          signing shall not relieve any other member of his group from
          responsibility for the work he performed or from being
          required to sign appropriate Company work records.

          A Crew Chief Fleet Service Helper will also give on-the-job
          instruction and training to Fleet Service Helpers when such
          training and instruction is required by the Company. If any
          checking, reviewing and verification of work sheets and
          forms related to Fleet Service work is necessary, it will be
          done by a Crew Chief Fleet Service Helper (unless it is
          performed by a higher classification under this Agreement).
          In addition a Crew Chief Fleet Service Helper will be
          responsible for, and his duties shall consist of and include
          coordinating of work and scheduling and issuing of any and
          all work cards related to Fleet Service work, consistent
          with the overall work plan established by the Company. The
          Crew Chief Fleet Service Helper shall also be familiar with
          the duties of the Fleet Service Helper classification and
          will be capable of performing such duties. He will assist
          his group in the performance of such duties provided such
          assistance does not interfere with the performing of his
          primary responsibility as described above and provided,
          further that while he is performing Fleet Service Helper
          work his primary duties are not assumed by others. A Crew
          Chief may be assigned to coordinate the work of other Crew
          Chiefs. In such instances, he may or may not have other
          employees assigned to him.

          The Crew Chief shall be required (on a non-exclusive basis)
          to demonstrate proper work methods, conduct on-the-job
          training, and conduct meetings or indoctrinate employees in
          new or revised operational procedures.

     (18) Fleet Service Helper

          At Technical Service locations the work of a Fleet Service
          Helper shall include all cleaning, washing, and polishing of
          aircraft both on interior and exterior. He may also be
          required to clean all parts, ramp and automotive equipment,
          exclusive of work normally performed by Ramp Servicemen. A
          Fleet Service Helper shall do all chatting of parking lots
          (provided that no driving is required), removing snow with
          shovels and/or hand-operated snow blowers, cleaning ramps
          and sidewalks, moving materials and equipment (exclusive of
          Stores stock), provided that he operates no machinery. A
          Fleet Service Helper will do all other work generally
          recognized as common labor, and may be required to perform
          Janitor work, and he shall do no mechanical work or work of
          a higher classification. A Fleet Service Helper may operate
          automotive equipment in connection with the performance of
          his work. This driving shall not include the transporting of
          employees other than Fleet Service Helpers or transportation
          of parts, equipment, or material other than used in
          connection with Fleet Service Helper work. A Fleet Service
          Helper may be required to change seat covers and curtains.

                                                                     17

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<PAGE>

ARTICLE 4(A) (CONTINUED)

     (19) Crew Chief Janitor

          The work of a Crew Chief Janitor shall consist of and
          include, and he shall be responsible for, leading,
          directing, and assigning the work of other employees of the
          Janitor classification to the satisfaction of the Company. A
          Crew Chief Janitor may be required to sign for his own work
          and the work of others in his group provided, however, that
          such signing shall not relieve any other member of his group
          from responsibility for the work he performed or from being
          required to sign appropriate Company work records.

          A Crew Chief Janitor will also give on-the-job instruction
          and training to Janitors when such training and instruction
          is required by the Company. If any checking, reviewing and
          verification of work sheets and forms related to Janitor
          work is necessary, it will be done by a Crew Chief Janitor.
          In addition a Crew Chief Janitor will be responsible for,
          and his duties shall consist of and include, coordinating of
          work and scheduling and issuing of any and all work cards
          related to Janitor work, consistent with the overall work
          plan established by the Company.

          The Crew Chief Janitor shall also be familiar with the
          duties of the Janitor classification and will be capable of
          performing such duties. He will assist his group in the
          performance of such duties provided such assistance does not
          interfere with the performing of his primary responsibility
          as described above and provided, further, that while he is
          performing Janitor work his primary duties are not assumed
          by others. A Crew Chief may be assigned to coordinate the
          work of other Crew Chiefs. In such instances, he may or may
          not have other employees assigned to him.

          The Crew Chief shall be required (on a non-exclusive basis)
          to demonstrate proper work methods, conduct on-the-job
          training, and conduct meetings or indoctrinate employees in
          new or revised operational procedures.

     (20) Janitor

          The work of a Janitor at overhaul bases and at major
          stations and other locations, as outlined in the letter from
          William Schecter, to William O'Driscoll on Page 144, shall
          consist of and include the cleaning inside (also outside
          first story, window washing) of buildings and hangars,
          sweeping shops and walks, grass cutting, and other work
          normally performed by Janitors.

(b)  (1)  In the respective classification and seniority groupings
          listed above, whenever it is necessary to maintain employees
          on a shift, they will work for Crew Chiefs in their
          respective classifications and or seniority groupings. No
          Crew Chief will be required to Crew Chief and direct the
          work of a group totaling more than ten (10) other employees.

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<PAGE>

ARTICLE 4(B)(CONTINUED)

     (2)  In each respective classification and/or seniority grouping,
          whenever it is necessary to maintain three (3) or more
          employees on a shift, one of them will be a Crew Chief.

     (3)  The highest classification employed on a shift (up to and
          including Mechanic) shall have a Crew Chief regardless of
          the number of employees in such classification on that
          shift. Whenever there are only one (1) or two (2) employees
          in one or more classifications lower than the highest
          classification on a shift, such employees will be assigned
          to a Crew Chief who is in a classification above their own,
          and in such situations the special composite crew will not
          total more than ten (10) such diversified employees. If
          there are more than ten (10) such employees involved, there
          will be additional Crew Chiefs created.

     (4)  All Crew Chiefs shall have regular assigned crews. However,
          a Crew Chief in any classification and/or seniority grouping
          may be assigned duties which do not involve the assignment
          of employees to him, provided that such duties are within
          the scope of his job description as set forth under the
          Agreement, and provided that such assignment does not result
          in the employee to Crew Chief ratio being exceeded in any
          way.

     (5)  Sub-paragraphs (1) through (4) above shall not apply to
          Guards, who shall be governed by the following:

          Wherever it is necessary to maintain three (3) or more
          Guards on a shift, one of them shall be a Crew Chief Guard,
          however, if this Article does not otherwise provide for the
          employment of a Crew Chief Guard at a location where three
          or more Guards are employed, a Crew Chief Guard shall be
          employed at such locations. A Crew Chief Guard will not be
          required to Crew Chief or direct a group of more than ten
          (10) employees.

(c)  The making and revising of individual assignments to the work
     force shall be accomplished by a Crew Chief. If the Crew Chief is
     unavailable in point of time adequately to handle a situation the
     making or revising of an individual work assignment may be
     accomplished by management. In the event of conflicting orders,
     the responsibility shall be assumed by the last individual issuing
     such orders. The supervision of the work force is ultimately the
     responsibility of management.

(d)  At stations accomplishing aircraft major checks (Check C), base
     overhauls (Check D), and engine changes, on a pre-planned basis,
     employees in the classification of Inspector or higher will be
     required to conduct and sign off for the inspections connected
     with such operations, including final release of aircraft for
     flights.

(e)  At all locations, (except as provided in Article 4(a)(5))
     employees in the classification of Mechanic or higher will be
     required to sign off for mechanical work connected with
     accomplishment of routine aircraft maintenance of a type

                                                                     19

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<PAGE>

ARTICLE 4(B)(2)(E) (CONTINUED)

     which was on October 12, 1961, performed by Mechanics and
     designated as station service, through service, daily service, and
     fueling service, including special checks and special inspections
     and final release of aircraft for flight.

(f)  The two preceding paragraphs are not intended to change the
     present practice of inspection or non-inspection in connection
     with maintenance and overhaul work not specifically mentioned.

                               ARTICLE 5

                EXAMINATION(S), LICENSE(S) REQUIREMENTS

                              AND TRAINING

(a)  Examination (where applicable)

     The Mechanic's Examination will consist of two (2) parts.
     Employees bidding for vacancies in the Mechanic classification
     must have successfully completed the applicable PART I. Employees
     bidding for vacancies in classifications higher than Mechanic must
     have successfully completed the applicable PART II. Employees must
     have successfully completed the applicable PART I and hold
     seniority in the classification of Mechanic or higher prior to
     taking PART II in that specialty.

     In the event an employee fails to pass the Mechanic Examination(s),
     he may submit in writing (Registered or Certified Mail - Return
     Receipt Requested) his request for review to the Employee Relations
     Department, TWA, Kansas City International Airport, P. 0. Box 20126,
     Kansas City, Missouri 64195, not later than five (5) days after
     notification that he has failed the exam.

     Such review shall be made by a Mechanic's Examination Committee of
     four (4) consisting of two (2) members selected by the Union and
     two (2) members selected by the Company from the Kansas City
     point. The Committee may establish rules governing its procedure,
     consistent with the provisions of the Agreement. The Committee
     will meet at MCI/KCI during regular day shift working hours,
     unless otherwise mutually agreed to, and members will not suffer
     loss of pay while performing their duties. A member of the TWA
     Training Section and the Union President - General Chairman, or
     his designated representative, may serve as Co-Chairman to the
     Committee without vote.

     The Mechanic's Examination Committee will complete its review
     within five (5) days after receiving the employee's request and
     will thereupon advise the Company, Union and employee, in writing,
     of its decision.

     If the Committee determines that the employee has successfully
     completed the examination, such decision is final and binding upon
     the Company. If the Committee determines that the employee has
     failed the examination, such decision is final and binding upon
     the employee.  In the event the Committee is unable to arrive at a

20

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<PAGE>

ARTICLE 5(A) (CONTINUED)

     decision, a grievance may be filed in accordance with the
     provisions of Article 11 omitting Step I of the grievance
     procedure.

     (1)  PART I will consist of not more than two (2) hours of
          written examination consisting of theory applicable to the
          specialty. Employees who have successfully completed the
          written examination for a specialty, other than his own,
          will be required to successfully complete a practical
          examination, not to exceed eight (8) hours, consisting of
          more than one (1) work function applicable to the specialty.

          All new employees will be required to successfully complete
          a written examination (at least equivalent to the PART I
          Examination) for the applicable specialty prior to filling
          any Mechanic vacancy covered by this Agreement.

          Employees who have successfully completed their probationary
          period or trial period as a Mechanic will be considered to
          have successfully completed PART I of the Mechanic's
          Examination in that specialty.

     (2)  PART II will consist of not more than three (3) hours of
          written examination consisting of job related work
          applicable to the specialty. After successfully completing
          the written examination, a practical examination will be
          required, not to exceed eight (8) hours, consisting of more
          than one (1) work function including Crew Chief type
          activities related to the applicable specialty.

          Employees who have successfully completed their probationary
          or trial period as a Crew Chief Mechanic, Inspector, or
          higher classifications will be considered to have completed
          PART II of the Mechanic's Examination in that specialty.

     (3)  Application forms for Mechanic Examination(s) shall be
          furnished by the Company and supplied by an employee's
          immediate supervisor upon request. Employees may apply for
          and complete only one (1) examination at a time. The Company
          will notify the employee seven (7) days in advance of the
          examination to be taken.

     (4)  Applications shall be submitted in duplicate with one (1)
          copy forwarded by Registered or Certified United States Mail
          (Return Receipt Requested): c/o Regional Employee Relations
          Department, TWA, Kansas City International Airport, P. O.
          Box 20126, Kansas City, Missouri 64195, and one (1) copy c/o
          President - General Chairman, District Lodge 142, 400 N.E.
          32nd Street, Kansas City, Missouri 64116.

     (5)  Within seven (7) days after completing the Mechanic
          Examination, an employee will be notified in writing of the
          results (including a statement identifying the area(s) of
          deficiency for those failing the examination).

                                                                     21

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<PAGE>

ARTICLE 5(A) (CONTINUED)

     (6)  PART I and II, Mechanic Examinations, methods of grading
          procedures, applications, and job related specialties shall
          be agreed to by both the Union and the Company.

     (7)  Results of the examinations shall be open to inspection by
          the Local Grievance Committee or a representative designated
          by District 142. A record of employees having successfully
          completed Mechanic Examination(s) shall be maintained by the
          Company.

     (8)  An employee who has completed fifteen (15) months continuous
          active employment with the Company as a Mechanic may apply
          for additional Mechanic Examination(s), PART I. Only an
          employee currently working as a Mechanic or in a higher
          classification who has completed fifteen (15) months
          continuous active employment with the Company as a Mechanic
          or higher classification may apply for additional Mechanic
          Examination(s), PART II.

     (9)  At stations where maintenance instructors are based,
          examinations will be given by the TWA Training Section. At
          other stations a ranking Maintenance Representative
          designated by the Company may give the examination under the
          direction of the TWA Training Section. Such examination will
          be given during an employee's regular working hours without
          loss of pay. When it is impractical to schedule an
          examination during an employee's regular working hours, such
          examination may be scheduled during an employee's own time,
          convenient and agreeable to the employee, and the employee
          given compensating time off.

     (10) All examinations will be completed not more than thirty (30)
          days after an employee's application is received by the
          Company. All employees will have a completion date effective
          thirty-seven (37) days from the date the application is
          received by the Company.

     (11) Failure to appear for examination at the designated time and
          place will invalidate the application, unless satisfactory
          reason is given, in which case the time limits mentioned in
          (10) above will be extended by the exact number of days
          remaining in the original time limits, computed from date of
          the missed examination. Such extension will begin from the
          date the employee returns to work.

     (12) Employees who fail to pass the examination will not be
          permitted to take the same examination within ninety (90)
          days from date of previous examination.

     (13) Where a license or licenses are required, no examination
          will be required, except the practical portion of PART II,
          where applicable.

     (14) An employee having achieved the Master Mechanic rating prior
          to July 1, 1955, will be considered as having passed the
          Mechanic's Examination(s).

22

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<PAGE>

ARTICLE 5(A) (CONTINUED)

     (15) No employee accruing seniority as a Crew Chief, Flight
          Simulator Technician, Inspector, or Mechanic on the date of
          the Agreement will be required to take additional Mechanic's
          Examinations to maintain his rating.

     (16) Any employee holding seniority in the Mechanic classification
          bidding for a Mechanic vacancy in a different specialty must
          have successfully completed the Mechanic's Examination PART I,
          applicable to that specialty.

     (17) Any employee holding seniority in the Mechanic classification
          or higher, bidding for or displacing into an Inspector or Crew
          Chief classifications above Mechanic, must have successfully
          completed the Mechanic's Examination PART II, applicable to
          that specialty.

     (18) Employees having passed the Mechanic's Examination(s) as
          provided for in the TWA-IAM Agreement signed August 25,
          1966, will be considered as having successfully completed
          the Mechanic's Examinations PART I and PART 11, applicable
          to that specialty.

     (19) Employees having successfully completed the applicable
          Mechanic's Examination PART II will be considered as
          qualified in connection with bids for Inspector and Crew
          Chief Jobs in the Mechanic classification or higher.

     (20) Employees having successfully completed the applicable
          Mechanic's Examination PART I will be considered as
          qualified in connection with bids for jobs in the Mechanic
          classification.

(b)  Employee(s) in a classification below Mechanic must have a
     qualification sheet on file as provided in Article 6(f)(12) prior
     to submitting an application for a Mechanic's Examination.

     Upon receipt of the employee's application, the Company will
     review the employee's qualification record on file, work
     experience and the applicable performance standard as agreed upon
     by the Company and Union. Employees who meet the basic
     requirements will be scheduled for the applicable PART I
     Examination as outlined in Article 5(a)(10).

     The Company will notify the employee in writing when it is
     determined that the employee does not meet the basic requirements
     for the applicable PART I Examination. The employee may request a
     review of his qualifications in the same manner as provided for in
     Article 10(b)(19).

(c)  Employees not holding seniority in the Flight Simulator Technician
     classification will be required to successfully complete the
     Flight Simulator Technician Examination Part I prior to submitting
     a bid to fill a vacancy in the Flight Simulator Technician
     Classification. Such Examination will be agreed upon by the
     Company and the Union.

                                                                     23

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<PAGE>

ARTICLE 5(C) (CONTINUED)

     Flight Simulator Technicians, prior to the commencement of the
     ninety (90) day trial period, will be assigned a sixty (60) day
     training period during which he/she will receive classroom and on-
     the-job training.

(d)  Stores Classification:

     Employees not holding seniority in the Stores classification will
     be required to successfully complete the Stores Examination prior
     to submitting a bid to fill a vacancy in the Stores
     classification. Such Examination will be agreed upon by the
     Company and the Union.

(e)  Ramp Serviceman Classification:

     Employees not holding seniority in the Ramp Serviceman
     classification will be required to successfully complete the
     Fueling Examination prior to submitting a bid to fill a vacancy in
     such classification. The examination will be agreed upon by the
     Company and the Union.

(f)  Employees must have a qualification sheet on file as provided in
     Article 6(f)(12) prior to submitting an application for Stores or
     Fueling Examinations.

     Upon receipt of the employee's application, the Company will
     review the employee's qualification record on file and work
     experience.

     Employees who meet the basic requirements will be scheduled for
     the applicable examination.

     The Company will notify the employee in writing when it is
     determined that the employee does not meet the basic requirements
     of the job.

(g)  License Requirements

     (1)  Crew Chief Inspectors and Inspectors

          (a)  Overhaul Bases

               (1)  Airframe Overhaul - Must possess FAA "A & P'
                    license or FCC General Radio-telephone license,
                    or higher, depending upon the work to which
                    assigned.

               (2)  Power Plant Overhaul - Must possess FAA "P"
                    license.

          (b)  Line Stations - Must possess FAA "A & P" license or
               FCC General Radio-telephone license, or higher,
               depending upon work to which assigned.

24

<PAGE>
<PAGE>

ARTICLE 5(G) (CONTINUED)

     (2)  Crew Chief Mechanic

          (a)  Overhaul Bases - Airframe Hangar Specialties

               (1)  <F*>Aircraft  Must possess FAA "A" license.

               (2)  <F*>Aircraft Engine - Must possess FAA "P"
                    license.

               (3)  <F*>Hydraulic - Must possess FAA "A" license.

               (4)  Radio - Must possess FCC General Radio-telephone
                    license, or higher.

               <F*> Possession of FAA 'A' or 'P' license will
               suffice for employees in these Specialties as of
               July 1, 1955.

          (b)  Overhaul Bases - Shop Assigned Specialties

               (1)  Power Plant Overhaul - Must possess FAA "P"
                    license.

               (2)  Radio Shop - Must possess FCC General Radio-
                    telephone license, or higher.

          (c)  Line Stations (where applicable) - Must possess FAA
               "A & P" license and FCC Restricted Radio-telephone
               Operator's permit or Radio-telephone license, second
               class or higher, depending upon the work to which
               assigned.

     (3)  Line Service and Overhaul Bases (where applicable) -
          Mechanics or higher holding or bidding for line service
          assignments, will be required to possess and exercise valid
          FAA "A & P" license(s) and FCC Restricted Radio-telephone
          Operator's permit, or General Radio-telephone license, or
          higher, depending upon the work to which assigned.

     (4)  Employees possessing temporary FAA Certificate(s) shall be
          considered as possessing the applicable license(s).

     (5)  No employee accruing seniority in any classification will be
          required to obtain additional license(s) to maintain his
          rating.

     (6)  It is understood that an employee having achieved the Master
          Mechanic rating prior to July 1, 1955, bidding laterally for
          positions requiring license(s) shall be allowed six (6)
          months from date of acceptance as successful bidder to
          obtain the necessary license(s). If he fails to obtain the
          required license(s) within the specified period, he will
          return to his former position at his own expense.

                                                                     25

<PAGE>
<PAGE>

ARTICLE 5(G) (CONTINUED)

     (7)  In the event that Federal requirements are changed, the
          Company and the Union will meet and make such changes in the
          license requirements provisions as become necessary. In the
          event that Federal agencies or their agents determine that
          the work experience which can be acquired in a job does not
          constitute the experience required to obtain or renew
          Federal license(s), the requirements for such license(s)
          under this Agreement shall be waived for employees working
          in that job.

     (8)  Whenever an employee is required by State or Federal law to
          possess a special permit and/or license to perform duties to
          which he is normally assigned, such permit and/or license
          will be paid for by the Company. The employee will be
          allowed reasonable time off to obtain such permit and/or
          license without loss of pay. This paragraph shall not apply
          for the obtaining of FAA 'A' or 'P' licenses, or FCC Radio
          Telephone licenses (second class or higher).

     (9)  Should there by any change during the life of this Agreement
          in license requirements, all employees affected shall be
          given a reasonable length of time from the date of change to
          obtain such license without change in status or pay. Any
          qualified employee, upon request, shall be furnished with a
          certificate of eligibility by the Company for presentation
          to the proper government agency for procuring an FAA or FCC
          license.

(h)  (1)  Inspector and Mechanic Training

          (a)  New Equipment

               As new equipment is introduced into the system, Inspectors
               and Mechanics affected will be given training (Classroom
               and/or on-the-job) concerning such equipment to gain
               proficiency in their work.

     (2)  All Crew Chiefs

          (a)  New Equipment

               As new equipment is introduced into the system, each
               Crew Chief affected will be given training (Classroom
               and/or on-the-job) to gain proficiency in his work and
               further will receive an amount of technical training
               that is equal to the amount of training to be received
               by his immediate supervisor for that specialty.

          (b)  Administrative

               The Company will provide administrative training to
               all Crew Chiefs. Such training will be for the purpose
               of acquainting such Crew Chiefs with the elements of
               leadership and direction, the effective coordination
               of work and requisite record keeping.

26

<PAGE>
<PAGE>

ARTICLE 5(H) (CONTINUED)

     (3)  Crew Chief Inspector and Crew Chief Mechanic Training

          Recurrent

          Each Crew Chief Mechanic and Crew Chief Inspector will
          receive annual recurrent training (Classroom and/or on-the-
          job) of a similar order as that given such Crew Chief's
          immediate supervisor for the specialties listed on the
          following list:

                                                     Minimum Hours
                                                   Annual Recurrent
          Crew Chief Classification by Specialty       Training
          --------------------------------------   ----------------
          Metal                                           20
          Electrical                                      20
          Hydraulic                                       20
          Radio                                           20
          Instrument                                      20
          Engine Overhaul                                 20
          Aircraft                                        20
          Aircraft - Engine                               20
          Hangar - Line (A & P Line)                      20
          Plating                                         20
          Electro Mechanical                              20
          Electronic                                      20
          Automotive                                      20
          Ground Equipment and Repair                     20
          Welding                                         20

     (4)  Crew Chief Flight Simulator Technicians will receive a
          minimum of twenty-four (24) hours annual recurrent training
          on-the-job and/or in the classroom and both they and Flight
          Simulator Technicians will be given new equipment training
          consistent with the principles set forth in paragraph 1
          above.

     (5)  Any of the foregoing training which is on-the-job training
          will be given on the employee's regular shift and during his
          regular hours.

     (6)  Any of the foregoing training which is classroom training
          will be minimum increments of four (4) hours each.

     (7)  Training of newly assigned station personnel i.e.. Ramp
          Service employees, transferring to a station outside the
          metropolitan area with unique job functions (e.g.: receipt &
          dispatch, de-icing, aircraft towing) will be provided
          sufficient training after reporting to the new station and
          prior to an assignment to perform functions.

                               ARTICLE 6

                               SENIORITY

(a)  Seniority (Company and Classification)

                                                                     27

<PAGE>
<PAGE>

ARTICLE 6(A) (CONTINUED)

     (1)  Seniority shall be defined as the length of service for
          which an employee receives credit, regardless of location,
          in any of the classifications covered by this Agreement with
          this Company or any of its predecessors.

     (2)  The definition of seniority shall include ability to perform
          the required work of the job in a satisfactory manner, and
          except as hereinafter provided shall accrue from the date of
          entering a classification on a regular assignment. Seniority
          shall be applicable to all classifications covered by the
          Agreement.

     (3)  Company seniority shall be defined as the date of hire
          (i.e., first day of work).  An employee's company seniority
          date will not be adjusted for assistant/part-time service.

     (4)  Classification seniority date shall be adjusted based on
          one-half accrual for assistant/part-time service and shall
          be used for bidding purposes except as otherwise provided in
          the agreement.

In the exercise of seniority:

          (a)  If two or more employees in the same Crew Chief
               classification have the same Crew Chief seniority
               date, basic classification seniority shall govern.
               Should this be one and the same date (Mechanic and
               Above: Refer to (b) below) Company seniority shall
               govern. Should this be one and the same date, the
               alphabetical order of the employees' names shall
               govern.

          (b)  If two or more employees in the same basic
               classification above Mechanic have the same
               classification seniority date, Mechanic seniority
               shall govern. Should this be one and the same date,
               Company seniority shall govern. Should this be one
               and the same date, the alphabetical order of the
               employees' names shall govern.

          (c)  If two or more employees in the same basic
               classification, Mechanic or below, have the same
               classification seniority date, Company seniority shall
               govern. Should this be one and the same date, the
               alphabetical order of the employees' names shall
               govern.

     (5)  Periodically it may become necessary to separate or combine
          seniority groupings. These changes will not be made
          arbitrarily or without good reason. They will be made only
          to achieve improved operation, performance, and working
          conditions from which everyone will benefit. Such changes
          necessarily present problems which must be worked out with
          the cooperation of everyone concerned. When the need for a
          change in seniority groupings which may affect seniority
          exercise has been recognized, and the nature of such change
          has been determined by the Company, the method to be used in
          effecting such change will be discussed and resolved with
          the appropriate Union representatives. Such change will be
          planned and effected in a manner which will minimize the

28

<PAGE>
<PAGE>

ARTICLE 6(A)(5) (CONTINUED)

          disturbance of employees' seniority exercise. Regardless of
          other provisions of this Agreement, employees whose
          seniority exercise may be affected by any separation or
          combining of seniority groupings, shall be permitted to
          exercise seniority for choice of assignment in the groupings
          affected. Any such change will be preceded by adequate
          advance notice to all employees affected.

     (6)  At the Overhaul Base, it is agreed that in the transfer of
          work or the assignment of new work, the Company will assign
          it to the appropriate specialty. When such transfer of work
          takes place, the Company and the Union will agree on the
          disposition of the personnel affected as a result of such
          transfer.

     (7)  The principle of seniority shall apply in the application of
          the Agreement in all reductions or increases of force,
          preference of shift, days off, vacation period selection, in
          bidding for vacancies or new jobs, and in all promotions,
          demotions, or transfers involving classifications covered by
          this Agreement.

(b)  Probationary Employees:

     (1)  Upon entering an IAM Agreement, employees not holding
          seniority in any of the TWA-IAM Agreements will be
          considered as probationary employees for the first one
          hundred twenty (120) days of their employment, excepting
          such employees hired as mechanics who will be considered as
          probationary employees for the first one hundred eighty
          (180) days of their employment, and there shall be no
          responsibility on the part of the Company or the Union for
          reemployment of probationary employees if they are
          discharged or laid off during this period.

     (2)  If retained after the probationary period, the names of such
          employees shall then be placed on the appropriate seniority
          list as of their date of hire. The seniority of employees
          subject to the one hundred eighty (180) days probationary
          period will be considered after they, have completed one
          hundred twenty (120) days of such probationary period for
          the purpose of exercising seniority in the event of
          reduction and or displacement.

     (3)  It is understood that employees promoted will be subject to
          a trial period in accordance with Article 10(b)(16). Such
          employees promoted into the mechanic classification will be
          subject to a one hundred eighty (180) day trial period.

(c)  System Seniority Lists:

     (1)  Seniority lists, corrected to December 1 and June 1, shall
          be prepared by the Company, and furnished each local
          Committee and the President - General Chairman for the
          Union, and shall be posted on bulletin boards at each point
          on the system by January 1 and July 1 each year. Errors of
          omission and typographical errors will be corrected
          currently with a copy furnished the President - General
          Chairman.

                                                                     29

<PAGE>
<PAGE>

ARTICLE 6(C) (CONTINUED)

     (2)  All seniority lists shall be open to protest for a period of
          fifteen (15) days from date of posting, but if the seniority
          date on a list is not protested within the prescribed time
          limit after the initial appearance of a name on a list, such
          date shall stand as correct and official on all subsequent
          lists. Any employee on leave, on special assignment, in a
          laid-off status, on vacation, or on sick or injured absence
          at the time of posting shall have a period of fifteen (15)
          days from the date of his return to service to file a
          protest. The Company shall thereafter post any revisions in
          the list, and any adjustment or failure to make an
          adjustment with which an employee or the Union may be
          dissatisfied shall be handled as a grievance in accordance
          with the provisions of Article 11 upon request of the party
          filing the protest or an employee affected by any adjustment
          made. The filing of the grievance must be made within seven
          (7) days after the posting of the revisions, and any
          employee on leave, on special assignment, in a laid-off
          status, on vacation, or on sick or injured absence at the
          time of posting such revisions shall have a period of seven
          (7) days from the date of his return to service to file such
          grievance.

          Regardless of other provisions of this Agreement to the
          contrary, when the Company and the Union mutually agree that
          a seniority list should be changed to comply with the
          provisions of this Agreement, or when it has been
          established through the grievance procedure that a list
          should be changed, such change will be posted currently. It
          is understood that any resulting adjustment in the list
          shall not create any liability to the Company or the Union.

     (3)  System seniority lists will reflect names of employees in a
          classification in the order of basic classification
          seniority, except that in the classification of Inspector,
          employees will be listed in the order of Mechanic seniority.
          If two or more employees in the same classification
          (Mechanic and below) have the same classification seniority
          date their names will appear in the order of Company
          seniority. Should this be one and the same date the names
          will then be arranged in alphabetical order.

     (4)  The classes or crafts covered by this Agreement are
          identified as the classifications set forth herein and for
          the purpose of computing and applying seniority, it is
          understood that all Company operations within any city or
          metropolitan area shall be considered as one point.

           1.  Crew Chief Systems Technician
           2.  Crew Chief Flight Simulator Technician
           3.  Flight Simulator Technician
           4.  Crew Chief Inspector
           5.  Inspector
           6.  Crew Chief Mechanic
           7.  Mechanic
           8.  Crew Chief Stores Clerk
           9.  Stores Clerk
          10.  Crew Chief Fire Inspector

30

<PAGE>
<PAGE>

ARTICLE 6(C)(4) (CONTINUED)

          11.  Fire Inspector
          12.  Crew Chief Ramp Serviceman
          13.  Ramp Serviceman
          14.  Mechanic Helper
          15.  Crew Chief Guard
          16.  Guard
          17.  Crew Chief Fleet Service Helper
          18.  Fleet Service Helper
          19.  Crew Chief Janitor
          20.  Janitor<F*>

     <F*> One combined seniority list for Janitors under this
          Agreement and Dining Service Agreement.

     (5)  When an employee goes to a higher classification (Full
          Time/Part Time) covered by any TWA-IAM Agreement, he shall
          continue to accrue seniority in the lower classification
          from which promoted. The basic classification listed in (4)
          above (i. e., Mechanic, Stores Clerk, Janitor, etc.) shall
          govern in considering which is a higher or lower
          classification.

(d)  Loss of Seniority

     An employee will lose his seniority status and his name will be
     removed from the seniority list(s) under the following conditions:

     (1)  He accepts any position not covered by any of the TWA-IAM
          Agreements, with this Company or any of its predecessors,
          regardless of location (except as provided in this
          Agreement).

     (2)  He quits or resigns.

     (3)  He is discharged for just cause.

     (4)  An employee who voluntarily reduces himself from a
          classification, including accepting a bid to a lower
          classification, shall have his name removed from the
          seniority list for that classification from which he is
          being reduced, for Crew Chief in that classification and for
          all lower classification(s), including Crew Chief, which he
          voluntarily bypassed and shall lose all seniority and pay
          credit for such classifications), except as provided in
          Article 10(b)(3). An employee holding seniority in
          classifications) above Mechanic who voluntarily reduces
          himself from the Mechanic classification shall have his
          name removed from the seniority list for all higher
          classification(s) and shall lose all seniority and pay
          credit in such classification(s). However, an employee who
          has received a notice of reduction to a lower classification
          and, prior to actual reduction, submits a bid and accepts a
          job to fill a vacancy in the same or higher classification
          than the one to which he is being reduced, will not forfeit
          seniority in the classification from which being reduced.

                                                                     31

<PAGE>
<PAGE>

ARTICLE 6(D) (CONTINUED)

     (5)  He does not inform the Company in writing or by telegram of
          his intention to return to work within seven (7) calendar
          days after date of sending a notice offering to re-employ
          him after a layoff, unless satisfactory reason is given.

     (6)  He accepts recall for temporary work, including promotion on
          a temporary basis, and quits before completion of the
          temporary period for which recalled.

     (7)  He does not return to work on or before a date specified in
          the recall notice from the Company after a layoff, which
          date shall be not prior to seventeen (17) calendar days
          after receipt of such notice. Any notice provided for in
          this paragraph shall be sent by Certified Mail (Return
          Receipt Requested) or telegram/mailgram to the employee only
          at the last address filed in writing by him with the
          Employee Relations Department. This paragraph and (d)(5)
          above shall not apply to offers of temporary work. Whenever
          the approximate duration of the work period for which the
          employee is being recalled is known to the Company and
          specified in the recall notice, the vacancy shall be
          considered as temporary.

     (8)  He engages in gainful employment while on leave of absence
          in violation of Article 13(e).

     (9)  He fails to return to work at the end of an authorized leave
          of absence, unless satisfactory reason is given.

    (10)  He is absent three (3) consecutive work days without
          notifying the Company, unless satisfactory reason is given.

    (11)  Any employee who loses seniority under (5), (6), (7), (8),
          (9) or (10) preceding will be notified by certified mail,
          copy to the Local Union Representative, of the specific
          paragraph under which such action was taken.

          Within thirty (30) days from the date of such notice, he may
          submit by certified mail, copy to the Local Union
          Representative, his request for a hearing to the Manager -
          Employee Relations for his region.

          A hearing will be held no later than ten (10) days after
          receipt of the employee's request and a written decision
          will be issued within three (3) work days after the close of
          the hearing. If the decision is not satisfactory, then
          appeal may be made in accordance with the procedure
          prescribed in Step 3.

     (12) Any employee who fails to exercise seniority as required in
          6(e)(4), 6(f)(8), 6(f)(11)(a), 6(f)(19)(c) and 10(b)(9).

(e)  Reduction and Increase of Working Force

     (1)  All reductions and/or displacements within a seniority
          grouping and/or classification at a point shall be effected
          in the inverse order of seniority. When

32

<PAGE>
<PAGE>

ARTICLE 6(E)(1) (CONTINUED)

          an employee is being reduced or displaced in a seniority
          grouping and a vacancy exists in his seniority grouping,
          such vacancy will be canceled and filled by the reduced or
          displaced employee.

     (2)  An employee who is being reduced or displaced from a
          seniority grouping must exercise his classification
          seniority as follows:

          (a)  The specialty at the location.

          (b)  The specialty at the point.

          (c)  The classification at the location, where qualified.

          (d)  The classification at the point, where qualified.

          (e)  When an employee is being reduced or displaced and
               cannot displace in his classification at a point and
               prior to actual reduction or layoff a vacancy exists
               in his classification, at his point. That vacancy will
               be canceled and filled by the reduced or displaced
               employee, if qualified.

     (3)  The Company will notify an employee in writing after it is
          determined that there is not a less senior employee for
          which the displacing employee is qualified in the
          classification at the point. Such notice shall be sent by
          certified mail (addressee only) to those employees who are
          not at work.

     (4)  (a)  Not later than the employees third work day after he
               is so notified the employee may notify the Company, in
               writing of the point(s) on the system to which he
               wishes to exercise seniority in the classification
               from which he is being reduced. At the time an
               employee notifies the Company of his desire to
               displace on the system, he must submit a written
               notice, copy to the designated Local Union
               Representative, if he will accept recall to his former
               specialty/classification at the point from which
               reduced. Such recall will be only in the classification
               from which he is being reduced. However, in the Mechanic
               classification such recall will be only in those
               specialties in which he has completed a trial period.
               This recall notice may be canceled by the employee in
               writing to the Company in the same manner as preference
               bid submissions in Article (10)(b)(1) plus one copy to
               the employee's supervisor.

          (b)  An employee who displaces on the system holding
               seniority in any classification higher than the one to
               which he is displacing may indicate at that time his
               intent to be recalled to his former point in the
               classification from which displaced. Such employee may
               waive his recall to any higher classification(s) at
               his displacing point. If the employee does not waive
               this recall and accepts a position in a higher
               classification at his displacing point and
               subsequently accepts recall to his former point, he
               will forfeit seniority in such higher classification(s).
               If an employee does not waive

                                                                     33

<PAGE>
<PAGE>

ARTICLE 6(E)(4)(B) (CONTINUED)

               recall to any higher classification under this
               provision, Article 6(f)(2) will apply.

               Notices mentioned above may be canceled by the
               employee in writing as set forth in Article 10(b)(1),
               including one copy to the employee's supervisor. If an
               employee cancels this notice, he will lose recall to
               his former point.

          (c)  The Company will notify the employee of the point on
               the system where he must exercise his seniority to
               displace the least senior employee working at the
               point(s) to which he wishes to exercise seniority. In
               the event an employee cannot displace in his
               classification at the point(s) selected pursuant to
               the above, the vacancies exist in his classification
               at the point(s) selected, the vacancy nearest the
               point of his reduction will be canceled and filled by
               the employee, seniority permitting.

               An employee who displaces on the system shall not be
               required to report to his displacing point within
               forty-eight (48) hours of the completion of his last
               scheduled work shift at his former point. Such
               employee may waive the allotted forty-eight (48) hour
               period by notifying the Company in writing of his
               intent to do so, and in such case shall be required to
               report to his displacing point on the report date
               determined by the Company. An employee electing to
               utilize the allotted forty-eight (48) hour period
               shall not be compensated for such time.

          (d)  An employee displacing on the system will displace in
               his specialty where possible. If the employee has
               insufficient seniority to hold his current specialty
               at the point(s) selected he must displace the least
               senior employee of all specialties in which he is
               qualified at those points selected seniority
               permitting.

          (e)  An employee failing to so exercise his seniority will
               lose all seniority, will be removed from the seniority
               lists, and his refusal to displace on the system will
               not affect any other displacements for which notice
               has been issued. However, if such results in other
               than the least senior employee on the system being
               laid off, the most senior employee from another point
               will be permitted to displace the least senior
               employee not thus laid off, etc.

     (5)  If an employee fails to notify the Company of his desire to
          displace on the system, it will be conclusively presumed
          that he elects to exercise seniority at his point in a lower
          classification in which he holds seniority.

          An employee who fails to exercise his seniority in a lower
          classification at his point, where it is possible for him to
          do so, will lose all seniority and forfeit all recall rights
          in such lower classification.

34

<PAGE>
<PAGE>

ARTICLE 6(E) (CONTINUED)

     (6)  An employee must displace in his highest classification at
          his point before displacing in the next lower
          classification, etc.

     (7)  Subject to other provisions of this Agreement, the following
          conditions will apply:

          (a)  A Crew Chief Mechanic may not exercise his Crew Chief
               Mechanic's seniority in a specialty in which he has
               not worked as a Crew Chief Mechanic unless he has
               successfully completed PART II of the Mechanic
               Examination for that specialty.

          (b)  An Inspector may not exercise his Inspector's
               seniority into a specialty in which he has not worked
               as an Inspector unless he has successfully completed
               PART II of the Mechanic Examination for that
               specialty.

          (c)  An Inspector may not submit a bid for a lateral
               transfer to a different specialty within his
               classification, unless he has successfully completed
               PART II of the Mechanic Examination for the specialty.

     (8)  An employee who fails to exercise seniority at his point in
          the classification from which reduced where it is possible
          for him to do so, will lose all seniority in such
          classification.

(f)  General

     (1)  In reductions where more than one employee is displacing at
          a point, the most senior of those displacing must displace
          first, then the next senior, etc. Displacement on the system
          will be in the same manner, except that in reductions where
          more than one employee is displacing on the system, the
          least senior employee being displaced on the system will be
          displaced by the most senior employee displacing who has
          listed the point of the former as acceptable.

     (2)  Any employee in a reduced or laid off status must accept
          recall in any higher classification at his point, where
          possible to do so, or forfeit seniority in that
          classification, except as otherwise provided in this
          Agreement.

     (3)  Only an employee holding classification seniority of at
          least one (1) year, on the day preceding the date notice of
          reduction is given, under the provisions of Article
          6(f)(10), will be permitted to exercise seniority to
          displace on the system in such classification (and such
          specialty as provided in Article 6(e)(4)(d)). It is
          understood that an employee with less than one (1) year's
          seniority in the classification from which reduced may elect
          to displace on the system in the next lower classification
          in which he holds a minimum of one (1) year's seniority,
          provided he is unable to displace at his point in such
          classification. If he elects to displace on the system in
          the next lower classification, his recall to his former
          location will be in that lower classification as provided in
          Article 6(e)(4).

                                                                     35

<PAGE>
<PAGE>

ARTICLE 6(F) (CONTINUED)

     (4)  Crew Chief and classification seniority above Mechanic will
          not be used to displace on the system.

     (5)  In the event there is a dispute regarding an employee's
          qualifications as they affect his rights to displace, the
          reduction will proceed as though the Company has made a
          correct determination of the qualifications. If it is later
          determined that the employee is qualified, he will then be
          permitted to exercise his seniority at the time of and in
          accordance with such qualification determination, and any
          resulting displacement or layoff will be on the basis of the
          current status of the employees in jobs at that time.

     (6)  (a)  An employee who is to be reduced or laid off in a
               reduction of force because the Company has determined
               that he is not qualified for any classification in
               which he seeks to exercise seniority may request a
               review of his qualifications. Such employee may submit
               in writing via certified U. S. mail his request for
               review to: Employee Relations Department, TWA, Kansas
               City International Airport, P. 0. Box 20126, Kansas
               City, Missouri 64195, not later than one (1) work day
               after written notification that he is to be reduced.

          (b)  Such review shall be made by a Qualifications
               Committee of four (4) consisting of two (2) members
               selected by the Union and two (2) members selected by
               the Company. The Committee may establish rules
               governing their procedure, consistent with the
               provisions of the Agreement. In reviewing the
               employee's qualifications, the Committee will consider
               the employee's work experience with the Company and
               his record of qualifications filed under Article 6(f)
               (12), and the employee's ability as indicated by
               performance standards as agreed upon by the Company
               and the Union.

          (c)  The Qualifications Committee will meet during regular
               day shift working hours, unless otherwise mutually
               agreed to, and members will not suffer loss of pay
               while performing their duties. A member of the TWA
               Employee Relations Department and the Union President
               - General Chairman, or his designated representative,
               may serve as Co-Chairman to the Committee without
               vote.

          (d)  The Qualifications Committee will complete its review
               within five (5) calendar days after receiving the
               employee's request and will thereupon advise the
               Company, Union, and employee, in writing, of its
               decision.

          (e)  If the Qualifications Committee determines that the
               employee is so qualified, such determination is final
               and binding upon the Company and the Company is then
               obligated to place the employee in the job, seniority
               permitting. If the Committee determines that the
               employee is not so qualified, such determination is
               final and binding upon the employee.

36

<PAGE>
<PAGE>

ARTICLE 6(F)(6) (CONTINUED)

          (f)  In the event the Committee is unable to arrive at a
               majority decision, a grievance may be filed in
               accordance with the provisions of Article 11 omitting
               Step I of the grievance procedure.

     (7)  Whenever an employee moves to another point (either by bid
          or displacement), he will take all seniority to the new
          point. Any seniority taken to another point may thereafter
          be exercised for any openings subsequent to his arrival at
          that point except as provided in this Agreement.

     (8)  (a)  Any employee who has displaced on the system must
               accept recall to the first job opening in the highest
               classification for which qualified, and in which he
               holds seniority, at his displacing point or forfeit
               seniority in that classification except as provided in
               Article 6(e)(4).

          (b)  In the event an employee who has displaced on the
               system is recalled to his former point, he must notify
               the Company representative designated in the recall
               notice in writing within one (1) work day after
               receipt of recall notice of his acceptance of the
               recall. If an employee fails to notify the designated
               Company representative in writing within the time
               limits specified above, he will forfeit all recall
               rights at his former point. If he accepts recall, he
               will be required to report to the point from which
               reduced on the date specified in the recall notice,
               not less than seventeen (17) days, unless otherwise
               mutually agreed to. If an employee refuses recall
               after he has indicated acceptance of a notice of
               recall, he will lose all seniority and will be removed
               from all seniority list(s).

          (c)  If an employee files any bids at his displacing
               location requesting transfer to another location,
               point, or classification at the point or specialty at
               the point (excluding bids to another seniority
               grouping in the specialty at the point) and accepts
               such transfer, he shall thereupon forfeit recall
               rights to the location or point from which displaced.

          (d)  An employee who is subsequently displaced and
               exercises seniority to another point may notify the
               Company, pursuant to Article 6(e)(4), of his desire to
               cancel a former recall point and designate the point
               from which he is displacing as the new recall point.
               If a displaced employee is furloughed he will be
               recalled to the point designated above or to the point
               from which he was furloughed. Refusal of recall to the
               designated point will not cancel recall to the point
               from which furloughed. Recall to the point from which
               he was furloughed will not cancel recall to the
               designated point.

     (9)  An employee exercising seniority to displace who is found
          not qualified in his new job will be laid off, provided he
          is unable to return to the specialty at the point from which
          reduced, and when so disqualified he shall lose all rights
          to layoff pay. He shall have recall rights only to the
          specialty at the point from which originally reduced or laid
          off.

                                                                     37

<PAGE>
<PAGE>

ARTICLE 6(F) (CONTINUED)

     (10) Ten (10) work days notice or pay therefore, at the Company's
          option, will be given employees to be reduced before a
          reduction is made, and a copy of such notice will be
          furnished the employee and the designated Local Union
          Representative. Where there is temporarily no work because
          of an Act of God, circumstances over which the Company has
          no control, or work stoppage and strikes by employees of the
          Company, it shall not be considered a normal reduction in
          force and subject to this provision.

     (11) (a)  Seniority will apply in the restoration of forces of
               all classifications: the most senior qualified
               employee holding seniority in the classification who
               is reduced to a lower classification at the point or
               laid off at the point or with system recall rights
               will be recalled in seniority order prior to any
               employees with lateral recall rights at the point.

               An employee (Mechanic and higher) at the point
               displaced from one specialty to another within his
               classification will retain lateral recall rights to
               his former specialty providing that at the time of
               displacement to the new specialty he has submitted
               written notice to the Company, COPY to the designated
               Local Union Representative, stating his desire to
               accept recall to his former specialty. The employee
               may cancel such recall option by written notification
               to the Company anytime prior to the date of notice of
               recall. If the employee refuses recall, he shall
               forfeit lateral recall rights. Lateral recall rights
               at the point are canceled if the employee is laid off
               at the point, leaves the classification at the point
               or displaces to another point.

               Employees displaced from one seniority grouping to
               another, at the point, in the Ramp Service
               classification shall have the same recall rights
               provided above.

               A reduced employee at the point shall have one (1)
               work day after receipt of the recall notice to notify
               the Company in writing of his acceptance of the
               recall.

          (b)  Any employee in a reduced or laid off status at the
               point must accept recall to the first job opening in
               the highest classification for which he is qualified
               at the point from which he was reduced or laid off or
               he will forfeit seniority in that classification.

          (c)  An employee reduced from a classification shall not
               continue to accrue service for pay purposes in the
               higher classification from which reduced, but upon
               return to the higher classification will be paid not
               less than the hourly rate applicable for previously
               accrued service.

          (d)  Employees laid off in a force reduction will accrue
               all classification seniority, but shall only accrue
               service credit for pay purposes up to a maximum of
               thirty (30) calendar days after date of layoff.

38

<PAGE>
<PAGE>

ARTICLE 6(F) (CONTINUED)

     (12) (a)  It shall be the responsibility of each employee to
               file with the Employee Relations Department of the
               Company and with the President - General Chairman of
               the Union a complete record of his qualifications for
               use in making proper determination of an employee's
               ability in the future exercise of seniority, and to
               keep such record current at all times.

          (b)  Only the record of the employee's work experience with
               the Company, license(s), completed examinations and
               his qualification record on file ten (10) days prior
               to notice of reduction, displacement or recall will be
               considered. Only such materials on file one (1) day
               prior to the posting date of a bid will be considered.

          (c)  The Company shall be relieved of all liability in any
               case where the employee is not selected as successful
               bidder, is not permitted to displace, or is not
               recalled because of information not being in his
               qualification record.

     (13) The Company will maintain a current, corrected listing of
          employees, in seniority order, by seniority grouping, in
          each classification and location, for use of employees
          exercising seniority under the terms of this Agreement.

     (14) In the case of demotion due to reduction in force the
          employee demoted shall continue to accrue seniority in the
          classification from which demoted if he was unable to
          exercise seniority in such classification.

     (15) Employees covered by the Agreements may voluntarily reduce
          themselves to lower classifications in which they hold
          seniority, by giving written notification to the Company,
          the Steward and Local Union Committee.

          Such voluntary reduction shall be effected after an eight
          hour break following the work shift that notice to the
          Company is given and such employees will be allowed full
          seniority, exercise.

     (16) Employees who are laid off will be given the opportunity to
          bid for vacancies in accordance with the provisions of
          Article 10.

     (17) In the event a Crew Chief is reduced and is unable to
          exercise seniority in his classification or if he should
          forfeit his Crew Chief seniority, he shall return to the
          basic classification in the seniority grouping where he was
          serving as Crew Chief.

     (18) Employees at a point promoted to Inspector, Flight Simulator
          Technician or Crew Chief Systems Technician who are reduced
          and are unable to exercise seniority in their respective
          classification, or voluntarily reduce themselves, shall
          return to the seniority grouping from which promoted,
          seniority permitting.

                                                                     39

<PAGE>
<PAGE>

ARTICLE 6(F) (CONTINUED)

     (19) (a)  Any employee accepting any position with the Company
               not covered by TWA-IAMAW Agreements shall retain but
               shall no longer accrue seniority.

          (b)  In the event an employee returns to a position covered
               by this Agreement, he shall displace only the least
               senior employee in the specialty at the location from
               which promoted, seniority permitting, and assume the
               shift and days off of the displaced employee.

          (c)  Any employee who has retained seniority in accordance
               with paragraph (a) and who leaves a position with the
               Company not covered by the TWA-IAM Agreements, must
               thereupon exercise his seniority in accordance with
               paragraph (b) or forfeit his seniority.

          (d)  An employee who has applied for disability retirement
               benefits under the Retirement Plan for employees
               covered by this Agreement, and is continuing
               employment with the Company after being found unable
               to perform the duties of his classification but able
               to perform the duties in another classification, will
               retain and continue to accrue seniority under the
               Collective Bargaining Agreement in the higher
               classification(s) during the period of such
               disability.

     (20) Flight Simulator Technician seniority will govern in
          determining successful bidders for Crew Chief Flight
          Simulator Technician. Mechanic seniority will govern in
          determining successful bidders for Flight Simulator
          Technician, Crew Chief Mechanic or Inspector. Inspector
          seniority will govern in moving into the Crew Chief
          Inspector classification and when Inspectors are not
          available, Mechanic seniority shall govern. Other
          classifications will be governed by the same principle.
          Basic seniority in the classification will govern in the
          selection of Crew Chief positions.

     (21) (a)  Classification seniority shall apply in the selection
               of shift and days off within a seniority grouping.

          (b)  The shift and days off assignment in a seniority
               grouping shall be established by the Company in
               accordance with the normal requirements of the
               service. In preparing shift and days off schedule(s)
               the Company will determine how many employees are
               needed on a shift and the determination will be based
               on the work performed by the seniority grouping. This
               information will be posted for five (5) days prior to
               working a bid in order to give an employee the
               opportunity to update his preference.

          (c)  Upon entering a seniority grouping an employee will
               exercise his seniority for shift and then days off
               assignment The Company may delay announcing shift and
               days off vacancies during the first one hundred twenty
               (120) days of employment for probationary employees
               and employees entering a basic classification, in
               which they do not hold

40

<PAGE>
<PAGE>

ARTICLE 6(F)(21)(C) (CONTINUED)

               seniority (Mechanic or below). Such employees may be
               assigned shift and days off as determined by the
               Company during this period of time. Thereafter,
               seniority may be exercised only in case of bumping due
               to a reduction in force or when an opening occurs.

          (d)  An employee who is notified that his shift and/or days
               off preference has been accepted shall have one (1)
               work day after the date so notified to refuse that
               assignment. Such employee will not be permitted to bid
               for a different shift and/or days off assignment for
               six (6) months after such refusal. An employee may
               withdraw his bid at any time prior to the time the
               Local Union Representative is notified of an opening.

          (e)  Where shift and/or days off preferences are solicited
               verbally, employees must confirm their preferences in
               writing and any employer refusing to accept his
               preference will not be permitted to bid for a
               different shift and or days off assignment for six (6)
               months after such refusal.

          (f)  At locations where seven (7) or more employees are
               assigned to the day shift, members of the Union's
               Local Grievance Committee shall be assigned to the day
               shift with Saturday and Sunday days off, provided this
               does not require the Company to hire additional
               personnel at such locations. At locations where
               employees work rotating shifts, members of the Union's
               Local Grievance Committee shall have preference of
               assignment to shifts with Saturday, and Sunday days
               off. This paragraph shall not apply to Full Time
               Committeemen referred to in Article 11.

     (22) The Company will furnish free non-positive air
          transportation for the employee and dependent members
          of his family for any transfer from one location to another.

(g)  Geographical Relocation

     (1)  In the event of the geographical relocation, in whole or in
          part, of any of the work performed by employees covered by
          this Agreement, the employees whose work is affected will be
          advised of the current corrected listing of employees in
          seniority order by seniority grouping in each classification
          at the new location and shall be given an opportunity to
          transfer to the new location at Company expense in
          accordance with paragraph (2) below, and given full credit
          for their accumulated seniority at the point to which the
          work is transferred in whole or in part. It is understood
          that the increase or expansion of facilities at a particular
          point that does not involve a reduction in jobs or
          facilities at another point shall not be construed as a
          geographical relocation of work in whole or in part. The
          employees whose work is affected shall be offered the
          opportunity to transfer in seniority order, with the most
          senior employee having first choice.

                                                                     41

<PAGE>
<PAGE>

ARTICLE 6(G) (CONTINUED)

     (2)  Employees will be allowed either actual moving expenses for
          household effects up to a maximum of 5,000 pounds gross
          weight for a single employee and up to a maximum of 10,000
          pounds gross weight for an employee with one dependent plus
          an additional 1,000 pounds gross weight for each additional
          dependent or a sum of money equal to the existing tariff for
          moving up to a maximum of 10,000 pounds of household effects
          between the two points. This reimbursement will be based
          upon submission of verifiable receipts of expenses incurred
          when moving their primary residence. If the employee elects
          to drive his own automobile to the point he shall be
          reimbursed at a mileage rate equal to the amount allowed by
          the federal government for federal employees for the most
          direct AAA mileage between the points from and to which he
          is being transferred, plus en route expense at the rate of
          two dollars ($2.00) per hour based upon 400 miles travel per
          day. An employee who does not drive to his new point will be
          allowed en route expenses for twenty-four (24) hours at two
          dollars ($2.00) per hour. Additionally, an employee will be
          allowed $400 relocation expense.

     (3)  In the event an employee who is reduced because his work is
          relocated does not elect to transfer to the point of
          relocation (herein called the new point), he shall be
          reduced at the point from which the work was relocated
          (herein called the old point), and shall exercise seniority
          in accordance with Article 6(e). In such event, employees
          who are subsequently displaced at the old point by employees
          reduced shall be offered an opportunity to transfer to the
          new point or exercise seniority as provided in Article 6(e)
          at Company expense in accordance with the above. However,
          the expenses paid shall not exceed those which such employee
          would have received had he transferred to the new point.

     (4)  In the event an employee elects to accept reduction at the
          old point, he shall have no further claim under the
          provisions of Article 6(g).

                               ARTICLE 7

                            HOURS OF SERVICE

(a)  Eight (8) consecutive hours, exclusive of a lunch period of not to
     exceed thirty (30) consecutive minutes, shall constitute a
     standard day's work. Eight (8) consecutive hours including a
     thirty (30) consecutive minute lunch period shall constitute a
     standard day's work for employees assigned to operate boiler
     rooms, or power houses, and Fire Inspectors, and for employees
     assigned to shifts which start at 5:00 p.m. or later and before
     6:00 a.m.

(b)  Forty (40) hours, consisting of five (5) eight-hour days, worked
     within seven (7) consecutive days, midnight Sunday to midnight
     Sunday, will constitute a standard work week. Each employee will
     have two (2) consecutive days scheduled as regular days off in
     each work week, and the only deviation from this practice of two
     (2) consecutive days off will be where under the local schedule
     adopted, it is found necessary to rotate  scheduled  days off and
     in order to repeat the schedule, deviation

42

<PAGE>
<PAGE>

ARTICLE 7(B) (CONTINUED)

     is necessary. At the overhaul base, every reasonable effort will
     be made in the future to arrange work schedules to allow Saturday
     and Sunday as regularly scheduled days off. The fixing of a work
     schedule allowing part of the employees of a facility Sunday of
     one week and Monday of the following week as regularly scheduled
     days off will not be deemed a violation of this provision. Five
     (5) days notice must be given of change in the schedule of shifts
     or days off.

(c)  When only one shift is employed at the overhaul base or at a major
     station, the starting time of the shift will be not earlier than
     6:30 a.m. and not later than 8:00 a.m., and all employees will
     take a lunch period not to exceed thirty (30) consecutive minutes
     within the limits of the fourth and fifth hour of the shift,
     subject to paragraphs (f), (g), and (h) below.

(d)  Where two shifts are employed at the overhaul base or at a major
     station, the starting time of the first shift will be governed by
     paragraph (c) above and the second shift will start not earlier
     than thirty (30) minutes before the close of the first shift, or
     immediately following the first shift, or in the alternative at
     8:00 p.m., and the same allowance for lunch period shall be
     provided as in the case of only one shift, subject to paragraphs
     (f), (g), and (h) below.

(e)  Where three shifts are employed at the overhaul base or at a major
     station, the starting time of the first shift will be governed by
     paragraph (c) above, and the second shift will start not earlier
     than thirty (30) minutes before the close of the first shift, and
     the third shift will start not earlier than thirty (30) minutes
     before the close of the second shift, subject to paragraphs (f),
     (g), and (h) below.

(f)  At major stations, in addition to the standard shift starting
     times provided in  paragraphs (c), (d), and (e) a maximum of three
     (3) additional shift starting times within the twenty-four (24)
     hour period may be established for employees in the combined
     Mechanic and higher classification and/or for each classification
     below the Mechanic classification, subject to paragraph (h) below.
     For the purpose of this provision, major stations shall be
     considered as John F. Kennedy, LaGuardia, Newark, O'Hare, St.
     Louis, Philadelphia, Kansas City (MKC/MCI), Boston, Washington
     National, Los Angeles, and San Francisco. When Mechanics or higher
     classified employees are assigned to such additional shifts, a
     minimum of three (3) such employees will be assigned to each such
     shift.

(g)  At all line stations other than major stations mentioned in (f)
     above, one, two, or three shifts may be established to suit the
     needs of the service. In addition, one, two, or three shifts may
     be established for the combined Mechanic classification and/or or
     for each classification below the Mechanic classification.
     However, when four (4), five (5), or six (6) shifts are required
     the standard starting times provided in paragraph (c), (d), and
     (e) shall apply to three (3) of such shifts.

(h)  Any change in shift starting times in excess of two hours shall
     result in shift bid bulletins on all jobs affected on a local
     basis. Working shifts established other than in

                                                                     43

<PAGE>
<PAGE>

ARTICLE 7(H) (CONTINUED)

     accordance with paragraphs (c), (d), and (e) shall be scheduled
     and posted at the location with copy furnished to Local Union
     Representative and the President - General Chairman. Any change in
     starting times of shifts shall be posted at least five (5)
     calendar days in advance of the change. Deviation from the
     starting times provided in paragraphs (c), (d), and (e) above may
     be made at an location when agreed upon by representatives of the
     Company and the President - General Chairman of the Union. Nothing
     in this Agreement shall require any change in shift starting time
     arrangements presently in effect at any location.

(i)  Working shifts shall be scheduled and posted at each station or
     facility. The standard shifts will be identified at each station
     or facility.

(j)  All employees will be given a ten (10) consecutive minute rest
     period during the first half of their shift and a ten (10)
     consecutive minute rest period during the second half of their
     shift for the purpose of relaxation, smoking, etc. and a five (5)
     consecutive minute period as a personal cleanup period prior to
     quitting time. An employee working overtime after his regular
     shift for an anticipated period of at least two (2) hours will be
     given a ten (10) consecutive minute rest period prior to beginning
     his overtime work. An employee working overtime into periods
     overlapping subsequent shifts will be given the rest periods taken
     by such shifts. Each of the foregoing periods shall be given
     without loss of time.

(k)  Except on his regularly scheduled days off, no employee will be
     called to work or required to report for work for a work shift of
     less than eight (8) hours or pay therefor, except (1) where
     recalled after completing a regular shift of eight (8) hours or
     more, or (2) to complete a regular shift, the first portion of
     which was paid for in accordance with Article 8(b). Employees
     regularly in the service of the Company will be considered as
     required to report for eight (8) hours work on their scheduled
     work days unless notified by the Company before the close of the
     last shift worked, or at least sixteen (16) hours before the start
     of their regular scheduled shift, whichever period is shorter,
     that there will temporarily be no work because of an Act of God,
     circumstances over which the Company has no control, or work
     stoppages and strikes by employees of the Company. Any employee
     not notified by the Company and as a result reporting for work
     when there is temporarily no work because of an Act of God,
     circumstances over which the Company has no control, or because of
     work stoppages and strikes by employees of the Company shall
     receive a minimum of four (4) hours pay at his regular hourly
     rate. An employee called to work or required to report for work on
     his regular scheduled day off will be paid a minimum of four (4)
     hours pay at the applicable rate.

(l)  Employees who, because of the requirements of the service, are
     requested to start their lunch period prior to the fourth hour of
     the shift or complete their lunch period after the fifth hour of
     their shift will be allowed a thirty (30) consecutive minute lunch
     period as close to their regular scheduled lunch period as
     possible and paid for same at straight time rate in addition to
     their regular straight time shift compensation. Every effort will
     be made to allow the employees their regularly scheduled lunch
     period within the limits of the fourth and fifth hours.  In the
     event that the employee

44

<PAGE>
<PAGE>

ARTICLE 7(L) (CONTINUED)

     does not receive a lunch period during his regular shift, he will
     receive compensation for the lunch period at time and one-half
     provided that the provisions of Article 8(a) do not apply in this
     event.

                               ARTICLE 8

                         OVERTIME AND HOLIDAYS

(a)  Overtime rate of time and one-half, computed on an actual minute
     adjusted to the nearest tenth of an hour basis with a minimum of
     one (1) hour overtime, shall be paid for all work performed in
     excess of eight (8) hours in any one day, for all work performed
     either in advance of or after regularly scheduled hours, and for
     the first eight (8) hours worked on one (1) of the two (2)
     regularly scheduled days off each work week.

(b)  (1)  Overtime rate of double time shall be paid:

          (a)  For all hours in excess of the first eight (8) hours
               worked on one of the two (2) regularly scheduled days
               off each work week,

          (b)  For all time worked on the second regularly scheduled
               day off in a work week if the first regularly
               scheduled day off has been worked,

          (c)  For all time worked in excess of twelve (12) hours in
               any twenty-four (24) hour period except when an
               employee, after bidding, voluntarily changes shifts.

     (2)  There are two conditions which could occur when an employee
          would not receive an eight (8) hour break without the loss
          of his regularly scheduled hours, and would be entitled to
          the double time rate of pay:

          (a)  When an employee involuntarily moves from one
               regularly assigned shift to another,

          (b)  When an employee works more than sixteen (16) hours in
               a twenty-four (24) hour period.

     (3)  When either one of these conditions occur, the employee will
          have the option to report for work as scheduled, provided he
          notifies appropriate supervision of such election before
          quitting duty at the termination of his prior overtime
          assignment or prior shift. Or be relieved from duty until he
          has at least an eight (8) hour break. If he elects relief
          from duty, the employee shall be reimbursed at his regular
          straight time rate of pay for such loss. However, an
          employee who elects to report for his next regularly
          assigned shift, foregoing the eight (8) hour break shall be
          compensated at the double time rate for all hours worked
          until he is off duty at least eight (8) consecutive hours.
          Relief from duty under this

                                                                     45

<PAGE>
<PAGE>

ARTICLE 8(B)(3) (CONTINUED)

          paragraph shall not be considered as absorption of overtime
          under paragraph (f) of this Article.

     (4)  For overtime purposes, the twenty-four (24) hour period
          shall begin with the starting time of the employee's
          regularly assigned shift and shall continue for twenty-four
          (24) consecutive hours thereafter or until the employee has
          been off duty at least eight (8) consecutive hours
          (whichever occurs later). An employee can not be required to
          take an eight (8) hour break under this Article.

          (See examples of application of this provision in back of
          this booklet on Page 250.)

(c)  Work in excess of eight (8) hours in any twenty-four (24) hour
     period as a result of rotation of shift or vacation relief
     assignment shall be paid for at straight time rates for the second
     eight (8) hours or portion thereof worked during such twenty-four
     (24) hour period, provided that not less than seven and one-half
     (7-1/2) hours shall have elapsed between the quitting time of the
     first shift and the starting time of the second shift.

(d)  (1)  Employees covered by this Agreement will observe the
          following holidays: New Year's Day, Memorial Day,
          Independence Day, Labor Day, Thanksgiving Day, Christmas
          Day, Employee's Birthday, and a Floating Holiday (only
          scheduled workdays). Effective January 1, 2000, employees
          covered by this agreement will observe two (2) additional
          floating holidays. All holidays will be observed in the
          current calendar year in which they fall. If Federal law
          designates a date other than the calendar date of one of the
          above listed holidays for observance of the holiday, the
          date designated by law shall be considered the holiday. Any
          employee required to work on any of the foregoing holidays
          shall be compensated at the rate of double time and a half
          for all hours worked up to eight (8) hours. The twenty-four
          (24) hour period beginning with the starting time of the
          employee's regularly assigned shift shall constitute the
          holiday for purposes of pay under this provision. Any
          employee required to work on any of the foregoing holidays
          in excess of eight (8) hours shall be compensated at the
          rate of triple time.

          Employees required to work on the above named holidays will
          be given a minimum of seventy two (72) hours notice.
          However, if staffing requirements change after this
          notification, additional employees may be required to work
          the holiday.

46

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<PAGE>

ARTICLE 8(D)(1) (CONTINUED)

     (2)  The date of the employee's floating holiday(s) will be
          established by the employee submitting a written request to
          his supervisor at least seven (7) days prior to the date the
          employee desires to designate as his floating holidays. The
          date will be awarded to the senior employee(s) who requests
          such date seven (7) days or more in advance of the date in
          question. At least five (5) days prior to the date requested
          the Company will post a list of those employees who will
          observe the holidays. Employees whose names do not appear on
          the posted list will be permitted to designate a different
          date in accordance with the above. Except for employees
          discharged for cause or who quit, all other employees who
          have not observed their floating holiday(s) by December 31,
          shall have such holiday carried forward to the following
          year and it must then be taken as a holiday on a day
          adjacent to the employee's birthday holiday in the same
          regularly scheduled work week as that in which the
          employee's birthday falls. Any employee who resigns with
          notice or is furloughed prior to observing his carried over
          floating holiday(s) will be paid for the carried over
          floating holiday(s).

          If an employee is unable to schedule his additional Floating
          Holiday(s), the Floating Holiday(s) will carry over to the
          following year and the employee will be required to bid the
          carry over Floating Holiday(s) from open vacation periods,
          which will be bid no later than February 1.

          If there are no open vacation periods, the Company will be
          required to open additional vacation days, sufficient to
          accommodate all those employees who have carry over Floating
          Holiday(s).

     (3)  In the event an Employee's Birthday falls on February 29,
          March 1 shall be observed. If Employee's Birthday falls on
          another of the holidays specified above, his next following
          workday shall be considered such other holiday.

          An employee may elect to take his birthday holiday on any
          day (within the same calendar year) falling within the same
          regular scheduled work week as that which his birthday
          falls. If an employee desires to move his birthday holiday
          as provided above, he shall provide written notification to
          his supervisor at least fourteen (14) days prior to the day
          the employee elects to take as his birthday holiday. For the
          purpose of determining which regular scheduled work week the
          employee's birthday falls, Article 8(d)(4) and (5) shall
          apply.

                                                                     47

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<PAGE>

ARTICLE 8(D) (CONTINUED)

     (4)  If any of the above holidays fall on an employee's regularly
          scheduled first day off, the preceding day shall be
          considered as the holiday. Should any of the foregoing
          holidays fall on an employee's second day off, the following
          day will be considered as the holiday. In accordance with
          the provisions of 8(d)(1), this provision shall not apply if
          it results in the holiday being observed in other than the
          current calendar year. In that case, the holiday will be
          observed on the first scheduled work day either immediately
          before or after the employee's regularly scheduled days off
          in order that the holiday be observed within the current
          calendar year.

     (5)  If any of the above mentioned holidays fall during the
          employee's regularly scheduled vacation, the employee may
          elect, prior to going on vacation, to move his vacation
          forward, or extend it, by the number of holidays falling
          during his vacation. If the employee fails to elect as
          provided herein, then the employee's vacation shall be
          extended by the number of holidays falling during his
          vacation except that if the vacation runs to the end of the
          calendar year, the vacation shall be moved forward by the
          appropriate number of days. An employee will not be eligible
          for overtime or to work on a holiday or scheduled days off
          that falls in or in conjunction with his vacation. The
          vacation will commence when he punches out on his last
          scheduled work day and will continue until the employee
          punches in on his first scheduled work day following his
          vacation.

(e)  (1)  The Company will make every effort to avoid requiring
          employees to work on a holiday to the extent that such
          holiday observance does not interfere with the required
          service. Employees not required to work on above mentioned
          holidays will be compensated for the day at eight (8) hours
          at straight time rate. An employee scheduled and required to
          work on a holiday who does not report for work shall not
          receive any pay for that day unless such absence is for
          reason(s) beyond the employee's control.

     (2)  With the exception of the birthday holiday or a floating
          holiday which has been carried forward from the preceding
          year, as provided in Article 8(d)(2), the Company will,
          unless there is a local agreement to the contrary, offer the
          holiday off in seniority order. To the extent that the
          Company may allow more employees off than the number
          requesting such holidays, the Company will assign the
          holiday off in the inverse order of seniority.

(f)  Overtime shall be distributed as equally as possible among all
     qualified employees at the location or in the department where
     overtime is required, and employees will not be required to
     suspend work during regular working hours to absorb overtime.

(g)  (1)  Except in an emergency, an employee will not be required to
          work overtime against his wishes. In the administration of
          this paragraph management will make a good faith effort to
          secure voluntary overtime before declaring an emergency.

     (2)  Whenever an emergency is declared, the Local Union
          Representative and the President - General Chairman,
          District 142 will, within a reasonable period of

48

<PAGE>
<PAGE>

ARTICLE 8(G)(2) (CONTINUED)

          time be furnished with a statement regarding the date, time,
          and nature of circumstances giving rise to the declaration.

(h)  When an employee covered by this Agreement has been relieved for
     the day and is recalled to work, he will be paid not less than
     three (3) hours at the overtime rate applicable for each call.

(i)  For continuous service before or after regular working hours no
     employee will be required to work more than two (2) hours without
     being permitted to go to meals, and all employees will be allowed
     a thirty (30) minute period in which to eat without loss of time.

(j)  No overtime shall be worked except by direction of the proper
     supervisory personnel of the Company, except in cases of emergency
     where prior authority cannot be obtained.

(k)  There shall be no pyramiding of the overtime rates provided for in
     this Agreement, and no employee shall receive more than double the
     straight time rate for any hours worked, except as provided in
     paragraph (d) of this Article.

(l)  Employees shall be given four (4) hours notice of contemplated
     overtime work, except (1) in cases of emergency, and (2) at line
     stations where interruptions in flight schedules make a four (4)
     hours notice impossible.

(m)  Employees covered by this Agreement will not be bypassed for
     overtime assignments because of overtime rates of pay.

                               ARTICLE 9

                             FIELD SERVICE

(a)  Employees covered by this Agreement engaging in emergency field
     service away from their base station to restore airplanes or
     equipment to service shall be paid for such work on the same basis
     as paid at their base station, with a minimum of eight (8) hours
     at straight time rate, including any premiums to which they are
     regularly entitled, for each twenty-four (24) hour period away
     from the base station.

(b)  All time spent in traveling or waiting in connection with
     emergency field service as defined in paragraph (a) above,
     including hours in excess of eight (8) hours in one day, will be
     paid for at straight time rate, if during the current twenty-four
     (24) hour period no work is required before or after traveling,
     and it is not an employee's regular day off or a holiday.

(c)  All time spent in travel, waiting, or working at Company direction
     on scheduled days off, holidays, and in excess of eight (8) hours
     on scheduled work days when work is required, will be paid for at
     the overtime rate applicable. However, if travel is interrupted
     for any reason and employees are released by written order
     through an

                                                                     49

<PAGE>
<PAGE>

ARTICLE 9(C) (CONTINUED)

     agent of the Company for five (5) consecutive hours or more, they
     shall not be paid for the time released, but in no event shall any
     employee receive less than eight (8) hours pay at straight time
     rate for any twenty-four (24) hour period while away from his base
     station on emergency field service.

(d)  Upon completion of emergency field service, employees shall return
     to their home station in accordance with the orders received at
     the time they left their home station, or in accordance with the
     orders they received from the person to whom they are ordered to
     report in the field, and shall be compensated for the return trip
     in accordance with the provisions of paragraphs (b) and (c) above.

(e)  Employees called from home for field service after completing
     their regular shift assignment, or on a regular day off, will be
     allowed one (1) hour as preparatory time in advance of scheduled
     departure time at the overtime rate. In all possible cases they
     will be notified at least two (2) hours before departure time.

(f)  An employee away from his home station on emergency field service.
     or on a special assignment to attend training classes pertaining
     to his work, shall receive the following expenses:

     (1)  For emergency field service, effective August 1, 1999, two
          dollars ($2.00) per hour for each hour or fraction thereof
          while away from his base station, it being understood that
          such expenses begin at block-out time at his home station
          and end at block-in time back at his home station. For
          special assignments or to attend training classes pertaining
          to his work, effective August 1, 1999, one dollar and sixty
          cents ($1.60) per hour will be paid. Additionally, in the
          event an employee is delayed in leaving his base station, in
          excess of three (3) hours, he shall receive reimbursement
          for reasonable actual expenses for meals during the period
          of such delay.

     (2)  Actual expenses for suitable lodging at a Company designated
          or approved hotel.

     (3)  In addition to the expenses provided for under subparagraphs
          (1) and (2) of this paragraph, the Company may allow
          additional expenses covering any extraordinary conditions.

          Upon application, an employee will be given an advance by
          the Company to cover his expenses while away from his base
          station. Expense reports shall be submitted by the employee
          not later than five (5) days after the last day of the
          period covered. Reports covering actual expenses shall be
          submitted for half-month periods as follows: 1st to 15th
          inclusive: 16th to last date of the month inclusive.

(f)  When an employee covered by this Agreement receives a special
     assignment to attend training classes pertaining to his work, or
     to fulfill other special assignments not constituting emergency
     field service, he shall receive compensation not to exceed

50

<PAGE>
<PAGE>

ARTICLE 9(G) (CONTINUED)

     eight (8) hours per day for the time spent in traveling or
     waiting, at the employee's straight time rate. If such special
     assignment involves traveling after completion of his regular work
     for the day, he shall receive the applicable overtime rate for the
     first succeeding eight (8) hours of traveling and waiting.

                               ARTICLE 10

                         VACANCIES AND BIDDING
                    (JOBS COVERED BY THIS AGREEMENT)

(a)  (1)  A Vacancy shall be any opening (permanent or temporary in
          nature) which cannot be filled through an application of
          seniority provisions of this Agreement providing for the
          restoration of forces.

     (2)  Any vacancy not filled within sixty (60) days from the date
          the Local Union Representatives are notified of the vacancy
          will be canceled and may be reannounced.

     (3)  Whenever a new classification(s) is established at a point,
          excluding all Crew Chiefs and classifications above
          Mechanic, such vacancies will be bulletin bid system wide,
          and the successful bidder will be allowed either actual
          moving expenses for household effects up to a maximum of
          3,000 pounds gross weight for a single employee and up to a
          maximum of 8,000 pounds gross weight for an employee with
          one dependent, plus an additional 500 pounds gross weight
          for each additional dependent or a sum of money equal to the
          existing tariff for moving 5,500 pounds of household effects
          between the two points, plus $300.00 relocation expense.

     (4)  Prior to filling a vacancy, the Local Grievance Committee or
          a designated representative of the Union will be notified
          whenever any vacancy(s) is announced by the Company. The
          Union will be notified of the number of vacancies, point,
          location, classification, seniority grouping, and reporting
          date.

     (5)  Provided that qualified employees with preference bids on
          file are available, vacancies will be filled in seniority
          order from among employees having bids on file the day
          preceding the date the Local Union Representatives are
          notified of the vacancy(s).

     (6)  Bid forms shall be furnished by the Company and supplied by
          an employee's immediate supervisor upon request.

     (7)  An employee who desires to transfer at his point and/or
          another point in a classification in which he holds
          seniority may submit a preference bid. In filling vacancies,
          preference bids of employees at the point where the vacancy
          exists shall be given preference over employees at other
          points.

                                                                     51

<PAGE>
<PAGE>

ARTICLE 10(A) (CONTINUED)

     (8)  An employee who desires to bid for vacancies in the Mechanic
          classification or lower (who does not hold seniority in the
          classification into which he desires to transfer) may submit
          a Company seniority bid. In filling vacancies, Company
          seniority bids of employees at the point will be given
          preference over Company seniority bids of employees at other
          points. Such bids are to be handled in the same manner as
          set forth in Article 10(b)(1) and Article 10(b)(2).

     (9)  Vacancies in Crew Chief classifications, Receiving
          Inspector, and in the classifications above  Mechanic, which
          are not filled locally by point preference bid, will be
          bulletined only at the point where the vacancy exists, and
          if not filled locally seven (7) calendar days after the
          bulletin is posted, the vacancy will then be filled from
          preference bids of employees from other points on the
          system. If the vacancy still exists, it will then be
          bulletined at all points where employees covered by this
          Agreement are located.

     (10) Whenever and wherever a vacancy exists in the Mechanic
          classification or lower, excluding Crew Chief positions and
          Receiving Inspector vacancies not filled by employees
          holding seniority in that classification, Company seniority
          shall govern and such vacancy will be filled by the most
          senior qualified employee bidding from another
          classification covered by the Agreements. In filling
          vacancies in the Stores and Ramp Serviceman classifications,
          employees who have successfully completed the applicable
          examination will be considered as qualified in connection
          with bids. The Company shall not institute any testing
          procedures in connection with promotions or seniority
          exercise without the participation and concurrence of the
          Union.

     (11) In the event a vacancy in the classifications covered by
          this Agreement exists at any location on the Company's
          system, and no qualified employee bids, the Company may
          select to fill such position any qualified employee at any
          location willing to accept transfer at the Company's
          expense, or hire a qualified new employee to fill such
          vacancy. When the Company transfers or hires employees under
          this paragraph, the Company will notify the Local Union
          Representative of the names of the employees, seniority
          date, reporting date, and the number of remaining openings.
          An employee hired as or promoted to a Crew Chief pursuant to
          this provision will accrue concurrently seniority in the
          basic classification and that employee will exercise that
          basic classification seniority in accordance with the
          applicable provisions of this Agreement subject to Article
          6(b)(2) and Article 10(b)(16).

(b)  Bidding

     A current bidding information document to be maintained by the
     Company and made available to employees upon request.

     (1)  Preference bids will be submitted in three (3) written
          copies, specifying the classification, point, location and
          seniority grouping to which transfer is desired. One (1)
          copy to be mailed, via U. S. Mail to: TWA-IAM BIDDING
          SECTION,

52

<PAGE>
<PAGE>

ARTICLE 10(B)(1) (CONTINUED)

          KANSAS CITY INTERNATIONAL AIRPORT, P. O. BOX 20126, KANSAS
          CITY, MISSOURI 64195 and one (1) copy furnished to the Local
          Grievance Committee or designated representative of the
          Union; and one (1) copy to be retained by the bidding
          employee.

     (2)  Preference bids may be canceled by the employee at any time
          prior to announcement of the employee as a successful bidder
          and shall automatically expire on January 1 of each year.
          Employees desiring to submit bids effective on January 1 may
          not submit such bids earlier than thirty (30) days prior to
          this date and must specify the January 1 effective date.
          Cancellation of bids must be made in writing with three (3)
          copies distributed in the same manner as set forth for
          submission of bids.

     (3)  (a)  Employees laid off may file system preference bids to
               fill vacancies at any point on the system. In the
               event a laid-off employee is successful bidder, the
               Company shall notify him only at the last address
               filed with the Company, and he must report on the date
               specified (not less than seventeen (17) days), unless
               otherwise mutually agreed to. Any laid-off employee
               named successful bidder for a vacancy at another point
               who refuses to accept the job will be considered only
               for recall at the point at which he was laid-off.

          (b)  Employees laid off may also file Company seniority
               bids to any classification where qualified in the same
               manner as set forth in Article 10(a)(8). Laid off
               employees submitting and accepting these bids will not
               lose seniority rights in any higher classification in
               which they hold seniority. However, should the bid be
               awarded and accepted to a position at a point other
               than that from which laid off, the employee will lose
               recall rights at the point from which laid off.

          (c)  A successful bidder who is laid off must inform the
               Company in writing or by telegram of his acceptance of
               the bid within seven (7) calendar days after the date
               of the bid award notification.

     (4)  Vacancies created by employees entering the Armed Forces
          when bulletined for bid must make mention that the vacancy
          is created by an employee entering the Armed Forces to
          assure that the successful bidder is fully aware of the
          conditions existing at the time of his transfer. It is
          understood that the employee returning from the Military
          Services shall be entitled to full point seniority exercise
          and the employee eventually displaced will be the least
          senior employee at the point.

     (5)  All bulletined bids will contain a general description of
          the work performed by the seniority grouping, the date
          vacancy is announced by the Company, posting date, reporting
          date, number of vacancies, classification, seniority
          grouping, point, location, and the final date after which
          bids will not be considered. The closing date for a bid
          bulletin will be seven (7) calendar days from date of
          posting and all bids in response thereto must be postmarked
          no later than that closing date.

                                                                     53

<PAGE>
<PAGE>

ARTICLE 10(B) (CONTINUED)

     (6)  An employee bidding for more than one vacancy shall indicate
          his order of preference, such order of preference will be
          honored if he is senior bidder for more than one vacancy
          announced on the same date and he will be selected for the
          classification ranked highest in his preferences. Having
          been named successful bidder for one of his preferences, an
          employee's bid(s) for the same classification and for other
          lower classification preferences will be canceled.

     (7)  Employees covered by this Agreement desiring to bid down to
          classifications in which they hold seniority may do so by
          preference bid. Such bids will be filled in order of
          seniority in the classification in which the employee wishes
          to transfer.

     (8)  Employees who voluntarily bid down and accept positions in
          lower classifications shall forfeit seniority in accordance
          with Article 6(d)(4).

     (9)  Any employee named as a successful bidder for a vacancy and
          refusing to accept the job will not be permitted to bid for
          another vacancy in the same classification for a period of
          one (1) year from the date of refusal. Upon receipt of
          notice that an employee is a successful bidder he shall
          notify his supervisor in writing no later than his third
          work day of a refusal of a bid. The supervisor will advise
          the TWA/IAM Bidding Section by the most expeditious means.
          If the employee has failed to refuse the bid as provided
          above, the employee must accept the bid or lose all
          seniority and have his name removed from all seniority
          lists.

     (10) An employee who accepts a bid to another point on the system
          will not be permitted to bid to a former point and
          classification for a period of one (1) year from the
          reporting date of the bid.

     (11) A successful bidder will not be permitted to bid for a
          vacancy, in the same classification for which he was named
          successful bidder, at the point, for a period of six (6)
          months after the reporting date of the bid, or twelve (12)
          months if the vacancy is in a different specialty within the
          same classification.

     (12) Excluding Crew Chiefs classifications, employees bidding
          laterally within their specialty will be considered as
          qualified in connection with bids.

     (13) Employees who have passed the applicable Mechanic
          Examination(s) as provided in Article 5 will be considered
          as qualified in connection with bids.

     (14) Excluding employees in a basic classification bidding
          laterally within their specialty, it is understood that the
          provisions for meeting performance standards are retained as
          to employees who achieved the Master Mechanic rating prior
          to July 1, 1955 and in selecting successful bidders the
          Company will take into consideration the employee's work
          experience with the Company, the qualification record filed
          by the employee, and the applicable performance standards as
          agreed upon by the Company and the Union.

54

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<PAGE>

ARTICLE 10(B) (CONTINUED)

     (15) After an employee has been chosen to fill a vacancy, the
          Company shall mail to the President - General Chairman and
          all shops and locations a notice to be posted on the
          bulletin boards showing the name, number of vacancies,
          point, location, and seniority, date of the employees
          selected to fill the vacancies. If the vacancy is filled by
          preference bid, such notice shall be mailed within seven (7)
          calendar days after the Union Representative was notified of
          the vacancy, and will specify the date the employee is
          expected to report. If the vacancy is filled by bid for a
          bulletined vacancy, such notice shall be mailed within ten
          (10) calendar days after the close of the bulletin.

     (16) Excluding employees in a basic classification bidding
          laterally within their specialty a successful bidder shall
          hold the job for a fair and reasonable period of time, not
          to exceed ninety (90) days (180 days for employees not
          holding seniority in the Mechanic classification) on a trial
          basis in order to demonstrate his ability to perform the
          work required. In case the job is found to be not as
          represented, the employee will, seniority permitting, return
          at Company expense to his former location and seniority
          grouping.

          If an employee is promoted to a higher classification during
          a trial period(s), the trial period(s) in the lower
          classification(s) will not be interrupted and the balance of
          such trail period(s) will continue to run concurrently with
          the trial period in the higher classification. Employees
          reduced during a trial period shall complete the balance
          remaining upon returning to such classification.

          During such trial period, if the employee is unable to
          demonstrate ability to perform the work required by the job,
          he will be privileged to exercise his seniority at his
          previous location by displacing only the employee with the
          least seniority in his seniority grouping and assume the
          shift and days off of the displaced employee, and for a
          period of six (6) months thereafter his bid for a vacancy in
          the same classification for which he was unable to
          demonstrate ability will not be considered. Thereafter, an
          employee who wishes to submit a bid for the same specialty
          must submit an updated Qualification Sheet indicating
          additional training or work experience since his
          disqualification which will qualify him to submit a new bid.

          If the employee elects to return to his previous job during
          such trial period, he may do so, provided such job is in a
          lower classification than the job for which he bid, and he
          will be privileged to exercise his seniority at his previous
          location by displacing only the employee with the least
          seniority in his seniority grouping and assume the shift and
          days off of the displaced employee, and for a period of six
          (6) months thereafter his bid for a vacancy in the
          classification from which he returned will not be
          considered.

     (17) If the successful bidder for a vacancy is located at some
          point other than the point where the vacancy is to be
          filled, the Company will furnish free non-positive air
          transportation for the employee and for the dependent
          members of

                                                                     55

<PAGE>
<PAGE>

ARTICLE 10(B)(17) (CONTINUED)

          his immediate family, from the location from which he is
          transferring to the location of the job.

     (18) The seniority date and the effective date of wage rate of
          the successful bidder, including employees promoted, shall
          be the reporting date set forth in the bid notice received
          by the Local Union Representative at the time the vacancy,
          was announced. Regardless of the reporting date of the
          successful bidder, no employee will be required to transfer
          to another point on the system with less than seventeen (17)
          days written notice. The seniority date of newly hired
          employees shall be one (1) calendar day after the reporting
          date specified in the bid notice or the date they first
          report to work, whichever is later. An employee entering a
          higher classification will start at the minimum pay rate of
          the higher classification or the pay rate he then held in
          his former classification, whichever is higher. He will
          remain at such rate until the date of his next automatic

     (19) (a)  The Company will notify an employee, in writing, in
               the event he is not selected as successful bidder
               because the Company has determined he is unable to
               perform the required work of the job in a satisfactory
               manner. Such employee may submit in writing his
               request for review of his qualifications to: EMPLOYEE
               RELATIONS DEPARTMENT, TWA, KANSAS CITY INTERNATIONAL
               AIRPORT, P. O. BOX 20126, KANSAS CITY, MISSOURI 64195,
               not later than two (2) work days after written
               notification is received.

          (b)  Such review shall be made by a Qualification Committee
               of four (4) consisting of two (2) members selected by
               the Union and two (2) members selected by the Company.

               The Committee may establish rules governing its
               procedure, consistent with the provisions of the
               Agreement. In reviewing the employee's qualifications,
               the Committee will consider the employee's work
               experience with the Company and his record of
               qualifications filed under Article 6(f)(12), and the
               employees' ability as indicated by performance
               standards as agreed upon by, the Company and the
               Union.

          (c)  The Qualifications Committee will meet during regular
               day shift working hours, unless otherwise mutually
               agreed to, and members will not suffer loss of pay
               while performing their duties. A member of the TWA
               EMPLOYEE RELATIONS DEPARTMENT and the Union President
               - General Chairman, or his designated representative,
               may serve as Co-Chairman to the Committee without
               vote.

          (d)  The Qualifications Committee will complete its review
               within five (5) calendar days after receiving the
               employee's request and will thereupon advise the
               Company, Union, and employee, in writing, the reason
               of its decision.

56

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<PAGE>

ARTICLE 10(B)(19) (CONTINUED

          (e)  If the Qualifications Committee determines that the
               employee is so qualified, such determination is final
               and binding upon the company and the Company is then
               obligated to place the employee in the job, seniority
               permitting. If the Committee determines that the
               employee is not qualified such determination is final
               and binding upon the employee.

          (f)  In the event the Committee is unable to arrive at a
               majority decision, a grievance may be filed in
               accordance with the provisions of Article 11 omitting
               Step I of the grievance procedure.

          (g)  Where there is an adjustment of any grievance
               involving the rights of an employee who may have been
               transferred to fill a vacancy for which another
               employee is subsequently determined to be qualified,
               after the Company had previously determined he was not
               qualified, such adjustment will include appropriate
               adjustment for expenses incurred.

          (h)  Nothing in this Agreement will prevent the Company
               from delaying the actual transfer of an employee to
               fill a vacancy if another employee has protested to
               the Qualifications Committee the Company's
               determination that he was unqualified. Such transfer
               may be delayed until the protest of the other employee
               is finally determined in accordance with this
               Agreement.

     (20) No employee will be compelled to accept a permanent transfer
          against his wishes.

(c)  Temporary Crew Chief Assignments

     A vacancy in Crew Chief classification of less than thirty (30)
     days duration will be considered temporary in nature and such
     vacancies will be filled from employees in respective seniority
     groupings at work as follows:

     (1)  Where license(s) and an examination are required for a Crew
          Chief job in the seniority grouping, the Temporary Crew
          Chief selection will be made as follows:

          (a)  Senior reduced Crew Chief in the seniority grouping at
               work.

          (b)  Senior qualified employee in the seniority grouping at
               work who possesses applicable license(s) and
               examination.

          (c)  Senior qualified employee in the seniority grouping at
               work who possesses applicable license(s).

          (d)  Senior qualified employee in the seniority grouping at
               work who possesses applicable examination.

          (e)  Senior qualified employee in the seniority grouping at
               work.

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<PAGE>

ARTICLE 10(C) (CONTINUED)

     (2)  Where only an examination is required for a Crew Chief job
          in the seniority grouping, the Temporary Crew Chief
          selection will be made as follows:

          (a)  Senior reduced Crew Chief in the seniority grouping at
               work.

          (b)  Senior qualified employee in the seniority grouping at
               work who possesses applicable examination.

          (c)  Senior qualified employee in the seniority grouping at
               work.

     (3)  Where no license(s) or examination is required for a Crew
          Chief job in the seniority grouping, the Temporary Crew
          Chief selection will be made as follows:

          AT OTHER THAN MAJOR STATIONS LISTED IN ARTICLE 7(f):

          (a)  The senior reduced Crew Chief in the seniority
               grouping at work.

          (b)  The senior qualified employee in the seniority
               grouping at work.

          AT MAJOR STATIONS LISTED IN ARTICLE 7(f):

          (c)  The senior reduced Crew Chief in the seniority
               grouping at work, provided that if the estimated
               duration of the Temporary Crew Chief assignment does
               not exceed one full work shift the Temporary Crew
               Chief shall be selected from among the employees in
               the work area (i.e., Hangar, Hangar/Line,
               Terminal/Ramp, Commissary, or Air Freight) in which
               the Crew Chief is required.

          (d)  The senior qualified employee in the seniority
               grouping at work, provided that if the estimated
               duration of the Temporary Crew Chief assignment does
               not exceed one full work shift the Temporary Crew
               Chief shall be selected from among the employees in
               the work area (i.e., Hangar, Hangar/Line,
               Terminal/Ramp, Commissary, or Air Freight) in which
               the Crew Chief is required.

     (4)  No employee will be compelled to accept a Temporary Crew
          Chief Assignment against his wishes.

(d)  In the event it becomes necessary to temporarily assign employees
     to another seniority grouping because of unusual and/or
     unanticipated circumstances resulting from work load changes or
     for the purpose of performing a special work function, such
     assignment will not be made arbitrarily or without good reason.
     When the Company has determined the work to be performed, the
     number of employees affected and the estimated duration of such
     assignment, the method of effecting the assignments in an
     expeditious, efficient and fair manner will be discussed and
     resolved with the appropriate Union Representative.

58

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<PAGE>

ARTICLE 10 (CONTINUED)

(e)  It is the recognized policy of the Company to promote its own
     employees to supervisory positions insofar as possible, and only
     when competent employees cannot be found in the ranks, or when
     competent employees will not accept vacancies or new positions,
     will the Company vary from this policy.

                               ARTICLE 11

                          GRIEVANCE PROCEDURE

(a)  Representation

     The representation of presentation and adjustment of disputes or
     grievances that may arise under this Agreement shall be:

     The Union will be represented by properly designated stewards, one
     in each department or section thereof, for each shift at each
     point on the system. In addition, the Union will be represented by
     full-time committees at those points listed in (b) below, one of
     whom shall be designated as chairman. In addition, the Union will
     be represented by a local committee consisting of not more than
     three (3) members at EWR, IND, LAS and PHX: of not more than two
     (2) members at ABQ, CMH, CVG, DAY, DCA DEN, IAD and PHL and one
     (1) member at all other points. One (1) member of the local
     committee shall be designated as Local Chairman. Where a
     metropolitan area with more than one location is involved, there
     may be separate stewards and separate committees.

(b)  Full-Time Committees

     Line Stations and Overhaul Base     Committeemen    Committeemen
     -------------------------------     ------------    ------------
                                          (Including     (Alternates)
                                           Chairman)

     Kansas City Overhaul Base/Line           7               3
     JFK and LGA                              6               3
     Chicago                                  1               1
     SFO                                      2               1
     LAX                                      4               1
     STL                                      5               1
     BOS                                      1               1

     Such committeemen shall be the sole committee members under the
     terms of Article 11(a)(1), unless during the term of the current
     agreement the parties otherwise mutually agree.

     Full-time committeemen will be paid by the Company for a maximum
     of forty (40) hours per week at their hourly rate of pay including
     the afternoon shift premium. The Union will notify the Company of
     the individuals who will serve in these positions and the
     designated area of representation for each committeeman. Normally
     each

                                                                     59

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<PAGE>

ARTICLE 11(B) (CONTINUED)

     local committeeman will participate in handling complaints,
     disputes and grievances in his designated area. The Committee may
     represent the Union on any complaints, disputes or grievances
     below Step 3 level.

     Full-time committeemen will be assigned to various shifts where
     needed using a basic forty (40) hour work week which shall be
     determined by the Local Committee Chairman, IAMAW, who in turn
     will advise the Regional Manager Employee Relations or his/her
     designee in writing of each committeeman's work assignment.
     Committeemen will normally check 'in' and 'out' when arriving
     and/or leaving Company premises. Committeemen will submit time
     cards in accordance with existing time card procedure.

     Each committeeman will represent the Union in handling Step 2
     grievances, complaints and disputes with the ranking Company
     official at the point. In order to facilitate the conduct of
     union-management business in an orderly and businesslike manner,
     it is agreed:

     (1)  The Company will provide the full-time committeemen with
          space for a single office with an intra-base telephone in an
          acceptable area.

     (2)  Stewards and committeemen will be empowered to settle all
          local grievances or disputes not involving changes in policy
          or the intent and purposes of this Agreement.

     (3)  Full-time committeemen may leave the premises during their
          working hours without loss of pay for the purpose of
          conducting union-management business with the President -
          General Chairman and/or General Chairmen of District Lodge
          142. When leaving the premises for these purposes, the
          President - General Chairman and/or General Chairmen shall
          advise local management.

     (4)  The Company and the Union will make every effort to keep to
          a minimum the actual time spent in disposing of grievances,
          disputes or complaints.

     (5)  All committeemen will be eligible for overtime in their
          respective departments. While working overtime, committeemen
          will not function as Union representatives. If a
          committeeman does not desire to work overtime, he will
          request his name be removed from the overtime list.

     (6)  All committeemen will be allowed free access and
          availability to all work areas and shops within their
          respective areas of representation in order to conduct their
          business in a proper, efficient and expedient manner. In so
          doing, they will contact appropriate management personnel.

     (7)  The Union will be further represented by a President -
          General Chairman and/or his designated representative(s) for
          dealing with regional or general officials of the Company.

60

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<PAGE>

ARTICLE 11(B) (CONTINUED)

     (8)  The Company will be represented at each seniority point by
          an authorized official who will be empowered to settle local
          grievances or disputes, but such settlement may not-involve
          any change in the intent and purpose of the Agreement. The
          Company will be further represented on a regional and system
          basis for dealing with the Union President - General
          Chairman or his authorized representative.

     (9)  The Union and the Company will, at all times, keep the other
          party advised, through written notice, of any change in
          authorized representatives.

     (10) The President - General Chairman and/or his designated
          representative(s) and a reasonable number of Grand Lodge
          Representatives of the Union shall be permitted at any time
          to enter the facilities of the Company for the purpose of
          representing employees covered by this Agreement, after
          notifying the Company official in charge.

     (11) It is agreed that the Union and the Company will make every
          effort to keep to a minimum the actual time spent in
          disposing of grievances, disputes or complaints. When
          stewards and committeemen are required to leave their work
          for the purpose of investigating, processing, presenting,
          and adjusting grievances or to attend meetings as provided
          for in this Article, they will first notify their immediate
          supervisor or his designee, if available, before leaving
          their work and will again report to him upon their return.
          In the event it is necessary to go to another area, they
          will report in with the foreman or supervisor in that area.
          It is recognized that stewards and committeemen are not
          required to obtain permission from their supervisors before
          leaving work in order to attend to Union business, they are
          merely required to notify their supervisor, who, upon being
          notified, must inform the steward or committeeman of the
          specific contingency which makes his departure at the time
          stated impractical, if such should be the case. The steward
          or committeeman and the supervisor are then under an
          obligation to seek a satisfactory time for such business
          that will not frustrate the needs of the service.

(c)  Procedure

     The procedure for presentation and adjustment of disputes,
     complaints, or grievances that may arise between the Company and
     the Union with reference to interpretation or application of any
     provisions of this Agreement shall be:

STEP I

     (1)  Any employee having a complaint or grievance in connection
          with the terms of employment, application of this Agreement,
          or working conditions, will with the

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<PAGE>

ARTICLE 11(C)(1) (CONTINUED)

          steward, discuss the matter with his immediate supervisor.
          If unable to secure satisfactory adjustment in this manner,
          the employee may present his complaint or grievance in
          writing to the department steward, who in turn will, if in
          his opinion the complaint is justified, present the written
          grievance to the Company's designated representative at the
          particular point or in the department. Subject to
          operational requirements and the time remaining on a
          particular shift, a hearing shall be convened on that shift
          for the purpose of rendering a decision in the matter. In no
          event shall the hearing be postponed beyond the next regular
          shift of the grieving employee. A decision in writing shall
          be rendered not later than three (3) work days following
          such hearing.

STEP 2

     (2)  If the decision in Step I is not satisfactory, the Grievance
          Committee may refer the matter to the appropriate chief
          operating official for the point or his designated
          representative. The appeal must be made in writing within
          five (5) work days after the Step I decision, and the actual
          appeal must be presented at a hearing within seven (7) work
          days from the date of appeal to Step 2. A written decision
          will be rendered by the Company within four (4) work days
          after adjournment of the hearing.

          At points on the system where a Grievance Committee is not
          established by the IAMAW (District 142) appeal may be made
          by the President - General Chairman to Step 3, and the time
          limits for Step 3 appeals shall apply.

STEP 3

     (3)  If the decision in Step 2 is not satisfactory, the Union's
          President - General Chairman or his designee may refer the
          matter to the Company's Vice President - Labor Relations.
          The notice of intent to appeal the matter to Step 3 must be
          made in writing within thirty (30) work days after the Step
          2 decision. Within thirty (30) days after the Step 3 appeal
          date, the Vice President Labor Relations or his designee
          will meet with the Union's President General Chairman or his
          designee and endeavor to reach a settlement of the issues
          involved in the matter appealed. If unable to resolve the
          issues the Company shall issue a decision setting forth it's
          position on the issues. A written decision shall be issued
          no later than five (5) work days following the meeting.

     (4)  If the decision in Step 3 is not satisfactory to the Union,
          the matter may be referred by the Union's President -
          General Chairman to the System Board of Adjustment.

     (5)  Grievances relating to matters general in character, which
          cannot be settled by an immediate supervisor or local Union
          representative shall be discussed by the appropriate
          Corporate Vice President of the Company and the Union's
          President - General Chairman. If such grievances are
          submitted in writing by either of them. If a satisfactory
          settlement is not reached within ten (10) work days after

62

<PAGE>
<PAGE>

ARTICLE 11(C)(5) (CONTINUED)

          the grievance is submitted such matters may be referred,
          within five (5) work days after the expiration of said ten
          (10) day period, to the President of the Company or his
          designated representative if submitted by the Union, or to
          the International President of the Union or his designated
          representative, if submitted by the Company.

     (6)  Individual grievances must be filed promptly after the cause
          giving rise to the grievance is evident, and no individual
          grievance will be valid if not filed within thirty (30) days
          of the date the employee knew or could reasonably be
          expected to have known of the grievance. Grievances filed
          under paragraph (5) above which involve wage claims must be
          filed promptly after the cause giving rise to the grievance
          is evident and such wage claims will not be collectible for
          a period earlier than thirty (30) days prior to the date of
          the filing of the grievance or the date the grievance arose,
          whichever is more recent.

     (7)  Disciplinary Time Off

          No employee who has been in the service of the Company one
          hundred twenty (120) days or more shall be assessed a
          disciplinary layoff until he has been given the opportunity
          to discuss with a Union representative the circumstances
          involved and to attend an investigation meeting with a
          representative of the Union, conducted by the charging
          supervisor, and presented with a written statement copy to
          his Union representative of the precise charges and the
          penalty imposed. The employee and his authorized
          representative will be advised of the purpose of this
          investigation before it is convened (see letter on Page 148).

          In the event the Company determines that a decision
          resulting from such investigation meeting will not be
          rendered for several days, then the appropriate union
          representative will be advised of the progress of such
          investigation and the anticipated date for rendering a
          decision.

          Discharge

          No Mechanic who has been in the service of the Company one
          hundred and eighty (180) days or more as a Mechanic. and no
          other employee who has been in the service of the Company
          one hundred twenty (120) days or more, shall be discharged
          without a fair hearing (No hearing will be conducted without
          the presence of duly authorized Union representative, i.e.,
          committeemen designated by the Union.) before a designated
          representative of the Company, other than the one bringing
          the complaint against the employee. If an employee is
          suspended, pursuant to Article 11(d)(4), the Company will
          advise the employee and/or his duty authorized Union
          representative in writing of the precise charge or charges
          preferred against him not later than one (1) work day from
          the time of the suspension.

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<PAGE>

ARTICLE 11(C)(7) (CONTINUED)

          A discharge hearing will be held not later than five (5)
          days after the employee and the Union are notified of the
          precise charges and a written decision will be issued within
          three (3) work days after the close of the hearing. Prior to
          the hearing, the employee and his duly authorized
          representative will be given a reasonable opportunity to
          secure the presence of necessary witnesses. If the decision
          is not satisfactory then appeal may be made in accordance
          with the procedure prescribed in Step 3.

          If the above mentioned provisions are not adhered to, the
          employee and his duly authorized Union representatives shall
          be notified in writing advising him of his reinstatement in
          accordance with Article 11(c)(8) of this Agreement.

          The notification of the decision of the discharge hearing is
          to be mailed and postmarked not later than three (3) work
          days after the close of the hearing.

     (8)  If it is found that an employee has been unjustly suspended
          or dismissed from the service, such employee will be
          reinstated with his seniority rights unimpaired, compensated
          for all wage loss, and his service record cleared.

     (9)  The Company will not discriminate against any witnesses
          called to testify in any hearing or investigation under this
          Agreement, and if any employee witness is located at some
          point other than the point of hearing, employee witnesses
          and Union committeemen will be furnished necessary free non-
          positive transportation over Company lines.

     (10) Except as specifically provided in this Article, all
          hearings, meetings and investigations will be conducted
          during regular day shift working hours insofar as possible.
          Union representatives and necessary employee witnesses shall
          not suffer loss of pay while engaging in the provisions of
          this Article.

          If grievance hearings or investigations are held during
          other than regular day shift working hours, at the Company's
          written request, or if a Union representative spends in
          excess of eight (8) hours per day attending such hearings,
          at the Company's written request, such Union representative
          shall be paid at his regular straight time rate for time so
          spent.

(d)  General

     (1)  It is understood that either or both the Union President -
          General Chairman or his authorized representative and the
          Vice President - Labor Relations or his authorized
          representative may intervene and participate in the handling
          of a grievance or dispute at any level of the grievance
          procedure.

     (2)  Probationary employees (mechanics with less than one hundred
          eighty (180) days service as a mechanic and other employees
          with less than one hundred twenty (120) days service)
          covered by this Agreement shall not have recourse to

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<PAGE>

ARTICLE 11(D)(2) (CONTINUED)

          the grievance procedure in the event of discharge within the
          probationary period.

     (3)  For the purpose of computing work days in connection with
          provisions of this Article, only the calendar days Monday
          through Friday each week shall be counted.

     (4)  In meetings for the purpose of investigation of any matter
          which may eventuate in the application of discipline or
          dismissal, an employee will be entitled to Union
          representation, if he so desires.

          Regardless of any other provisions of this Article, an
          employee will not be suspended from the service of the
          Company, pending a hearing, unless the Company determines
          that its employees, property, or operation is seriously
          jeopardized.

          The Union recognizes the right of the Company supervisors to
          manage and supervise its work force of employees,
          individually or collectively in the normal course of work.

     (5)  The Union's decision to withdraw grievances, not to process
          or appeal a grievance to the next step shall not in any way
          prejudice its position on the issues involved.

     (6)  In assessing discipline the Company will consider the
          gravity of the offense, seniority and the work record of the
          employee involved.

     (7)  An employee may elect to have legal counsel present only at
          the System Board of Adjustment, and only after he has signed
          a Union representation waiver.

                               ARTICLE 12

                       SYSTEM BOARD OF ADJUSTMENT

(a)  In compliance with Section 204. Title II, of the Railway Labor
     Act, as amended, there is hereby established a System Board of
     Adjustment for the purpose of adjusting and deciding disputes or
     grievances which may arise under the terms of this Agreement and
     which are properly submitted to it after exhausting the procedures
     for settling disputes, as set forth under Article 11.

(b)  The System Board of Adjustment shall consist of three (3) members;
     one (1) appointed by the Company, one (1) appointed by the Union
     and one (1) selected by the parties from a standing panel of six
     (6) Referees. Each of the parties shall name three (3) individuals
     who shall serve on this panel. In addition, an Alternate panel of
     four (4) Referees shall be established by each of the parties
     hereto naming two (2) individuals.

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<PAGE>

ARTICLE 12(B) (CONTINUED)

     (1)  Either party may cause the services of a Referee on the six
          (6) member standing panel to be terminated at anytime,
          (except as to cases already scheduled for hearing) after
          thirty (30) days written notice to the other party and to
          the Referee whose services are being terminated by naming a
          replacement who must be one of the Alternate panel members
          appointed to said panel by the party making change. Each
          party is limited to two (2) such replacements in accordance
          with the above. Thereafter, thirty (30) days prior to the
          expiration date of the Agreements the parties must name
          members to the six (6) member standing panel and the four
          (4) member Alternate panel as provided in paragraph (b)
          above.

     (2)  In the event a vacancy or vacancies on the six (6) member
          panel of Referees exists, prior to the expiration date of
          the Agreements, both parties shall within ten (10) working
          days agree upon replacement panel member(s). Should the
          Company and the Union be unable to agree upon said
          replacement member(s) they shall make joint request to the
          National Mediation Board to name interim Referee(s).

     (3)  The foregoing notwithstanding, the parties may agree to
          select a Referee who is not a member of the six (6) member
          panel to hear a case with the Company and the Union Board
          members and such panel will, for such case, constitute the
          System Board of Adjustment. Such 'Ad Hoc' arbitrator will be
          selected from a list of seven (7) arbitrators submitted, in
          alternate turns from case to case by one party to the other,
          the party receiving the list taking the first turn at
          striking a name from the list. The remaining name on the
          list shall be the Referee for the case, however, if he is
          unable to serve in timely fashion, then the parties will
          make joint request to the National Mediation Board to name a
          Referee.

          Unless the Company and the Union agree upon a combination of
          cases to be presented to a Referee, each case presented to
          the Board shall be treated as a separate case; except those
          grievances involving more than one (1) employee or incident
          concerning an alleged violation with similar facts and
          circumstances which shall be treated as one case. The
          Company and the Union member of the Board shall serve until
          their successor is duly appointed.

     (4)  Secretary to the Board

          The Office of 'Secretary to the Board' shall alternate
          January 1st of each year between the Company member of the
          Board and the Union member of the Board with the Union
          member serving on even numbered years and the Company member
          serving on odd numbered years.

          The Secretary shall give written notice to the Board members
          and the parties to the dispute in connection with the
          scheduling of Board matters.

(c)  The Board shall have jurisdiction over disputes between any
     employee covered by this Agreement and the Company growing out of
     grievances, interpretation or

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<PAGE>

ARTICLE 12(C) (CONTINUED)

     application of any of the terms of this Agreement. The
     jurisdiction of the Board shall not extend to propose changes in
     hours of employment, basic rates of compensation, or working
     conditions covered by this Agreement or any amendment hereto.

(d)  The Board shall consider any dispute properly submitted to it by
     the President General Chairman of the Union or his authorized
     representative, or by the chief operating official of the Company
     or his authorized representative, when such dispute has not been
     previously settled in accordance with the terms provided for in
     this Agreement, provided that notice of the dispute is filed with
     the Company and the Union members of the Board, with copy to the
     Company or Union, as may be appropriate, within forty-five (45)
     work days after the decision in the last step of the grievance
     procedure. The date of notice shall determine the order for
     considering cases, unless the parties mutually agree otherwise.

(e)  The neutral member (Referee) shall preside at meetings and
     hearings of the Board and shall be designated as Chairman of the
     System Board of Adjustment. It shall be the responsibility of the
     Chairman to guide the parties in the presentation of testimony,
     exhibits, and arguments at hearings to the end that a fair, prompt
     and orderly hearing of the dispute is afforded.

(f)  The Board shall meet at such location or locations where the
     parties may agree, generally to be the location(s) where the
     grievance arose or the location most convenient to the majority of
     the individuals necessary to the proceedings.  If the parties
     cannot agree to a location, then the Secretary to the Board shall
     promptly request in writing with notice to the parties that the
     Chairperson, in consultation with the Company's and Union's
     designees to the Board, determine the location or locations where
     the Board will convene.

(g)  The notice of disputes referred to the Board shall be addressed in
     writing to the Company member and the Union member jointly and
     shall include a statement of:

     (1)  The question or questions at issue.
     (2)  Statement of facts.
     (3)  Position of appealing party.
     (4)  Position of other party.

     A copy of the notice of dispute shall be served upon the other
     party.

(h)  Upon filing the notice of dispute, the Company and Union Board
     members shall within five (5) work days, select a Referee to sit
     with the Board to settle the dispute and the Secretary of the
     Board shall advise the appealing party and other party of the name
     and address of the Referee. If the Board members are unable to
     agree upon a Neutral Referee within the five (5) work days, a
     joint request will be directed to the Chairman of the National
     Mediation Board for the appointment of a Neutral Referee. A copy
     of the notice of dispute shall be forwarded by the Secretary of
     the Board to the Neutral Referee who has been appointed or
     selected to serve in this matter. All

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<PAGE>

ARTICLE 12(H) (CONTINUED)

     subsequent documents filed with the Board shall be addressed to
     all three members, with copy to the other party or parties.

(i)  The Neutral Referee shall set a date for hearing scheduled within
     thirty (30) days after his appointment. If the Neutral Referee is
     a member of the standing panel and cannot serve during this thirty
     (30) day period, the parties may agree to another member of the
     standing panel who is available during this same period or the
     parties shall jointly petition the Chairman of the National
     Mediation Board to assign a Neutral Referee.

(j)  If neither party or the Chairman requests a hearing, such hearing
     shall be waived. If either party desires a hearing to present
     evidence or oral argument to the Board, or if the Referee desires
     that evidence or arguments be presented by either party, request
     for hearing shall be made to the Board and served on the parties
     within fifteen (15) days after the appointment of the Neutral
     Referee. If such request is served, the hearing shall be held
     within thirty (30) days of the date the request is served at a
     time mutually satisfactory to the Chairman and the Company and
     Union members of the Board.

(k)  (1)  Immediately following the hearing, the Board shall convene
          in Executive Session, unless the parties mutually agree
          otherwise. The Board shall issue its decision at the
          conclusion of the Executive Session, if possible. However, a
          written award will be rendered to the parties not later than
          ten (10) work days following the Executive Session.

     (2)  In no event shall a decision be issued until after an
          Executive Session has been held if either the Company or the
          Union Board member has requested such session. In the event
          there is to be no hearing, the Chairman shall set a date
          which is agreeable to the Board members, for an Executive
          Session of the Board. The Board shall issue its decision at
          the conclusion of the Executive Session, if possible.
          However, a written award will be rendered to the parties not
          later than ten (10) work days following the Executive
          Session.

(l)  The time limits expressed in this Article may be extended by
     mutual agreement of the parties to this Agreement. The expenses
     and reasonable compensation of the Referee selected, as provided
     herein, shall be borne equally by the parties hereto.

(m)  Employees covered by this Agreement may be represented at Board
     hearings by such person or persons as they may choose and
     designate, and the Company may be represented by such person or
     persons as it may choose and designate. Evidence may be presented
     either orally or in writing or both. The Board may, at the request
     of either the Union member or the Company member thereon, call any
     witnesses who are employed by the Company and who may be deemed
     necessary to the dispute.

(n)  (1)  A majority vote of all members of the Board shall be
          competent to make a decision. Decisions of the Board in all
          cases properly referred to it shall be final and binding
          upon the parties hereto.

68

<PAGE>
<PAGE>

ARTICLE 12(N) (CONTINUED)

     (2)  In grievances involving disciplinary suspensions or
          discharges in which the Board awards back pay, the employee
          will be paid the amount of straight time and overtime pay he
          would have earned had he not been held out of service. The
          amount of overtime pay due to the employee will be the
          average amount of overtime pay earned during the period in
          question by other employees in the grievant's
          classification/seniority group and location.

     (3)  Unless otherwise provided in the award, the employee will
          receive restoration of all retirement plans, benefits,
          restoration of sick leave accrual, and payment for actual
          unreimbursed medical expenses that would have been covered
          by Company provided medical benefits plans had he/she not
          been held out of service.

          A discharged employee who is returned to work by a decision
          of the System Board of Adjustment shall receive pay for the
          vacation accrued in the year of his discharge.

(o)  If the parties mutually agree, a stenographic report will be made.
     The costs of such report shall be borne equally.

(p)  The Chairman's copy of any transcripts and/or all records of cases
     will be filed at the conclusion of each case in a place to be
     provided by the Company, and will be accessible to Board members
     and to the parties.

(q)  Each of the parties hereto will assume the compensation, travel
     expense, and other expenses of the Board member selected by it.

(r)  Each of the parties hereto will assume the compensation, travel
     expense, and other expenses of the witnesses called or summoned by
     it. Witnesses who are employees of the Company shall receive
     positive free transportation over the lines of the Company from
     the point of assignment to the point at which they must appear as
     witnesses and return to the extent permitted by law.

(s)  The Company and the Union members, acting jointly, shall have the
     authority to incur such other expenses as in their judgment may be
     deemed necessary for the proper conduct of the business of the
     Board and such expenses shall be borne one-half by each of the
     parties hereto. Board members who are employees of the Company
     shall be granted necessary leave of absence for the performance of
     their duties as Board members. Board members shall be furnished
     positive free transportation over the lines of the Company for the
     purpose of attending meetings of the Board, to the extent
     permitted by law.

(t)  It is understood and agreed that each and every Board member shall
     be free to discharge his duty in an independent manner, without
     fear that his individual relations with the Company or with the
     Union may be affected in any manner by any action taken by him in
     good faith in his capacity as a Board member.

                                                                     69

<PAGE>
<PAGE>

ARTICLE 12 (CONTINUED)

(u)  Nothing herein shall be construed to limit, restrict, or abridge
     the rights or privileges accorded either to the employees or to
     the Company or to their duly accredited representatives, under the
     provisions of the Railway Labor Act, as amended.

                               ARTICLE 13

                            LEAVE OF ABSENCE

(a)  When the requirements of the service will permit (the preceding
     limitation will not apply in cases of medical and maternity
     leaves), any, employee hereunder shall upon proper application and
     approval of the Company, be granted a leave of absence in writing
     for a period not in excess of ninety (90) days. Under such leaves,
     the employee shall retain and continue to accrue seniority, and
     the designated local representative of the Union shall be notified
     of all leaves granted.

(b)  (1)  Upon proper application accompanied by a physician's
          statement employees' requests for medical leave extensions
          shall be granted. In no case will extension be granted so as
          to cause the total medical leave of absence to exceed five
          (5) years. Seniority will accrue during such extension(s).
          All other leaves may be extended for additional periods not
          to exceed ninety (90) days each when approved by both the
          Company and the above designated Local Representative of the
          Union, in writing, and seniority will accrue during such
          extension.

          An employee who returns from a Medical Leave of Absence and
          has exhausted more than three (3) years of his disability
          insurance benefit period and/or his five-year Medical Leave
          of Absence time for a given illness or injury shall be
          required to re-establish his disability insurance benefit
          period and/or his Medical Leave of Absence time for the same
          or a related illness or injury. Re-accrual shall occur only
          after the employee has been back to work for six (6)
          consecutive months. At that time, the employee will be
          credited with two (2) years of his disability insurance
          benefit period and Medical Leave of Absence time.
          Thereafter, the employee will re-accrue ten (10) days of
          disability insurance benefit time and Medical Leave of
          Absence time for every eighty (80) straight time hours
          worked until he has re-accrued his maximum disability
          insurance benefit time and Medical Leave of Absence time of
          five (5) years.

          An employee who returns from a Medical Leave of Absence and
          has exhausted less than three (3) years of his disability
          insurance benefit period and/or his five-year Medical Leave
          of Absence time will re-accrue his entire five-year
          disability insurance benefit period and/or Medical Leave of
          Absence time for the same or a related illness or injury
          upon completing six (6) consecutive months of work. If,
          however such employee suffers the same or related illness or
          injury prior to completing six (6) consecutive months of
          work such illness or injury shall be considered the same
          disability as the previous illness or injury for the purpose
          of computing the employee's five-year disability insurance
          benefit period and/or Medical Leave of Absence time.

70

<PAGE>
<PAGE>

ARTICLE 13(B)(1) (CONTINUED)

          An employee who returns to work from a Medical Leave of
          Absence for seven (7) consecutive days and who becomes
          disabled by an illness or injury unrelated to the illness or
          injury which occasioned the original Medical Leave of
          Absence need not re-establish his disability insurance
          benefit period or his Medical Leave of Absence time through
          re-accrual time and, upon proper application, shall be
          granted a new Medical Leave of Absence and extensions
          thereto not to exceed five (5) years.

     (2)  In the event the Company's physician considers that an
          employee does not meet the physical requirements of the job
          as determined by the Company, or in the event the Company's
          physician considers that an employee meets the physical
          requirements of the job as determined by the Company, and in
          either event the employee's physician has made a contrary
          determination, the employee shall have fifteen (15) calendar
          days from the date he/she is notified of the contrary
          determination, to elect to have a third party impartial
          physician who specializes in the treatment of the medical
          condition at issue make a determination resolving the
          contrary determination.  If the employee elects a third
          impartial physician to make such a determination, a third
          impartial qualified physician will be selected by the
          Company from the predetermined, mutually agreed upon medical
          panels to examine the employee.  Pending review by a third
          impartial physician, the employee shall remain in his or her
          current status.  The decision of the third impartial
          physician will determine the employee's ability to meet the
          physical requirements of the job (i.e. whether the employee
          should return to work or not return to work) and shall be
          final and binding upon the Company and the employee.

          The predetermined medical panels will be mutually agreed
          upon by both the Company and the Union and will consist of
          physicians who will be board certified in their respective
          specialties. The third impartial physician's determination
          shall be final and binding upon the Company and the employee
          on the issue submitted.  The parties further agree that they
          shall establish the procedures, forms, and guidelines to be
          used by the impartial physician in making the determination
          as to fitness to return to work.  The Union shall be
          entitled to review and approve the Regional Medical Panel
          facility for determination as to whether or not such
          facility shall be entitled or qualified to provide the
          services herein described.  The parties shall each appoint
          one (1) individual for purposes of making the selections.
          All facilities must be a teaching hospital or affiliated
          with a medical school.

          The parties agree that if the third impartial physician
          determines that the employee has continuously met the
          physical requirements of the job as determined by the
          Company and the Company has held that employee out of
          service pending this determination, the employee will be
          reinstated and paid for sick/industrial pay or wages, as
          appropriate.  If, however, the employee has held
          himself/herself out of service pending this determination,
          the employee will receive no back pay for the time period
          that the third impartial physician determines that the
          employee should have been in service for the Company.  In

                                                                     71

<PAGE>
<PAGE>

ARTICLE 13(B)(2) (CONTINUED)

          the event the third impartial physician determines that the
          employee is unable to return to work and should remain on
          medical leave, the employee shall be returned to his or her
          medical leave status.  The expense of the employee's
          physician will be borne by the employee; the expense of the
          Company's physician will be borne by the Company; and the
          expense of the impartial physician will be borne by the
          Company.

(c)  Employees accepting full-time employment with the IAMAW as a
     District 142 officer, and/or other designated local lodge officers
     of a Local Lodge of District 142, or Grand Lodge staff or officer
     shall be granted an indefinite leave of absence by the Company for
     the period so employed as long as this Union remains the exclusive
     bargaining agency of employees covered by this Agreement. Under
     such leaves the employees shall continue to accrue seniority. Such
     employees shall have all employee benefits that can reasonably be
     continued in effect during their leave of absence and upon their
     return from such leave of absence will be credited with the
     maximum vacation, sick leave, and occupational illness or injury
     allowances provided by the Agreement then in effect for employees
     of like seniority.

(d)  An employee hereunder returning from an authorized leave of
     absence or extension thereof will be returned to the job held when
     the leave was granted unless an employee with more seniority holds
     the job as the result of exercising displacement rights or unless
     the job no longer exists. In either case, he may exercise his
     seniority rights as set forth in this Agreement. An employee
     returning from a leave of absence must give notice of return in
     writing to the Company at least ten (10) days prior to his
     anticipated return.

(e)  Any employee hereunder on leave of absence engaging in gainful
     employment not provided for in paragraph (c) above without prior
     written permission from both the Company and the Union General
     Chairman shall forfeit his seniority rights and his name will be
     stricken from the seniority roster.

(f)  Any employee enlisting in, drafted, or conscripted for military or
     naval service in defense of the United States during an actual
     period of war, or any employee drafted or conscripted by Act of
     Congress for military or naval training, shall retain his
     seniority rights unimpaired and upon honorable discharge from such
     service shall be restored to his former position or one of equal
     rating in accordance with the exercise of seniority rights,
     provided he applies for reinstatement within ninety (90) days
     following his discharge from military or naval service. In case of
     temporary or partial disability which makes it impossible to
     return to work within ninety (90) days after discharge, special
     arrangements will be made by the Company and the Union for a
     proper extension of time.

(g)  Twenty-five (25) days prior to the expiration of a leave of
     absence for medical reasons, granted under (a) and (b) of this
     Article, or of any extension of such leave granted under (b) of
     this Article, the Company will send a written notice to any
     employee on such medical leave of absence advising him or her that
     he or she must

72

<PAGE>
<PAGE>

ARTICLE 13(G) (CONTINUED)

     either give notice of intent to return, pursuant to (d) of this
     Article, or request an extension in accordance with (b) of this
     Article.

(h)  An employee elected to a public office (state or national) or any
     position with the AFL - CIO (not covered by Article 13(c) in which
     the duties of that office require a leave of absence, shall be
     granted such leave of absence for the term of that elective
     office. Such employee shall retain and continue to accrue
     seniority, and the designated local representative of the Union
     shall be notified of all leaves granted. Any extensions to such
     leaves granted under this provision shall not exceed the duration
     of this Agreement. Subsections (a) and (g) shall not be applicable
     to this subsection. Such employees shall have all employee
     benefits that can reasonably be continued in effect during their
     leave of absence and, upon their return from such leave of absence
     will be credited with the maximum vacation, sick leave, and
     occupational illness or injury allowances provided by the
     Agreement then in effect for employees of like seniority.

                              ARTICLE 14

                          SAFETY AND HEALTH

(a)  Employees entering the service of the Company may be subjected to
     a physical examination. The cost of any such examination will be
     paid by the Company.

(b)  The Company hereby agrees to maintain safe, sanitary, and
     healthful conditions at all points and to maintain on all shifts
     proper first aid equipment to take care of its employees in case
     of accident or illness. The Company agrees to furnish good
     drinking water, and sanitary fountains will be provided where
     necessary. The floors of the toilets and washrooms will be kept in
     good repair and in a clean and sanitary condition. Shops and
     washrooms will be lighted and heated in the best manner possible,
     consistent with the source of heat and light available. Lockers
     will be provided for all employees within a reasonable time.

(c)  In order to eliminate, as far as possible, accidents and illness,
     an adequate safety committee will be established at each point
     where advisable on the system, to be composed of an equal number
     of Union and Company representatives. The Union and the Company
     shall each appoint not more than three members. The Chairman of
     the local Safety Committee shall be the safety engineer, wherever
     a safety engineer is permanently stationed, provided he is
     designated as one of the Company representatives on the committee.
     The Safety Committee will make periodic tours of inspections not
     less frequently than monthly for the purpose of seeing that all
     safety and sanitary regulations are complied with as well as to
     make recommendations for the maintenance of proper standards.

     The Company and the Union shall each appoint one (1) Safety
     Representative per shift to supplement the regular Safety
     Committee during periods of time when the Safety Committee is not
     available.

                                                                     73

<PAGE>
<PAGE>

ARTICLE 14(C) (CONTINUED)

     The appointment of these Representatives shall conform with the
     three (3) basic shifts as outlined in Article 7 in order to
     provide seven (7) day, twenty-four (24) hour coverage. At such
     times, such Representatives will have precisely the same
     jurisdiction and role as the local Safety Committee. In the event
     these Representatives cannot agree in a particular case, the
     matter will be referred to the Safety Committee.

     The Union Safety Representative shall comply with Article 11
     (b)(11) when it becomes necessary for him to leave his work area
     for a safety problem.

     Each party will advise the other of its respective shift Safety
     Representative it is recognized and desirable that the Company
     Representative is a ranking official of the Company.

     To provide a means whereby individuals may bring to the attention
     of their departmental supervision and the IAM Safety Health
     Committee, matters which they feel might adversely affect the safe
     and healthful working conditions within their department and to
     establish procedures for the prompt handling of such complaints.

     PROCEDURE

     (1)  The individual or his/her steward must first discuss the
          matter with complainant's immediate supervisor, allowing the
          supervisor a reasonable length of time (normally 48 hours)
          to investigate and take action. Those matters brought to the
          supervisor's attention must be handled promptly. If the
          complaint is not thought to be legitimate the supervisor
          must explain his/her position to the individual and the
          steward.

     (2)  If the matter is not thought to be satisfactorily handled
          the steward will meet with the Manager or his designee. This
          discussion will not include the individual or the immediate
          supervisor, except by mutual agreement of both parties.

     (3)  A matter not resolved by the above procedure will be
          submitted in writing, on Safety Compliance Report (Form
          M-344) to the Manager by the individual's steward.

     (4)  When presented with the Safety Compliance Report (Form M-344),
          the Manager will answer, in writing, stating the action
          taken or the reason for rejection. The Manager will
          return the original Safety Compliance Report to the
          initiating steward by the end of the second work day.

     (5)  The steward will forward the original Safety Compliance
          Report to the IAM Safety/Health Committee for their record
          and/or possible further handling.

     (6)  If the matter is not resolved, the IAM Safety/Health
          Committee will meet with the Director of the department who
          will answer the complaint, in writing, on the

74

<PAGE>
<PAGE>

ARTICLE 14(C)(6) (CONTINUED)

          Safety Compliance Report. The Director of the Department
          will return the answered Safety Compliance Report to the IAM
          Safety/Health Committee by the end of the third work day.

     (7)  Should the matter remain unresolved, the IAM Safety/Health
          Committee if deemed advisable, will meet with the
          appropriate Chief Operating Official for the point and/or
          location. When necessary, the Safety/Health Committee will
          meet with the appropriate Full-Time Grievance Committee
          Chairman for the point and/or location.

     (8)  The IAM Safety/Health Committee will return a copy of the
          Safety Compliance Report (Form M-344) to the steward as soon
          as the matter is finally resolved.

(d)  No employee shall be discharged or suspended pending an
     investigation by the Safety Committee for refusing to work on a
     job which is not reasonably safe and/or sanitary or which might
     endanger his health.

     In no event shall an employee be discharged, suspended and/or
     disciplined in any manner for adhering to Company, both local
     and/or system, rules and/or regulations.

(e)  Proper and modern safety devices shall be provided for all
     employees working on hazardous or unsanitary work, such devices to
     be furnished by the Company.

(f)  The Company will furnish protective clothing for the use of
     employees required to work with acids or chemicals that are
     injurious to clothing and personnel. Suitable rain suits or
     protective outer garments shall be kept available at all shops or
     points by the Company.

     (g)  Employees taken sick or injured while at work shall be given
     medical attention at the earliest possible moment, and employees
     will be permitted to return to work without signing any releases
     of liability pending the disposition of settlement of any claim
     for damage or compensation. An employee injured while at work on
     his regular shift shall not lose any pay for the remainder of the
     shift if the injury is such that he is unable to resume work, nor
     shall he lose pay for any treatments or doctor's visits required
     on his scheduled shift as a result of such injury.

(h)  (1)  For employees covered by this Agreement except Fire
          Inspectors and Crew Chief Fire Inspectors, wherever the
          Company shall require a standard coverall, the coverall will
          be furnished at Company expense and laundering shall be done
          at Company expense. The coverall will remain the property of
          the Company. Whenever a standard coverall is designated by
          the Company, the Company will make available for sale to
          such employees at cost, all items of standard uniform, and
          the cost of coverall insignia and its application to the
          coverall shall not be considered as part of the cost and the
          employee will not be charged therefor. Employees who are
          required to wear a cap will be issued such cap without
          charge.

                                                                     75

<PAGE>
<PAGE>

ARTICLE 14(H)(1) (CONTINUED)

          The Company will provide IAM insignias affixed on
          replacement uniforms not later than January 1, 2000.

     (2)  Wherever the Company shall require Fire Inspectors or Crew
          Chief Fire Inspectors to wear a standard uniform the uniform
          will be furnished at Company expense. The uniform will
          remain the property of the Company.

     (3)  The Company agrees to furnish one uniform to each Guard upon
          his entering service as a Guard, and thereafter to replace
          the uniform as needed, but not normally to exceed one
          uniform a year, such to remain the property of the Company.
          The following items comprise the standard uniform furnished
          for Guards:

          1 TWA uniform cap with Guard badge

          1 TWA Guard uniform blouse

          1 TWA Guard badge for blouse

          4 TWA Guard uniform trousers (2 of which will be summer
            weight)

          1 TWA Guard pea coat

          1 TWA Sam Browne belt

(i)  The Company agrees to comply with OSHA rules and regulations for
     general industry, as well as those related State Occupational
     Safety and Health Plans which have been approved by OSHA. In
     addition, the Company agrees to use as guidelines the list of
     Threshold Limit Values (TLV's) of the American Conference of
     Governmental Industrial Hygienists (ACGIH) as updated from time to
     time and to comply with the list of Permissible Exposure Limits
     (PEL's) as adopted by OSHA.

     In the event the Occupational Safety and Health Act is repealed
     the Company shall remain obligated in accordance with Paragraph
     (b) hereof, to maintain its then existing standards for safe and
     healthful work places.

(j)  It is agreed the Safety and Health Committee acts hereunder
     exclusively in an advisory capacity and that the International
     Union, District, Local Union, Safety Committee and its officers,
     agents and employees shall not be liable for any work connected
     injuries, disabilities or diseases which may be incurred by an
     employee.

                               ARTICLE 15

                          FREE TRANSPORTATION

(a)  In addition to any other pass benefits referred to in this
     Agreement, employees covered by the Agreement will be afforded
     free and reduced fare transportation as

76

<PAGE>
<PAGE>

ARTICLE 15(A) (CONTINUED)

     established by Company policy on the date of signing of this
     Agreement which will not be changed or discontinued during the
     term of this Agreement without first giving the Union ninety (90)
     days notice of the reason therefore and affording the Union an
     opportunity to confer with the Company.

     Employees covered by this Agreement and their eligible family
     members who are traveling on the employee's vacation shall have
     boarding priority over employees who are traveling on "Incentive"
     passes issued by the Company for such purposes as Perfect
     Attendance, etc.

(b)  The President - General Chairman and the District Lodge 142 full-
     time staff of the Union will be furnished with Class 3, positive
     space, non-removable, non-downgradable term passes for
     transportation over the Company System within the scope of the
     Union's geographical jurisdiction under this Agreement as defined
     by the Railway Labor Act during their term of office for use in
     connection with their work to the extent permitted by law.

(c)  In addition to any applicable provisions of the Company's
     Management Policy and Procedure Manual. Employees laid off by the
     Company in a reduction of force who desire to seek employment
     elsewhere will, upon application be granted on one occasion, free
     one-way, non-positive air transportation on the Company's planes
     to any point on the system within the United States, to the extent
     permitted by law.

(d)  Employees who at the time of retirement are covered by this
     Agreement shall receive pass privileges in accordance with the
     policy and regulations specified in the Company's Management
     Policy and Procedure Manual on page 13.13.01 dated July 1, 1998
     Federal law permitting. Employees who have fifteen (15) or more
     years of service with the Company and who retire under the IAM
     Retirement Plan shall be entitled to retiree term pass privileges
     for self, spouse and dependents.

(e)  Once a year employees with more than six (6) months and less than
     fifteen (15) years of Company service and their spouse and
     dependent children (or parents, in the case of single employees)
     will be issued Class 7 "vacation passes", according to employees'
     Company seniority date. Employees with fifteen (15) years or more
     of Company service and their spouse and dependent children (or
     parents, in the case of single employees) will be issued Class 6
     "vacation passes", according to employees' Company seniority date.
     These passes will be in addition to employees' regular annual
     allotment and will allow boarding priority over all other lower
     rated passes. Request for "vacation passes" may be submitted in
     conjunction with an employee's regularly scheduled vacation. The
     yearly request must include all eligible family members who wish
     to accompany employees. Geographical limitation and seasonal
     regulations as set forth for regular annual allotments will apply
     to the use of vacation passes.

(f)  The Company agrees to make such changes as are necessary to
     provide that employees shall become entitled to annual passes
     after fifteen (15) years of service.

                                                                     77

<PAGE>
<PAGE>

ARTICLE 15 (CONTINUED)

(g)  Hawaii will be deemed to be a domestic station for the purposes of
     determining pass policies for employees at such time as the
     Company's regularly scheduled service to and from Hawaii increases
     to four (4) daily flights each way. Employees stationed in Hawaii
     shall be entitled to travel Honolulu-Mainland, round trip, year
     around, within limits of their allotments.

                               ARTICLE 16

                               VACATIONS

(a)  Employees will be eligible for annual paid vacations in accordance
     with the regulations hereinafter set forth.

(b)  Vacation Allotment Schedule

     (1)  The vacation year shall be from January 1 to December 31.

     (2)  Paid vacation allowance will be computed on scheduled work
          days and based on the number of months worked in the
          preceding calendar year and the number of full years active
          service with the Company completed prior to January 1 of the
          year vacation is due to be taken, in accordance with the
          schedule below:

Effective January 1, 1981:

<TABLE>
<CAPTION>
 Months of
  Service        Less        5 Years      10 Years      17 Years     25 Years
  Prior To       Than        Through       Through       Through      Through     30 Years
 January 1      5 Years      9 Years      16 Years      24 Years     29 Years     and Over
 ---------      -------      -------      --------      --------     --------     --------

<S>               <C>           <C>          <C>           <C>          <C>          <C>
      1            1             2            2             3            4            5
      2            2             3            4             5            6            7
      3            3             4            6             7            8           10
      4            4             6            8            10           12           14
      5            4             6            8            10           12           16
      6            5             8           10            13           16           20
      7            6             9           12            15           18           22
      8            7            11           14            18           22           26
      9            8            12           16            20           24           29
     10            9            14           18            23           28           33
     11            9            14           18            23           28           33
     12           10            15           20            25           30           35
</TABLE>

The maximum vacation allowance in no case will exceed thirty-five (35)
work days.

78

<PAGE>
<PAGE>

ARTICLE 16 (CONTINUED)

(c)  Vacation allowance will accrue during each calendar month for
     which an employee receives pay for eighty-five (85) or more
     straight time hours from the Company, whether he is working or is
     on sick leave or vacation. An employee loaned to another company
     will accrue vacation credit during such loan period. An employee
     on approved time off for Union business will accrue vacation
     allowance during such period.

(d)  (1)  An employee may take his vacation at any time during the
          calendar year in which the vacation is due, subject to
          departmental vacation schedules and approval of his
          supervisor. However, in no case will a vacation be allowed
          to an employee until he has completed six (6) months of
          service with the Company.

     (2)  An employee who is disabled because of an industrial injury
          for the entirety of his vacation period or for the entirety
          of any split vacation period may take the vacation period
          lost due to the injury at a later open period provided he
          advises his supervisor prior to the start of such scheduled
          vacation. If such vacation period cannot be rescheduled by
          the end of the calendar year in which it is due to be taken.
          the employee shall be paid the vacation due him. Any
          requests to postpone a vacation period under this paragraph
          must be supported by a physician's certificate confirming
          the period of disability involved.

     (3)  Effective October 1, 1999, an employee with a minimum
          accrual of five (5) weeks of vacation may elect to receive
          pay in lieu of taking such vacation provided that his
          accrual limits are not less than four (4) weeks after making
          such election. The employee may elect such option during
          his/her respective vacation selection period as outlined in
          Article 16(m). Payment will take place in first pay period
          of November during the year in which the vacation would have
          been taken.

(e)  Compensation for the vacation period shall be computed at the
     employee's base rate of pay (including premium pay) in effect at
     the time the vacation is taken.

(f)  Vacation leave is not cumulative and must be taken during the year
     following the year in which vacation is accrued, unless an
     employee has received written request from his supervisor to
     forego his vacation during the year. Otherwise, if not taken
     within the calendar year when eligible, his vacation will be
     forfeited.

(g)  (1)  Except as provided in sub-paragraph (2) of this paragraph
          (g), an employee temporarily terminating because of layoff
          due to reduction in force or an employee granted a leave of
          absence shall be given vacation pay based on the number of
          months worked in the preceding year in accordance with
          paragraph (b)(2) if vacation has not been taken in the
          current calendar year. Such employees shall also be paid
          vacation credit for the period worked during the current
          calendar year in accordance with the schedule set forth in
          paragraph (b)(2).

                                                                     79

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<PAGE>

ARTICLE 16(G) (CONTINUED)

     (2)  An employee who is granted a leave of absence other than for
          military service, upon written request may retain vacation
          credit for earned and or accrued vacation for use upon
          return from leave.

          (a)  Employees entering approved leave may retain credit
               for earned and/or accrued vacation in lieu of
               receiving payment.

          (b)  Upon notification of leave approval the employee must
               designate in writing whether the vacation is to be
               paid or retained. The employee may split the election,
               i.e., payment for all earned and retention of all
               accrued. No other split is permissible. Changes to
               this election may only occur at the time of a leave
               extension subject to (c) below.

          (c)  Payment will automatically be made for EARNED vacation
               by December 31, if the employee has not returned from
               the leave of absence. Accrued vacation may be carried
               through the end of the second year at which time it
               will be paid if employee has not returned from the
               leave of absence.

          (d)  An employee who has elected to retain vacation as
               provided above, must return to active status prior to
               taking such retained vacation. At the time an employee
               returns to active status he may select his retained
               vacation from any period in the vacation schedule
               remaining open. In the event there are no open
               vacation periods in the calendar year in which the
               employee returns to work, and such vacation period(s)
               become available at a later date within the calendar
               year, such vacation period(s) shall be assigned to the
               employee and the balance of vacation, if any, shall be
               paid at the end of the year. In the event no vacation
               periods become available during the calendar year, the
               employee shall be paid at the end of the year.

(h)  An employee who is discharged or who resigns shall be paid for
     vacation due him, based on the number of months worked in the
     preceding year, in accordance with paragraphs (b)(2), if vacation
     has not been taken during the current calendar year. Employees
     discharged for cause or resigning without giving at least two (2)
     calendar weeks written notice shall not be paid vacation credit
     for any months worked in the current year.

(i)  If an employee received written request from his supervisor to
     forego his vacation during a previous year and has not yet
     received that vacation, vacation pay will be paid for that year
     upon termination, regardless of reason for termination.

(j)  An employee recalled from layoff or returning from leave of
     absence will accrue vacation leave from the date of return to
     service in accordance with paragraph (b)(2), which vacation leave
     may be taken in the next calendar year.

(k)  In the case of the death of an employee, any vacation pay
     allowance due him shall be paid to the executor, administrator, or
     legal heir.

80

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<PAGE>

ARTICLE 16 (CONTINUED)

(1)  Request for vacation leave will be granted on a basis of Company
     seniority. However, a senior employee will not be permitted to
     take vacation leave already assigned to a junior employee.

(m)  The Company will notify each employee of his anticipated vacation
     earned by October 1 of the preceding year. Each employee must
     notify the Company by October 15 on a form furnished by the
     Company of the amount of vacation, if any, he elects to bank as
     provided in the letter of agreement on Page 157, or elects payment
     pursuant to Article 16 (d)(3), as well as the amount of eligible
     day at a time (DAT) vacation to be taken. The Company will post a
     vacation schedule (excluding any allowance for banked vacation,
     16(d)(3) election or DATS by November 1, indicating the number and
     classification of employees who may be on vacation at any given
     time during the next calendar year. The vacation schedule will
     include at least 100% of the vacation earned by each employee
     after taking into account any vacation the employees have elected
     to take as banked vacation, 16 (d) (3) election and/or day at a
     time (DAT) vacation, which will be excluded from the posted
     vacation schedule. Wherever necessary, such list may indicate the
     number and classification of employees in each work assignment who
     may be on vacation at any given time during the year. Crew Chiefs
     will not be considered as separate classifications for the purpose
     of the foregoing list; however, the Company may refuse to permit
     more than ten (10) percent of the Crew Chiefs on the same regular
     work assignment in a classification on a shift to be on vacation
     at the same time. To the extent such scheduling is permitted by
     operational requirements, the Company will (1) schedule vacation
     during desirable periods and (2) prorate by shift, in accordance
     with the number of employees assigned, the vacations it has
     determined are available during a period. The November 1 posting
     will advise employees that they will be contacted for vacation
     selection between November 5 and November 20. Employees must be
     prepared to make their vacation selection when contacted.
     Reasonable provisions shall be made by the Company to secure the
     selections of employees who may be absent or on vacation from
     November 1 to November 20. Vacation lists will be posted by
     December 10 at each point.

(n)  Employees shall be given their vacation pay prior to taking their
     vacation if they request the same by written notification to their
     immediate supervisor not less than three (3) weeks prior to the
     start of the vacation.

(o)  (1)  A vacation group is defined as the grouping by shift or by
          'seniority grouping' for the purpose of vacation allowance
          and selection. A sheet upon which the year is divided into
          weekly periods showing the number of employees in a vacation
          group who may be on vacation during each weekly period will
          be provided by the Company. The Company will also provide a
          listing of the number of days vacation to which each
          employee on the list is entitled. In any case where an
          employee has made his vacation selection, and it later
          develops that he is entitled to a greater or lesser number
          of days than initially indicated, such employee will not be
          required to change his vacation from the period(s)
          previously selected, but will be entitled to add or subtract
          such greater or lesser number of days.

                                                                     81

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<PAGE>

ARTICLE 16(O)(1) (CONTINUED)

          The Company will make every reasonable effort to contact the
          employee in accordance with Article 16(m), but if his
          selection cannot be determined, he should be assigned a
          vacation period based upon the best judgment of the
          supervisor and the vacation selections of other employees
          are not to be held up.

     (2)  The first weekly period in the calendar year will be the
          first full week (considering Monday as the first day of the
          week). However, if an employee desires, he may start his
          vacation as early in the year as January 1, or end it on
          December 31, subject to all other conditions of selection set
          forth in the Agreement.

     (3)  Split vacations will be permitted for employees with ten
          (10) days or more vacation. The split must provide at least
          five (5) work days on the first choice. Vacations will not
          be split into more than three (3) parts. An employee will
          select only one (1) part during his first choice and all
          remaining parts of the second choice. The second choice will
          be considered only after all first choices are made. When an
          employee's vacation allotment cannot be evenly divided by
          five (5), the odd days must be taken with one of the
          choices. One (1) or two (2) odd days overlap will not close
          out a vacation period.

     (4)  When an employee leaves a vacation group and thus vacates a
          vacation period(s), the vacated period(s) will be left open
          for selection by the employee who in the future enters the
          vacation group and as a result is required to re-select
          vacation.

     (5)  If, during original selection of vacations, certain periods
          were closed with no vacations permitted, and should any of
          these closed periods later be opened for vacation selection,
          all employees within the vacation group who have vacations
          remaining shall be given the opportunity to re-select
          vacation periods in seniority order. However, a senior
          employee will not be permitted to take a vacation period
          already assigned to a less senior employee.

     (6)  When an employee is forced from a vacation group he will
          retain his vacation period. When an employee initiates a bid
          into a vacation group covered by an established vacation
          schedule, he may retain his scheduled vacation period
          providing it does not conflict with operational
          requirements.

     (7)  Except as provided in paragraph (2) above, vacations must
          start or end continuous with an employee's regularly
          scheduled days off. For the purpose of vacation selection,
          all employees will be assumed to have Saturday and Sunday
          days off. Employees with other than Saturday and Sunday
          scheduled days off will start their vacation with their
          scheduled days off by moving their vacation selection to
          obtain the larger part of their vacation in the week
          selected.

(p)  (1)  In accordance with Article 16(m) an employee must express
          his desire in writing to take up to ten (10) days of his
          vacation on a day at a time (DAT) basis. When

82

<PAGE>
<PAGE>

ARTICLE 16(P)(1) (CONTINUED)

          an employee's vacation allotment cannot be evenly divided by
          five (5), the odd days plus five (5) remaining can be set
          aside for DAT.

     (2)  In no event can an employee set aside more than ten (10)
          vacation days to be used as DAT. DAT vacation days left over
          at the end of the calendar year will be carried forward. In
          such event an employee shall be permitted to set aside as
          DAT in the next calendar year only those days carried
          forward.

     (3)  In accordance with Article 16(m) an employee must indicate
          his desire to take DAT days even though he has not yet taken
          all of his DAT vacation days for the current calendar year.
          However, if for any reason, the employee does not thereafter
          take all of his DAT days for the current calendar year by
          December 31 of such year, the DAT days remaining will be
          handled as outlined in the preceding paragraph.
          Consequently, an employee having previously set aside five
          (5) new DAT vacation days, to be used in the next calendar
          year, and not having taken all DAT vacation days in the
          previous calendar year, will be required to select a regular
          vacation period only from the available weeks remaining.

     (4)  Each day the Company will post a list indicating the number
          of employees in each work assignment who will be allowed DAT
          seven (7) days hence. (For example on January 1, the Company
          will post a list stating the number of DAT's that will be
          allowed on January 8.) Employees desiring the DAT day will
          write their name and Company seniority date on the list,
          provided such day is a regular scheduled work day for such
          employee. Five (5) days prior to the DAT date the Company
          will post a list of the names of the employee(s) to be
          allowed DAT. (Using the above example, the Company will post
          on January 3 the names of the employee(s) allowed DAT on
          January 8.) Only if an insufficient number of employees sign
          up for a DAT date the Company may allow the day to
          additional employees on a first come, first served basis
          based on the needs of the service.

     (5)  Employees who will not be present on the day DAT requests
          are solicited shall be permitted to make their DAT day
          request on their last work day prior to the day requests are
          solicited.

     (6)  Employees who are unexpectedly absent on the day DAT
          requests are solicited shall be permitted to make their DAT
          day request by contacting the appropriate Company official
          on such day.

     (7)  The Company shall grant DAT day requests of employees in
          Crew Chief classifications based on the needs of the
          service.

     (8)  Another employee on vacation will not be grounds for
          refusing a DAT vacation day. However, the Company retains
          the right to determine the allowable number of DAT days
          based on the needs of the service.

                                                                     83

<PAGE>
<PAGE>

ARTICLE 16(P) (CONTINUED)

     (9)  The Company shall maintain DAT records to assist the
          employee(s) in determining their DAT usage.

                               ARTICLE 17

                               SICK LEAVE

(a)  Employees who have completed six (6) months of continuous service
     shall be granted sick leave with pay according to the amount of
     sick leave allowance accrued at time of sickness.

(b)  When it is necessary for an employee who has completed six (6)
     months of continuous service to be absent from work because of
     occupational illness or injury, he may be granted occupational
     illness or injury leave with pay for such absence to the extent
     that he has occupational illness or injury leave allowance accrued
     at time of such illness or injury.

     (1)  Sick leave and occupational illness or injury allowances
          will accrue to employees at the rate of one (1) day for each
          month of continuous service.

          Effective October 18, 1976 sick leave may accumulate to a
          maximum at any time of one hundred and twenty (120) work
          days and occupational illness or injury allowances may
          accumulate to a maximum at any one time of one hundred (100)
          work days. After exhausting their occupational illness or
          injury leave, the employee may use their non-occupational
          sick leave credits. He may not, however, use occupational
          illness or injury leave for non-occupational illness or
          injury under any circumstances.

     (2)  Re-accrual of both non-occupational sick leave and
          occupational illness or injury leave will commence
          immediately upon an employee's return to active service. In
          the event he received workmen's compensation because of such
          absence, any occupational illness or injury leave and/or
          sick leave pay due for such absence will be reduced by the
          amount of such workmen's compensation received. In such an
          event, when he returns to work he shall have sick leave
          credit and or occupational illness or injury leave credit
          used in connection with such injury restored to the extent
          that the amount of the compensation offsets the amount of
          the sick leave pay granted. In effecting such restoration,
          the following rules shall apply:

          (a)  In the event the employee had used occupational
               illness or injury leave only, the restoration will be
               made to his accrual of occupational illness or injury
               leave.

          (b)  In the event the employee had exhausted his
               occupational illness or injury leave and had also
               invaded thereafter his non-occupational sick leave
               accrual, the restoration will first be made to his
               non-occupational sick leave accrual, up to but not
               exceeding his non-occupational sick leave balance

84

<PAGE>
<PAGE>

ARTICLE 17(B)(2) (CONTINUED)

               credited to him on the date of occurrence of the
               occupational illness or injury, and the balance of such
               restoration, if any will then be made to his occupational
               illness or injury leave accrual.

     (3)  Occupational illness or injury leave compensation shall begin with
          the first day of absence due to such injury or illness. In this
          connection, the Company will for any period of disability, waive
          its rights to reimbursement out of an disability award paid to an
          employee.

     (4)  It is understood and agreed that neither sick leave nor
          occupational illness or injury leave shall be granted any employee
          who is injured or suffers occupational illness while in the employ
          of anyone other than the Company.

(c)  Employees will not be eligible for sick leave benefits during the
     first six (6) months of continuous service; however, sick leave
     credit will accrue during that period.

(d)  Sick leave and occupational illness or injury pay shall be at the
     employee's current straight time rate.

(e)  After use of leave under this Article, the number of days paid for
     will be charged against the allowances and one (1) day for each
     month of continuous service shall again accrue to the employee
     until the accumulation again reaches the maximums permitted under
     paragraph (c) of this Article.

(f)  The Company reserves the right to require a physician's
     certificate to confirm any pay claim, except that for claims of
     pay for three (3) days or less which are based on non-occupational
     injury or illness, a physician's certificate may be required only
     if there is good reason to believe that the intent of this Article
     is being abused, and if the employee has been notified that he may
     be required to furnish such certificate. Such notice to an
     employee will be given prior to his returning to work from the
     absence for which the certificate is requested, it being
     understood that such notice may be given at any time within ninety
     (90) days prior to the beginning of the absence for which the
     certificate is requested.

(g)  It is the responsibility of any employee absent from work because
     of sickness or injury to report immediately such absence and the
     reason therefor to his immediate superior, or to the officer or
     person designated by the Company, and to notify the Company
     promptly of any change which affects his return to work.

(h)  Sick leave and occupational illness or injury allowance will
     accrue during each calendar month for which an employee receives
     pay for eighty-five (85) or more straight time hours, whether he
     is working, is on sick leave occupational illness or injury leave
     or vacation. An employee on approved time off for Union business
     will accrue sick leave and occupational illness or injury
     allowances during such period.

                                                                     85

<PAGE>
<PAGE>

ARTICLE 17 (CONTINUED)

(i)  (1)  For absence because of death in his immediate family, an
          employee shall, upon request, be granted three (3) days of
          pay continuance, such days are not to be deducted from the
          employee's sick leave credits. For the purpose of this
          subparagraph, immediate family is defined as spouse, child,
          stepchild, parent, stepparent, grandparent, brother,
          stepbrother, sister and stepsister.

     (2)  For absences because of the death(s) of his parent-in-law,
          foster parent, grandchild, brother-in-law, sister-in-law, or
          ward, an employee shall, upon request, be granted a maximum
          of three (3) days of pay continuance each calendar year,
          these days to be deducted from the employee's sick leave
          credit.

     (3)  For absences because of dangerous illness/injury in his
          immediate family, an employee shall, upon request, be
          granted a maximum of three (3) days of pay continuance each
          calendar year, these days to be deducted from the employee's
          sick leave credit. To qualify for pay, the absence(s) must
          be at the time the danger exists. For the purposes of this
          subparagraph, immediate family is defined as spouse, child,
          stepchild, parent, stepparent, parent-in-law, foster parent,
          grandparent, grandchild, brother, stepbrother, sister,
          stepsister, brother-in-law, sister-in-law or ward. The
          Company may require confirmation from the attending
          physician that the illness/injury was dangerous stating the
          reasons therefore.

(j)  The employees covered by this Agreement, and the Union, recognize
     an obligation to be truthful and honest and to prevent unnecessary
     absences and other abuses of sick leave privileges.

(k)  No employee will be reprimanded for the legitimate use of sick,
     and/or injury leave. The Company will not maintain attendance
     records on any employee in excess of two (2) years duration.

                               ARTICLE 18

                               LONGEVITY

(a)  Effective August 1, 1999, all employees covered by this Agreement
     will receive for each year of completed employment spent in any of
     the classifications covered by this Agreement and Dining Service
     Agreement, exclusive of the first three (3) years of employment,
     longevity of one (1) cent per hour for each year of continuous
     employment, to a maximum of fifteen (15) cents. The maximum of
     fifteen (15) cents will be reached at the end of eighteen (18)
     years of employment.

(b)  Effective November 1, 1980, employees who receive fifteen (15)
     cents or more longevity under former longevity plans will retain
     their longevity and will accrue no more.

86

<PAGE>
<PAGE>

ARTICLE 18 (CONTINUED)

(c)  Effective November 1, 1980, employees who at that time are
     receiving less than fifteen (15) cents longevity will retain their
     present longevity but will accrue no more until the scale in (a)
     above catches up. Thereafter, they will receive longevity based on
     the provisions of paragraph (a) of this Article.

(d)  Longevity accrued in any classification will be retained upon
     transfer or promotion to another classification. For the purpose
     of computing longevity credit, only pay seniority shall be
     counted.

                               ARTICLE 19

                             SHIFT PREMIUMS

(a)  Employees shall be paid for afternoon and night shifts as
     additional compensation over the rate paid on day shifts, for all
     hours worked. Effective August 31, 1997, fifty-one ($.51*) cents
     and fifty-eight ($.58*) cents per hour, respectively. This premium
     shall be considered a part of the base rate for the purposes of
     pay computations.

(b)  Any shift starting at 11:00 a.m. or later and before 5:00 p.m.
     shall be considered an afternoon shift; and any shift starting at
     5:00 p.m. or later and before 6:00 a.m. shall be considered a
     night shift.

(c)  The Company and the Union may, at any point, change from fixed to
     rotating shifts, or vice-versa, by mutual agreement.

(d)  The Company may establish relief schedules which require employees
     to work on different shifts for the purpose of providing:

     (1)  Day Off Relief:

          Day off relief assignments shall be bid from within a
          seniority grouping and filled by classification seniority.

     (2)  Vacation Relief:

          (a)  In establishing Vacation Relief schedules, the
               Vacation Relief employee shall have two (2)
               consecutive days off each week (48 consecutive hours
               off duty) with the exception of a Sunday/Monday day
               off pattern as provided for in Article 7(b).

          (b)  Vacation Relief assignments shall be bid from within a
               seniority group and filled by classification seniority
               as soon after December 10 of each year as practicable.
               Thereafter, when the vacation liability increases the
               Company

                                                                     87

<PAGE>
<PAGE>

ARTICLE 19(D)(2)(B) (CONTINUED)

               may rebid vacation relief to add to the existing
               vacation relief pool. An employee(s) named a
               successful bidder(s) to the initial vacation relief
               bid in December will receive the premium pay for the
               entire year. Employees on vacation relief as a result
               of subsequent bids will receive the premium only
               during the time they are in the Vacation Relief
               position(s). Afterwards the additional Vacation Relief
               employees will return to their respective shift and
               days off seniority permitting. At no time will the
               Vacation Relief pool fall below is original allotment.

               Employees will be allowed to refuse a Vacation Relief
               bid at the time it is awarded. However, such employee
               will not be permitted to bid for a different shift
               and/or day off assignment for six (6) months after
               such refusal.

               During the vacation year, if Vacation Relief
               assignments are vacated because an employee is
               reduced, furloughed or accepts a bid, the opening(s)
               shall be awarded from bids on file from within a
               seniority grouping and filled by classification
               seniority and, if there are no bids on file, by
               inverse order of seniority within the vacation group.

          (c)  An employee on Vacation Relief shall have a home shift
               and days off within his seniority grouping determined
               by his classification seniority, which shall apply
               when he is not relieving a vacationing employees.

          (d)  Vacation Relief assignments will consist of lines of
               time constructed to provide coverage for vacationing
               employees. The lines of time will be constructed based
               upon the aggregate number of openings created by
               vacationing employees.

          (e)  In the event there is more than one Vacation Relief
               assignment in a seniority grouping, the assignment of
               lines of time referenced in (d) above shall be
               determined by the classification seniority of those
               Vacation Relief employees who are not then relieving a
               vacationing employee.

          (f)  Vacation relief employees in a basic classification
               may be used to fill an opening created by a Crew Chief
               on vacation only when a Crew Chief Vacation Relief
               position is not utilized (bid). Temporary Crew Chief
               assignments made to provide coverage for the Crew
               Chief on vacation shall be in accordance with Article
               10(c).

          (g)  Vacation Relief employees in Crew Chief classification
               may not be used to provide Vacation Relief coverage
               for employees in a basic classification.

          (h)  Vacation Relief employees may not be used to relieve
               for other than vacations.

          (i)  Day Off Relief employees may not be used to provide
               Vacation Relief.

88

<PAGE>
<PAGE>

ARTICLE 19(D)(2) (CONTINUED)

          (j)  An employee on Vacation Relief shall not be assigned
               to any other relief position or temporary vacancy,
               unless his seniority so requires.

          (k)  Vacation Relief employee shall not have less than
               seven and one-half (7-1/2) hours between quitting time
               of his shift and starting time of his next shift as
               provided for in Article 8(c).

          (l)  A Vacation Relief employee will receive sixty-one
               (61<F*>) cents per hour above the day shift rate for
               all shifts worked.

     (3)  Except as provided in Article 2(c), a rotating relief
          employee(s) shall not perform work out of his
          classification. The rotating relief shall have two (2)
          consecutive days off each week (48 consecutive hours off
          duty). The rotating relief may work on not more than two
          shifts (shift start times) in any work week and may rotate
          between or within shifts twice per work week. An employee on
          a relief schedule who does not rotate between shifts during
          his work week shall be paid shift premiums in keeping with
          paragraphs (a) and (b) of this Article, as applicable,
          except that an employee on a relief schedule who is
          scheduled to work different shifts within the day shift,
          afternoon shift or night shift shall receive forty-six
          (46<F*>) cents per hour, fifty-three (53<F*>) cents per
          hour, or sixty (60<F*>) cents per hour, respectively for all
          shifts worked. An employee on a relief schedule who is
          scheduled to work on the day and afternoon shifts during a
          workweek will receive fifty-six (56<F*>) cents per hour
          above the day shift rate for all shifts worked. An employee
          on a relief schedule who is scheduled to work on the (1)
          afternoon and night shifts or (2) day and night shifts
          during a work week, will receive sixty-one (61<F*>) cents
          per hour above the day shift rate for all shifts worked. The
          above shift premiums shall become effective the first of the
          month after date of signing. This premium shall be
          considered a part of the base rate for pay computation.
          <F*>Rate adjustments are determined by System Board of
          Adjustment award dated April 16, 1997, as follows: (57),
          (43), (50), (57), (53), (58).

                               ARTICLE 20

                                BENEFITS

Except as specifically amended hereunder, all provisions of the Summary
Plan Description and Article 20 of the agreement dated September 1, 1994
except as amended by the provisions of the following group benefits,
shall remain in full force and effect:

(a)  The Group Medical and Dental Benefit Plan administered by the
     Company authorized third party administrator, as described in the
     "A World of Benefits From TWA Universal Benefit Plan" Summary Plan
     Description dated September, 1997, shall be amended as follows:

     (1)  The In-Network deductible under the Universal Medical Plan
          shall be $200 per family.

                                                                     89

<PAGE>
<PAGE>

ARTICLE 20 (CONTINUED)

     (2)  Covered Expenses under the Medical Plan shall include in-
          hospital expenses incurred for newborn children.

     (3)  Preventive Health Care Benefits
          Effective 8/1/1999, Pap smears, mammograms,
          proctosigmoidoscopys and PSA tests will be a covered expense
          eligible for submission every calendar year.

     (4)  Home Health Care Benefits
          In-Network, the Medical Plan shall pay 90% of expenses for
          up to 60 home health care visits per calendar year, after
          $50 of the $200 deductible has been satisfied.  Out-of-
          Network, the Medical Plan shall pay 70% of expenses for up
          to 60 home health care visits per calendar year, after the
          full deductible has been satisfied.

     (5)  Hospice Care Benefits
          The Medical Plan shall pay 80% of hospice care expenses,
          incurred in a hospice care facility or at home, after the
          $200 annual deductible has been satisfied, up to a maximum
          lifetime benefit of $10,000 per individual.

    (6)   Dental Plan Benefits
          The Group Dental Plan effective October 1, 1999 includes a
          Preferred Provider Organization (PPO) which provides three
          (3) levels of comprehensive benefits based upon whether the
          service is obtained through the PPO network (In-Network),
          outside the PPO network (Out-of-Network), or through a
          voluntarily elected Dental Health Maintenance Organization
          (DHMO). Employees who live in areas where no PPO network is
          available are paid in accordance with the In-Network
          benefits. In-Network shall be defined as at least two (2)
          general practitioners within a ten (10) mile radius.
          Features of the Group Dental Plan are as follows:

                             DENTAL HMO
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 DENTAL SERVICE       BENEFITS PAYABLE       DEDUCTIBLE      MAXIMUM
---------------------------------------------------------------------
  Class I<F*>       100% of network fees        None          None
---------------------------------------------------------------------
  Class II<F*>       90% of network fees        None          None
---------------------------------------------------------------------
  Class III<F*>      80% of network fees        None          None
---------------------------------------------------------------------
  Class IV<F*>       60% of network fees        None          None
---------------------------------------------------------------------

90

<PAGE>
<PAGE>

<TABLE>
                                        IN-NETWORK (PPO)
<CAPTION>
-----------------------------------------------------------------------------------------------
   DENTAL SERVICE         BENEFITS PAYABLE          DEDUCTIBLE                  MAXIMUM
-----------------------------------------------------------------------------------------------
<S>                        <C>                  <C>                      <C>
 Class I (Preventive)         100% of                  None               $3000 per calendar
    (Oral Exams)            network fees                                    year per member
                                                                         inclusive of Class I,
      (X-rays)                                                                 II, III
-----------------------------------------------------------------------------------------------
      Class II             90% of network         $100 per calendar       $3000 per calendar
 (Minor Restorative)            fees               year per member          year per member
    (Periodontal)                               inclusive of Class II    inclusive of Class I,
     (Fillings)                                       and III                  II, III
    (Root Canals)
-----------------------------------------------------------------------------------------------
      Class III            60% of network        $100 per calendar        $3000 per calendar
 (Major Restorative)            fees              year per member           year per member
 (Crowns) (Bridges)                             inclusive of Class II    inclusive of Class I,
     (Dentures)                                       and III                  II, III
-----------------------------------------------------------------------------------------------
      Class IV             50% of network         $100 per member         $1500 per member for
   (Orthodontics)               fees                 for life                     life
-----------------------------------------------------------------------------------------------

<CAPTION>
                                     OUT-OF-NETWORK (PPO)
-----------------------------------------------------------------------------------------------
   DENTAL SERVICE         BENEFITS PAYABLE          DEDUCTIBLE                  MAXIMUM
-----------------------------------------------------------------------------------------------
<S>                     <C>                      <C>                       <C>
 Class I (Preventive)     100% of reasonable           None                 $500 per calendar
    (Oral Exams)        and customary charges                                year per member

      (X-rays)
-----------------------------------------------------------------------------------------------
      Class II            75% of reasonable            None                $1250 per calendar
 (Minor Restorative)    and customary charges                                year per member
    (Periodontal)
     (Fillings)
    (Root Canals)
-----------------------------------------------------------------------------------------------
      Class III           50% of reasonable      $100 per calendar         $1500 per calendar
 (Major Restorative)    and customary charges     year per member            year per member
 (Crowns) (Bridges)                                 inclusive of
     (Dentures)                                      Class III
-----------------------------------------------------------------------------------------------
      Class IV            50% of reasonable       $100 per member            1500 per member
   (Orthodontics)       and customary charges        for life                   for life
-----------------------------------------------------------------------------------------------

<FN>
<F*>Classes for DHMO same as for PPO
</TABLE>

                                                                     91

<PAGE>
<PAGE>

ARTICLE 20 (CONTINUED)

     (7)  Acute Care Prescription Drug Program

          There shall be no deductible.  All drug prescriptions will
          be submitted through the Inteq Drug Plan. (Acute or Mail
          Order).

     (8)  Medical Plan Prescription Drug Benefits

          The Plan will pay based on hospital affiliation for
          prescription drug expenses, after the applicable family
          deductible has been satisfied, for drugs administered in a
          hospital facility.  Employees who live in an area where
          there is a pharmacy, but there is no INTEQ network pharmacy
          available, will submit their prescription drug claims for
          reimbursement through their third party company authorized
          administrator for medical claims.

     (9)  Chiropractic Care Benefits

          Chiropractic benefits will be paid subject to reasonable and
          customary charges with no deductible and will be limited to
          20 visits per member per year. These visits are not subject
          to medical necessity.

(b)  The existing Employee Life Insurance provided by the Company to
     all IAM represented employees shall be increased by $10,000.

(c)  Bomb Insurance for all IAM represented employees will be increased
     to $200,000.

(d)  Aviation Insurance for all IAM represented employees will be
     increased to $200,000.

(e)  Retiree Benefits

     1.   If you worked for TWA for ten (10) or more years and retire
          on or before age sixty-five (65) under the IAM Retirement
          Plan, your Life Insurance but not more than $20,000, will be
          continued for the first year after you retire. Then on each
          anniversary of your retirement, this amount will be reduced
          by $2,000 until $10,000 is reached.

     2.   Effective August 1, 1999, any future retirees will be
          subject to all negotiated changes affecting active IAM
          represented employees.

     3.   Effective October 1, 1999, a new Post-65 PPO Medical Plan,
          administered by a Company authorized Third Party
          Administrator will be made available to TWA retirees.  The
          current 65 Plus enrollees will be given the option of
          converting to the new Post-65 PPO Medical Plan or
          remaining under the

92

<PAGE>
<PAGE>

ARTICLE 20 (CONTINUED)

          old 65 Plus Plan.  All future retirees will only be eligible
          for the new Post-65 PPO Medical Plan.

          The Post-65 PPO Medical Plan premiums will be $45.05 per
          month per member for the duration of the Collective
          Bargaining Agreement.

     Provisions of this Post-65 PPO Medical Plan are:

------------------------------------------------------------------------
                       Post-65 PPO Medical Plan

------------------------------------------------------------------------
                               In-Network            Out-of-Network
------------------------------------------------------------------------
   Annual Deductible              $750                   $1,000
                                 $1,500                  $2,000

------------------------------------------------------------------------
   Hospital Coverage              90%             80% after deductible
                            after deductible          and $200 per
                                                      confinement
------------------------------------------------------------------------
      Coinsurance                 90%                     80%
    Scheduled/Units         after deductible        after deductible

------------------------------------------------------------------------
 Out-of-Pocket Maximum           $2,000                  $3,000
                                 $4,000                  $6,000
------------------------------------------------------------------------
     Doctor Office                90%                     80%
         Visit              after deductible        after deductible

------------------------------------------------------------------------
      Prescription             Brand 80%               Brand 80%
                              Generic 90%             Generic 90%

------------------------------------------------------------------------
      Plan Maximum                   $1,000,000 per insured
------------------------------------------------------------------------

(f)  Additional Life Program

     The existing Voluntary Additional Life Insurance for IAM
     represented employees will be replaced by a new program described
     below.  The key provisions are:

     (1)  Guaranteed issue upon portability when terminating or
          retiring from TWA;

     (2)  Guaranteed issue up to plan maximum or $150,000 whichever is
          lower for new enrollees;

     (3)  Guaranteed rates for three years;

                                                                     93

<PAGE>
<PAGE>

ARTICLE 20 (CONTINUED)

     (4)  Rates shall remain fixed upon portability at retirement;

     (5)  An additional Life Insurance program will be made available
          for spouses and children of active employees that will
          include limited portability.

          Provisions of Additional Life Program at Portability

          --------------------------------------------------------
                                                 Employee Rates
          --------------------------------------------------------
            (Rate / $1000 of Covered             Age        Rate
            Payroll) Volume - #                  ---        ----
                                                < 30        0.10
                                                30-34       0.15
                                                35-39       0.20
                                                40-44       0.25
                                                45-49       0.40
                                                50-54       0.70
                                                55-59       1.10
                                                 60+        2.10
          --------------------------------------------------------

(g)  Tool Box Insurance

     The Company will make available, at no cost to Crew Chief Flight
     Simulator Technicians, Flight Simulator Technicians, Crew Chief
     Mechanics and Mechanics, these maximum insurance coverages against
     loss by fire or theft of the following items owned by the employee
     while such is on Company premises for use in connection with the
     employee's work, and while in transit to or while being used in
     connection with a field service assignment. A new hire inventory
     will be required within thirty (30) days of hire.

     (1)  For the loss of the entire contents of
          a Tool Box                                   $2,000

     (2)  For the loss of the entire contents of a
          Top Tray of a Tool Box                       $  750

     (3)  For the loss of the entire contents of a
          Tote Type Tool box                           $  500

     Losses will be settled by the insurance company directly with the
     employee who will bear the first $50 of any loss.

94

<PAGE>
<PAGE>

                             ARTICLE 21

                             WAGE RULES

(a)  The minimum hourly rates set forth in Schedule A attached hereto
     and made a part of this Agreement shall prevail on and after the
     dates indicated thereon.

     (1)  Effective November 1, 1978, all employees in the Mechanic or
          higher classifications assigned to Aircraft Maintenance at
          Line Service Stations or to Line Maintenance crews at the
          Overhaul Base shall receive a premium of ten (10) cents per
          hour in addition to their base pay. All employees in the
          classifications below Mechanic assigned to the servicing of
          aircraft (thru flights, terminating flights, originating
          flights, charter flights, air freight flights, training
          flights, etc.) shall receive a premium of ten (10) cents per
          hour in addition to their base pay. This premium for pay
          purposes shall be computed as a part of the basic hourly
          wage rate. If an employee is assigned to line aircraft
          maintenance for less than four (4) hours in a workday, he
          shall not be entitled to the line differential. If the
          employee is assigned to line aircraft maintenance for four
          (4) hours or more in a workday, he shall be paid the line
          differential for the entire shift, if worked.

(b)  No employee shall suffer any reduction in hourly rate or
     classification as a result of this Agreement, and nothing in this
     Agreement shall be construed to prevent increases in individual
     rates or classifications over and above the minimum specified.
     This shall not be construed to prevent force reductions, demotions
     for cause, or other changes in classification and rate allowed in
     the Agreement.

(c)  Employees shall be paid bi-weekly, every other Friday, except
     where applicable laws provide a more frequent paying-off
     condition.

(d)  Should the regular pay day fall on a holiday or on days when the
     department or point is closed down, employees will be paid on the
     preceding day.

(e)  Where there is a shortage equal to one-half a day's pay or more in
     the pay of an employee, the employee will be reimbursed for such
     shortage as soon as possible.

(f)  Pay checks will include an itemized statement of all hours, wages,
     adjustment, and deductions for the pay period.

(g)  Employees leaving the service of the Company will be paid for all
     time due upon request at the earliest possible time after
     separation and in compliance with State Law.

(h)  Automatic changes in pay rate will be effective on the nearest
     date commencing a regular pay period.

(i)  An employee absent during his normal working day for the purpose
     of serving as a juror shall be entitled to his regular pay less
     any fee received for such service. An employee receiving summons
     shall notify his supervisor immediately, and shall

                                                                     95

<PAGE>
<PAGE>

ARTICLE 21(I) (CONTINUED)

     provide his supervisor with written proof of time spent on jury
     duty, with actual dates and hours of service. If an employee is
     released from serving as a juror and does not receive a fee
     payment, he shall be entitled to his regular pay, provided he
     reports for work in accordance with the following:

     (1)  Day Shift Employees

          Whether actually selected for jury service or not, employee
          is expected to report for duty if he is released
          sufficiently early in the day to permit three (3) or more
          hours of work.

     (2)  Afternoon Shift Employees

          (a)  If employee serves on jury duty for a full day, he
               will not be expected to work his shift on that day.

          (b)  If an employee is released from service by noon he
               will be expected to work his shift on that day.
               However, if he is scheduled to report for jury duty on
               the following day, he will be released two (2) hours
               before the end of his shift.

     (3)  Night Shift Employees

          If employee is required to report for jury duty on a given
          day, he will be excused from work on the shift immediately
          preceding.

(j)  An employee subpoenaed to serve as a trial witness shall be
     entitled to his regular pay during such authorized absence and
     shall report for work in accordance with the provisions of
     paragraph (1), (2), or (3) of (i) above, whichever is applicable.

(k)  Effective with the first payroll period commencing on or after the
     following dates, employees classified as mechanics or higher who
     hold and continue to hold a valid FAA mechanic certificate with an
     airframe or power plant rating (each rating considered as one (1)
     license) or a valid FAA General Radio-telephone operator license
     will be paid for each of two licenses held at these rates per
     hour. This premium shall be considered a part of the base rate for
     purposes of pay computation. Any employee who, as of October 31,
     1981, possesses a First Class Radio-telephone license and renews
     that First Class license as a General Radio-telephone license will
     continue to receive two license premiums for the General Radio-
     telephone license. This premium will be considered as part of the
     base rate for purposes of pay computation.

                        Current     8/1/99      8/1/00

First License           $ .71       $1.00       $1.50
Second License            .71        1.00        1.50
                        -----       -----       -----
                        $1.42       $2.00       $3.00

96

<PAGE>
<PAGE>

ARTICLE 21(K) (CONTINUED)

(l)  (1)  Effective September 1, 1980, all employees shall receive one
          (1) cent per hour with a maximum of seventeen (17) cents for
          each .3 rise in the Consumer Price Index for Urban Wage and
          Clerical Workers (CPI-W) published by the Bureau of Labor
          Statistics based upon a comparison of the Index for the
          months of December 1979 and August 1980.

     (2)  Effective September 1, 1981, all employees shall receive one
          (1) cent per hour with a maximum of eighteen (18) cents for
          each .3 rise in the Consumer Price Index for Urban Wage and
          Clerical Workers (CPI-W) published by the Bureau of Labor
          Statistics based upon a comparison of the Index for the
          months of December 1980 and August 1981. The cost of living
          adjustment shall, for pay purposes, be computed as part of
          the basic hourly wage rate.

(m)  Time off with pay (one day limit with exception for second day
     when evidence is submitted showing employee has been held over by
     induction center) for a military pre-induction physical exam which
     is scheduled on the employee's work day shall be granted by the
     Company.

(n)  Effective August 1, 2000 employees in the Mechanic and above
     classifications will receive a skill pay premium of $1.00 per
     hour.

                             ARTICLE 22

                       APPRENTICESHIP PROGRAM

Within thirty (30) days after the signing of this Agreement the Company
and the Union will meet to discuss and to endeavor to agree upon the
establishment of an apprenticeship program and such program as they
mutually agree upon will be established. No apprentice mechanics will be
employed by the Company until such a program is established.

                             ARTICLE 23

                     GENERAL AND MISCELLANEOUS

(a)  Employees who have grown old in the service of the Company and
     become unable to follow their regular work to advantage shall be
     given preference of such light work as they are able to handle in
     their work classification.

(b)  Complete service files shall be maintained for all employees by
     the Company. In the event of disciplinary action up to and
     including discharge, the service file will, upon request, be made
     available to the employee and/or his District 142 representative
     (President-General Chairman or General Chairman) for review and
     inspection.

     An employee and his Local Union Representative will receive a copy
     of any record in the employee's file which may be construed as a
     criticism or reprimand of the employee. Any record placed in the
     employee's file as a criticism or reprimand shall be removed from
     the file after a two (2) year period from the date of issuance.

                                                                     97

<PAGE>
<PAGE>

ARTICLE 23 (CONTINUED)

(c)  Any employee leaving the service of the Company will, upon request
     to the appropriate Regional Manager Employee Relations, be
     furnished with a letter setting forth the individual's
     qualifications and length of service.

(d)  In the event new equipment is put into service or existing
     equipment is technologically upgraded, affected employees shall be
     given every opportunity to become familiar with the new or
     upgraded equipment without change of classification or rate.

(e)  Except in the servicing of flights, no work shall be performed out
     of doors during inclement weather when shelter is reasonably
     available.

(f)  All orders or notices to an employee under this Agreement,
     involving a change in station assignment, promotion, demotion.
     furlough, and leave of absence shall be given in writing.

(g)  Foremen, Assistant Foremen, and higher ranking officials of the
     Company shall not be permitted to perform work on any hourly rated
     job covered by this Agreement except in emergencies or instruction
     or training of employees. It is agreed that the servicing of late
     flights where qualified personnel are not available, and the
     performance of necessary work caused by unusual circumstances at
     line service stations in order to maintain flight schedules, or
     the protection of Company property against the elements may be
     considered an emergency.

(h)  Bulletin boards will be provided by the Company in the vicinity of
     each locker or dressing room assigned to employees or at locations
     mutually agreed upon, marked "International Association of
     Machinists", for posting notices restricted to:

          1.   Notices of Union recreational and social affairs.
          2.   Notices of Union Elections.
          3.   Notices of Union appointments and results of Union
               elections.
          4.   Notices of Union meetings.
          5.   Official Union business of District Lodge 142.

          There shall be no general distribution or posting by employees
          of advertising or political matter or of any kind of literature
          upon the Company's property.

(i)  The Company shall provide each employee covered by this Agreement
     with a copy of the Agreement printed in a union shop and bound in
     a convenient pocket size booklet.

(j)  The Company will not lock out any employee covered hereby and the
     Union will not authorize or take part in any work stoppage,
     strike, or picketing of Company premises during the life of this
     Agreement, until the procedures for settling disputes involving
     employees covered by this Agreement and as provided by the Railway
     Labor Act have been exhausted. The Company reserves the right to
     discipline.

98

<PAGE>
<PAGE>

ARTICLE 23(J) (CONTINUED)

     including discharge of any employee taking part in any violation
     of this provision of the Agreement.

     Notwithstanding the foregoing, the Company will not require any
     employees covered hereunder to cross the picket line of Company
     employees who are engaged in a lawful strike under the Railway
     Labor Act. The individual or concerted refusal to cross such
     picket lines shall not constitute grounds for discipline or
     discharge or be considered a violation of this agreement.

(k)  No employee covered by this Agreement shall during working hours,
     engage in solicitation of membership for any Union, collection of
     dues, or other Union activity not provided for in this Agreement.

(l)  The Company may designate any employee covered by this Agreement
     who is in the guard or higher classification to relieve guards
     during lunch and rest periods.

(m)  In the event free parking facilities are not available for
     employees working at airport locations, the Company will assume
     the monthly parking charge up to a maximum of seven dollars
     ($7.00) per month assessed by the appropriate authority for
     parking in an area designated for employees. This provision does
     not apply to original or replacement charges to employees for
     parking decals, stickers, gate keys, or similar items.

(n)  The Company and the Union recognize the need for the District and
     Local Lodge(s) designated representatives to be off work
     periodically to handle official business of the Union. (The
     identity of the representatives shall be supplied in advance to
     the Company.)  In recognition thereof the Company shall grant
     approved time off without pay for this purpose provided that
     sufficient advance notification has been given to the Company.

                             ARTICLE 24

                           SAVING CLAUSE

Should any part or provision of this Agreement be rendered invalid by
reason of any existing or subsequently enacted legislation, such
invalidation of any part or provision of this Agreement shall not
invalidate the remaining portions thereof, and they shall remain in full
force and effect.

                             ARTICLE 25

                  GEOGRAPHICAL SCOPE OF AGREEMENT

(a)  This Agreement shall not apply to personnel based outside of the
     United States, its territories and possessions, within the
     jurisdiction of the Railway Labor Act, as amended, except as set
     forth in this Article.

                                                                     99

<PAGE>
<PAGE>

ARTICLE 25 (CONTINUED)

(b)  An employee who has completed his probationary period under this
     Agreement and is subsequently sent abroad will retain and continue
     to accrue seniority provided the work performed during such
     overseas assignment is the same as that described in the job
     descriptions set forth under Article 4 of this Agreement. The
     seniority of all other employees on overseas assignment shall be
     governed by the provisions of Article 6(f)(19)(a).

(c)  Employees hired in the United States for Overseas assignments
     shall not be covered by the terms of this Agreement and shall not
     accrue seniority.

(d)  Employees returning from overseas assignment whose seniority will
     not permit them to return to the classification at the point from
     which they transferred overseas shall be furloughed.

     Such an employee, while still overseas will notify the Company at
     least twenty(20) days prior to the date of his return of his
     intention to exercise his seniority at the point from which he
     transferred overseas. Thereafter, in accordance with Article 6
     (f)(10), the Company will give the employee ten (10) work days
     notice, or pay therefor, at the Company's option informing him
     that upon his return he will be reduced at the point from which he
     transferred overseas and that he has the following options:

     (1)  Return to his prior domestic location and take furlough.
     (2)  Exercise his 6(e)(4) system displacement rights.
     (3)  Report back to his prior domestic location and be officially
          furloughed at that time.

     If the employee elects option 2 above, he must advise the Company
     in writing within three days of the points to which he wishes to
     system displace. The Company will advise the employee to report
     directly to the displacing location upon his return.

     If the employee elects option 3 above, upon his return to his
     prior domestic location he will be given a furlough letter and,
     should he at that time elect system displacement, will be off
     without pay until such a displacement can be worked.

(e)  Selection of employees covered by this Agreement for overseas
     assignment shall be made in a fair and uniform manner, with due
     regard for seniority and qualifications, and notices of openings
     and the names of the employees selected shall be posted on a
     system wide basis. Such selection shall not be subject to the
     procedures contained in Article 10, 11 and 12, provided, however
     that in the event of a dispute concerning such selection the
     President-General Chairman, District 142, may advise the Company's
     Director - Labor Relations, Ground, and the parties shall meet
     promptly to discuss the matter and review the action which
     occurred.

(f)  It shall be the responsibility, of the Company to notify employees
     in writing of their seniority status prior to being accepted for
     overseas assignment or of any change in assignment thereafter
     affecting the employee's seniority. Copies of the aforementioned

100

<PAGE>
<PAGE>

ARTICLE 25(F) (CONTINUED)

     notices will be furnished to the Union's President-General
     Chairman and the affected Local Committee Chairman and Financial
     Secretary.

                              ARTICLE 26

                            UNION SECURITY

(a)  Each employee now or hereafter employed in any, classification
     covered by this Agreement shall, as a condition of continued
     employment, within sixty (60) days following the beginning of such
     employment or the effective date of this Article, whichever is
     later, become a member of, and thereafter maintain membership in
     good standing in the Union except as provided otherwise herein.
     Such condition shall not apply with respect to any employee to
     whom such membership is not available upon the same terms and
     conditions as are generally applicable to any other member of his
     classification (and at his point on the Company's system), or with
     respect to any employee to whom membership is denied or terminated
     for any reason other than the failure of the employee to tender
     his initiation, reinstatement, assessments, or dues uniformly
     required of other members of his classification (and at his point
     on the Company's system), as a condition of acquiring or retaining
     membership.

     The condition of payment shall be met if the amount due is
     tendered to the Local Lodge Financial Secretary of the Union in
     person or is mailed to him within the prescribed time limits or if
     the employee has executed a valid assignment and authorization for
     check-off of Union initiation, reinstatement, assessments and
     dues.

     For the purpose of this Article, "membership in good standing in
     the Union" shall consist of the payment by the employee not later
     than the last day of the following calendar month, of dues for
     each calendar month, initiation, reinstatement, fees and
     assessments (not including fines and penalties), which are
     uniformly required of members of his classification (and at his
     point on the Company's system) as a condition of acquiring or
     retaining membership; provided however, that the time limits
     prescribed in the preceding portion of this sentence shall not
     apply to employees beginning employment in work covered by this
     Agreement who shall, instead, be required to fulfill the
     requirements of "membership in good standing" within the sixty
     (60) day period following the beginning of such employment.

     Employees on leave of absence, including sick leave, must maintain
     membership in good standing in the Union.

(b)  Any employee who has not held membership in good standing with the
     Union at an time on or after the applicable date shown for his
     present classification and who was in the employ of the Company
     previous to such applicable date shall not be required, as a
     condition of continued employment, to become a member of the
     Union. However, any such employee who subsequent to the effective
     date of this Article and during the term of this Agreement joins
     the Union, must thereafter maintain his membership in the Union.
     This paragraph is applicable to the following classifications on
     the following dates:

                                                                    101

<PAGE>
<PAGE>

ARTICLE 26(B) (CONTINUED)

          Classifications except janitor and
            Crew Chief janitor in Group #1        November 20, 1945

          Crew Chief janitor and janitor          April 5, 1948

          Groups #2, #3 and #4                    May 15, 1946

          Group #5                                September 23, 1949

          Guards                                  May 22, 1946

               The classifications referred to above appear in
               Article 6 of the mechanic and related employees
               agreement dated August 25, 1966, and the guards
               agreement dated August 25, 1966.

(c)  Notwithstanding any other provisions contained in this Agreement,
     if any person is transferred or promoted to a position in which he
     is not covered by this Agreement, the provisions of the Union
     Security Agreement shall become inoperative as to him.

          However, this provision shall not apply to employees who retain
          and accrue seniority in accordance with the first sentence of
          Article 25(b).

(d)  (1)  Persons on military leave holding seniority under this
          Agreement shall not be required to maintain good standing in
          the Union. However, when the  employee returns to a position
          covered by this Agreement, he will assume his obligation to
          the Union and maintain good standing in the Union as if he
          had been continuously employed in such position from the
          effective date of this Article.

     (2)  When a person holding seniority under this Agreement returns
          from a position in which he was not covered by the
          Agreement, he will assume his obligation to the Union within
          seven (7) calendar days after return in the same manner, as
          if he had been continuously employed in such position from
          the effective date of this Article.

(e)  When an employee begins employment or loses his good standing
     membership in the Union because of failure to pay dues and
     initiation, reinstatement fees and assessments, the following
     procedure shall be observed:

     (1)  The Local Financial Secretary of the Union for the
          particular location involved shall notify the employee by
          registered or certified letter, return receipt requested,
          with copies to the President-General Chairman. District 142
          IAM, 400 N.E. 32nd Street, Kansas City, Missouri 64116 and
          the Company's Director - Labor Relations, Ground, that the
          employee is delinquent in the payment of dues, initiation or
          reinstatement fees and assessment as specified herein and
          accordingly is subject to discharge as an employee of the
          Company. Such letter shall also notify the employee that he
          must make the required payment to the Financial Secretary of
          the Union's local lodge with jurisdiction at the location

102

<PAGE>
<PAGE>

ARTICLE 26(E) (1) (CONTINUED)

          where he works within fifteen (15) calendar days within date
          of mailing of the notice or agreement. If the employee does
          not keep both the Company and Union informed as to his
          correct mailing address, no extension of time set forth
          above shall be granted.

     (2)  Upon expiration of the fifteen (15) day period following the
          mailing of the notice set forth above, if the employee still
          remains delinquent, the President-General Chairman of the
          Union may certify in writing to the Company's Director -
          Labor Relations, Ground, that the employee has failed to
          make the required payment within the fifteen (15) day grace
          period and is, therefore, to be discharged.

     (3)  Within seven (7) days after receipt by the Company of the
          certified letter set forth in (2) above that the employee is
          to be discharged the Company shall discharge the employee
          from its service for failure to pay or tender dues,
          reinstatement or initiation fees or assessments under this
          Article.

(f)  If the employee discharged or to be discharged under this Article
     contends that he is not properly subject to discharge under the
     terms of this Article, he may protest such action to the TWA-IAM
     System Board of Adjustment provided that such protest in writing
     is mailed within seven (7) days after the employee is notified of
     such action. This protest shall be submitted in duplicate to the
     TWA-IAM System Board of Adjustment, with one copy mailed to the
     Director - Labor Relations, Ground, TWA, and the other copy mailed
     to the President-General Chairman, IAMAW, 400 N.E. 32nd Street,
     Kansas City, Missouri 64116. Both copies shall be sent by
     registered or certified mail return receipt requested. The last
     date of receipt of such written protest by the Board shall be
     considered the date of receipt.  In the event no protest is to be
     filed within the above time limits, the action will be considered
     as proper and will be final and binding on all parties concerned.

     For the purposes of this paragraph (f) only, the System Board of
     Adjustment and procedures before the Board shall be as follows:
     The System Board of Adjustment shall consist of three (3) members,
     one (1) appointed by the Company, one (1) appointed by the Union,
     and a neutral member selected jointly by the Union and the
     Company. Even, reasonable effort shall be made by the parties to
     secure the neutral from the Kansas City Area to assure, as nearly
     as possible, prompt handling of each protest. The neutral member
     shall serve as Chairman of the Board. The Board shall have
     jurisdiction over all protests properly filed under this
     provision. Within five (5) days of receipt of request for such
     meeting the Board shall establish the date of hearing. When the
     protesting employee is employed at a point other than the Kansas
     City Area, the hearing date shall not be earlier than ten (10)
     days following the date of the request for meeting. When the
     protesting employee is employed within the Kansas City
     Metropolitan Area, such meeting shall not be earlier than seven
     (7) days following the request for meeting. Unless otherwise
     agreed by the Company and the Union, all meetings of the Board
     will be at Kansas City, Missouri. The protesting employee shall be
     advised in writing of the date and time of the meeting. At the
     meeting of the Board a representative of the Company, a
     representative of the Union,

                                                                    103

<PAGE>
<PAGE>

ARTICLE 26(F) (CONTINUED)

     and the employee and/or his designated representative will be
     allowed to present to the Board all evidence and argument which is
     pertinent to the issue. A majority decision of the Board will be
     issued within five (5) days after the meeting and will be final
     and binding upon all parties concerned. The expenses and
     reasonable compensation of the neutral shall be borne equally by
     the parties.

     The provisions of Article 11 shall not apply to disputes arising
     under this Article, and the provisions of Article 12 shall apply
     to such disputes except as they are superseded by the above
     provisions relating to procedures for handling disputes.

     The effective date of an employee's discharge under this Article
     will be held in abeyance during the time that a dispute is
     unsettled as to whether or not the individual is properly subject
     to discharge under this Article. If a decision is made that the
     employee is properly subject to discharge, the discharge shall be
     effected the day following the issuance of the decision. In the
     event a reduction in force occurs during such time as an
     employee's status is under protest under the provisions of this
     Article, such employee will be considered as having seniority
     under this Agreement for purposes of effecting the reduction.

(g)  Time limits specified in this Article may be extended in
     individual cases only, and then only by written agreement between
     the Company and the Union.

(h)  An employee discharged under the provisions of this Article shall
     be deemed to have been "discharged for just cause" within the
     meaning of the terms of the Agreement.

(i)  All letters and notices provided for by this Article shall be sent
     by registered or certified mail, return receipt requested. Such
     letters and notices or copies sent to the Union shall be addressed
     to the President-General Chairman of the Union at 400 N.E. 32nd
     Street, Kansas City, Missouri 64116, while those sent to the
     Company shall be directed to the Company's Director - Labor
     Relations, Ground.

(j)  Nothing in this Article shall require the Company to terminate the
     employment of any employee until the services of a qualified
     replacement are available; except that the provisions of this
     paragraph will not permit the Company to retain an employee in its
     employment in excess of ninety (90) days from the date of the
     Union's original notice given pursuant to paragraph (e),
     Subsection (1) of this Article.

(k)  When an employee is discharged or resigns, he will be considered
     as a new employee for purposes of this Article if he returns, at a
     later date, to pay status under this Agreement.

(l)  Both the Union and the Company, or either of them, shall have the
     right at any time, to notify individual employees directly of any
     provisions of this Agreement. The Local Union Committee shall be
     notified of group orientation sessions for newly hired bargaining
     unit members and a member of the Committee shall be afforded an
     opportunity to meet with such employees during such sessions.

104

<PAGE>
<PAGE>

ARTICLE 26 (CONTINUED)

(m)  When employees are hired, returned from leave of absence
     (including medical), recalled after layoff, or transferred into
     classifications covered by this Agreement, the Company will
     furnish once each month to District 142, IAMAW, the names,
     classification, point of employment and payroll register number of
     such employees. In addition, at the time employees are hired or
     transferred into classifications covered by this Agreement or
     otherwise beginning employment under this Agreement, the Company
     will present to them and request them to complete the following
     notice:

                          TRANS WORLD AIRLINES

                       UNION REPRESENTATION NOTICE

Name
    -------------------------------------------------------------------

Position
        ---------------------------------------------------------------

Location
        ---------------------------------------------------------------

Date Employed
             ----------------------------------------------------------

The position for which you are being employed is represented by the
International Association of Machinists. The current Agreement requires
that you must become a member of the Union within sixty (60) days from
the date of employment and maintain such membership in good standing to
continue employment in classifications covered by that Agreement. It is
also required that you keep both the Union and the Company advised of
any change in your address. You should study the Agreement in order to
be familiar with all of its provisions. You will be introduced to your
shop steward.

Signed, Co. Rep.
                -------------------------------------------------------

     Location                                     Date
             ------------------------------------     -----------------

     I understand that this notification serves to advise me regarding
     the requirement for Union membership and representation for the
     position in which I am to be employed. I also understand that
     application for membership is my responsibility.

     Employee's Signature                    Date
                         -------------------     ----------------------

          Street Address
                        -----------------------------------------------

          City                          State
              -------------------------      --------------------------

                    White - Personnel File
     Distribution   Pink - Employee
                    Buff - Local Lodge Fin. Secy.

          Form No. US-1

     The Company will then provide one copy of such completed notice to
     the employee, one to the Local Lodge Financial Secretary and one
     for the Personnel File. In

                                                                    105

<PAGE>
<PAGE>

ARTICLE 26(M) (CONTINUED)

     addition, the Company will furnish to the local Union and District
     142, IAMAW, the names, present and previous classification, point
     of employment and payroll register number of all employees who may
     transfer out of classifications covered by this Agreement; in
     addition, the Company will furnish to the Union the names,
     location, payroll register number and status of employees covered
     by this Agreement, who terminate their payroll status for any
     reason, such listings will be furnished twice each month.

(n)  During the life of this Agreement, the Company will deduct from
     the pay of each member of the Union and remit to the Union
     monthly, membership dues, INITIATION OR REINSTATEMENT FEES, AND
     ASSESSMENTS uniformly levied in accordance with the Railway Labor
     Act, as amended, and the constitution and by-laws of the Union,
     provided such member of the Union voluntarily executes the agreed
     form, which is hereinafter included in this Agreement to be known
     as "Check-off Form", which shall be prepared and furnished by the
     Union. The Company will not be required to deduct monthly
     membership dues, initiation or reinstatement fees or assessments
     from the pay of employees covered by this Agreement unless (1) the
     Company has received a check-off form and has not received a
     notice of revocation thereof, and (2) the dues initiation or
     reinstatement fees or assessments for the employee conforms to the
     applicable rates for employees of his classification at his point
     on the system.

    ASSIGNMENT AND AUTHORIZATION FOR CHECKOFF OF UNION FEES AND DUES

                      TO: TRANS WORLD AIRLINES, INC.

     I,                                           , hereby assign to the
       -------------------------------------------
       (Please Print) (Name) First - Middle - Last

     International Association of Machinists and Aerospace Workers:

     A sum of money to cover (initiation), (reinstatement), or
     (assessments) from the wages earned by me, an employee of Trans
     World Airlines, Inc. which sum is to be certified by the District
     Secretary-Treasurer of the Union.

     I also assign a sum to be designated by the District Secretary-
     Treasurer of the Union to cover standard monthly membership dues,
     or such monthly membership dues as may hereinafter be established
     by the Local Lodge, as dues for employees in my present or future
     classification under the Agreement from any wages earned by me or
     to be earned by me as an employee of Trans World Airlines, Inc.,
     and I hereby authorize and direct Trans World Airlines, Inc., as
     my employer to deduct that amount from my first pay period
     following my sixtieth (60th) day of employment and remit the same
     to the District Secretary-Treasurer of the Union.

     This assignment and authorization shall continue in effect and be
     irrevocable for a period of one (1) year from the date hereof, or
     upon the termination date of the applicable labor agreement in
     effect at the time this authorization is signed, whichever occurs
     sooner. Such notice of revocation must be sent by me in duplicate
     by registered mail to the District President and General Chairman
     of the Union and Trans World Airlines, Inc.

106

<PAGE>
<PAGE>

ARTICLE 26(N) (CONTINUED)

     This authorization and direction is made subject to the provisions
     of the Railway Labor Act, as amended, and in accordance with
     existing agreements between the Union and the Company.

     Job Title
              ----------------------------------

     Payroll Register Number                     Name of Location
                            -------------------- (City & State)
                                                 Hired for Employment
     Signature of Employee
                          ---------------------------------------------

     Home Address
                 ------------------------------------------------------

     City                               State
         ------------------------------      --------------------------

     Zip Code                      Date
             ---------------------     --------------------------------

(o)  When a member of the Union property executes such check-off form,
     the President-General Chairman of the Union shall forward the
     original signed copy to the Manager - Payroll. A check-off form
     must be completed in a legible manner or it will be returned to
     the President-General Chairman of the Union for correction. Any
     notice of revocation as provided for in this Article or the
     Railway Labor Act, as amended, must be in writing signed by the
     employee and two (2) copies delivered by registered or certified
     mail. Addressed to the President-General Chairman of the Union.
     Dues deductions will be continued until one (1) copy of such
     notice of revocation is received by the Manager - Payroll from the
     President-General Chairman of the Union. Check-off forms and
     notices received by the Manager - Payroll will be stamp-dated on
     the date received and will constitute notice to the Company on the
     date received and not when mailed.

(p)  When a check-off form as specified herein is received by the
     Manager - Payroll twelve (12) days or more before the issuing date
     of the first biweekly paycheck of the month or the first weekly
     pay check of the month at locations where weekly checks are
     issued. Deductions will commence with such paycheck and continue
     thereafter until revoked or canceled as provided in this Article.
     The Company will remit to the Union a check in payment of all dues
     collected as soon after the payday on which deductions were made,
     as practicable and within thirty (30) days. The Company remittance
     of Union membership dues to the office of the District Secretary-
     Treasurer of the Union will be accompanied by two (2) copies of a
     list for each location which includes (1) names (alphabetically),
     (2) employee register numbers, (3) location numbers, and (4)
     individual amounts deducted.

(q)  An employee who has executed a check-off form and who has been (1)
     transferred or promoted to a job not covered by the Agreement.
     (excluding transfers or promotions on a "Temporary" or "acting"
     basis), (2) who has taken a leave of absence without pay, (3) who
     quits or resigns from the Company, (4) who is laid off, or is (5)
     otherwise terminated from the employ of the Company, shall be
     deemed to have automatically

                                                                    107

<PAGE>
<PAGE>

ARTICLE 26(Q) (CONTINUED)

     revoked his assignment as of the date of such action and if he (1)
     transfers back or returns to a job covered by the Agreement, (2)
     returns from leave of absence, (3) is rehired, (4) is recalled or
     (5) re-employed, further deductions of Union dues, will be made
     only upon execution and receipt of another check-off form.

(r)  Collection of initiation or reinstatement fees and assessments. As
     well as any back dues owed at the time of starting deductions for
     an employee, collection of dues missed because the employee's
     earnings were not sufficient to cover the payment of dues for a
     particular pay period, and collection of dues missed because of
     accidental errors in the accounting procedure, will be the
     responsibility of the Local Lodge Financial Secretary and will not
     be the subject of payroll deduction.

     It will be the Union's responsibility to verify apparent errors
     with the individual Union member before the Union's District
     office representative contacts the Company's Manager - Payroll.

(s)  Deductions of membership dues shall be made from one (1) paycheck
     each month provided there is a balance in the paycheck sufficient
     to cover the amount after all other deductions authorized by the
     employee or required by law have been justified. In the event of
     termination of employment, there shall be no obligation of the
     Company to collect dues until all such other deductions (including
     money claims of the Company and the Credit Union) have been made,
     and such obligation to collect dues shall not extend beyond the
     pay period in which the employee's last day of work occurs.

     TWA agrees that payment of dues funds shall be received by
     District Lodge 142 in the Kansas City office as soon as possible
     based on payroll system information but in no event later than the
     twenty-fifth (25) day of the month.

(t)  This Article shall be in force only so long as the Union continues
     as the recognized representative of the employees under this
     Agreement.

(u)  The Union shall indemnify and save the Company harmless against
     all forms of liability that shall arise out of or by reason of
     action taken by the Company, which action was requested by the
     Union under the provisions of this Article.

     It is agreed that the Company will promptly notify the Union of
     all claims of liability made against the Company pursuant to such
     action taken by the Company, and the Company will make every
     reasonable effort to defend itself against such liability.

(v)  For the purpose of computing the time limits prescribed in this
     Article, the term "days" shall be understood to mean calendar days
     unless otherwise specified.

108

<PAGE>
<PAGE>

                             ARTICLE 27

                             LAYOFF PAY

(a)  An employee who is laid off shall receive layoff pay as provided
     in paragraph (c) of this Article, subject to the limitations and
     conditions set forth herein.

(b)  An employee will not be eligible for or receive layoff pay if any
     of the following conditions exist:

     (1)  He has not completed at least one (1) year with the Company,
          on pay status, in a position covered by this Agreement. For
          the purpose of this paragraph (b)(1), "Pay Status" includes
          all time spent in a position covered by the particular
          agreement, exclusive of leaves of absence or furlough.

     (2)  He remains in the employ of the Company in any position.

     (3)  He fails to exercise his seniority which would enable him to
          remain in the employ of the Company, except where such
          exercise of seniority would require moving to a new point.

     (4)  He has been laid off as a result of an Act of God, a war
          emergency, revocation of the Company's operating certificate
          or certificates, or grounding of a substantial number of
          Company aircraft for safety reasons.

     (5)  He is dismissed for cause, resigns, or retires.

     (6)  There is a temporary cessation of work because of a strike
          or picketing.

     (7)  There is a temporary cessation of work because of
          circumstances beyond the Company's control.

(c)  (1)  The amount of layoff pay due under this Article shall be
          based on the length of actual straight time compensated
          service with the Company under this Agreement, and shall be
          computed on the basis of the employee's regular straight
          time basic hourly rate at time of layoff. An employee shall
          accrue layoff pay credit at the rate of two (2) weeks of
          credit for the first through the second full year of
          compensated service; thereafter, accrual shall be at the
          rate of one (1) week credit for each additional full year of
          service, to a maximum accrual of twelve (12) weeks of credit
          for twelve (12) or more full years of compensated service.
          For the purpose of this paragraph (c), the amount of layoff
          pay will be computed upon the basis of the total number of
          straight time hours of compensated service, but not to
          exceed 24,960 hours. Each 2,080 hours remaining after
          computing and paying the number of full weeks of layoff pay
          due shall be left standing to the employee's credit pending
          recall. The remaining hours shall be added to the straight
          time hours of compensated service earned after recall and
          used to compute weeks of layoff pay in the event of future
          furlough, but the total of these hours shall not exceed
          24,960.

                                                                    109

<PAGE>
<PAGE>

ARTICLE 27 (CONTINUED)

          Effective with the first anniversary of the ratification
          date of this agreement, employees with fifteen (15) or more
          full years of compensated service will accrue one additional
          week of layoff pay.

     (2)  If an employee is involved in more than one furlough, no re-
          qualification will be necessary provided such employee
          completes at least one additional year of active service
          with the Company under the Agreement from the date on which
          the employee reported for duty upon the occasion of the
          prior recall.

(d)  An employee laid off shall receive layoff pay starting at time of
     layoff and payments for the amount due shall be at regular pay
     periods and continue until all layoff pay credit is used; except
     that in no event shall any layoff pay be due after effective date
     of recall by the Company in any position.

(e)  The layoff allowance provided herein shall be in addition to any
     or all other benefits provided under this Agreement.

110

<PAGE>
<PAGE>

                             ARTICLE 28

                       LETTERS AND AGREEMENTS

In addition to the letters and agreements printed in this Article, it is
understood and agreed that the following letters and agreements will
remain in effect:

(a)  All local field service agreements currently in effect on the
     System;

(b)  Local letters, agreements, procedures and practices in effect on
     the System as of January 1, 1969, regarding selection of employees
     for overtime and/or holiday coverage;

(c)  The following letters and agreements:

                          SUBJECT                                PAGE

      Metropolitan Area Bidding Agreements                        114
      Lead Systems Technician                                     115
      Aircraft Acceptance Notification                            120
      Aircraft Acceptance Inspectors                              121
      Crew Chief Supplemental Agreement                           122
      Crew Chief Concept Implementation                           124
      Crew Chief Responsibilities                                 125
      Assistant Ramp Service                                      126
      Inspector Designees                                         129
      Taxiing                                                     130
      Building Maintenance and Repair Work                        131
      Metric Tools                                                132
      Snow Removal                                                133
      Two-Way Radio - Ramp Communications                         134
      Stores Clerk Staffing                                       135
      Stores Coverage                                             136
      Stores Clerks                                               137
      Stores Clerk Overhaul Base                                  139
      Staffing at TWTTA                                           140
      Cargo Warehouses                                            141
      Receipt of Air Freight                                      142
      SFO Staffing                                                143
      Janitorial Functions                                        144
      Pass Issuance                                               145
      7 Term Pass Holders                                         146
      Pass Policy                                                 147
      Disciplinary Action                                         148
      Investigative Reports                                       149
      Payroll Information Records                                 150
      Lunch Period for Guards, etc.                               151

                                                                    111

<PAGE>
<PAGE>

                          SUBJECT                                PAGE

      Consolidation of Ground Service with Ramp Service           152
      Fueling Letter for KCI and DEN                              153
      Attendance Hearings                                         154
      New Contract or Lease Arrangements                          156
      Vacation Banking                                            157
      401K Plan                                                   158
      Amendment to 401K Plan                                      159
      Implementing Basic Retirement "A" Plan                      160
      Implementing the Retirement "B" Plan                        164
      Retirement Benefits Full-Time District                      142
      Staff IAM Grand Lodge Staff                                 165
      Metropolitan Area Temporary Re-Assignment                   167
      Laid Off Employee Examinations                              168
      Maintenance of Security Equipment                           170
      Crew Chief Systems Technician Coverage                      171
      Maintenance Evaluation Committee                            172
      Overhaul Base Work Transfer Committee                       173
      Disability Income                                           175
      Payroll Deductions - Political Action Fund                  176
      Elimination of Classification
      At a Point - Moving Expenses                                177
      Application of Agreement at New Stations                    178
      Guard Staffing - JFK                                        179
      Filling Crew Chief Openings                                 180
      Lay-Off of Crew Chief vis-a-vis
      Basic Classification                                        181
      Receipt and Dispatch                                        182
      Worker's Compensation Controverted Claims                   183
      Greasing and Oiling Ground Equipment                        184
      Station Staffing Review Committee                           185
      Emergency Overtime Procedures                               186
      Mechanic Examinations                                       187
      Training Programs                                           188
      Transitional Duty                                           189
      Warranty - Aircraft Parts and Components                    190
      Metal and Machine Shop Specialties - STL                    191
      Recognition - IAM                                           192
      Avionics Specialty - RE&I Combination (Mechanic,
      Inspector, LST)                                             193
      Plant Maintenance Electronics Specialty - MCI               198
      Drug and Alcohol Policy                                     200
      Labor Advisory Board                                        203
      Collective Bargaining Agreement Supplement
      (Protective Covenants)                                      205
      Cross Utilization between Ramp Service Seniority Groups     206
      Full Time Committee Staffing                                207
      Shift Staffing Deviation Assistant Ramp Service             208
      Assistant Ramp Service and Part Time Guard Benefits         209

112

<PAGE>
<PAGE>

                          SUBJECT                                PAGE

      Assistant Ramp Service and PT Guard Vacancies at a location 210
      Assistant Ramp Service and PT Guard Vacancies               211
      Additional Staffing Third Party Contract Work               212
      Assistant Ramp Service and PT Guard Expirations             213
      Meal Pickup and Delivery JFK/LAX                            214
      Dining Units                                                215
      Furloughed Dining Unit Employee Currently Accruing
      Seniority under M&R Agreement                               216
      Furlough Dining Unit Employees                              217
      Dining Unit Employees                                       218
      Dining Unit Stores Clerks                                   219
      Medical/Dental Coverage Emergency Out of Network            220
      Modification of Local Overtime Agreement                    221
      Air Freight - SEA - ATL                                     222
      MD 80 Landing Gear                                          223
      757 Engine Review                                           224
      Status of Agreement                                         225
      Unused Sick Leave                                           226
      Ground Equipment Field Service                              227
      Company Seniority Date                                      228
      Recall Right                                                229
      Consolidation of Fire Inspector Classification              230
      Fire Inspector                                              231
      Field Service Inspector                                     232
      Stock Distribution Letter                                   233
      Focus Stations                                              234
      Regional Jets/Code Sharing                                  235
      Chicago Air Freight                                         239
      Back Pay Bonds                                              240
      Covenants                                                   242
      IAM National Pension Plan                                   245

                                                                    113

<PAGE>
<PAGE>

April 10, 1992

Mr. William O'Driscoll
President - Directing General Chairman
District Lodge 142
International Association of Machinists
  and Aerospace Workers 400 N.E. 32 Street
Kansas City, Missouri 64116

Dear Mr. O'Driscoll:

This will confirm our agreement reached during negotiations that there
are currently four (4) Metropolitan Areas covered by the Mechanics and
Related Employees Agreement. These areas are: San Francisco (SFO-OAK),
Kansas City (MKC-KCI), Chicago (ORD-MDW), and New York (JFK-LGA-EWR).

Each Metropolitan Area is considered one point under this agreement. All
work at each location at the point covered by this agreement will be
performed by the appropriate classification at the point.

With the exception of New York, each location within the Metropolitan
Area is regarded as a separate station for purposes of bidding.
Accordingly, an employee bidding for one of these three (3) Metropolitan
Areas must be specific as to location desired. In the event he desires
to transfer to a Metropolitan Area, but has no specific choice of
location, he should place a bid for each location.

Under historical practice, all locations within the New York Area are
regarded as a single station. An employee bidding to the New York Area
is permitted to select his location (LGA-EWR or JFK) upon arrival at New
York, seniority permitting. At the time an employee places a bid for New
York he is not privileged to specify location within the Metropolitan
Area, but will be privileged to exercise seniority for location upon
arrival in the area.

                                        Very truly yours,
                                        /s/ William L. Schecter

                                        William L. Schecter
                                        Staff Vice President
                                        Labor Relations

Agreed and Accepted:
/s/ William O'Driscoll

William O'Driscoll

114

<PAGE>
<PAGE>

                      LEAD SYSTEMS TECHNICIAN

The Company and the Union hereby agree to maintain the classification of
Lead Systems Technician. The following Supplemental Agreement is
intended to express the understanding of the parties with regard to such
classification.

(1)  The responsibilities of a Lead Systems Technician will fall into
     one of four designated specialty categories, which are: Systems-
     Structures, Power Plant, Systems-Structures/Power Plant, and
     Avionics (Electrical/ Electronics). Personnel selected for a given
     specialty category(s) must have and maintain valid license(s) as
     follows:

     Systems-Structures                 FAA "A&P"
     Power Plant                        FAA "A&P"
     Systems-Structures/
     Power Plant                        FAA "A&P"
     Avionics (Electrical/              FCC 2nd Class Radio
     Electronics)                       Telephone or higher

(2)  (a)  A Lead Systems Technician will be provided with the
          necessary training to enable him to carry out his
          responsibilities as referred to in paragraph (1) above in
          the appropriate specialty category(s). Such training may be
          conducted at his assigned location, at a manufacturer's
          plant or at another location by regular TWA and/or factory
          instructor.

     (b)  Upon selection as a Lead Systems Technician, an employee
          will normally receive initial training in the amount of 120
          hours of classroom training by a regular TWA Instructor
          and/or factory instructor, and on-the-job training as
          necessary which may initially be provided by a Specialty
          Foreman and subsequently by a Lead Systems Technician in the
          same specialty category. Additionally, the Lead Systems
          Technician will receive training as required when:

          (1)  There has been a major change in the systems and or
               components of the aircraft systems to which he is
               assigned.

          (2)  After working at a location or locations where an
               aircraft type or model does not operate to or through
               and which will start operation to or through his
               assigned location and/or when he moves to a location
               to or through which a type or model of aircraft
               operates on which he has not received training in the
               past two (2) years.

          (3)  When a new model aircraft enters the service of the
               Company on which he has not received previous training
               and which will operate to and/or through his assigned
               location.

                                                                    115

<PAGE>
<PAGE>
         (4)  There has been a combination of the specialty to which
              he is assigned with another specialty, as mutually
              agreed to by the Company and the Union.

     (c)  Following initial training and/or recurrent training by
          regular TWA instructors and/or factory instructors on an
          aircraft system or function, the Lead Systems Technician
          will be required to pass written tests with passing grades
          as agreed upon by the Company and the Union. In the event
          that a Lead Systems Technician fails to pass a required
          test, he may request that the results of his examination be
          inspected by a person(s) to be designated by the President-
          General Chairman of District 142.

     (d)  A Lead Systems Technician will be expected to stay abreast
          of technical information published by the Company and
          applicable to those aircraft and/or systems on which he has
          received training pertaining to his specialty. Examples
          would be Engineering Change Orders, Maintenance Service
          Letters, Special Checks, Special Inspections and other
          specifically pertinent information.

(3)  All provisions of the Basic TWA-IAM Agreement (hereinafter
     referred to as the Basic Agreement) will be applicable to the
     classification of Lead Systems Technician, except as modified by
     this Supplemental Agreement.

(4)  (a)  To be eligible for the position of Lead Systems Technician
          an employee must: (1) currently be engaged in aircraft
          maintenance work under the Basic Agreement as a Mechanic or
          Crew Chief Mechanic, Inspector or Crew Chief Inspector,
          Flight Simulator Technician or Crew Chief Flight Simulator
          Technician, or Crew Chief Systems Technician, and must have
          been engaged in such work for the past five (5) consecutive
          years or more; and, (2) possess the applicable license(s)
          outlined in paragraph (1) above.

     (b)  The senior employee(s) eligible in accordance with paragraph
          (4)(a) above submitting a bid shall be required to take and
          pass the applicable entrance examination(s) before being
          named successful bidder. The entrance examination(s) and
          passing grade(s) shall be agreed upon by the Company and the
          Union. There will be separate examinations for each
          specialty category referred to in paragraph (1) above.

(5)  (a)  Article 10(c) of the Basic Agreement shall not apply to this
          Supplemental Agreement.

     (b)  Article 10(B)(13) of the Basic Agreement shall not apply to
          this Supplemental Agreement.

     (c)  Article 10(a)(9) and 10(b)(5) of the Basic Agreement shall
          not apply to this Supplemental Agreement and shall be
          replaced, for the purpose of this Supplemental Agreement
          only, by paragraph (5)(d) below:

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     (d)  Except as provided in paragraph (7) below, any Lead Systems
          Technician vacancy(s) which is not filled locally under the
          provisions of Article 10(a)(5) of the Basic Agreement will
          be bulletined only at the point where the vacancy exists and
          will remain on the board for fifteen (15) calendar days,
          and, if not filled locally within forty-five (45) calendar
          days after the bulletin is posted, the vacancy(s) will then
          be filled from preference bids of employees on file from
          other points as provided in Article 10(a)(5), (6), (7) and
          (8) of the Basic Agreement. If not filled under the
          provisions of this paragraph (5)(d) as outlined above the
          vacancy would then be bulletined at all points where
          employees covered by the Basic Agreement are located. Each
          bulletin will state the number of jobs to be filled, the
          specialty category applicable to each job, the point
          (location), the date the successful bidder is expected to
          report, and shall specify a final date after which bids will
          not be considered. Such date shall be not less than fifteen
          (15) calendar days after the bulletin is posted.

     (e)  Article 10(b)(14) of the Basic Agreement shall not apply to
          this Supplemental Agreement.

     (f)  Article 10(b)(15) of the Basic Agreement shall not apply to
          this Supplemental Agreement, and shall be replaced, for the
          purpose of this Supplemental Agreement only, by paragraph
          (5)(g) below:

     (g)  After an employee has been chosen to fill a job, the proper
          officials of the Company shall mail to the President-General
          Chairman and all shops and locations a notice to be posted
          on the bulletin boards showing the name, number of openings,
          location, and seniority date of the employee(s) selected to
          fill the job. Such notice shall be mailed within seven (7)
          calendar days after the successful bidder is selected.

     (h)  For the purpose of this Supplemental Agreement only the
          words "ninety (90) days" as they appear in Article 10(b)(16)
          of the Basic Agreement shall be replaced by the words "one
          hundred and eighty (180) days."

     (i)  The third sentence of Article 10(b)(19)(b) of the Basic
          Agreement shall not apply to this Supplemental Agreement.
          For the purpose of this Supplemental Agreement only,
          wherever the word "committee" is used in Article 10(b)(19)
          of the Basic Agreement, such word shall be replaced by the
          words "Special Technical Review Committee."

     (j)  The requirements referring to completion of "Mechanic's
          Examination(s)" as set forth in the Basic Agreement shall
          not apply to an employee promoted to Lead Systems Technician
          or laterally transferring between a Lead Systems Technician
          specialty category or categories. However, he will be
          required to pass the applicable entrance examination(s) as
          referred to in paragraph (4) of this Supplemental Agreement.
          Employees reduced or bidding down will be required to meet
          the license(s) and/or examinations requirement as set forth
          under the Basic Agreement.

                                                                    117

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(6)  (a)  Lead Systems Technicians will be selected by basic Mechanic
          Seniority.

     (b)  The position of Lead Systems Technician shall be added to
          the classifications listed in Article 6 of the Basic
          Agreement.

     (c)  Lead Systems Technician seniority will not be used to
          displace on the system except as provided in paragraph (7)
          below.

     (d)  Article 6(f)(12) of the Basic Agreement shall not apply to
          employees promoted to the Lead Systems Technician
          classification, laterally transferring between the specialty
          categories in such classification, reduced from such
          classification, or recalled to such classification.

(7)  Any change in the requirements of the service for the LSTs will be
     governed by the following:

     (a)  When any changes in the level of LST staffing at any
          location/point or in any LST specialty are contemplated, the
          Company will notify the Union and the parties will mutually
          agree as to whether such changes are needed. The Company
          will not request such changes unreasonably and the Union
          will not unreasonably withhold its agreement. If TWA
          establishes an additional hub, technical service station
          and/or integrates an airline acquired by merger, acquisition
          or otherwise, the parties will mutually agree upon
          appropriate LST staffing at these new facilities using 8(d)
          below as a guide.

     (b)  (1)  The affected LSTs may elect to relocate to the
               location where additional LSTs are required or to any
               vacancy in the LST classification at another location
               if qualified. (See paragraphs 4(a) and 4(b) above.)

               Should the affected LST elect to relocate, he will be
               allowed either actual moving expenses for household
               effects up to a maximum of 3,000 pounds gross weight
               for a single employee and up to a maximum of 8,000
               pounds gross weight for an employee with one dependent
               plus an additional 500 pounds gross weight for each
               additional dependent or a sum of money equal to the
               existing tariff for moving 5,500 pounds of household
               effects between the two points. If the employee elects
               to drive his own automobile to the point he shall be
               reimbursed at a mileage rate equal to the amount
               allowed by the federal government for federal
               employees for the most direct AAA mileage between the
               points from and to which he is being transferred. plus
               en route expense at the rate of one dollar and fifty
               cents ($1.50) per hour (based upon 400 miles travel
               per day). An employee who does not drive to his new
               point will be allowed enroute expenses for twenty-four
               (24) hours at one dollar and fifty cents ($1.50) per
               hour. Additionally, an employee will be allowed $300
               relocation expense.

          (2)  Should the affected LST elect not to fill a vacancy,
               Article 6(e)(4), (5) and (6) of the Agreement shall
               apply. An LST who elects to displace on the system may
               do so in his own specialty or any other specialty in
               which he is qualified. (See paragraph 4(a) and 4(b).)

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(8)  (a)  The provisions of Article 7 of the Basic Agreement shall
          apply, except that Lead System Technician(s) may have
          scheduled shift starting times thirty (30) minutes prior to
          the regular shift starting time of other employees in the
          Mechanic or higher classification to provide coordination
          time with the Lead Systems Technicians whom he is relieving.
          Depending upon the requirements of the service, Lead Systems
          Technician(s) may be required to extend their shift thirty
          (30) minutes to provide necessary technical knowledge and
          guidance to other classifications. For the purpose of this
          thirty (30) minute time only, the provisions of Article 8(a)
          shall be amended to provide for a minimum of thirty (30)
          minutes overtime.

     (b)  The Company may establish rotating shift schedules for Lead
          Systems Technician(s) in accordance with the provisions of
          Article 19(a), (b), (c), and (d)(3) of the Basic Agreement.

     (c)  The provisions of Article 16 of the Basic Agreement shall
          apply, except that for the purpose of vacation selection,
          Lead Systems Technician(s), at a point and/or location,
          shall be considered as one seniority grouping within a
          classification. When, because of the limited number of Lead
          Systems Technicians at a location, it is necessary to
          combine Lead Systems Technician specialties for the purpose
          of vacation selection, such vacation selection will be
          handled in accordance with the provisions of Article 16(m),
          except that the Union recognizes the Company's right to
          limit the number of employees in a specialty that may be on
          vacation during a given period.

     (d)  The classification of Lead Systems Technician shall be
          operative at points/locations designated as JFK, LAX, MKC
          (MCI Major Base Maintenance which replaces MKC), MCIB (MCI
          Overhaul Base) and STL.

     (e)  The Classification of Lead System Technician will be staffed
          in accordance with the needs of the operation at the
          points/locations specified in paragraph 8(d) above.

     (f)  Lead Systems Technician(s) will be assigned at any
          point/location not mentioned in paragraph (8)(d) above where
          Specialty Foremen continue to be assigned.

     (g)  Lead System Technicians at MCI. MBM and MCIB may be used at
          either location as determined by the Maintenance Department.

Dated:  August 1, 1999
                                         /s/ Linda L. Ferchland
                                         /s/ Ed LaClair

                                                                    119

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April 10, 1992

Mr. William O'Driscoll
President - Directing General Chairman
District Lodge 142
International Association of Machinists
  and Aerospace Workers 400 N.E. 32 Street
Kansas City, Missouri 64116

Dear Mr. O'Driscoll:

During the course of negotiations which led to the Agreement dated April
10, 1992, the parties agreed that the Company will notify the President-
Directing General Chairman, District #142 or his designated
representative as soon as possible following the Carrier's receipt of
notice of the acceptance date(s) of new or leased aircraft which it
obtains.

                                   Very truly yours,
                                   /s/ William L. Schecter

                                   William L. Schecter
                                   Staff Vice President
                                   Labor Relations

Agreed and Accepted:
/s/ William O'Driscoll

William O'Driscoll

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January 28, 1970

Mr. David J. Crombie
Vice President-Industrial Relations
Trans World Airlines, Inc.
605 Third Avenue
New York, New York 10016

Subject:  Aircraft Acceptance Inspectors

Dear Mr. Crombie:

Employees accepting temporary transfer to "Aircraft Acceptance
Inspectors" will continue to accrue seniority while so assigned,
provided they maintain membership in good standing as defined in Article
26(a). An employee returning from such temporary assignment shall return
to the point, location, classification, and seniority grouping from
which transferred, seniority permitting, and displace the least senior
employee and exercise seniority for shift and days off assignment.

Selection of employees for acceptance inspection and/or retention in
such work will be made from among TWA Inspectors in order of seniority
to the extent practical. If any employee requests an explanation for
refusal to accept or retain him in such assignment it will be furnished.
Acceptance inspection work on new aircraft being constructed for
delivery to TWA is not covered by the TWA-IAM Agreement, and the
experience gained during the special assignment will not be used to the
disadvantage of other employees in connection with work covered by the
TWA-IAM Agreement.

This letter cancels and supersedes the letter dated January 2, 1964,
from Mr. Cliff Miller to Mr. John P. Mead.

                                   Very truly yours,
                                   /s/ John J. Schwind

                                   John J. Schwind
                                   President - General Chairman
                                   District Lodge 142
                                   International Association of
                                     Machinists

Agreed and Accepted:
/s/ D. J. Crombie

D. J. Crombie

                                                                    121

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                 CREW CHIEF SUPPLEMENTAL AGREEMENT

The Company and Union hereby agree to implement a Crew Chief concept.

A Crew Chief shall be responsible for the leading, directing, and
assigning the work of his crew.

It is recognized that the establishment of the classification of Crew
Chief and the implementation of the Crew Chief program may expose the
parties to those problems associated with the inauguration of any
system. Therefore, each of the parties has reserved the right to bring
any problems associated with the implementation of this program, whether
or not such problem was the subject of discussion during these
negotiations, to the attention of the other party. Upon setting forth,
in writing, the problem or problems involved the parties will, within
thirty (30) days of receipt of such notice, convene a meeting for the
purpose of resolving the issue.

The Crew Chief shall be responsible to management for the overall
performance of the employees assigned to his crew and the timely and
satisfactory completion of work assignments by insuring that:

A.   Management instructions are promptly and correctly complied with.

B.   Employees assigned to his crew are properly utilized and
     instructed for the safe and efficient performance of their daily
     work.

C.   Work assignments are carried out in compliance with operational
     and safety procedures required by the policies of the Company and
     appropriate Governmental Regulations.

D.   Required forms, records, reports and other paperwork are completed
     legibly and corrective.

E.   Employees assigned to his crew use only those vehicles, tools and
     equipment on which the Company has determined such employees to be
     qualified.

F.   Assigned equipment is in proper operating condition, scheduled for
     maximum utilization and operated properly for the purpose
     intended.

G.   Hazardous conditions, unsafe practices, improperly functioning
     equipment and tools are immediately brought to the attention of
     management for appropriate corrective action.

The Crew Chief shall be responsible to management for insuring
compliance with all Company, policies, while on the job by, those
employees assigned to him.

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In addition to the above, the Crew Chief shall, upon request, assist
management in areas such as, but not limited to:

A.   Periodic evaluation of operational requirements and performance.

B.   Operational planning and scheduling.

C.   Evaluation of training methods and techniques.

D.   Evaluation of equipment, vehicles and tools.

E.   Performance appraisal of employees by providing oral advice and
     comments.

Crew Chiefs will be selected in accordance with the seniority and
bidding procedures of this Agreement.

When an aircraft is being returned to service, and there is a need for
coordination beyond the scheduled shift involving flight control rig
checks, landing gear rig checks, or avionics system checks, a Crew Chief
(Mechanic) assigned to a particular aircraft may be required to continue
that assignment on overtime notwithstanding the provisions of the local
overtime agreement. The Department Steward will be timely notified of
the assignment. The overtime worked will be recorded for distribution
purposes.

In conjunction with those duties outlined in the Crew Chief job
descriptions, the Crew Chief will be responsible for the planning and
assigning of the daily work of his crew. In order to facilitate this
process, the Company may require the Crew Chief to start work up to
thirty (30) minutes in advance of the starting time of his basic shift.
When this occurs, the Crew Chief will be paid at the overtime rate for
actual time of early report.

Dated:  April 10, 1992

                                   /s/ William L. Schecter
                                   /s/ William O'Driscoll

                                                                    123

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April 10, 1992

Mr. William Schecter
Staff Vice President
Labor Relations
Trans World Airlines, Inc.
110 South Bedford Road
Mt. Kisco, New York 10549

SUBJECT:  CREW CHIEF CONCEPT

Dear Mr. Schecter:

This will confirm our agreement that the crew chief concept will be
implemented in total one hundred eighty (180) days after the signing of
this agreement-

During this one hundred eighty (180) day period, all Crew Chiefs in all
classifications will be trained in the crew chief concept.

All crew chief work/functions performed by supervisors and management
will be transferred to the Crew Chief no later then the implementation
date.

The crew chief concept will function in accordance with all the
requirements of the collective bargaining agreement.

                                  Very truly yours,
                                  /s/ William O'Driscoll

                                  William O'Driscoll
                                  President
                                  General Chairman

Agreed and Accepted:
/s/William L. Schecter

William L. Schecter

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April 10, 1992

Mr. William O'Driscoll
President - General Chairman
District Lodge 142
International Association of Machinists
   and Aerospace Workers
400 N.E. 32 Street
Kansas City, Missouri 64116

Re: Crew Chiefs

Dear Mr. O'Driscoll:

This letter will clarify the parties' intent concerning the
implementation of the Crew Chief Concept.

The parties in reaching this Agreement have emphasized the Crew Chief's
responsibilities for the routine direction of the employees assigned to
him. The Crew Chief will be the individual who is primarily responsible
for the direction of the employees covered by this Agreement. The making
and revising of individual assignments to the work force shall be
accomplished by a Crew Chief. If the Crew Chief is unavailable in point
of time adequately to handle a situation the making or revising of an
individual work assignment may be accomplished by management. In the
event of conflicting orders, the responsibility shall be assumed by the
last individual issuing such order.

The supervision of the work force is ultimately the responsibility of
management.

                                   Very truly yours,
                                   /s/ William L. Schecter

                                   William L. Schecter
                                   Staff Vice President
                                   Labor Relations

Agreed and Accepted:
/s/ William O'Driscoll

William O'Driscoll

                                                                    125

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                       ASSISTANT RAMP SERVICEMEN

This will confirm our understanding reached during negotiations
concerning TWA's competitive need to employ assistant ramp servicemen in
order to meet staffing requirements for operational peaks. It is the
intention of the parties that all of the provisions of the basic
agreement shall apply to such employees except as follows:

1.   Prior to the staffing of assistant ramp servicemen at a point. the
     Company will notify and consult with representatives of the Union
     to review staffing requirements in accordance with the provisions
     of this Letter.

2.   The Company will not staff assistant ramp servicemen at a location
     unless and until all full-time ramp service employees are recalled
     at that point. Further, any subsequent reductions in the work
     force due to operational requirements at that point will be
     accomplished from among assistant ramp servicemen, in accordance
     with Article 6 of the Agreement, before any full-time ramp service
     employee is reduced or furloughed.

3.   Qualified employees covered by the TWA-IAM Agreements desiring to
     bid to assistant ramp service vacancies may do so in accordance
     with Article 10 of the Mechanic and Related Employees Agreement. A
     successful bidder who fills an assistant ramp service vacancy will
     retain and continue to accrue seniority in the ramp service
     classification and any classification below ramp service in which
     he holds seniority at the one-half accrual rate described in
     paragraph 11 of this letter of agreement.

     The moving expense provisions of the TWA-IAM Agreement will not be
     applicable to assist ramp service vacancies.

4.   The number of assistant ramp service employees hired pursuant to
     this letter will not exceed 10% of the ramp service employees
     staffed on a full-time basis at each point and shall not exceed
     10% at the location in a metropolitan area. Any fraction will be
     rounded up to the next whole number. The Company will be permitted
     to staff at least three (3) assistant ramp service employees at
     any location.

5.   Assistant ramp servicemen will be assigned to ramp service crew
     chiefs who will Crew Chief and direct assistant ramp servicemen in
     accordance with all of the provisions of the Agreement covering
     ramp service crew chiefs. Assistant ramp servicemen will not be
     eligible for Acting Crew Chief Assignments provided for in Article
     10(c).

6.   An assistant ramp service employee's hours shall consist of twenty
     (20) hours of five (5) four-hour days worked within seven (7)
     consecutive days. Midnight Sunday to midnight Sunday will
     constitute a regular work week. Each assistant ramp serviceman
     will have two (2) consecutive days scheduled as regular days off
     in each work week.

7.   A maximum of two (2) shifts during a twenty-four (24) hour period,
     which shall have a minimum separation of four (4) hours, may be
     established at each location for assistant ramp service employees.
     Assistant ramp servicemen will bid these shifts by classification
     separately from ramp service shifts.

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8.   An assistant ramp serviceman will receive a ten (10) consecutive
     minute rest period during his regular shift.

9.   Assistant ramp servicemen will not be offered extended work hours
     in addition to their regular work schedule or overtime hours
     unless sufficient overtime of the duration needed (day off, post
     shift, pre-shift or recall) is first offered and filled by, full-
     time ramp servicemen in accordance with Article 8 and prevailing
     local overtime agreements.

10.  Assistant ramp service employees will receive overtime
     compensation in accordance with Article 8 for work in excess of
     eight (8) hours in a work day or forty (40) hours in a work week.

11.  Seniority: A separate seniority roster will be maintained for
     assistant ramp servicemen. Seniority dates will be established in
     accordance with Article 6 and 10 of the TWA-IAM Agreement.
     Assistant ramp service employees shall accrue seniority at the
     rate of half of a full-time employee.

     Seniority will accrue at one-half the regular rate for purposes of
     bidding, vacation accrual, sick leave, occupational injury leave
     and layoff pay. The one-half accrual rate will be based on the
     employee's regular work schedule.

     Assistant ramp servicemen will be subject to a one hundred and
     twenty (120) calendar day probationary period.

12.  An assistant ramp serviceman will be eligible to bid for vacancies
     in the mechanic classification or lower (and if he does not hold
     seniority in the classification into which he desires to transfer,
     he may submit a company seniority bid). In filling vacancies,
     company seniority bids of full-time employees at the point and
     company seniority bids of full-time employees at other points will
     be given preference over company seniority bids of assistant ramp
     servicemen at the point. Such bids shall be handled in the same
     manner as set forth in Article 10(b)(1) and Article 10(b)(2).

13.  Assistant ramp servicemen will not have system seniority rights
     for displacement purposes.

14.  Benefits: Assistant ramp servicemen will be allowed sick leave
     based on the accrual rates outlined above and in accordance with
     Article 17.

     Assistant ramp service employees will receive the same benefits as
     the full-time ramp service employee except that during their
     probationary period medical/dental insurance will not be provided
     for dependents.

     Pension benefits for assistant ramp servicemen will be determined
     as defined under the provisions of the Retirement Plan for
     Mechanics and Related Employees.

15.  Wages and Premiums: Assistant ramp servicemen will be paid as
     provided in Schedule A of the TWA-IAM Agreement.

                                                                    127

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     Assistant ramp servicemen will not receive premium pay described
     in Articles 18 and 19 of the TWA-IAM Agreement. If an assistant
     ramp service employee transfers to a full-time position, he will
     begin receiving longevity premium based on his seniority accrual
     described in paragraph 11 above.

16.  Any deviation of the staffing of assistant ramp service employees
     at an location as provided for in this agreement may be made when
     agreed upon by the President-General Chairman of District 142 and
     the T.W.A. Senior Vice President of Labor Relations. Such
     deviation is subject to a 30-day cancellation notice by either
     party.

Dated:  April 10, 1992
                                   /s/ William L. Schecter
                                   /s/ William O'Driscoll

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January 28, 1970

Mr. John J. Schwind
President-General Chairman
District 142
International Association of Machinists
   and Aerospace Workers
206 E. 32nd Avenue
Kansas City, Missouri 64116

Dear Mr. Schwind:

This will confirm the understanding reached between the Company and the
Union during the negotiation of the TWA-IAM Agreement signed January 28,
1970.

At locations where the Inspector classification is not presently
employed, there will be established, as required, Inspector Designee(s).
The number of shift(s) on which such Inspector Designee(s) are required
will be determined by the Company and they shall be selected, in
seniority order, from mechanics on such shift(s) holding A&P or other
appropriate license(s). In the event senior employees do not exercise
their seniority for this assignment the least senior employee(s) who
meets the above license requirements will be assigned.

The employee(s) so assigned will receive 15 cents per hour to be included
in his basic rate for as long as he remains on that shift as an
Inspector Designee. The Company may appoint Inspector Designee
alternates, on a one for one basis per shift, who will function in the
absence from duty of their respective Inspector Designee(s). The
Designee alternate will receive 15 cents per hour in addition to his basic
rate for all hours worked on required inspection items, with a minimum
of four (4) hours on each occasion.

Inspector Designee assignments on through flights may be performed by
the senior Crew Chief Mechanic on duty if neither the Inspector Designee
nor his alternate is present. In this event such senior Crew Chief
Mechanic will receive 15 cents per hour in addition to his basic rate for
all hours worked on required inspection items, with a minimum of four
(4) hours on each occasion.

No employee will be delegated the authority as Inspector Designee or
Inspector Designee alternate for a period of less than thirty (30)
calendar days. The use of the Inspector Designee will not circumvent the
assignment of regular inspectors when this classification is required
under the terms of the Agreement.

                                   Sincerely yours,
                                   /s/ D. J. Crombie
                                   D. J. Crombie
                                   Vice President -
                                   Industrial Relations
Agreed and Accepted:
/s/ John J. Schwind
John J. Schwind

                                                                    129

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<PAGE>

January 28, 1970

Mr. John J. Schwind
President-General Chairman
District Lodge 142
International Association of Machinists
 and Aerospace Workers
206 East 32nd Avenue
Kansas City, Missouri 64116

Dear Mr. Schwind:

In the Agreement signed January 28, 1970, we have agreed that the work
of a Crew Chief Mechanic/Mechanic shall include the taxiing of Company
aircraft.

The Company will solicit preferences of Line Crew Chief
Mechanics/Mechanics desiring to be qualified for taxi duty and will
certify for taxi duty in seniority order by shift at the point and/or
location and limited to the three (3) shifts.

To qualify, for taxi certification, a Crew Chief Mechanic/Mechanic must
possess the necessary FAA and FCC licenses; must meet the standards for
taxiing service established by the local Airport Authority and must meet
the visual color blindness and 20/30 vision corrected and normal hearing
standards established by the Company.

A Crew Chief Mechanic/Mechanic who successfully qualifies for taxiing
aircraft by meeting the standards set forth above, shall be trained by
the Company in taxiing aircraft and must pass a proficiency examination
administered by the Company prior to his certification for taxiing.

A Crew Chief Mechanic/Mechanic, to maintain his certification for
taxiing shall each six (6) months thereafter pass a proficiency
examination.

A taxi crew shall be required to perform systems functional checks
prescribed by the Company while enroute.

Failure to qualify as above, shall not jeopardize the employee's status
for work other than taxiing of aircraft.

                                   Sincerely yours,
                                   /s/ D. J. Crombie

                                   D. J. Crombie
                                   Vice President -
                                   Industrial Relations
Agreed and Accepted:
/s/ J. J. Schwind

J. J. Schwind

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January 28, 1970

Mr. John J. Schwind
President-General Chairman
District 142
International Association of Machinists
   and Aerospace Workers
206 East 32nd Avenue
Kansas City, Missouri 64116

Dear Mr. Schwind:

In connection with the work of a Mechanic as it concerns building
maintenance and repair work as defined in Article 4(a)(7), the Company
and the Union recognize the need to utilize contractors for major
construction work, major repairs and major building alterations which
may not be able to be carried out by the Mechanic work force at a given
location.

Accordingly, the local manager responsible will discuss with the Local
Union Representative such plans in a timely way, prior to the execution
of any such contract.

                                   Sincerely yours,
                                   /s/ D. J. Crombie

                                   D. J. Crombie
                                   Vice President -
                                   Industrial Relations

Agreed and Accepted:
/s/ J. J. Schwind

J. J. Schwind

                                                                    131

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<PAGE>

January 28, 1970

Mr. John J. Schwind
President-General Chairman
District 142
International Association of Machinists
   and Aerospace Workers
206 East 32nd Avenue
Kansas City, Missouri 64116

Dear Mr. Schwind:

In the event that employees covered by this Agreement are required,
prior to the general adoption of the metric standard in the United
States, to use hand tools of metric design or calibration in the course
of their assigned work, such tools will be made available by the Company
at no cost to the employees.

                                   Sincerely yours,
                                   /s/ D. J. Crombie

                                   D. J. Crombie
                                   Vice President -
                                   Industrial Relations

Agreed and Accepted:
/s/ J. J. Schwind

J. J. Schwind

132

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<PAGE>

January 28, 1970

Mr. John J. Schwind
President-General Chairman
District 142
International Association of Machinists
and Aerospace Workers
206 East 32nd Avenue
Kansas City, Missouri 64116

Dear Mr. Schwind:

During the course of the negotiations of the Agreement signed January
28, 1970, the parties recognized that the question of snow removal
constitutes a unique operating problem and agreed as follows:

The Company will utilize its own Mechanics for snow removal to the
extent it has mechanical snow removal equipment available. In the
application of the foregoing, preference will be given to plant
maintenance Mechanics where staffed to the extent practicable. Overtime
procedures will be utilized to obtain overtime as required to operate
such equipment. As long as Company Mechanics and equipment are engaged
in snow removal as aforesaid, the Company may supplement with other
mechanized snow removal equipment as necessary.

                                   Sincerely yours,
                                   /s/ D. J. Crombie

                                   D. J. Crombie
                                   Vice President -
                                   Industrial Relations

Agreed and Accepted:
/s/ J. J. Schwind

J. J. Schwind

                                                                    133

<PAGE>
<PAGE>

April 10, 1992

Mr. William O'Driscoll
President - Directing General Chairman
District Lodge 142
International Association of Machinists
   and Aerospace Workers
400 N.E. 32nd Street
Kansas City, Missouri 64116

Dear Mr. O'Driscoll:

During the negotiations which led to the Agreement signed April 10,
1992, the Company and the Union agreed that at JFK, ORD, MKC, MCI, STL,
LAX and SFO, all ground two-way radio ramp communications equipment will
undergo all minor or major repairs to the extent of existing available
equipment and qualified manpower.

Additionally, it is understood and agreed that as such capability
becomes available, in the normal course of expansion of TWA facilities
for purposes of aircraft maintenance and repair, at other locations on
the Company's domestic system, such repair work outlined above will be
performed at those locations.

                                   Sincerely yours,
                                   /s/ William L. Schecter

                                   William L. Schecter
                                   Staff Vice President
                                   Labor Relations

Agreed and Accepted:
/s/ William O'Driscoll

William O'Driscoll

134

<PAGE>
<PAGE>

April 10, 1992

Mr. William O'Driscoll
President - Directing General Chairman
District Lodge 142
International Association of Machinists
  and Aerospace Workers
400 N.E. 32nd Street
Kansas City, Missouri 64116

Dear Mr. O'Driscoll:

This will confirm our understanding reached during negotiations leading
to the Agreement dated April 10, 1992, concerning Stores Clerk work.

It is agreed that at stations other than the Overhaul Base and Technical
Services locations, Stores Clerks will be staffed on a shift in
accordance with the needs of the service, i.e., if there are four (4)
hours or more of Stores Clerk work on that shift (to be defined as any 8
hour period). On a shift where Stores Clerks are not staffed and a
part(s) is issued/received, the Crew Chief Mechanic will be responsible
for having such part(s) issued/received and recorded for the Stores
Clerk. When it is anticipated or known that additional Stores' work is
to be performed, overtime will be requested from the Stores
classification.

                                   Very truly yours,
                                   /s/ William L. Schecter

                                   William L. Schecter
                                   Staff Vice President
                                   Labor Relations

Agreed and Accepted:
/s/ William O'Driscoll

William O'Driscoll

                                                                    135

<PAGE>
<PAGE>

April 10, 1992

Mr. William O'Driscoll
President - Directing General Chairman
District Lodge 142
International Association of Machinists
   and Aerospace Workers
400 N.E. 32nd Street
Kansas City, Missouri 64116

Dear Mr. O'Driscoll:

This is to confirm the agreement reached during the negotiations
concerning stores work.

At stations other than the overhaul base, technical service locations,
and major stations where mechanics and stores clerks are not staffed,
the Crew Chief ramp service person shall be responsible for all stores
functions. At stations where station agents are staffed, the employee-
in-charge will have the responsibility for all stores functions.

All stores functions will remain included in the computation of stores
work in determining whether mechanics and or stores clerks are staffed
as required under the four-hour rule.

                                   Very truly yours,
                                   /s/ William L. Schecter

                                   William L. Schecter
                                   Staff Vice President
                                   Labor Relations

Agreed and Accepted:
/s/ William O'Driscoll

William O'Driscoll

136

<PAGE>
<PAGE>

October 18, 1976

Mr. Quenton A. Kerr
President-General Chairman
District 142
International Association of Machinists
   and Aerospace Workers
400 N.E. 32nd Avenue
Kansas City, Missouri 64116

Re:  Stores Clerks

Dear Mr. Kerr:

This is a clarification of the understanding reached between the Company
and the Union relative to the problems the parties have experienced in
the implementation of the stores clerk classification work as negotiated
under the January 28, 1970, Agreement. However, this does not negate the
above January 28, 1970, Agreement and is in addition to the normal
duties performed by stores clerks.

1.   Automotive and Building Maintenance
     -----------------------------------
     a.   All building maintenance and automotive parts and materials
          will be ordered and received from the vendor. All parts and
          materials received shall be binned, inventoried, and issued
          by stores clerks. All required labeling and documentation in
          connection with ordering, receiving, issuing, and shipping,
          as well as the preparation and maintenance of required
          records will be performed by stores clerks.

     b.   Stores clerks will be responsible for the replenishment and
          control of all self-service stock.

     c.   If a Company employee is utilized to pick up building
          maintenance and automotive parts and materials such employee
          will be a stores clerk. In addition, if a Company employee
          is utilized to deliver or pick up building maintenance and
          automotive parts and materials repaired by an outside
          contractor, such employee shall be a stores clerk.

     d.   Where a supplier(s) has been established at a particular
          location and automotive and building maintenance parts and
          materials are not available in the stores room. the stores
          clerk will complete the appropriate paper work and place the
          order.

2.   Bulk Storage Commissary
     -----------------------
     a.   Commissary Stockroom,/storage area(s) will be established at
          each station where there are no commissary dining units. All
          commissary material and supplies will be ordered, received,
          binned, inventoried, and issued by stores clerks. All
          required labeling and documentation in connection with
          ordering, receiving, issuing, and shipping, as well as the
          preparation and maintenance of required records will be
          performed by stores clerks.

                                                                    137

<PAGE>
<PAGE>

     b.   The delivery of working stock to the buildup areas will be
          the responsibility of the stores clerk.

     c.   All liquor, alcoholic beverages, and bar supplies will be
          handled in accordance with (a) above. However, at stations
          were the liquor storage area and liquor buildup area are one
          and the same, all liquor, alcoholic beverages, and bar
          supplies will be ordered, received, binned, and inventoried
          by stores clerks.

3.   Caterer
     -------
     In the administration of Article 4(a)(10), the Company agrees that
     any inventory(s) required by the Company will be performed by a
     stores clerk. The Company further agrees to use stores clerks at
     least once a month to conduct a Company inventory(s). Company
     material shipped COMAT/RIMAT to the caterer will be delivered by a
     stores clerk.

4.   Pickup Area
     -----------
     In the administration of Article 4(a)(10), the parties agree all
     parts, materials, and supplies being air shipped to and from
     stores will be delivered to a pickup area designated by the
     Company for transfer of such parts, materials, and supplies from
     ramp service to the stores classification.

5.   Stationery Supplies
     -------------------
     a.   At airport locations where stationery supply room(s) are
          maintained, stores clerks will receive and deliver
          stationery supplies (specifically excluding ticket stock and
          locally purchased petty cash items) and place inside the
          supply room(s).

     b.   At airport locations where a stationery supply room is not
          maintained, delivery to any office facilities will be at a
          point designated by the Company.

     c.   The parties are in agreement that non-stationery supplies
          and materials i.e., typewriters, etc., are delivered to the
          user or addressee.

6.   Downtown Deliveries
     -------------------
     Stores clerks will transport COMAT/RIMAT material originating out
     of MCI or station stores to downtown drop point(s) designated by
     the Company within the city or metropolitan area at the following
     locations: BOS, JFK, LGA, EWR, PIT, STL, DCA, MCI/KCI, PHL, LAX,
     SFO, and ORD.

                                 Very truly yours,
                                 /s/ W. J. Dougherty
                                 W. J. Dougherty
                                 Vice President -Industrial Relations

Agreed and Accepted:
/s/ Quenton A. Kerr

Quenton A. Kerr

138

<PAGE>
<PAGE>

October 18, 1976

Mr. Quenton A. Kerr
President-General Chairman
District 142
International Association of Machinists
   and Aerospace Workers
400 N.E. 32nd Avenue
Kansas City, Missouri 64116

Re: Stores Letter

Dear Mr. Kerr:

This will confirm our understandings with regard to Stores Clerks that
at the Kansas City Overhaul Base, the following will govern mail room
activity:

(1)  Stores Clerks will deliver all outgoing packages and/or letters
     containing stocked forms destined for mail (Company or U. S.) to
     the mail room.

(2)  Stores Clerks will pick up from the mail room for stores all items
     outlined in (1).

(3)  Parts, materials, and stationery supplies (other than stationery
     supplies as in (4)(a) of this letter) will not be handled by Mail
     Clerks.

(4)  Stationery supplies will be delivered and handled as follows:

     (a)  Second and third floors - Building One - such supplies will
          be delivered to the floor freight elevator area by a Stores
          Clerk and distributed by Mail Clerks.

     (b)  First floor - Delivered by Stores Clerks.

(5)  Distribution of mail - Company and U. S. - to Building Two, Engine
     Overhaul will be by Mail Clerks. Other items will be delivered by
     Stores Clerks.

                                    Very truly yours,
                                    /s/ W. J. Dougherty

                                    W. J. Dougherty
                                    Vice President -
                                    Industrial Relations

                                                                    139

<PAGE>
<PAGE>

April 10, 1992

Mr. William O'Driscoll
President - General Chairman
District Lodge 142
International Association of Machinists
  and Aerospace Workers
400 N.E. 32nd Street
Kansas City, Missouri 64116

Dear Mr. O'Driscoll:

This is to confirm the agreement reached between the parties during
negotiations concerning the performance of Plant Maintenance, Stores
Clerks, and Janitor's work at the Trans World Technical Training
Academy.

The parties agree that TWA Plant Maintenance Mechanics will perform
required plant maintenance function at the Trans World Technical
Training Academy.

The TWTTA shall be added to paragraph 1 of the Janitor Letter of
Agreement (on Page 144 of the current agreement) with the exception of
space leased to other tenants.

Stores Clerks shall perform Stores work at this facility in accordance
with the Letters of Agreement on Page 137, and Page 139 of the
Agreement.

                                   Very truly yours.
                                   /s/ William L. Schecter

                                   William L Schecter
                                   Staff Vice President
                                   Labor Relations

Agreed and Accepted:
/s/ William O'Driscoll

William O'Driscoll

140

<PAGE>
<PAGE>

January 28, 1970

Mr. John J. Schwind
President-General Chairman
District 142
International Association of Machinists
   and Aerospace Workers
206 East 32nd Avenue
Kansas City, Missouri 64116

Dear Mr. Schwind:

This will confirm conversations between the Company and the Union during
the course of the negotiations leading to the IAM-TWA Agreement signed
January 28, 1970.

It is the policy of the Company to handle, to the extent possible, all
cargo and freight through its cargo warehouses.

It is understood that the Company may utilize open dock facilities
adjacent to cargo warehouses for the loading and unloading of cargo.
Such loading and unloading will be done by Ramp Servicemen.

In instances when it is impossible to handle through the cargo warehouse
a specific unit of customers' freight because of its size or because of
the limitations of the warehouse or cargo handling equipment, it is
agreed that this type of freight may be dispatched directly to or from
the ramp area to facilitate handling.

When a cargo warehouse is being used to its capacity, and then only with
notice to a Crew Chief Ramp Serviceman, customers' freight may be
dispatched directly to or from the ramp area to facilitate handling.

It is further understood that in the event the above are necessary, a
Crew Chief Ramp Serviceman will direct the freight driver and vehicle
from the entrance to the ramp area, and direct the loading and/or
unloading of such freight by Ramp Servicemen under his directions. Upon
the completion of the loading and/or unloading of such freight, a Crew
Chief Ramp Serviceman will direct the truck and driver to the exit.

It is additionally understood that the truck driver(s) will not be
permitted into any Company operated warehouse, and/or to perform any
work on such premises. The truck driver(s) will perform their work
behind a line drawn four feet from the truck bed on the warehouse floor.

                              Sincerely yours,
                              /s/ D. J. Crombie

                              D. J. Crombie
                              Vice President -Industrial Relations

Agreed and Accepted:
/s/ J. J. Schwind

                                                                    141

<PAGE>
<PAGE>

April 10, 1992

Mr. William O'Driscoll
President - General Chairman
District Lodge 142
International Association of Machinists
   and Aerospace Workers
400 N.E. 32nd Street
Kansas City, Missouri 64116

Re:  Receipt of Air Freight

Dear Mr. O'Driscoll:

This will confirm the agreement reached during negotiations concerning
the receipt of air freight shipments.

It is agreed that at other than Major Stations and the Overhaul Base(s),
Customer Service agents may be assigned to receive air freight shipments
when Ramp Service personnel are not available at the air freight
facility to perform this function.

The receipt of such shipments shall consist of the signing for the
shipment, the verification of weight and the number of pieces received.
This is to facilitate the customer and to prevent any unnecessary
delays. The Customer Service Agent will notify the Crew Chief Ramp
Service Person of the shipment(s) received as soon as possible
thereafter.

This letter of agreement is not intended to reduce the normal staffing
of air freight facilities by the Ramp Service classification.

                                   Very truly yours,
                                   /s/ William L. Schecter

                                   William L. Schecter
                                   Staff Vice President
                                   Labor Relations

Agreed and Accepted:
/s/ William O'Driscoll

William O'Driscoll

142

<PAGE>
<PAGE>

August 1, 1999

Mr. Ed LaClair
General Chairman
District Association of Machinists
And Aerospace Workers
400 NE 32nd Street
Kansas City, MO 64116

Dear Mr. LaClair:

In confirmation of discussions in the course of negotiations leading to
the Agreement signed August 1, 1999, the Company agrees it will maintain
the classifications of Inspector and LST at SFO until the current
employees attrit from these classifications.  It is understood and
agreed that Inspectors assigned to SFO, when not engaged in Inspector
work, may be utilized in Mechanic work.

The active and furloughed Avionics mechanic(s) will be recalled and
placed into the A&P specialty if qualified.  If not qualified, these two
(2) employees will remain Avionics mechanics. The mechanic in the paint
specialty will be placed in the Automotive specialty.  The Company will
continue to maintain the Automotive, Plant Maintenance and A&P
specialties as well as the Stores Clerk classification.  Future staffing
including the Guard classification will be determined based on the needs
of the service.

                                   Very truly yours,
                                   /s/ Linda Ferchland

                                   Linda L. Ferchland
                                   Director Labor Relations, Ground

Agreed and Accepted:
/s/ Ed LaClair

Ed LaClair

                                                                    143

<PAGE>
<PAGE>

April 10, 1992

Mr. William O'Driscoll
President - General Chairman
District Lodge 142
International Association of Machinists and Aerospace Workers
206 East 32nd Avenue
Kansas City, Missouri 64116

Dear Mr. O'Driscoll:

The following is to clarify the understanding of the parties during the
negotiations leading to the Agreement signed April 10, 1992, as to
janitorial work pursuant to Article 4(a)(21) of such Agreement. The
Company and Union agree that:

     (1)  Required janitorial functions will be performed by Janitors
          covered by a TWA-IAM Agreement at the following locations:
          the Administrative Building at KCI, the Charles A. Lindbergh
          Flight Training Center, and the Trans World Technical
          Training Academy, with the exception of space leased to
          other tenants.

     (2)  Required janitorial functions at the Company's airfreight
          terminals at JFK, LGA, EWR, ORD, MKC/KCI, LAX, SFO, STL,
          PIT. BOS and PHL will be performed by Janitors covered by
          the TWA-IAM Agreement. Such duties shall include required
          cleaning of the following areas: Airfreight Building
          lunchrooms, washrooms, walkways and offices. It is
          explicitly understood that work areas used by Ramp
          Servicemen in the performance of their normal duties in the
          above airfreight terminals shall be kept clean by such Ramp
          Servicemen.

     (3)  Required janitorial functions in passenger terminal IAM
          locker rooms, lunchrooms, ready rooms and washrooms will be
          performed by Janitors and/or Fleet Service Helpers at the
          following locations: JFK, LGA, ORD, MKC/KCI, LAX, SFO, EWR,
          BOS, PHL, STL and PIT.

     (4)  The Company's undertakings respecting a cutback of farm-out
          of janitorial work pursuant to paragraphs (1), (2) and (3)
          above shall be subject to the four hour rule recognized by
          the parties and will be implemented by the Company as soon
          after the effective date of the Basic Agreement between the
          parties as the Company can terminate or gain release from
          particular janitorial sub-contracts without incurring any
          liability or penalty.

                              Very truly yours,
                              /s/ William L. Schecter
                              William L. Schecter
                              Staff Vice President-Labor Relations
Agreed and Accepted:
/s/ William O'Driscoll
William O'Driscoll

144

<PAGE>
<PAGE>

January 28, 1970

Mr. John J. Schwind
President-General Chairman
District 142
International Association of Machinists
  and Aerospace Workers
206 East 32nd Avenue
Kansas City, Missouri 64116

Dear Mr. Schwind:

This will serve as confirmation of the Company's commitment that passes
will be issued to employees covered by the TWA-IAM Agreement within one
week after the pass request is received, except in cases of interline
passes.

                                    Sincerely yours,
                                    /s/ D. J. Crombie

                                    D. J. Crombie
                                    Vice President -
                                    Industrial Relations

Agreed and Accepted:
/s/ J. J. Schwind

J. J. Schwind

                                                                    145

<PAGE>
<PAGE>

March 14, 1975

Mr. Quenton A. Kerr
President-General Chairman
International Association of Machinists
   and Aerospace Workers
District 142
206 East 32nd Avenue
Kansas City, Missouri 64116

Dear Mr. Kerr:

This will confirm our understanding reached during negotiations leading
to the Agreement dated March 14, 1975. Class 7 term pass holders and
their eligible dependents who would not otherwise retain such privilege
will be allowed to retain such term passes during medical leaves of
absence and extensions thereto up to a maximum period of five (5) years.

                                    Very truly yours,
                                    /s/ D. J. Crombie

                                    D. J. Crombie
                                    Vice President -
                                    Industrial Relations

Agreed and Accepted:
/s/ Quenton A. Kerr

Quenton A. Kerr
President-General Chairman
District Lodge 142

146

<PAGE>
<PAGE>

April 10, 1992

Mr. William O'Driscoll
President - General Chairman
District Lodge 142
International Association of Machinists
   and Aerospace Workers
400 N.E. 32nd Street
Kansas City, Missouri 64116

Dear Mr. O'Driscoll:

During the course of the negotiations which led to the signing of the
Agreement dated April 10, 1992, the parties discussed a number of
problems pertaining to the pass policy and the Company's failure to
comply with Article 15 of the Agreement.

The Company reaffirms its commitment to comply with Article 15 of the
Agreement and should the Union deem the Company has failed to do so, it
may invoke the grievance procedure.

                                   Very truly yours,
                                   /s/ William L. Schecter

                                   William L. Schecter
                                   Staff Vice President
                                   Labor Relations

Agreed and Accepted:
/s/ William O'Driscoll

William O'Driscoll

                                                                    147

<PAGE>
<PAGE>

March 14, 1975

Mr. Quenton A. Kerr
President-General Chairman
International Association of Machinists
   and Aerospace Workers
District 142
206 East 32nd Avenue
Kansas City, Missouri 64116

Dear Mr. Kerr:

This will confirm our understanding reached during negotiations leading
to the Agreement dated March 14, 1975, respecting Article 1l(c)(7)
(disciplinary action). In cases involving the possibility of
unauthorized possession of property on the employee's person, the
opportunity to confer with his Union representative may be deferred by
the Company. However, it is understood that a Union representative will
be present during such preliminary investigation, if the employee so
desires.

                                    Very truly yours,
                                    /s/ W. E. Malarkey

                                    W. E. Malarkey
                                    Staff Vice President -
                                    Labor Relations

Agreed and Accepted:
/s/ Quenton A. Kerr

Quenton A. Kerr
President-General Chairman
District Lodge 142

148

<PAGE>
<PAGE>

April 10, 1992

Mr. William O'Driscoll
President - General Chairman
District Lodge 142
International Association of Machinists
   and Aerospace Workers
400 East 32nd Street
Kansas City, Missouri 64116

Dear Mr. O'Driscoll:

This is to confirm our discussions during negotiations which led to the
Agreement signed April 10, 1992, that the parties will furnish to one
another any investigative agency report which they rely upon or use in
any disciplinary or discharge proceeding. At the earliest possible time
after they receive it, the Company shall furnish the Union with internal
records used to support their position, retaining the right to delete
therefrom any indication of confidential sources.

                                  Very truly yours,
                                  /s/ William L. Schecter

                                  William L. Schecter
                                  Staff Vice President
                                  Labor Relations

Agreed and Accepted:
/s/ William O'Driscoll

William O'Driscoll

                                                                    149

<PAGE>
<PAGE>

January 28, 1970

Mr. J. J. Schwind
President-General Chairman
District 142
International Association of Machinists
   and Aerospace Workers
206 East 32nd Avenue
Kansas City, Missouri 64116

Dear Mr. Schwind:

This will confirm the conversations we had during the course of the
negotiation of the Agreement, signed January 28, 1970, with regard to
certain payroll and fringe benefit accrual reports. These reports have
been designed to help resolve a problem which is important to you and
important to us.

As I mentioned to you, the Company has taken steps to provide payroll
group heads with reports designed to increase our ability, on a local
basis, to straighten out payroll or accrual errors, and to answer
promptly the questions which employees may have.

The first of these reports is the A-641 record. This record, which is
developed on a monthly basis, is set up to reflect, as appropriate, an
employee's current accrual, days charged and resulting balance for each
of the following categories: vacation, personal illness, death or
dangerous illness in the family, and industrial injury.

The second report is the Pay Period Control Register, which is prepared
for each pay period and is designed to break down the basis for each
employee's pay by showing the individual elements of such pay, including
premium rates, acting Crew Chief and line maintenance differentials,
among others.

Informational letters have been sent to all payroll group heads to
explain the A-641 and the Payroll Control Register.

                                    Sincerely yours,
                                    /s/ D. J. Crombie

                                    D. J. Crombie
                                    Vice President -
                                    Industrial Relations

Agreed and Accepted:
/s/ J. J. Schwind

J. J. Schwind

150

<PAGE>
<PAGE>

December 28, 1972

Mr. John J. Schwind
President-General Chairman
District Lodge 142
International Association of Machinists
   and Aerospace Workers
206 N.E. 32nd Avenue
Kansas City, Missouri 64116

Dear Mr. Schwind:

It has come to my attention that the language of Article 7(a), as
finally printed in the TWA-IAM Agreement, does not reflect clearly our
joint understanding that Guards, Fire Inspectors, and employees assigned
to operate boiler rooms or power houses are to eat lunch during their
eight hour shifts at a time, and in a manner consistent with their
continuing duties.

If you concur in this statement of our understanding, please sign and
return a copy of this letter.

                                    Sincerely yours,
                                    /s/ William A. Malarkey

                                    William A. Malarkey
                                    Staff Vice President -
                                    Labor Relations

Agreed and Accepted:
/s/ John J. Schwind

John J. Schwind
President-General Chairman
District Lodge 142

                                                                    151
<PAGE>
<PAGE>

December 28, 1972

Mr. John J. Schwind
President-General Chairman District 142
International Association of Machinists
and Aerospace Workers
206 N.E. 32nd Avenue
Kansas City, Missouri 64116

Dear Mr. Schwind:

This will confirm the understanding we reached during the negotiation of
the current Agreement with regard to the consolidation of the Ramp
Serviceman and Ground Service Helper classifications (with the Ground
Service Helper group becoming a seniority grouping(s) within the Ramp
Serviceman classification); and the performance of certain Fleet Service
Helper work (involving interior cleaning of aircraft) by Ramp
Servicemen.

In the course of the discussions it was agreed that questions would
arise in several areas with regard to the implementation of these
changes. Accordingly, this letter will set forth the areas which we have
agreed upon, and will establish a means of dealing with the
implementation of these concepts on a fair and equitable basis:

     1.   The Ground Service Helper classification will be
          consolidated into the Ramp Serviceman group as a separate
          seniority grouping(s). Matters relating to seniority, etc.
          will be reviewed prior to actual implementation.

     2.   Certain Fleet Service Helper work, involving the interior
          cleaning of aircraft (including aircraft involved in certain
          maintenance procedures) will be performed by the Ramp
          Serviceman classification. The initial absorption of such
          work into the Ramp Serviceman group will be deemed a
          transfer of work from the one classification to the other,
          and an appropriate number of jobs will be established in the
          Ramp Serviceman classification. Matters relating to
          seniority, etc. will be reviewed prior to actual
          implementation.

The Company and Union both recognize the need to approach the
implementation of these changes in a consistent and reasonable manner.
To this end, the parties anticipate that meetings will be held to
discuss the matters referred to in this letter.

                                    Sincerely yours,
                                    /s/ D. J. Crombie

                                    D. J. Crombie
                                    Vice President -
                                    Industrial Relations
Agreed and Accepted:
/s/ John J. Schwind

John J. Schwind
President-General Chairman

152

<PAGE>
<PAGE>

December 28, 1972

Mr. John J. Schwind
President-General Chairman
District Lodge 142
International Association of Machinists
  and Aerospace Workers
206 N.E. 32nd Avenue
Kansas City, Missouri 64116

Dear Mr. Schwind:

You have inquired as to the justification of the Company's policy in
regard to fueling of Company aircraft and servicing and maintenance of
certain fueling equipment at the new airport at KCI as well as the new
terminal facilities at DEN. As you know, each of these functions is
presently being performed by Allied Maintenance. It is my understanding
that this procedure is in keeping with obligations imposed by the City
of Kansas City, Missouri in the former case, and by the City and County
of Denver, Colorado in the latter case, in what we are informed to be
the rightful exercise of their statutory police power. Were these not
the circumstances, the Company would assign such work to members of the
IAM.

                                    Sincerely yours,
                                    /s/ D. J. Crombie

                                    D. J. Crombie
                                    Vice President -
                                    Industrial Relations

Agreed and Accepted:
/s/ John J. Schwind

John J. Schwind
President-General Chairman
District Lodge 142

                                                                    153

<PAGE>
<PAGE>

August 1, 1999

Mr. Ed LaClair
General Chairman
District Lodge 142
400 N.E. 32nd Street
Kansas City, Missouri 64116

Dear Mr. LaClair:

This will confirm our understanding reached during negotiations which
led to the Agreement dated August 1, 1999, in connection with the
Company's Absenteeism Control Program. It is understood that employee
requested and Company approved time off (PTO) will not be used against
the employee's attendance record.

When the Company believes that an employee's attendance record is not
satisfactory, the Company will schedule an informal meeting with the
employee and Shop Steward to review attendance matters. The Company will
offer advice and assistance to the employee to correct the attendance
problem.

The Company will review the employee's attendance record thereafter. If
the employee has not corrected his attendance record, the Company will
schedule a formal meeting with the employee and the Shop Steward to
again review the attendance record at which time the Company will notify
the employee in writing of his attendance record. As such a letter will
not be construed as a letter of reprimand or discipline, it will not be
subject to the grievance procedure.

It is understood that no employee who has been in the service of the
Company one hundred eighty (180) days or more, in the case of a mechanic
and one hundred twenty (120) days or more, in the case of all other
employees shall be disciplined for attendance deficiencies without a
fair hearing before a designated representative of the Company, other
than the one bringing the complaint against the employee. Such hearing
shall be held not later than five (5) days after the employee and the
Union are notified of the precise charges and a written decision will be
issued within three (3) work days after the close of the hearing.

Furthermore. as to any action respecting attendance deficiencies, the
initiation of such action will hereafter be made by the hearing officer
referred to above.

Prior to the initiation of any action or hearing, the employee will be
entitled to Union representation, if he so desires.

In the event the Local Committee is dissatisfied with the decision of
the designated hearing officer, the matter may be appealed to Step 3 in
accordance with Article 11.

154

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                                    Very truly yours,
                                    /s/Linda Ferchland

                                    Linda Ferchland
                                    Director-Labor Relations
                                    Labor Relations

Agreed and Accepted:
/s/ Edward LaClair

Edward LaClair

                                                                    155

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<PAGE>

March 14, 1975

Mr. Quenton A. Kerr
President-General Chairman
International Association of Machinists
   and Aerospace Workers
District 142
206 East 32nd Avenue
Kansas City, Missouri 64116

Dear Mr. Kerr:

Before Trans World Airlines, Inc. renews or enters into new contract or
lease arrangements with outside concerns which involves work covered by
the I.A.M. Agreements, at least sixty (60) days notice shall be given to
the Union prior to the signing of such contract or lease arrangements.
The Company agrees to meet with the Union during such period and
endeavor to resolve the issues involved. Failing to do so, a general
grievance may be filed in accordance with the applicable Agreement
provisions, within ten (10) days of such failure.

                                    Very truly yours,
                                    /s/ D. J. Crombie

                                    D. J. Crombie
                                    Vice President -
                                    Industrial Relations

Agreed and Accepted:
/s/ Quenton A. Kerr

Quenton A. Kerr
President-General Chairman
District Lodge 142

156

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<PAGE>

April 10, 1992

Mr. William O'Driscoll
President and General Chairman
International Association of Machinists
   and Aerospace Workers
District 142
400 East 32nd Street
Kansas City, Missouri 64116

Dear Mr. O'Driscoll:

This is to confirm our agreement reached during negotiations regarding
the "banking" of vacation by eligible employees covered by this
Agreement.

Employees eligible for four or more weeks of vacation will be allowed to
bank up to two weeks of earned vacation per year.

On or before July 1 of the vacation year, the amount of banked vacation
money due to the employee will be contributed to the employee's 401K
account or to another retirement account designated by the IAM&AW, as
permitted by applicable law.

                                    Very truly yours,
                                    /s/ William L. Schecter

                                    William L. Schecter
                                    Staff Vice President
                                    Labor Relations

Agreed and Accepted:
/s/ William O'Driscoll

William O'Driscoll

                                                                    157

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<PAGE>

April 10, 1992

Mr. William O'Driscoll
President - General Chairman
International Association of Machinists
   and Aerospace Workers
District 142
400 East 32nd Street
Kansas City, Missouri 64116

Dear Mr. O'Driscoll:

This will confirm our agreement to modify the 401(K) Plan for Machinists
of Trans World Airlines, Inc. to permit deferral of benefit commencement
under the Plan until such time as benefits are required to commence
pursuant to the provisions of the Internal Revenue Code and/or ERISA and
the regulations thereunder.

It is our understanding that this new deferral provision shall apply to
all Plan members who have not begun to withdraw payments from the Plan
as of November 1, 1991.

If the foregoing accurately states the terms of our agreement, please
sign where indicated below.

                                    Very truly yours,
                                    /s/ William L. Schecter

                                    William L. Schecter
                                    Staff Vice President
                                    Labor Relations

Agreed and Accepted:
/s/ William O'Driscoll

William O'Driscoll

158

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<PAGE>

August 1, 1999

Mr. Edward LaClair
General Chairman
International Associations of Machinists
  And Aerospace Workers
400 NE 32nd Street
Kansas City, MO  64116

Subject:  Amendment to 401 (k) Plan

Dear Mr. LaClair,

Subject to the approval of the Trustee Committees to amend the Deferred
Compensation Plan(s) for IAM employees and effective upon the date of
the signing of a new Collective Bargaining Agreement, the Deferred
Compensation Plan(s) for all IAM employees shall provide for a one-time
election for each individual employee who currently has retirement funds
held in trust at Chase Manhattan Bank to transfer all funds to the
existing self-directed 401(k) Retirement Savings Plan Number 005. The
Plan(s) shall be further amended to permit future monthly contributions
to be made to the participant's new Retirement Savings plan account. The
fee agreement may be amended to provide for a transaction fee to be paid
by individual participants for excess transfer activity between funds.

This election must be made no later than November 30, 1999 and will
become effective the last day of the month in which the employee's
election is made. An employee who has elected this plan will have a
one-time transfer option back to the Deferred Compensation Plan
effective November 30, 1999 only. Thereafter, the employee's election is
irrevocable and permanent.

Current and future employees in the Mechanic & Related and Passenger
Service classifications who are not members of a 401(k) Plan may elect
to join either Plan but not both. That election is irrevocable.

                                   Very truly yours,
                                   /s/ Linda Ferchland

                                   Linda Ferchland
                                   Director Labor Relations Ground

Agreed and Accepted:

/s/ Edward LaClair
Edward LaClair
IAM District 142

                                                                    159

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<PAGE>

                     SUPPLEMENTAL AGREEMENT ON

                 RETIREMENT PLAN FOR MACHINISTS OF

                     TRANS WORLD AIRLINES, INC.

THIS AGREEMENT, made and entered into this 28th day of January, 1970,
by and between TRANS WORLD AIRLINES, INC., a Delaware corporation
(hereinafter referred to as the "Company"), and the INTERNATIONAL
ASSOCIATION OF MACHINISTS AND AEROSPACE WORKERS, AFL-CIO (hereinafter
referred to as the 'Union'):

                        W I T N E S S E T H:

WHEREAS, the Company and the Union have agreed to continue, amend and
restate, effective as of January 1, 1969, the provisions of the
retirement plan covering "Employees" of the Company represented by the
Union, as the "Retirement Plan for Machinists of Trans World Airlines,
Inc." (hereinafter referred to as the 'Plan).

     NOW, THEREFORE, the parties agree as follows:

           SECTION 1. ESTABLISHMENT AND ACCEPTANCE OF PLAN

     1.1  Establishment and acceptance of Plan. The Company shall
establish the Plan, effective as of January 1, 1969. The Union hereby
accepts the Plan for Employees of the Company within the collective
bargaining unit represented by the Union.

                 SECTION 2. ELIMINATION OF CONFLICTS

     2.1  Elimination of Conflicts. In the event of any conflict
between the provisions of this Agreement and the Plan, the provisions of
this Agreement shall supersede the provisions of the Plan to the extent
necessary to eliminate such conflict.

         SECTION 3. INTERNAL REVENUE APPROVAL AND AMENDMENTS

     3.1  Internal Revenue Approval and Amendments. It is the
intention of the parties to this Agreement that the Plan, as it may be
modified by this Agreement, shall be and remain an approved Plan so as
to qualify under the applicable provisions of the Internal Revenue Code
of 1954 as now in effect or as hereafter adopted and the regulations
issued thereunder, and that any and all contributions made by the
Company under the Plan be deductible for federal income tax purposes.
The Company agrees not to modify or amend or terminate the Plan while
this Agreement is in full force and effect unless the Union consents to
such modification, amendment or termination, provided, however, that the
Company may, after notifying the Union, make any modifications or
amendments to the Plan that are necessary or appropriate to qualify or
maintain the Plan as a plan meeting the requirements of Section 401(a)
of the Internal Revenue Code of 1954 as now in effect or hereafter
amended or any other applicable provisions of the Internal Revenue Code
as now in effect or hereafter adopted or the regulation issued
thereunder, and any such

160

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<PAGE>

modification, alteration, or amendment of the Plan may be made
retroactively, if necessary or appropriate.

                         SECTION 4. FINANCING

     4.1  Pension Fund. The Company shall establish a Pension Fund
with a trustee or insurance company, or both, and make contributions
thereto, in accordance with and as required by the provisions of the
Plan.

     4.2  No Employee Contributions. No Employee will be required to
make contributions to the Pension Fund on and after February 1, 1970.

                SECTION 5. ADMINISTRATION BY COMMITTEE

     5.1  Administration by Committee

     (a)  The Plan shall be administered by a Committee consisting of
          four members, two members of which shall be appointed by the
          Company, (hereinafter referred to as the Company members),
          and two members of which shall be appointed by the Union
          (hereinafter referred to as the Union members). These
          members shall serve without compensation from the Pension
          Fund. In the event of a deadlock, an impartial chairman
          shall be selected by mutual agreement of the Company and the
          Union members of the Committee, but shall vote at meetings
          of the Committee only for the purpose of breaking such
          deadlock. Failing selection, either party may petition the
          United States District Court in New York, New York, for
          appointment of a chairman. The fees and expenses of the
          impartial chairman shall be paid equally by the Company and
          the Union. In the event of a deadlock over the
          approval/denial of an employee's request for disability
          retirement, the impartial chairman shall be a qualified
          physician who specializes in the treatment of the medical
          condition giving rise to the employee's request for
          disability retirement.

     (b)  Either the Company or the Union at any time may remove a
          member appointed by it and may fill any vacancy in the
          position of its appointee. Both the Company and Union shall
          notify each other in writing of the members respectively
          appointed by them before any such appointment shall be
          effective.

     (c)  To constitute a quorum for the transaction of business,
          there shall be required to be present at any meeting of the
          Committee at least one Union member and one Company member.
          At all meetings of the Committee, the Company members shall
          have a total of two votes and the Union members shall have a
          total of two votes, the vote of any absent member being cast
          by the member Present appointed by the same party. Decisions
          of the Committee shall be by a majority of the votes cast.

     5.2  Powers of the Committee. The Committee shall have the
following powers incident to the proper administration of the Plan:

                                                                    161

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<PAGE>

     (a)  To prescribe procedures to be followed by Employees in
          filing application for benefits, and for the furnishings of
          evidence necessary to establish rights to such benefits.

     (b)  To make conclusive determinations as to the rights of any
          person applying for or receiving retirement benefits, and to
          afford any such individual dissatisfied with any such
          determination the right to a hearing thereon.

     (c)  To develop procedures for the determination and notification
          to Employees of their Continuous Service, and after
          affording Employees an opportunity to make objection with
          respect thereto, to conclusively establish such Continuous
          Service in advance of or at retirement.

     (d)  To obtain from the Company, from the Union, the Trustee or
          insurance company, the Actuary and from Employees such
          information as shall be necessary to carry out the
          Committee's responsibilities, including all actuarial
          valuations and all reports on assets and on receipts and
          disbursements relating to the Pension Fund. Any such
          actuarial report or valuation shall include, as a minimum, a
          full statement of the actuarial assumptions employed.

     (e)  To establish appropriate procedure for authorizing the
          Trustee or insurance company to make all disbursements to
          Employees from the Pension Fund in accordance with the
          provisions of the Plan.

     (f)  To furnish to the Company and the Union, upon request, such
          reports with respect to the administration of the Plan as
          are reasonable and appropriate.

     5.3  Liability. The Committee and any member thereof shall be
entitled to rely upon the correctness of any information furnished by
the Trustee or insurance company, the Actuary, the Union or the Company.
Neither the Committee nor any of its members, nor the Union, any other
representative of the Union, nor the Company nor any officer or any
other representative of the Company shall be liable because of any act
or failure to act on the part of the Committee, or any of its members,
to any person whomsoever, except that nothing herein shall be deemed to
relieve any such individual from liability for his own fraud or bad
faith.

                    SECTION 6. DURATION OF AGREEMENT

     6.1  Duration. This Agreement shall be effective as of January 1,
1970, and shall continue in full force and effect through and including
January 31, 2001. It shall be automatically renewed thereafter for
successive one year periods unless either party shall give written
notice to the other in accordance with the Railway Labor Act, as
amended.

     6.2  Changes in Agreement. During the life of this Agreement,
neither party hereto shall demand any changes in this Agreement other
than as provided in Section 3 hereof, nor shall either party be required
to bargain with respect to this Agreement, nor shall a change in or
addition to this Agreement be an objective of or be stated as a reason
for any strike or lockout or other exercise of economic force or threat
thereof by the Union or by the Company.

162

<PAGE>
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement
to be executed the day and year first above written.

                                   TRANS WORLD AIRLINES, INC.

                                   By William L. Schecter

INTERNATIONAL ASSOCIATION OF
MACHINISTS AND AEROSPACE WORKERS,
AFL-CIO

By William O'Driscoll

                                                                    163

<PAGE>
<PAGE>
                              AGREEMENT

                               BETWEEN

                      TRANS WORLD AIRLINES, INC.

                                 AND

                   MECHANICS AND RELATED EMPLOYEES
                IN THE EMPLOY OF TRANS WORLD AIRLINES.
               INC. AS REPRESENTED BY THE INTERNATIONAL
               ASSOCIATION OF MACHINISTS AND AEROSPACE
                          WORKERS, AFL-CIO.

     This Agreement is made and entered into by and between TRANS WORLD
AIRLINES, INC., hereinafter known as the "Company", and MECHANICS AND
RELATED EMPLOYEES in the employ of Trans World Airlines, Inc. as
represented by the INTERNATIONAL ASSOCIATION OF MACHINISTS AND AEROSPACE
WORKERS, AFL-CIO, hereinafter known as the 'Union'.

It is mutually agreed to establish the Plan agreed to during
negotiations, subject to the receipt of a ruling from the Internal
Revenue Service that the Plan is qualified under Section 401 (a), that
the Trust described therein is exempt from taxation under Section 501
(a), that the Company's contributions thereto will be deductible under
Section 404 of the Internal Revenue Code of 1954.

The parties agree that, subject to such ruling, the Company will make
contributions to the plan effective February 1, 1970. Prior to receipt
of said ruling, the contributions will be paid to a bank or trust
company in escrow.

IN WITNESS WHEREOF, the parties hereto have signed this Agreement this
28th day of January 1970.

                                   TRANS WORLD AIRLINES, INC.

                                   /s/ D. J. Crombie

MECHANICS AND RELATED EMPLOYEES
in the employ of Trans World Airlines,
Inc. as represented by the INTERNATIONAL
ASSOCIATION OF MACHINISTS AND AEROSPACE
WORKERS, AFL-CIO

/s/ J. J. Schwind

164

<PAGE>
<PAGE>

January 28, 1970

Mr. John J. Schwind
President-General Chairman
International Association of Machinists
  and Aerospace Workers
District 142
206 East 32nd Avenue
Kansas City, Missouri 64116

Dear Mr. Schwind:

In order to continue the benefit accrual of an employee in the services
of Trans World Airlines, Inc. covered by the TWA-IAM Agreement in the
Retirement Plan for Machinists of Trans World Airlines, Inc. and the
Trust Plan of which he is a participating member, the Company agrees to
enter into the following arrangement with the Union in cases where such
employee is a TWA employee who is a full-time member of District 142
staff, or IAM Grand Lodge staff.

     The Company will remit on behalf of the employee on such leave or
     leaves of absence for the purpose indicated the full cost for the
     basic Retirement Plan ("A" Plan).

     The District will remit on behalf of the employee on such leave or
     leaves of absence for the purpose indicated (and on its own
     behalf) to cover contributions the Company would have made for the
     employee, had the employee continued on active pay status and not
     been on leave, the following:

     (a)  For the Trust Plan - Effective February 1, 1970, an amount
          equal to 1% of the pay the employee received from the Union
          while he is on off-payroll status with the Company. Further
          an additional 1% of the pay effective February 1, 1971.

          In addition, the employee will be permitted to continue
          voluntary contributions to the Trust Plan based on the
          monies paid to him by the Union.

     (b)  A monthly statement of the monies paid by the Union to such
          employee after February 1, 1970.

The statements, together with the remittances, will be forwarded by the
Union to Director - Employee Benefits, Trans World Airlines, Inc., 11500
Ambassador Drive, Kansas City, Missouri 64153. The statement will show
the periods covered for each such employee, the employee's contribution
for such period, and the Union's contribution for the like period.

This agreement shall become effective as of February 1, 1970.

165

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<PAGE>

If this is in accordance with your understanding, please sign in the
lower left-hand corner, where indicated.

                                   Sincerely,
                                   /s/ D. J. Crombie

                                   D. J. Crombie
                                   Vice President -
                                   Industrial Relations

Agreed and Accepted:
/s/ J. J. Schwind

J. J. Schwind

166

<PAGE>
<PAGE>

August 1, 1999

Mr. Ed LaClair
General Chairman
District 142
International Association of Machinists
  and Aerospace Workers
400 N.E. 32nd Avenue
Kansas City, Missouri 64116

Dear Mr. LaClair:

This will confirm our understanding reached during negotiations that
when an employee is assigned to another point and/or location within a
metropolitan area, he will:

     1.   Be paid twenty cents (20 cents) per mile actual mileage plus
          tolls between said point and/or location. If thereafter, the
          mileage allowance as set forth in the Management Policy and
          Procedures Manual 12.05.01 should be increased, the mileage
          allowance set forth herein will be increased to the same
          amount

          or

     2.   Be provided round trip Company transportation to the
          assigned point and/or location.

The above will apply until the employee is reassigned and reports back
to his regular assigned point and/or location.

                                   Very truly yours,
                                   /s/ Linda Ferchland

                                   Linda Ferchland
                                   Director Labor Relations

Agreed and Accepted:
/s/ Edward LaClair

  Edward LaClair

                                                                    167

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<PAGE>

October 18, 1976

Mr. Quenton Kerr
President-General Chairman
District 142
International Association of Machinists
  and Aerospace Workers
400 N.E. 32nd Avenue
Kansas City, Missouri 64116

Dear Mr. Kerr:

This will confirm our Agreement reached during negotiations that any
employee who is laid off subsequent to the effective date of this letter
and who meets the requirements as outlined in Article 5 will be entitled
to submit an application for an examination while on such laid off
status. It is understood and agreed that the following guidelines are
applicable to such employee who submits an application to take an
examination.

1.   A laid off employee may apply for and complete only one
     examination within any sixty (60) day period.

2.   Applications shall be obtained and submitted as provided in
     Articles 5(a)(3) and 5(a)(4) respectively. On the application form
     as provided under Article 5(a)(4), a "laid off" employee will
     designate "laid off" in the space provided for the supervisor's
     name.

3.   All written examinations of laid off employees shall be handled
     through TWA-MCI training section.

4.   Failure to appear for an examination at the designated time and
     place will invalidate the application and the employee will not be
     permitted to apply for any other examination while on laid off
     status unless satisfactory reason is given.

5.   All written examinations will be completed not more than thirty
     (30) days after a laid off employee's application is received by
     the Company. All laid off employees will have a completion date
     effective sixty (60) days from the date the application is
     received by the Company.

6.   A laid off employee will be entitled to take only the written
     portion of Part I of the mechanic examination. The written portion
     of the examination will be given at a time and place designated by
     TWA. The practical portion of the examination will be given on the
     first work day of the employee's return to active status. It is
     understood and agreed that the return to active status as provided
     in this Letter of Agreement be subject to the satisfactory
     completion of the practical examination. If the employee fails the
     practical portion of the exam, it will be treated as a failure as
     provided in 7 and it is further understood and agreed that the
     provisions of Article 6(f)(10) shall not be applicable in such
     instance.

168

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<PAGE>

7.   A laid off employee who fails to pass the examination will not be
     permitted to take the same examination for one hundred and eighty
     (180) days from the date of the previous examination.

8.   Laid off employees not holding seniority in the Ramp Service or
     Stores classifications will be permitted to take the examinations
     for such classifications, while on laid off status, in accordance
     with Article 5(c), (d), and (e).

9.   To be eligible for recall or promotion under these provisions, a
     laid off employee must submit a qualification sheet and/or have a
     Company seniority bid on file. Employees who are recalled or
     promoted and are subsequently found not qualified, will be laid
     off, provided they are unable to return to the specialty at the
     point from which reduced; and when so disqualified they shall lose
     all rights to lay off pay. They shall have recall rights only to
     the specialty at the point from which originally reduced or laid
     off.

10.  All other provisions of the Agreement not set forth herein shall
     apply.

                                    Very truly yours,
                                    /s/ W. J. Dougherty

                                    W. J. Dougherty
                                    Vice President
                                    Industrial Relations

Agreed and Accepted:
/s/ Quenton A. Kerr

Quenton A. Kerr

                                                                    169

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<PAGE>

October 18, 1976

Mr. Quenton Kerr
President-General Chairman
District 142
International Association of Machinists
  and Aerospace Workers
400 N.E. 32nd Avenue
Kansas City, Missouri 64116

Dear Mr. Kerr:

It is understood and agreed that IAM-TWA Mechanics will be utilized to
maintain carry-on baggage X-ray equipment, passenger magnetic detection
equipment, and any other similar security equipment that may be placed
in use by the Company.

                                    Very truly yours,
                                    /s/ W. J. Dougherty

                                    W. J. Dougherty

Agreed and Accepted:
/s/ Quenton A. Kerr

Quenton A. Kerr

170

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<PAGE>

October 18, 1976

Mr. Quenton Kerr
President-General Chairman
District 142
International Association of Machinists
  and Aerospace Workers
400 N.E. 32nd Avenue
Kansas City, Missouri 64116

Re:  Coverage for LST Absences

Dear Mr. Kerr:

The Company will utilize the proper LST specialty to provide necessary
technical knowledge, guidance, and direction to other classifications in
trouble shooting complex aircraft systems in support of the requirements
of the service.

However, when the LST for his specialty is not on duty and the technical
expertise for that specialty is necessary, the Company will:

1.   Have the other LSTs on duty examine the problem, and if able,
     provide the necessary technical knowledge and assistance, or

2.   Refer the work to the oncoming shift, or

3.   Call in overtime for that LST specialty in accordance with the
     local overtime procedure.

In no event will a foreman or other employees perform the functions of
the LST when LSTs are available to perform these functions.

                                    Very truly yours,
                                    /s/ W. J. Dougherty

                                    W. J. Dougherty
                                    Vice President
                                    Industrial Relations

Agreed and Accepted:
/s/ Quenton A. Kerr

Quenton A. Kerr

                                                                    171

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<PAGE>

April 10, 1992

Mr. William O'Driscoll
President - General Chairman
District Lodge 142
International Association of Machinists
  and Aerospace Workers
400 N.E. 32nd Street
Kansas City, Missouri 64116

Dear Mr. O'Driscoll:

This will confirm the understanding reached during the negotiations
regarding the establishment of a Maintenance Evaluation Committee at the
Overhaul Base.

Effective with the signing of the TWA/IAM Agreement, a joint
Company/Union Committee will be established to continue to evaluate and
reassess the placement of units and parts in various categories, based
on the guidelines used by the Overhaul Base Committee during
negotiations leading to the Agreement signed April 10, 1992.

The Committee will be a permanent one that will continue to function as
new equipment is phased into the existing fleet or new aircraft are
added. Meetings and associated activities will be conducted on an "as
needed" basis.

The Committee will consist of four (4) members. Two (2) members selected
by the Union, and two (2) members selected by the Company. The Union and
Company may have one (1) alternate each to serve in the event their
regular members are not available. The Committee may establish rules
governing their procedures, consistent with the provisions of the
Agreement. A member of the Maintenance Department and the Grievance
Committee Chairman or their designated representatives may serve as co-
chairpersons to the Committee without vote.

The Committee will meet during regular day shift working hours, unless
otherwise mutually agreed to, and members will not suffer loss of pay
while performing their duties.

                                    Very truly yours,
                                    /s/ William L. Schecter

                                    William L. Schecter
                                    Staff Vice President
                                    Labor Relations

Agreed and Accepted:
/s/ William O'Driscoll

William O'Driscoll

172

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<PAGE>

April 10, 1992

Mr. William O'Driscoll
President - General Chairman
District Lodge 142
International Association of Machinists
  and Aerospace Workers
400 N.E. 32nd Street
Kansas City, Missouri 64116

Dear Mr. O'Driscoll:

This will confirm the understanding reached during the negotiations
regarding the establishment of a 6(a) Committee at MCI/MBM.

The Committee will consist of four (4) members. Two (2) members selected
by the Union, and two (2) members selected by the Company. The Union and
Company may have two (2) alternates each to serve in the event their
regular members are not available.

Guidelines for the Committee shall be defined below:

6(a) Committee:

1.   At MCI/MBM, it is agreed that the transfer of work or the
     assignment of new work will be assigned to the appropriate
     specialty by the Company. When such transfer of work takes place,
     the Company and Union will agree on the disposition of the
     personnel affected as a result of such transfer as provided for in
     Article 6(a)(3) of the current TWA/IAM Agreement.

2.   When the Company has determined they are considering transfer of
     work and before the transfer occurs, the 6(a) Committee will be
     activated to investigate the intended move and to reach a decision
     as to whether the work is being assigned to the appropriate
     specialty. They will also consider the method of transferring
     personnel is such moves are needed.

3.   The Committee may establish rules governing their procedures,
     consistent with the provisions of the Agreement.

4.   The 6(a) Committee will meet during regular day shift working
     hours, unless otherwise mutually agreed to, and members will not
     suffer loss of pay while performing their duties. A member of the
     TWA Employee Relations Department and the Union President/General
     Chairman or their designated representatives, may serve as Co-
     chairpersons to the Committee without vote.

5.   The Committee will complete its investigation in an expeditious
     manner. In the event the Committee is unable to arrive at a
     majority decision, a grievance may be filed in accordance with
     provisions of Article 11, omitting Step I of the grievance
     procedure.

6.   The parties have reached this agreement to form a 6(a) Committee
     with the intent of improving the manner in which work is
     transferred at MCI/MBM. If in practice, the

                                                                    173

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<PAGE>
     establishment of the committee does not result in the improvements
     expected, the parties have an obligation to discuss and resolve
     their differences.

                                    Very truly yours,
                                    /s/ William L. Schecter

                                    William L. Schecter
                                    Staff Vice President
                                    Labor Relations

Agreed and Accepted:
/s/ William O'Driscoll

William O'Driscoll

174

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<PAGE>

October 18, 1976

Mr. Quenton A. Kerr
President-General Chairman
District 142
International Association of Machinists
  and Aerospace Workers
400 N.E. 32nd Avenue
Kansas City, Missouri 64116

Re:  Disability Income

Dear Mr. Kerr:

Effective the first pay period after April 10, 1992, the Disability
Income Plan will be revised to provide weekly disability income benefits
in the amount of 50% of weekly Basic Earnings, subject to the following
minimum and maximum amounts:

Minimum amount of weekly disability benefit: 20% of weekly Basic
Earnings

Maximum amount of weekly disability benefits: $975.00.

Weekly Benefits will be reduced by the amount of (1) any benefits
payable under compulsory state disability income plans and (2) any
disability benefits under the Federal Social Security Act, including
benefits for the Employee's dependents which are paid or payable (after
the first fifteen (15) months of disability.)

For the purpose of items (1) and (2) above, each employee who is covered
under the Federal Social Security Act will be considered to be receiving
periodic cash payments under such Act, in an amount equal to the amount
he and his dependents would receive were they receiving such payments,
unless the employee submits proof to the Insurance Company that such
payments have been applied for but are not payable.

Social Security Freeze - Weekly payments will not be reduced by any
increase in Social Security benefits made after weekly payments have
started.

                                   Very truly yours,
                                   /s/ W. J. Dougherty

                                   W. J. Dougherty
                                   Vice President
                                   Industrial Relations

Agreed and Accepted:
/s/ Quenton A. Kerr

Quenton A. Kerr

                                                                    175

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<PAGE>

November 1, 1978

Mr. Quenton A. Kerr
President-General Chairman
District 142
International Association of Machinists
  and Aerospace Workers
400 N.E. 32nd Avenue
Kansas City, Missouri 64116

Dear Mr. Kerr:

This is to confirm the agreement reached between the parties in the
current round of bargaining. The Company will honor those voluntary
payroll deduction authorizations made by IAM employees for the political
action fund which is designated by the Secretary-Treasurer of District
142.

                                   Very truly yours,
                                   /s/ J. C. Hilly

                                   J. C. Hilly
                                   Vice President
                                   Labor Relations

Agreed and Accepted:
/s/ Quenton A. Kerr

Quenton A. Kerr

176

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<PAGE>

November 1, 1978

Mr. Quenton A. Kerr
President-General Chairman
District 142
International Association of Machinists
  and Aerospace Workers
400 N.E. 32nd Avenue
Kansas City, Missouri 64116

Dear Mr. Kerr:

This is to confirm our agreement reached during negotiations that when
all employees in any IAM classification are furloughed from a point and
as a result there are no employees in that classification at that point,
any employee so furloughed who successfully displaces to another point
will be allowed

     (1)  $300.00 relocation expense plus either

     (2)  Actual moving expenses for household effects up to a maximum
          of 3,000 pounds gross weight for a single employee and up to
          a maximum of 8,000 pounds gross weight for an employee with
          one dependent plus an additional 500 pounds gross weight for
          each additional dependent or

     (3)  A sum of money equal to the existing tariff for moving 5,500
          pounds of household effects between the two points.

All employees in that classification at that point who were furloughed
within one hundred and twenty (120) days prior to the date the last
employee in that classification was furloughed from that point who
successfully displaces to another point will be allowed

     (4)  $300.00 relocation expense plus either

     (5)  The amount of a substantiated bill from an ICC accredited
          moving company not to exceed the allowances specified in (2)
          above or

     (6)  A sum of money equal to the existing tariff for moving 5,500
          pounds of household effects between the two points.

                                   Very truly yours,
                                   /s/  J. C. Hilly

                                   J. C. Hilly
                                   Vice President
                                   Labor Relations

Agreed and Accepted:
/s/ Quenton A. Kerr

Quenton A. Kerr

                                                                    177

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<PAGE>

November 1, 1978

Mr. Quenton A. Kerr
President-General Chairman
District 142
International Association of Machinists
  and Aerospace Workers
400 N.E. 32nd Avenue
Kansas City, Missouri 64116

Dear Mr. Kerr:

The parties recognize that the current regulatory environment may
present serious competitive challenges which can adversely affect the
Company and its employees.

Accordingly, in order to provide the Company an opportunity to test new
markets with minimum disruption of the workforce, after the signing of
this Agreement, whenever the Company institutes scheduled flight
activity into a location not so presently served, the Vice President -
Labor Relations or his designee and the President-General Chairman of
District 142 or his designee will meet to discuss the application of the
TWA-IAM Agreement at that location in a timely way prior to the
institution of such service.

It is agreed and recognized that any agreement by the Union and Company
to waive or modify the TWA-IAM Agreement is to be temporary and sets no
precedent and is not to be referred to in future contract
interpretations and applications.

                                   Very truly yours,
                                   /s/ J. C. Hilly

                                   J. C. Hilly
                                   Vice President
                                   Labor Relations

Agreed and Accepted:
/s/ Quenton A. Kerr

Quenton A. Kerr

178

<PAGE>
<PAGE>

January 28, 1983

Mr. Quenton A. Kerr
President-General Chairman
District 142
International Association of Machinists
  and Aerospace Workers
400 N.E. 32nd Street
Kansas City, Missouri 64116

Dear Mr. Kerr:

This is to confirm our agreement that TWA-IAM Guards will perform the
required passenger screening function at TWA-JFK facilities including
passengers of all other carriers using those facilities.

It is further agreed that the action taken by the Company to resolve
this issue in the manner described above will not in any way be referred
to by either party in regard to any question relating to the
establishment of the IAM Guard classification at any point for the
purpose of performing the passenger screening function nor will this
action reverse the precedent set in arbitration decisions rendered on
this issue.

                                   Very truly yours,
                                   /s/ Ralph P. Craviso

                                   Ralph P. Craviso
                                   Director Labor Relations, Ground

Agreed and Accepted:
/s/ Quenton A. Kerr

Quenton A. Kerr

                                                                    179

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<PAGE>

January 28, 1983

Mr. Quenton A. Kerr
President-General Chairman
District 142
International Association of Machinists
  and Aerospace Workers
400 N.E. 32nd Street
Kansas City, Missouri 64116

Dear Mr. Kerr:

It is agreed between the parties that the following sequence will be
used by the Company in filling Crew Chief openings in classifications
Crew Chief Mechanic and below:

(1)  Restoration of forces, that is, recall the most senior reduced
     Crew Chief(s) at the point or on lay off status at the point. All
     Crew Chief opening(s) will be filled by such employee(s) in
     seniority order. If a Crew Chief opening(s) still exists after
     exhausting this procedure, then (2) below will be followed.

(2)  If a Crew Chief opening(s) still exists, the Company will consider
     the opening(s) to be in the basic classification and will recall
     to the point the most senior employee(s) with recall rights in the
     basic classification.

     (a)  After recalling such employee(s), the Crew Chief position(s)
          will be filled by the senior reduced Crew Chief(s) at the
          point.

     (b)  If the Crew Chief opening(s) remain unfilled, the Company
          will bid the Crew Chief position(s) in accordance with
          Article 10.

The above procedure will be followed only when the Crew Chief opening(s)
adds to the total headcount in the combined Crew Chief and basic
classification at the point.

                                   Very truly yours,
                                   /s/ Ralph P. Craviso

                                   Ralph P. Craviso
                                   Director Labor Relations, Ground

Agreed and Accepted:
/s/ Quenton A. Kerr

Quenton A. Kerr

180

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<PAGE>

January 28, 1983

Mr. Quenton A. Kerr
President-General Chairman
District 142
International Association of Machinists
  and Aerospace Workers
400 N.E. 32nd Street
Kansas City, Missouri 64116

Dear Mr. Kerr:

During the course of negotiations leading to this Agreement, the parties
discussed the problems related to reduction in force in the basic
classification vis-a-vis the Crew Chief classification.

The parties agree that prior to any reduction in force the Company will
review the staffing needs subsequent to the reduction and if appropriate
effect a reduction in the Crew Chief classification concurrently with
the reduction of the basic classification.

This letter is not intended by the parties to determine Crew Chief
staffing by the Company.

                                   Very truly yours,
                                   /s/ Ralph P. Craviso

                                   Ralph P. Craviso
                                   Director Labor Relations, Ground

Agreed and Accepted:
/s/ Quenton A. Kerr

Quenton A. Kerr

                                                                    181

<PAGE>
<PAGE>

April 10, 1992

Mr. William O'Driscoll
President - General Chairman
District Lodge 142
International Association of Machinists
  and Aerospace Workers
400 N.E. 32nd Street
Kansas City, Missouri 64116

Dear Mr. O'Driscoll:

This is to confirm the agreement reached between the parties during
negotiations concerning the receipt and dispatch of aircraft and
deicing.

At stations other than the Overhaul Base, Technical Service locations,
and major stations where mechanics are staffed, the crew chief mechanic
shall be responsible for the receipt and dispatch functions and deicing.
When a mechanic is not available, he may utilize a ramp serviceman to
assist.

At stations where mechanics are not staffed, the crew chief ramp
serviceman shall have the responsibility for receipt and dispatch and
deicing functions.

At stations where station agents are staffed, the Employee in Charge
shall have the responsibility for receipt and dispatch and deicing
functions.

All receipt and dispatch and deicing functions will remain included in
the computation of Mechanic's work in determining whether Mechanic
staffing is required under the Four Hour Rule.

                                   Very truly yours,
                                   /s/ William L. Schecter

                                   William L. Schecter
                                   Staff Vice President
                                   Labor Relations

Agreed and Accepted:
/s/ William O'Driscoll

William O'Driscoll

182

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<PAGE>

April 10, 1992

Mr. William O'Driscoll
President - General Chairman
District Lodge 142
International Association of Machinists
  and Aerospace Workers
400 N.E. 32nd Street
Kansas City, Missouri 64116

Dear Mr. O'Driscoll:

This is to confirm the agreement reached during negotiations regarding
the denial of Worker's Compensation benefits because of controverted
claims.

When an employee is denied weekly worker's compensation benefits because
the claim is controverted, the employee shall, upon proper application,
be paid weekly disability income, under the weekly disability income
program, until the issue has been resolved. Proper application shall
include a representation by the employee that in the event the claim is
later determined to be compensable as an industrial injury, there will
be no duplication of benefits.

If the foregoing accurately reflects your understanding of our
agreement, please sign where indicated below.

                                   Very truly yours,
                                   /s/ William L. Schecter

                                   William L. Schecter
                                   Staff Vice President
                                   Labor Relations

Agreed and Accepted:
/s/ William O'Driscoll

William O'Driscoll

                                                                    183

<PAGE>
<PAGE>

April 10, 1992

Mr. William O'Driscoll
President - General Chairman
District Lodge 142
International Association of Machinists
  and Aerospace Workers
400 N.E. 32nd Street
Kansas City, Missouri 64116

Dear Mr. O'Driscoll:

This is to confirm the agreement reached between the parties during
negotiations concerning the greasing and oiling of automotive and non-
motorized ground equipment.

It is agreed that when such equipment is being repaired or having
periodic maintenance performed by Mechanics, a Mechanic will be
responsible for changing or adding oil and greasing.

When such equipment is not in the garage for preventative maintenance or
repair, Rampservicemen shall be responsible for adding oil and greasing
as set forth in Article 4(a)(13).

At locations where Mechanics are not staffed, the current practice will
continue.

If the foregoing accurately reflects our understanding, please sign
where indicated below.

                                   Very truly yours,
                                   /s/ William L. Schecter

                                   William L. Schecter
                                   Staff Vice President
                                   Labor Relations

Agreed and Accepted:
/s/ William O'Driscoll

William O'Driscoll

184

<PAGE>
<PAGE>

April 10, 1992

Mr. William O'Driscoll
President - General Chairman
District Lodge 142
International Association of Machinists
  and Aerospace Workers
400 N.E. 32nd Street
Kansas City, Missouri 64116

Re:  Station Staffing Review Committee

Dear Mr. O'Driscoll:

This will confirm the agreement of the parties to establish a standing
committee. The function of this committee shall be to review whether or
not to staff mechanics and/or ramp servicemen at stations on the TWA
system where they are presently not staffed.

In determining whether a particular station(s) exceeds the four hour
rule, (man-minute calculation for the Four-Hour Rule shall be mutually
agreed upon by the parties.) the committee shall evaluate the amount of
work described in Article 4 (Job Description) of the TWA/IAM Agreement
in the context of the existing and anticipated flight schedules.

When the committee has determined that a station(s) activity has
exceeded the Four Hour Work Rule on a shift and/or new hub cities are
opened, the Company will staff the station(s) with the appropriate
classification(s) in accordance with Article 2 (Scope of Agreement) and
Article 4 (Classification of Work) of the TWA/IAM Agreement.

If the foregoing accurately reflects your understanding of our
agreement, please sign where indicated below.

                                   Very truly yours,
                                   /s/ William L. Schecter

                                   William L. Schecter
                                   Staff Vice President
                                   Labor Relations

Agreed and Accepted:
/s/ William O'Driscoll

William O'Driscoll

                                                                    185

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<PAGE>

April 10, 1992

Mr. William O'Driscoll
President - General Chairman
District Lodge 142
International Association of Machinists
  and Aerospace Workers
400 N.E. 32nd Street
Kansas City, Missouri 64116

Re:  Procedures for Emergency Overtime

Dear Mr. O'Driscoll:

This will confirm our understanding regarding the procedures for calling
emergency overtime.

1.   The Company will notify the Union Representative on duty of the
     nature of the emergency, the anticipated duration of the emergency
     and the number of people needed.

2.   Prior to declaring an emergency, the Company will make every
     reasonable effort to secure voluntary overtime and ask for
     volunteers.

3.   Overtime (pre-shift) will continue to be solicited to relieve the
     people affected by the emergency.

4.   Employees forced to work will be held in the inverse order of
     seniority.

5.   An up-to-date crew list with seniority dates will be kept in the
     Overtime Office and Supervisor's Office.

                                   Very truly yours,
                                   /s/ William L. Schecter

                                   William L. Schecter
                                   Staff Vice President
                                   Labor Relations

Agreed and Accepted:
/s/ William O'Driscoll

William O'Driscoll

186

<PAGE>
<PAGE>

April 10, 1992

Mr. William O'Driscoll
President - General Chairman
District Lodge 142
International Association of Machinists
  and Aerospace Workers
400 N.E. 32nd Street
Kansas City, Missouri 64116

Dear Mr. O'Driscoll:

This will confirm our understanding reached during negotiations leading
to the Agreement dated April 10, 1992, as to the eligibility of
employees to take Mechanic examinations.

Employees in classifications below mechanic, enrolled in a mechanic
specialty program, in an accredited school or college, will be eligible
to apply for a mechanic examination in that specialty providing his her
qualification sheet on file contains a record of such enrollment 60 days
prior to the successful completion of the course.

The employee will be eligible to bid for that specialty providing he/she
has met the requirements of Article 5(a)(20)(b) and Article 6(f)(12)(b)
of the Agreement. The employee must complete the course for that
specialty prior to filling the vacancy.

                                   Very truly yours,
                                   /s/ William L. Schecter

                                   William L. Schecter
                                   Staff Vice President
                                   Labor Relations

Agreed and Accepted:
/s/ William O'Driscoll

William O'Driscoll

                                                                    187

<PAGE>
<PAGE>

April 10, 1992

Mr. William O'Driscoll
President - General Chairman
District Lodge 142
International Association of Machinists
  and Aerospace Workers
400 N.E. 32nd Street
Kansas City, Missouri 64116

Dear Mr. O'Driscoll:

The parties, having discussed the growing shortage of qualified
mechanics in the industry, agree that it is in their mutual interest to
continue to discuss and on a mutually agreeable basis experiment with
new upgrading techniques and to explore new on the job and off duty
training programs.

                                   Very truly yours,
                                   /s/ William L. Schecter

                                   William L. Schecter
                                   Staff Vice President
                                   Labor Relations

Agreed and Accepted:
/s/ William O'Driscoll

William O'Driscoll

188

<PAGE>
<PAGE>

August 1, 1999

Mr. Edward LaClair
General Chairman
District Lodge 142
400 NE 32nd Street
Kansas City, MO  64116

Dear Mr. LaClair:

This will confirm our understanding reached during negotiations
concerning Transitional Duty for employees with a temporary disability.

1.   An employee returning from illness or injury may be given a
     transitional duty assignment providing such transitional duty
     assignment is available in his classification and on his bid
     shift.  If no assignment is available in his classification on his
     bid shift, he may be given a transitional duty assignment in a
     different classification and/or shift by mutual agreement between
     the local management and the IAM Grievance Committee (except MCI -
     Relief Committee).

2.   Transitional duty assignments shall be for a period of up to
     ninety (90) days.  By mutual agreement between local management
     and the IAM Grievance Committee (except MCI - Relief Committee).
     Such assignment may be extended in up to thirty (30) days
     increments.

3.   Employees on transitional duty assignment will not be eligible to
     work overtime during such assignments.

4.   Employees on transitional duty assignment will observe all
     holidays.

5.   Transitional duty assignments will be made based on the employee's
     ability to perform work.

6.   The local IAM Grievance committee shall be advised in advance of
     any employee being assigned to transitional duty.  The Local
     Manager or his designee shall meet with the Local IAM Grievance
     Committee periodically to review any complaints raised by
     employees about the use of transitional duty at the location.

7.   This provision shall in no way limit the rights of an employee who
     is covered by the Americans with Disabilities Act.

                                   Very truly yours,
                                   /s/ Linda Ferchland

                                   Linda Ferchland
Agreed and Accepted:               Director Labor Relations - Ground
/s/ Ed LaClair
Ed LaClair

                                                                    189

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<PAGE>

April 10, 1992

Mr. William O'Driscoll
President - General Chairman
District Lodge 142
International Association of Machinists
  and Aerospace Workers
400 N.E. 32nd Street
Kansas City, Missouri 64116

Dear Mr. O'Driscoll:

This will confirm conversations between the Company and the Union during
the course of negotiations leading to the IAM-TWA Agreement signed April
10, 1992.

In instances where the manufacturer of aircraft parts or components
offers a warranty on its product, the parties agree that work to be
performed under the warranty is work within the jurisdiction of
employees covered by the Agreement.

The parties acknowledge, however, that any work performed by non-
bargaining unit employees under an original manufacturer's warranty
would be justified. In addition, the purchase of an extended warranty
may be justified under certain circumstances, such as cost of tooling or
infrequency of maintenance.

Purchase of an extended warranty will be subject to the Union's
agreement which will not be unreasonably withheld in accordance with the
principles stated herein.

                                   Very truly yours,
                                   /s/ William L. Schecter

                                   William L. Schecter
                                   Staff Vice President
                                   Labor Relations

Agreed and Accepted:
/s/ William O'Driscoll

William O'Driscoll

190

<PAGE>
<PAGE>

April 10, 1992

Mr. William O'Driscoll
President - General Chairman
District Lodge 142
International Association of Machinists
  and Aerospace Workers
400 N.E. 32nd Street
Kansas City, Missouri 64116

Dear Mr. O'Driscoll:

This will confirm our understanding reached during negotiations which
led to the Agreement dated March 1, 1992.

The Company will establish the Metal and Machine Shop Specialties at the
St. Louis Technical Service location. The Company will post the
necessary vacancies for bid among the St. Louis mechanic group not later
than thirty (30) days after the signing of the Agreement.

Thereafter the Company will modify the bidding document to include the
additional specialties.

                                   Very truly yours,
                                   /s/ William L. Schecter

                                   William L. Schecter
                                   Staff Vice President
                                   Labor Relations

Agreed and Accepted:
/s/ William O'Driscoll

William O'Driscoll

                                                                    191

<PAGE>
<PAGE>

April 10, 1992

Mr. William O'Driscoll
President - General Chairman
District Lodge 142
International Association of Machinists
  and Aerospace Workers
400 N.E. 32nd Street
Kansas City, Missouri 64116

Dear Mr. O'Driscoll:

This will confirm our understanding reached during negotiations that in
the event of a merger, acquisition, combination or any comparable
transaction in which (1) TWA is the surviving carrier and (2) the NMB
has determined that no certifications for the crafts or classes
currently represented by the IAM exist post-transaction, TWA hereby
agrees to recognize the IAM for the purposes of collective bargaining
for employees in such crafts or classes.

                                   Very truly yours,
                                   /s/ William L. Schecter

                                   William L. Schecter
                                   Staff Vice President
                                   Labor Relations

Agreed and Accepted:
/s/ William O'Driscoll

William O'Driscoll

192

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COMBINING RE&I MECHANIC SPECIALTIES INTO ONE SPECIALTY NAMED AVIONICS

The following constitutes our understanding of the above subject. The
existing specialties and seniority groups will be changed as follows:

MCI
---

Instrument, Electrical and Radio specialties combined into a specialty
named Avionics. The seniority groups at MCI will be:

1.   Airframe Hangar
2.   Airframe Shop
3.   Power Plant Shop

MBM
---

Electro and Electronics specialties combined into a specialty named
Avionics.

LAX
---

Electro and Electronics specialties combined into a specialty named
Avionics.

SFO
---

Radio/Electric into a specialty named Avionics.

STL
---

Electro and Electronics specialties combined into a specialty named
Avionics. The seniority groups at STL will be:

1.   Hangar/Line Avionics
2.   Shop Avionics

NYC METRO
---------

Electro and Electronic specialties combined into a specialty named
Avionics.

SECURITY

No reductions will result from these combinations.

LICENSE REQUIREMENTS

1.   No new requirements will be instituted unless required by the
     appropriate section of the TWA/IAM Agreement or new government
     regulations. An FCC license is not presently required for this
     specialty per the revised FCC rules effective November 11, 1984.

                                                                    193

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<PAGE>

2.   The position of Crew Chief Mechanic, Avionics Airframe Shop, shall
     require the possession of the General Radio Telephone license. An
     exception to the above is made for all personnel who, upon the
     date of signing of this Agreement, are eligible to bid for crew
     chief positions in RE&I Shops (specifically having passed the Part
     II examination for any of the existing RE&I specialties). Further,
     any Personnel successfully completing the existing Part II exam
     for any one of these specialties within six (6) months following
     the signing of this agreement shall be eligible for bidding for
     crew chief positions.

SENIORITY LISTS

All persons currently in the affected specialties will be considered
qualified for the new specialty of Avionics, The individual seniority
lists will be combined into a common seniority list for each seniority
group (seniority groups are listed in the beginning of this document).

QUALIFICATIONS

Those employees possessing the Part I Electric/Electro exam or who
previously completed a trial period in any one of the Radio/Electronics,
Electric/Electro, or Instrument specialties or who possess a Radio-
telephone license, will be considered qualified for the Avionics
specialty.

Those employees who possess the Part II exam in any one of the
Radio/Electronics, Electric/Electro, or Instrument specialties prior to
the signing of this agreement or who pass any of the existing Part II
exams in the six (6) months following the signing of this agreement will
be considered qualified for an Avionics specialty crew chief position.

CREW CHIEFS

No reduction of Crew Chiefs will result from the specialty combination
contained in this agreement.

MECHANIC EXAMINATIONS

Exams for the new specialty "Avionics" will be created as soon as
possible. The "Joe Doke's" bidding guide will be revised to reflect the
specialty champs.

REASSIGNMENT OF WORK

It is recognized that some work tasks presently performed by the various
RE&I specialties may, by its nature, be more appropriately accomplished
by a mechanical related specialty. These changes will be effected
through "6A" committee established by separate letter signed
concurrently with this agreement.

TRAINING

In order for the new specialty of "Avionics" to be effective,
considerable additional training will be needed. A training curriculum
will be established as soon as practical. The availability of qualified
instructors, vendor training classrooms, and related items, make a
calendar

194

<PAGE>
<PAGE>

commitment impossible at this time, but every effort will be made to
expedite a time table. Field locations will provide training as required
to insure the effectiveness of the new specialty and to meet operational
requirements. This training will also be expedited.

VACATIONS

For the calendar year 1992, vacation selection was based on separate
seniority lists for the specialties combined in this agreement. No
forced vacation re-selections are to occur as a result of shift/day off
realignments caused by these combinations during the calendar year 1992.
Movement between the new seniority groupings via the bid procedure
during 1992 will be subject to the terms of the agreement. Beginning in
1993, vacation selection will be from the new specialty "Avionics"
seniority lists for each seniority grouping.

SHIFT AND DAY OFF BIDS

Utilizing the combined seniority lists, a shift and day off realignment
will be completed within thirty (30) days following the signing of this
agreement.

OVERTIME

Until adequate training is completed, overtime requirements may be
handled utilizing the original separate seniority lists. When sufficient
training is completed, overtime will be called using the combined
seniority lists. Since training requirements vary by seniority group, no
firm calendar can be made for all areas. However, in no case will the
separate lists be utilized in excess of twelve (12) months. Individuals
transferring into a department that is utilizing separate seniority
lists for overtime solicitation will be placed on the appropriate
overtime list based on their general skills and work experience until
such time as training levels allow the use of the combined lists.

The Parties have reached this agreement with the intent of improving the
operations. If in practice these changes do not result in the desired
improvements, the parties have an obligation to discuss and resolve the
problem areas.

Dated:    April 10, 1992

                                    /s/ William L. Schecter
                                    /s/ William O'Driscoll

                                                                    195

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COMBINATION OF RE&I INSPECTION INTO A&P INSPECTION GROUP

The following constitutes our understanding of the above subject. The
MCI Radio/Electric Inspection group and the MCI Instrument Shop
Inspection group will be merged into the MCI Airframe Overhaul
Inspection group.

SECURITY

Effective, with the signing of this agreement, the four (4) existing MCI
Radio/Electric Inspectors and the two (2) existing MCI Instrument Shop
Inspectors will be merged into the MCI Airframe Overhaul Inspection
group. Of the six (6) existing RE&I Inspectors, four (4) presently have
the qualification (hold an A&P license) required for an Airframe
Overhaul Inspector and they can be immediately placed in the Airframe
Inspection group by merging their inspection seniority with the existing
Airframe Overhaul seniority list. The inspection seniority will permit
them to hold the shift and days off of their choice. One of these four
is a Crew Chief Inspector. He is qualified as a Crew Chief Airframe
Overhaul Inspector and his crew chief seniority will permit him to hold
the shift and days off of his choice.

The two (2) remaining RE&I Inspectors, R. K. Blundell and J. C. Frazer,
do not presently hold the FAA A&P license required for the Airframe
Inspection group. These two inspectors will be maintained as "shop"
inspectors.

CREW CHIEFS

No reduction of Crew Chiefs will result from this merger of groups.

TRANSFER OF WORK

Existing RE&I Inspector work tasks will be transferred to the Airframe
Overhaul Inspector group.

VACATIONS

For the calendar year 1992, vacation selection was based on separate
seniority lists for the specialties combined in this agreement. No
forced vacation reselection will occur as a result of shift/day off
realignments caused by this merger during 1992. Movement between
seniority groups via the bid procedure during 1992 will be subject to
the terms of the agreement. Beginning in 1993, vacation selection will
be from the single merged seniority list for the Airframe Overhaul
seniority group.

SHIFT/DAY OFF REALIGNMENT

Within thirty (30) days of the signing of this agreement, a shift/day
off realignment will be conducted in the Airframe Overhaul Inspection
group.

Dated:  April 10, 1992
                                   /s/ William L. Schecter
                                   /s/ William O'Driscoll

196

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COMBINATION OF LST ELECTRICAL AND ELECTRONICS SPECIALTIES AT JFK AND LAX
INTO LST AVIONICS SPECIALTY

The following constitutes our understanding of the above subject.
Effective with the signing of this agreement, the LST specialties of
Electrical and Electronics at JFK and LAX (the only locations where
these specialties exist) will be merged into the LST specialty of
Avionics. Thereafter, the LST specialties of Electrical and Electronics
will no longer exist.

SECURITY

Individuals holding seniority in the LST specialties of Electrical or
Electronics will be deemed qualified for the LST specialty of Avionics.

VACATIONS

For the calendar year 1992, vacation selection was based on the separate
specialties seniority lists. No forced vacation re-selection will occur
as a result of the above combination of specialties.

TRAINING

Additional training will be required to ensure the individuals involved
in this combination are fully competent in the specialty of Avionics.
The Company will expedite this training as much as practical considering
the availability of instructors, classrooms, etc.

Dated:  April 10, 1992

                                    /s/ William L. Schecter
                                    /s/ William O'Driscoll

                                                                    197

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COMBINATION OF PLANT MAINTENANCE ELECTRICAL AND PLANT MAINTENANCE
INSTRUMENT

MCI

Plant Maintenance Electrical and Plant Maintenance Instrument
specialties combined into a specialty named Plant Maintenance
Electronics.

SECURITY

No reductions will result from this combination.

CREW CHIEF MECHANIC

No reduction of Crew Chiefs will result from the specialty combination
contained in this Agreement.

The position of Crew Chief Mechanic, for all personnel who, upon the
date of signing this Agreement, are eligible to bid for Crew Chief
positions in Plant Maintenance Instrument and Plant Maintenance
Electrical (specifically having passed the Part II examination for any
existing P/M Electrical and P/M Instrument specialties). Further, any
personnel successfully completing the existing Part II exam for any of
these specialties within six (6) months following the signing of this
Agreement shall be eligible for bidding for Crew Chief positions.

SENIORITY LISTS

All persons currently in the affected specialties will be considered
qualified for the new specialty of Plant Maintenance Electronics. The
individual seniority list will be combined into a common seniority list.

QUALIFICATIONS

Those employees possessing the Part I Plant Maintenance Electric Exam or
Plant Maintenance Instrument Exam, or who previously completed a trial
period in any one of the Plant Maintenance Electrical or Plant
Maintenance Instrument specialties will be considered qualified for the
Electronics specialty.

Those employees who possess the Part II exam in any one of the Plant
Maintenance Electrical or Plant Maintenance Instrument specialties prior
to the signing of this Agreement or who pass any of the existing Part II
exams in the six (6) months following the signing of this Agreement will
be considered qualified for a Plant Maintenance Electronics specialty
Crew Chief position.

198

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MECHANIC EXAMINATIONS

Exams for the new specialty "Plant Maintenance Electronics" will be
created as soon as possible. The "Joe Dokes" bidding guide will be
revised to reflect the specialty changes.

TRAINING

In order for the new specialty of Plant Maintenance Electronics to be
effective, considerable additional training will be needed. A training
curriculum will be established as soon as practical. The availability of
qualified instructors, vendor training, classrooms, and related items,
make a calendar commitment impossible at this time, but every effort
will be made to expedite a timetable. Field locations will provide
training as required to insure the effectiveness of the new specialty
and to meet operational requirements. This training will also be
expedited.

VACATIONS

For the calendar year 1992, vacation selection was based on separate
seniority lists for the specialties combined in this Agreement. No
forced vacation re-selections are to occur as a result of shift/day off
realignments caused by these combinations during the calendar year 1992.
Beginning in 1993, vacation selection will be from the new specialty
Plant Maintenance Electronics seniority lists.

SHIFT AND DAY OFF BIDS

Utilizing the combined seniority lists, a shift and day off realignment
will be completed within thirty (30) days following the signing of this
Agreement.

OVERTIME

Until adequate training is completed, overtime requirements may be
handled utilizing the original separate seniority lists. When sufficient
training is completed, overtime will be called using the combined
seniority lists. Since training requirements vary by seniority group, no
firm calendar can be made for all areas. However, in no case will
separate lists be utilized in excess of twelve (12) months. Individuals
transferring into a department that is utilizing separate seniority
lists for overtime solicitation will be placed on the appropriate
overtime list based on their general skills and work experience until
such time as training levels allow the use of the combined lists.

The parties have reached this Agreement with the intent of improving the
operations. If in practice these changes do not result in the desired
improvements, the parties have an obligation to discuss and resolve the
problem areas.

Dated:  April 10, 1992
                                    /s/ William L. Schecter
                                    /s/ William O'Driscoll

                                                                    199

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<PAGE>

             JOINT TWA-IAMAW DRUG AND ALCOHOL POLICY

I.   Preamble - It is the policy of TWA and the IAM to protect the
     --------
     health and safety of all employees of the Company. An employee's
     misuse of drugs or alcohol on the job not only endangers the
     employee himself, but also threatens the safety of co-workers and
     members of the traveling public.

     The primary goal of this policy is to encourage employees who are
     experiencing difficulty with drugs or alcohol to undertake
     immediate and effective measures to address such problems
     voluntarily. While the emphasis is on voluntary treatment, the
     parties recognize the need for the enforcement of reasonable rules
     for regulating employee conduct in the workplace.

II.  Rehabilitation - The TWA-IAM Special Health Services Program is an
     --------------
     employee assistance program jointly administered by representatives
     of the Company and the Union.

     Employees in need of assistance who contact Special Health
     Services representatives will be referred for appropriate
     treatment within their own communities. Institutions or outside
     services which are utilized in such rehabilitation shall be
     selected by a committee made up of one TWA and one IAM
     representative. The cost of treatment will be paid through the
     group medical insurance policy.

     When an employee requests the assistance of Special Health
     Services, such request and any referral will be held in strict
     confidence. Neither supervisory personnel nor Union officials will
     be informed of the nature of an employee's participation in the
     program without his consent. If an employee must be absent from
     work in order to participate in the program, such absence will
     normally be coded in Company attendance records only as a
     "personal illness - Special Health Services".

III. Testing - The first step in addressing the problem of drugs and
     -------
     alcohol in the workplace is that of identifying the substance
     abuser. Therefore, testing shall be conducted under the following
     circumstances.

     1.   When there is a reasonable suspicion that an employee is
          under the influence of or impaired by alcohol or drugs, that
          employee may be required to undergo testing to confirm or
          disprove the suspicion. This is called testing "for cause".
          Any employee refusing to submit to a test where reasonable
          suspicion exists shall be discharged.

     2.   An employee who has been found to be under the influence of
          or impaired by alcohol or drugs within the preceding two
          years may be tested at any time. This is called "random"
          testing.

     3.   Employees will be tested as required by regulations of the
          Department of Transportation or other governmental agency.
          Such testing includes both testing for cause and random
          testing.

200

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<PAGE>

     The following general principles will apply to testing:

     The Company's knowledge of off duty possession or use of drugs
     and/or alcohol by an employee within twenty-four (24) hours of the
     time such employee reports to work may be used as grounds for
     testing such employee. The Company's knowledge of such possession
     or use outside of said twenty-four (24) hour period shall not be
     grounds for testing.

     Any employee who is required to submit to urinalysis and who
     requests will be permitted to give a split sample that will be
     submitted to a licensed, accredited laboratory selected by the IAM
     and agreed to by TWA. TWA will bear the cost of such test. If
     split samples are submitted and the results are one positive and
     one negative finding, the results shall be considered negative.
     Both tests must be positive on a substance to be considered
     positive. Both TWA and the IAM will receive copies of the results
     of both samples.

     The parties agree that a laboratory's positive finding of drugs
     and/or alcohol is conclusive.

     All testing shall be performed at a laboratory or medical facility
     off TWA property. However, a simple, preliminary alcohol test
     which does not require drawing blood will be given (on or off TWA
     property) and only if the results of such tests are positive will
     a blood test be administered.

     In the event of an accident where the Company is considering
     testing an employee involved, a shop steward or other Union
     representative, where available, shall be allowed to participate
     in such investigation. The final determination concerning the
     results of such investigation shall be by the Company.

     In the event of an accident requiring first aid, such first aid
     will be administered prior to any drug or alcohol testing.

IV.  Disciplinary Guidelines - Employees who are found actually
     -----------------------
     drinking or possessing or taking drugs or alcohol while on Company
     premises will be subject to discipline up to and including
     discharge.

     The Company's knowledge of off duty possession or use of drugs
     and/or alcohol by an employee within twenty-four (24) hours of the
     time such employee reports for work shall not be used as grounds
     for discipline for the first occurrence but may be grounds for
     testing such employee.

     Employees who are suspected of drug or alcohol use, who are first
     offenders and who are not involved in accidents but who test
     positive will not be discharged but must successfully complete a
     rehabilitation program implemented and supervised by TWA and IAM
     personnel.

                                                                  201

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<PAGE>

     Employees involved in an accident who are suspended and test
     negative shall be returned to work and made whole for such
     suspension before discipline is assessed concerning the accident.

     Employees who are involved in an accident and test positive may be
     disciplined for the accident. They may not, however, be
     disciplined for using drugs or alcohol if the instance is the
     first occurrence under the policy. If such employee receives
     discipline less than discharge, then such employee must also
     successfully complete a rehabilitation program supervised by TWA
     and IAM personnel.

     Any employee who does not successfully complete the rehabilitation
     program may be discharged.

     Any employee entering a rehabilitation program after testing
     positive will be subjected to random testing during the course of
     the program and for three months after successful completion of
     the Program. However, in no event shall such random testing period
     exceed two years from the employee's return to work and if such
     employee tests positive as a result of the random tests, he may be
     discharged.

     Any employee who tests positive within two years from the date he
     enters a rehabilitation program may be discharged. An employee who
     tests positive at any time after two years from the date he
     entered such a program shall be referred to a joint Company-Union
     established committee for disposition of his case. Such committee
     shall be made up of one Company and one Union representative. If
     such committee cannot agree, the case shall be submitted to a
     neutral party jointly selected by the parties who is considered to
     be an expert in matters of this kind and such neutral shall have
     authority to make final determination which shall be binding upon
     both parties.

V.   General - The Union will select one employee who will work full
     -------
     time on matters related to this program and who shall be paid on
     the same basis as a Full-Time Committeeman.

     The parties agree that changes in Federal laws or regulations
     affecting this policy shall be reviewed by the TWA and IAM
     representatives and such policy shall be amended to comply with
     such changes. Where state laws are found to be inconsistent with
     such new policy, these two representatives shall meet and agree
     upon how the policy shall be applied in such states.

Dated:  April 10, 1992
                                             /s/ William L. Schecter
                                             /s/ William O'Driscoll

202

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<PAGE>

April 10, 1992

Mr. William O'Driscoll
President - General Chairman
District Lodge 142
International Association of Machinists
  and Aerospace Workers
400 N.E. 32nd Street
Kansas City, Missouri 64116

Dear Mr. O'Driscoll:

This will confirm our agreement reached during negotiations that Trans
World Airlines, Inc. ("TWA") will establish and maintain a Labor
Advisory Board of which the initial members shall be a Vice Chairman of
TWA and two representatives of the International Association of
Machinists and Aerospace Workers (the "IAM"). The Labor Advisory Board
will meet at least quarterly and at least two (2) business days prior to
each regularly scheduled TWA Board of Directors (the "Board') meeting
and, to the extent practicable, each special Board meeting. At the
option of the members, such meeting may be had by telephone. Otherwise,
such meetings shall be held at the TWA offices in Mt. Kisco, New York or
at such other location in the New York metropolitan area as the members
shall select.

The IAM representatives who are members of the Labor Advisory Board
shall have the right to submit written presentation(s) or suggestion(s)
not exceeding twenty (20) typewritten pages in length to the Board in
connection with any regularly scheduled meeting or, to the extent
practicable, any special meeting. If not satisfied with the report
concerning the Board's consideration of any such written presentation or
suggestion, the Labor Advisory Board shall have the right to appear at
the next regular Board meeting or the next special Board meeting, to the
extent practicable, for the purpose of making such presentation or
suggestion in person.

If any other craft or class of employees of TWA represented by a labor
organization shall obtain more favorable corporate governance
participation rights than those provided for in this letter, the IAM
shall at its option be entitled to such more favorable corporate
governance participation rights.

TWA's representative on the Labor Advisory Board shall serve as the
Labor Advisory Board's official liaison with Senior Management of TWA
and the Board. The responsibilities of TWA's representative on the Labor
Advisory Board shall be to advise the Senior Management of TWA and the
Board. TWA agrees to make members of Senior Management available to the
Labor Advisory Board on reasonable notice.

                                                                  203

<PAGE>
<PAGE>

If the Vice Chairman initially designated by TWA to serve on the Labor
Advisory Board shall be unavailable for any reason to serve in the
capacity specified in this letter, the TWA Board shall, after
consultation with the other members of the Labor Advisory Board,
designate a successor who shall be reasonably acceptable to the
remaining members of the Labor Advisory Board.

                                             Very truly yours,
                                             /s/ William L. Schecter

                                             William L. Schecter
                                             Staff Vice President
                                             Labor Relation's

Agreed and Accepted:
/s/ William O'Driscoll

William O'Driscoll

204

<PAGE>
<PAGE>

April 10, 1992

Mr. William O'Driscoll
President - General Chairman
District Lodge 142
International Association of Machinists
  and Aerospace Workers
400 N.E. 32nd Street
Kansas City, Missouri 64116

Dear Mr. O'Driscoll:

This is to confirm our agreement that the Supplement to the Collective
Bargaining Agreement dated as of April 10, 1992, which provides for
protective covenants, the payment of miscellaneous fees and other
benefits is incorporated by reference into the Collective Bargaining
Agreement. This letter is not intended to modify in any way the terms of
the Supplement including without limitation the duration and termination
provisions.

                                             Very truly yours,
                                             /s/ William L. Schecter

                                             William L. Schecter
                                             Staff Vice President
                                             Labor Relations

Agreed and Accepted:
/s/ William O'Driscoll

William O'Driscoll

                                                                  205

<PAGE>
<PAGE>

August 31, 1994

William O'Driscoll
President - General Chairman
District 142
International Association of Machinists
   and Aerospace Workers
400 NE 32nd Street
Kansas City, MO 64116

Re: Cross Utilization Between Ramp
    Service Seniority Groups

Dear Mr. O'Driscoll:

This letter will confirm our agreement concerning the Company's ability
to cross utilize employees in the ramp service and ground service
seniority groupings.

The parties agree that the Company may assign qualified ramp service and
ground service employees to duties of the other seniority grouping as
necessary to support the needs of the operation.

The Company may not, however, so assign an employee who is on overtime
unless voluntary overtime from within the seniority grouping in which
the work is to be performed has been exhausted.

                               Very truly yours,
                               /s/ William L Schecter

                               William L. Schecter
                               Vice President Labor Relations

Agreed and Accepted:
/s/ William O'Driscoll

William O'Driscoll

206

<PAGE>
<PAGE>

August 31, 1994

Mr. William O'Driscoll
President - General Chairman
District 142
International Association of Machinists
  and Aerospace Workers
400 N.E. 32nd Street
Kansas City, MO 64116

SUBJECT:  Mechanic and Related Agreement
          Full-Time Committee Staffing

Dear Mr. O'Driscoll:

This letter will confirm our agreement to review full-time union
representative staffing in Kansas City, Chicago, Philadelphia and Los
Angeles.  Necessary adjustments to staffing will become effective
January 1, 1995 or as otherwise agreed to.

                                   Very truly yours,
                                   /s/ Edward J. Paquette

                                   Edward J. Paquette
                                   Senior Vice President Operations

Agreed and Accepted:
/s/ William O'Driscoll

William O'Driscoll

                                                                  207

<PAGE>
<PAGE>

August 31, 1994

Mr. William O'Driscoll
President - General Chairman
District 142
International Association of Machinists
   and Aerospace Workers
400 N.E. 32nd Street
Kansas City, Missouri 64116

SUBJECT: Shift Staffing Deviation
         Assistant Ramp Service

Dear Mr. O'Driscoll:

This letter will confirm our agreement, that at a particular location
should a deviation for shift staffing be necessary, that management will
meet with the local grievance committee and where the need is
demonstrated for such deviations, the parties will resolve the details
for staffing, assisted by the General Chairperson assigned to that
location.

                         Very truly yours,
                         /s/ Edward J. Paquette

                         Edward J. Paquette
                         Senior Vice President Operations

Agreed and Accepted:
/s/ W. O'Driscoll

William O'Driscoll

208

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<PAGE>

August 31, 1994

Mr. William O'Driscoll
President - General Chairman
District 142
International Association of Machinists
  and Aerospace Workers
400 N.E. 32nd Street
Kansas City, MO 64116

SUBJECT: Assistant Ramp Service and
         Part-Time Guard Benefits

Dear Mr. O'Driscoll:

This letter will confirm our agreement that Ramp Service and Guard
employees who are subject to furlough after the signing of this
agreement, and who fill Assistant Ramp Service and Part-Time Guard
vacancies will retain their current medical and dental benefits for
themselves and their eligible dependents.

                                     Very truly yours,
                                     /s/ Edward J. Paquette

                                     Edward J. Paquette
                                     Senior Vice President Operations

Agreed and Accepted:
/s/ William O'Driscoll

William O'Driscoll

                                                                  209

<PAGE>
<PAGE>

August 31, 1994

Mr. William O'Driscoll
President - General Chairman
District 142
International Association of Machinists
  and Aerospace Workers
400 N.E. 32nd Street
Kansas City, MO 64116

SUBJECT: Assistant Ramp Service and
         Part-Time Guard Vacancies at a Location

Dear Mr. O'Driscoll:

This will confirm our agreement that ramp service and guard employees
who are subject to furlough after the signing of this agreement at a
location where assistant ramp service and part-time guard vacancies are
created will be permitted to fill these vacancies in seniority order
prior to the vacancies being filled by system bid.  Their election not
to seek such vacancies will not affect their rights under Article 6 of
the TWA-IAM Agreement.

                                      Very truly yours,
                                      /s/ Edward J. Paquette

                                      Edward J. Paquette
                                      Senior Vice President Operations

Agreed and Accepted:
/s/ William O'Driscoll

William O'Driscoll

210

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<PAGE>
August 31, 1994

Mr. William O'Driscoll
President - General Chairman
District 142
International Association of Machinists
   and Aerospace Workers
400 N.E. 32nd Street
Kansas City, MO 64116

Subject: Assistant Ramp Service and
         Part-Time Guard Vacancies

Dear Mr. O'Driscoll:

This letter will confirm our agreement that employees who are subject to
furlough after the signing of this agreement, and elect to fill
Assistant Ramp Service and Part-Time Guard vacancies at the time of
their furlough will retain and continue to accrue seniority in their
respective classifications from which he/she was reduced.

If at a later date such employee desires to leave the Assistant or Part-
Time position, he/she may do so without forfeiting seniority and recall
rights in the higher classification(s).  Such employees, however, who
elect to leave these positions will not be eligible to receive furlough
pay or furlough benefits.

                                    Very truly yours,
                                    /s/ William L. Schecter

                                    William L. Schecter
                                    Vice President Labor Relations

Agreed and Accepted:
/s/William O'Driscoll

William O'Driscoll

                                                                  211

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<PAGE>

August 31, 1994

Mr. William O'Driscoll
President - General Chairman
District 142
International Association of Machinists
  and Aerospace Workers
400 N.E. 32nd Street
Kansas City, MO 64116

Subject: Additional Staffing
         Third Party Contract Work

Dear Mr. O'Driscoll:

This is to clarify the agreement reached regarding additional staffing
for third party contract work.

When additional staffing (Assistant RSP and P/T Guard) is required and
agreed to for third party contract work, all such positions will be
deemed to be temporary.  The parties will agree upon the number of
positions in each classification at each location which are attributable
to such temporary work.  Because the positions are temporary, reduced
employees who have recall rights to the affected classifications may
refuse recall and continue to retain their seniority and recall rights
pursuant to Article 6(d)(7) of the TWA-IAM Agreement.  This will not be
deemed a refusal of recall.

When this additional staffing is implemented, all such employees will be
covered by the collective bargaining agreement for all purposes.

                                        Very truly yours,
                                        /s/ William L. Schecter

                                        William L. Schecter
                                        Vice President Labor Relations

Agreed and Accepted:
/s/ William O'Driscoll

William O'Driscoll

212

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<PAGE>

August 31, 1994

William O'Driscoll
President - General Chairman
District Lodge 142
International Association of Machinists
  and Aerospace Workers
400 NE 32nd Street
Kansas City, MO 64116

Subject: Assistant Ramp Service/Part-Time Guard Expiration

Dear Mr. O'Driscoll:

This letter will confirm our agreement reached during negotiations
concerning Assistant Ramp Servicemen and Part - Time Guards.

It is agreed that the amendments to the Assistant Ramp Serviceman letter
of agreement and the provisions of the Part -Time Guard letter of
agreement agreed to in the course of these negotiations will expire
effective August 31, 1997.

The status quo as of the amendable date of this Agreement with regard to
the Assistant Ramp Serviceman letter of agreement will, therefore, be
the provisions of the letter of agreement on page 126 of the TWA-IAM
Agreement signed April 10, 1992 and the status quo with regard to Part -
Time Guards will be the relevant provisions of Article 7 (Hours of
Service) of the TWA-IAM Agreement signed April 10, 1992.

                                        Very truly yours,
                                        /s/ William L. Schecter

                                        William L. Schecter
                                        Vice President Labor Relations

Agreed and Accepted:
/s/ William O'Driscoll

William O'Driscoll

                                                                  213

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<PAGE>

August 31, 1994

Mr. William O'Driscoll
President - General Chairman
District 142
International Association of Machinists
  and Aerospace Workers
400 NE 32nd St.
Kansas City, MO 64116

Subject: Meal Pickup and Delivery - JFK/LAX

Dear Mr. O'Driscoll:

This will confirm our agreement that ramp service employees will
continue to pick up and deliver meals from the caterer facilities
to/from the aircraft at JFK and LAX.

                                 Very truly yours,
                                 /s/ Edward J. Paquette

                                 Edward J. Paquette
                                 Senior vice President Operations

Agreed and Accepted:
/s/ William O'Driscoll

William O'Driscoll

214

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<PAGE>

August 31, 1994

Mr. William O'Driscoll
President - General Chairman
District 142
International Association of Machinists
  and Aerospace Workers
400 N.E. 32nd Street
Kansas City, MO 64116

SUBJECT: Dining Units

Dear Mr. O'Driscoll:

This letter will confirm our agreement that Article 2(d) of the Dining
Service Employee's Agreement is deleted and the company will discontinue
operations at the Dining Unit facilities at JFK and LAX.

                                        Very truly yours,
                                        /s/ Edward J. Paquette

                                        Edward J. Paquette
                                        Senior Vice President Operations

Agreed and Accepted:
/s/ William O'Driscoll

William O'Driscoll

                                                                  215

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<PAGE>

August 31, 1994

Mr. William O'Driscoll
President - General Chairman
District 142
International Association of Machinists
  and Aerospace Workers
400 N.E. 32nd Street
Kansas City, MO 64116

SUBJECT: Furloughed Dining Unit Employees
         Currently Accruing Seniority Under the
         Mechanic and Related Agreement

Dear Mr. O'Driscoll:

This letter will confirm our agreement that dining unit employees
furloughed as a result of the closing of the JFK and LAX dining units
who are, at the time of this furlough, accruing seniority under the
Mechanic and Related Agreement may elect at the time of furlough to
displace on the system at that time only in such classification.

                                     Very truly yours,
                                     /s/ Edward J. Paquette

                                     Edward J. Paquette
                                     Senior Vice President Operations

Agreed and Accepted:
/s/ William O'Driscoll

William O'Driscoll

216

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<PAGE>

August 31, 1994

Mr. William O'Driscoll
President - General Chairman
District 142
International Association of Machinists
  and Aerospace Workers
400 N.E. 32nd Street
Kansas City, MO 64116

SUBJECT: Furloughed Dining Unit Employees

Dear Mr. O'Driscoll:

This letter will confirm our agreement that furloughed dining unit
employees at JFK and LAX who are successful bidders to other IAM
represented positions in any classification will maintain their rate of
pay or higher whichever is applicable in effect on the date of their
furlough from the Dining Unit.

                                    Very truly yours,
                                    /s/ Edward J. Paquette

                                    Edward J. Paquette
                                    Senior Vice President Operations

Agreed and Accepted:
/s/ William O'Driscoll

William O'Driscoll

                                                                  217

<PAGE>
<PAGE>

August 31, 1994

Mr.  William O'Driscoll
President - General Chairman
District 142
International Association of Machinists
  and Aerospace Workers
400 N.E. 32nd Street
Kansas City, MO 64116

SUBJECT: Dining Unit Employees

Dear Mr. O'Driscoll:

The Dining Unit employees (excluding Stores Clerks) furloughed as a
result of the closing of the TWA Dining Units will continue to accrue
company seniority.  These employees will establish Fleet Service
seniority as of the last date of operation of the dining unit to which
he/she was assigned.  These employees will be eligible for recall to any
Fleet Service vacancies at the location from which they were furloughed.
They may also bid to Fleet Service openings on TWA's system in
accordance with Article 10(b)(3).

                                   Very truly yours,
                                   /s/ Edward J. Paquette

                                   Edward J. Paquette
                                   Senior Vice President Operations

Agreed and Accepted:
/s/ William O'Driscoll

William O'Driscoll

218

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<PAGE>

August 31, 1994

Mr. William O'Driscoll
resident - General Chairman
District 142
International Association of Machinists
  and Aerospace Workers
400 N.E. 32nd Street
Kansas City, MO 64116

SUBJECT: Dining Unit Stores Clerks

Dear Mr. O'Driscoll:

The Dining Unit Stores Clerks furloughed as a result of the closing of
the TWA Dining Units will continue to accrue company seniority. These
employees will establish Stores seniority under the Mechanic and Related
Agreement and Fleet Service seniority as of the last date of operation
of the dining unit to which he/she was assigned.

These employees will be eligible for recall to the first opening in
either Stores or Fleet Service at the location from which they were
furloughed.  They may also bid to Stores or Fleet Service openings on
TWA's system in accordance with Article 10(b)(3).

                                        Very truly yours,
                                        /s/ Edward J. Paquette

                                        Edward J. Paquette
                                        Senior Vice President Operations

Agreed and Accepted:
/s/ William O'Driscoll

William O'Driscoll

                                                                  219

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<PAGE>

August 31, 1994

Mr. William O'Driscoll
President - General Chairman
District Lodge 142
International Association of Machinists
  and Aerospace Workers
400 NE 32nd Street
Kansas City, MO 64116

Re: Medical/Dental Coverage
    Emergency Out of Network

Dear Mr. O'Driscoll:

This letter will confirm TWA's commitment concerning employees and
eligible dependents who reside within geographic areas where preferred
provider networks (PPO's) are available, but who must utilize non-
network providers for emergency medical treatment while outside their
PPO areas.

Covered charges for such treatment will be reimbursed at the "in-
network" rate.

Employees and eligible dependents who can reasonably access providers
within the network but who elect not to do so will be reimbursed for
charges at the "out-of-network" rate.

                                       Very truly yours,
                                       /s/ William L. Schecter

                                       William L. Schecter
                                       Vice President Labor Relations

Agreed and Accepted:
/s/William O'Driscoll

William O'Driscoll

220

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<PAGE>

August 31, 1994

Mr. William O'Driscoll
President - General Chairman
41 District 142
International Association of Machinists
  and Aerospace Workers
400 N.E. 32nd Street
Kansas City, Missouri 64116

Dear Mr. O'Driscoll:

This letter will confirm our agreement that "after TWA shall have
staffed according to the needs of the service", there shall be a
reduction in TWA's overtime cost, such reduction to be accomplished
through the modification of local agreements to provide that overtime
will be utilized only on an "as needed" basis.

                                      Very truly yours,
                                      /s/ Edward J. Paquette

                                      Edward J. Paquette
                                      Senior Vice President Operations

Agreed and Accepted:
/s/ W. O'Driscoll

William O'Driscoll

                                                                  221

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<PAGE>

August 1, 1999

Mr. William O'Driscoll
President - Directing General Chairman
District 142 IAMAW
400 NE 32nd Street
Kansas City, MO 64116

Subject: Air Freight Staffing

Dear Mr. O'Driscoll:

In settlement of grievances asserting air freight farm out violations
(airports where the Company currently staffs RSP's but utilizes a vendor
for freight handling), the Company agrees to the following:

1.   The Company agrees to secure an air freight facility at SEA and
     staff it in accord with the provisions of the TWA-IAMAW agreement
     as expeditiously as possible.

2.   The Company agrees to mutually develop with the IAM an Air Freight
     Agent classification on a trial basis and initiate a test of such
     an air freight handling process at ATL as expeditiously as
     possible.

In addition, the Company and IAM representatives will meet to examine
the overall handling process of air freight for the airline with the
intent of creating methods which would maximize TWA's ability to improve
its air freight revenue performance.

All grievances concerning air freight farm out are withdrawn with
prejudice.

                              Yours very truly,
                              /s/ Linda Ferchland

                              Linda Ferchland
                              Director Labor Relations

Agreed and Accepted:
/s/ William O'Driscoll

William O'Driscoll

222

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<PAGE>

August 1, 1999

Mr. Al Calhoun
General Chairperson
District 142
IAMAW
400 NE 32nd Street
Kansas City, MO 64116

SUBJECT: MD 80 LANDING GEAR
         IN-HOUSE REPAIR

Dear Mr. Calhoun:

TWA agrees to overhaul the MD-80 landing gear in-house as soon as
approval has been obtained for the purchase of necessary spare landing
gear components to support the repair process.  The capital approval
package has been prepared and will be placed on the agenda for approval
at the June Capital Expenditure Review Committee meeting.

Approval will be obtained at the June Meeting and TWA will locate and
order the spare components.  As soon as delivery dates are known, we
will begin scheduling MD-80 landing gear for repair in our shops.  Until
this process reaches the point of knowing when the spare landing gear
components will be delivered to TWA, we are unable to forecast an exact
date for the first in-house landing gear overhaul.

If the above accurately reflects our agreement, please sign this letter
where indicated below.

                         Very truly yours,
                         /s/ Linda Ferchland

                         Linda Ferchland
                         Director Labor Relations

AGREED AND ACCEPTED

/s/ Al Calhoun
    Al Calhoun

                                                                  223

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<PAGE>

August 1, 1999

Mr. William O'Driscoll
President - Directing General Chairman
District 142
IAMAW
400 NE 32nd Street
Kansas City, MO 64116

SUBJECT: 757-PW 2037 Engine In-House Repair

Dear Mr. O'Driscoll:

We agree to perform a detailed review of the requirements necessary to
repair PW2037 engines in-house.  This will include cost estimates for
the capital tooling and equipment necessary to perform the work,
including the test cell modifications necessary to perform engine
testing.  The review will also assess shop space requirements, as well
as the estimated engine volume.  Also, manpower requirements need to be
estimated.

This data will then be used to perform an analysis which will aid in
determining the viability of bringing this engine work into our shop.  I
estimate that this review can be completed within ninety (90) days.

                                        Very truly yours,
                                        /s/ James R. Jensen

                                        James R. Jensen
                                        Senior Vice President
                                        Maintenance and Engineering

AGREED AND ACCEPTED
/s/ William O'Driscoll

William O'Driscoll

224

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<PAGE>

August 1, 1999

Mr. William O'Driscoll
President - Directing General Chairperson
District 142
IAMAW
400 NE 32nd Street
Kansas City, MO 64116

SUBJECT: Status of Agreement

Dear Mr. O'Driscoll:

This letter will confirm our agreement and understanding that all local
letters and agreements contained in the MCI Mini Agreement must conform
to the TWA-IAM Collective Bargaining Agreement.  Should any provision of
the Mini Agreement create a conflict, the TWA-IAM Agreement for Mechanic
and Related Employees will prevail.

If the above accurately reflects our agreement, please sign this letter
where indicated below.

                                      Very truly yours,
                                      /s/Linda Ferchland

                                      Linda Ferchland
                                      Director Labor Relations - Ground

Agreed and Accepted:
/s/ William O'Driscoll

William O'Driscoll

                                                                  225

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<PAGE>

August 1, 1999

Mr. Edward LaClair
General Chairman
IAM District Lodge 142
400 NE 32nd Street
Kansas City, MO 64116

Subject: Unused Sick Leave

Dear Mr. LaClair:

Effective one year following date of signing, the Company will provide a
lump sum payment for unused personal illness sick leave to those
employees who retire from active status and meet the following criteria.

The retiring employee must have a fully accrued personal illness bank of
120 days, have been in active status the past twelve (12) consecutive
months and have achieved perfect attendance during such twelve (12)
consecutive months preceding the effective date of retirement.

For each day of unused sick leave the Company will pay an employee
covered by this agreement five dollars ($5.00), for a total of six
hundred dollars ($600).

                                               Very truly yours,
                                               /s/ Linda Ferchland

                                               Linda Ferchland
                                               Director Labor Relations

Agreed and Accepted:
/s/ Edward LaClair

Edward LaClair

226

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<PAGE>

August 1, 1999

Edward LaClair
General Chairperson
IAM District Lodge 142
400 NE 32nd Street
Kansas City, MO 64116

Dear Mr. LaClair:

This will confirm our agreement during the course of negotiations that
at stations where Mechanics are not staffed, the Company may use on-call
maintenance to put TWA Owned Motorized Automotive Ground Equipment
(excluding jetways) back in service.

All major maintenance and overhaul of this equipment will be performed
in a similar manner as aircraft maintenance by Mechanics covered by
this Agreement in accordance with Article 9 of the Collective Bargaining
Agreement or TWA will have the failed equipment transported to a station
staffed with IAM Mechanics that could effect repairs.

                                               Very truly yours,
                                               /s/Linda Ferchland

                                               Linda Ferchland
                                               Director Labor Relations

Agreed and Accepted:
/s/Edward LaClair

Edward LaClair

                                                                  227

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<PAGE>

August 1, 1999

Mr. Edward LaClair
General Chairperson
District 142
International Association of Machinists
  and Aerospace Workers
400 N.E. 32nd Street
Kansas City, MO 64116

Subject: Article 6(a) Company Seniority Dates

Dear Mr. LaClair:

This will confirm the agreement reached between the Company and the
Union that the adjustment of company seniority dates will apply
prospectively only effective with the signing of a new collective
bargaining agreement.

The new language of Article 6(a) will apply to active employees as of
the date of signing.  Retirees will not be eligible for this change and
employees who are inactive (i.e., furlough, leave of absence) will have
their company seniority date readjusted, if necessary, upon return to
active employment status.

Additionally, this letter will confirm that the only employment date
which will be readjusted will be the company seniority date of those
employees whose company seniority dates were previously adjusted due to
part-time service.

There will continue to be adjustments of other seniority dates to
reflect assistant/part-time service governing classification seniority,
longevity, pay seniority, accrual of sick/occupational injury, layoff
pay, vacation and retirement benefits in accordance with the provisions
of the TWA-IAM Agreement.

                              Very truly yours,
                              /s/Linda Ferchland

                              Linda Ferchland
                              Director Labor Relations

Agreed and Accepted:
/s/ Ed LaClair

Edward LaClair

228

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<PAGE>

August 1, 1999

Mr. Ed LaClair
General Chairperson
District 142
International Association of Machinists
  and Aerospace Workers
400 N.E. 32nd Street
Kansas City, MO 64116

Subject: Recall Rights

Dear Mr. LaClair:

This will confirm our agreement concerning the recall rights of
furloughed employees who are eligible for recall to both Ramp Service
and Assistant Ramp Service positions.

An employee who elected an Assistant Ramp Service position rather than
system displacing or accepting furlough at the point when first reduced
from full-time Ramp Service and is subsequently furloughed will continue
to accrue Ramp Service seniority at the full-time rate and have recall
to both positions.

Upon recall to the Ramp Service classification, the employee must accept
such at that time or forfeit all recall rights in the Ramp Service
classification (full-time) and his name will be removed from the Ramp
Service seniority roster.  Upon refusal of such recall, he shall accrue
seniority at one-half (1/2) the full time rate.

This employee will still be eligible for recall to Assistant Ramp
Service.  If he then refuses recall to an Assistant Ramp Service
position, such refusal will result in his loss of all seniority and his
name will be removed from the seniority roster.

                                      Very truly yours,
                                      /s/Linda Ferchland

                                      Linda Ferchland
                                      Director Labor Relations

Agreed and Accepted:
/s/ Edward LaClair

Edward LaClair

                                                                  229

<PAGE>
<PAGE>

August 1, 1999

Mr. Edward LaClair
General Chairman
District Association of Machinists
  and Aerospace Workers
400 N.E. 32nd Street
Kansas City, Missouri 64116

Dear Mr. LaClair:

In confirmation of our discussions in the course of negotiations leading
to the Agreement signed August 1, 1999, it is agreed that the work of
the Fire Inspector classification will be consolidated into the Mechanic
classification as Plant/Facility Maintenance. They may remain as Fire
Inspectors and will not be replaced upon leaving the Fire Inspector
position.

For those Fire Inspectors who currently retain seniority in lower
classifications they may exercise seniority in accordance with Article 6
and 10 at their current rate of pay.

                                             Yours very truly,
                                             /s/ Linda Ferchland

                                             Linda Ferchland
                                             Director Labor Relations

Agreed and Accepted:
/s/ Edward LaClair

Edward LaClair

230

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<PAGE>

August 1, 1999

Mr. Ed LaClair
General Chairman
District Association of Machinists
  and Aerospace Workers
400 N.E. 32nd Street
Kansas City, Missouri 64116

Subject: Fire Inspector Classification

Dear Mr. LaClair:

During the negotiations of the TWA - IAM Agreement signed August 1,
1999, the parties agreed to the incorporation of the Fire Inspector
into the Mechanic (Plant Maintenance specialty) job description. Further
it is agreed that the Fire Inspector classification will be reduced
through attrition. During the interim period, Plant/Facility Mechanics
will be cross utilized to support the needs of the operation.

Following this attrition period, the parties agree to remove all
references to Fire Inspector and place the Article 4 job description
language into Article 4(a)(7) of the TWA-IAM Agreement.

                              Very truly yours
                              /s/ Linda Ferchland

                              Linda Ferchland
                              Director Labor Relations

Agreed and Accepted:
/s/ Edward LaClair

Edward LaClair

                                                                  231

<PAGE>
<PAGE>

August 1, 1999

Mr. Edward LaClair
General Chairman
IAM District Lodge 142
400 NE 32nd St.
Kansas City, Mo. 64116

Subject: Field Service - Inspection

Dear Mr. LaClair,

This will confirm our agreement in regard to the use of Inspectors on
Field Service.

An Inspector will be dispatched for Field Service from a station where
Inspectors are located when it is known in advance that the field
service assignment to a TWA non-mechanic staffed station will require
inspection work. The work of an Inspector at a TWA Mechanic staffed
station shall be performed by an Inspector or Inspector Designee at that
station.

                              Very truly yours,
                              /s/ Linda Ferchland

                              Linda Ferchland
                              Director Labor Relations

Agreed and Accepted:
/s/ Edward LaClair

Edward LaClair

232

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<PAGE>

August 1, 1999

Mr. William O'Driscoll
President - Directing General Chairperson
International Association of Machinists
  And Aerospace Workers
400 NE 32nd Street
Kansas City, MO 64116

Subject: Stock Distribution

Dear Mr. O'Driscoll:

On July 31, 2000 or as soon as practicable after fulfillment of all
necessary requirements associated with the registration, listing,
issuance and distribution of stock certificates, the Company will
distribute one million (1,000,000) shares of TWA common stock to IAM
represented employees.  Distribution of such shares of stock will be
determined by the IAM in its sole discretion.

On January 31, 2001 or as soon as practicable after fulfillment of all
necessary requirements associated with the registration, listing,
issuance and distribution of stock certificates, the Company will
distribute one million (1,000,000) shares of TWA common stock to IAM
represented employees.  Distribution of such shares of stock will be
determined by the IAM in its sole discretion.

On January 31, 2002 or as soon as practicable after fulfillment of all
necessary requirements associated with the registration, listing,
issuance and distribution of stock certificates, the Company will
distribute one million (1,000,000) shares of TWA common stock to IAM
represented employees.  Distribution of such shares of stock will be
determined by the IAM in its sole discretion.

                         Very truly yours,
                         /s/ Linda Ferchland

                         Linda Ferchland
                         Director Labor Relations-Ground

Agreed and Accepted:
/s/William O'Driscoll

William O'Driscoll

                                                                  233

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<PAGE>

August 1, 1999

Mr. William O'Driscoll
President - Directing General Chairman
International Association of Machinist
  And Aerospace Workers
400 NE 32nd Street
Kansas City, MO 64116

Re: Staffing of Focus Stations

Dear Mr. O'Driscoll:

It is understood that during this agreement, TWA may designate one or
more stations as a "Focus Station".  The parties recognize the
competitive challenges and risks which may adversely affect the Company
and its employees.  Accordingly, in order to provide the Company with an
opportunity to test the viability of the Focus Stations and to avoid the
disruption employees suffer from transfers which are unexpectedly
temporary, upon the effective date of this Agreement, the IAM may agree
to allow the Company to staff a Focus Station without all
classifications required under the collective Bargaining Agreement.

Thirty days before the designation of a station as a Focus Station, TWA
shall provide written notice to the IAM in which it identifies the
station as such, the frequency of service, and the anticipated number of
employees in IAM-related classifications which will be staffed at such
station.  Should the IAM agree to permit the Company to staff a Focus
Station without all IAM-related classifications, such permission shall
be granted in increments of six months.  At such time as the IAM
terminates the company's ability to staff a Focus Station as described
herein, the Company shall staff the Focus Station(s) in accordance with
the Collective Bargaining Agreement and without regard to this Letter of
Agreement.  Accordingly, staffing pursuant to paragraph 1 is deemed to
be temporary and sets no precedent and is not to be referred to in
interpreting or applying any other provision of this Collective
Bargaining Agreement.

It is understood that the Company will establish San Juan as its first
Focus Station.  Since both the challenge to the Company and the
disruption to employees resulting from establishing San Juan as its
first Focus Station is heightened, it is agreed that the only IAM-
represented classification which the Company will staff at San Juan will
be passenger service and all other terms of this letter shall not apply
to San Juan while it remains a Focus Station.

                               Very truly yours,
                               /s/ Linda Ferchland

                               Linda Ferchland
                               Director Labor Relations Ground

Agreed and Accepted:
/s/ William O'Driscoll

William O'Driscoll

234

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<PAGE>

August 1, 1999

Mr. William O'Driscoll
President-Directing General Chairperson
International Association of Machinists
  And Aerospace Workers
400 NE 32nd Street
Kansas City, MO 64116

Subject: Regional Jets/Code Shares

This is to confirm the understanding between the parties in regard to
the Company's ability to implement and maintain Regional Jet and/or
Code Share Agreements.

Our Agreement reflects the following:
Commuter Carriers, Code Sharing and Block Seating

     (1)  The Company, its subsidiaries and its corporate affiliates
          may acquire an ownership interest in commuter carriers and
          may operate such commuter carriers under the terms of
          separate collective bargaining agreements with the IAM
          provided that any such commuter carriers comply with the
          restrictions contained in Section 1 through 10 below.

     (2)  Except as agreed in the September 5, 1995 Letter of
          Agreement between TWA and ALPA pertaining to the use of ATR
          aircraft by Trans States Inc., the Company and its
          Affiliates will not operate, maintain any ownership interest
          in, or enter into any code sharing arrangement with, any,
          United States air carrier as defined in 49 U.S.C. 40102
          (a)(2) that operates any aircraft under the Company's
          designator code, name, logo or marks with:  (a) a maximum
          seating capacity in excess of sixty (60) seats; (b) a
          maximum certified gross takeoff weight in excess of 60,000
          pounds; (c) a maximum certified cruising speed in excess of
          400 miles per hour; or (d) any Jet Aircraft as defined
          herein.  Any carrier that satisfies all of the restrictions
          contained in this Section 2 and that utilizes the Company's
          or an Affiliate's designator code is hereinafter referred to
          as a "TWA Commuter Carrier."  For purposes of this
          subsection, "Jet Aircraft" is defined as any aircraft that
          uses a turbine-driven engine without an external propeller.

     (3)  Notwithstanding the limitations in Section 2 above, TWA
          Commuter Carriers may operate up to an aggregate of fifteen
          (15) Jet Aircraft with a maximum seating capacity of fifty
          (50) seats.

     (4)  In addition to the fifteen (15) Jet Aircraft referred to in
          Section 3 above, TWA Commuter Carriers may operate:  (i) one
          additional Jet Aircraft for each additional three aircraft
          operated by TWA above its current fleet size of 184 aircraft
          until the TWA fleet size reaches 200 aircraft; and (ii) one
          additional Jet Aircraft for each additional two aircraft
          operated by TWA exceeding 200 TWA fleet aircraft.  The
          maximum average seating capacity of the Jet Aircraft
          operated by TWA Commuter Carriers shall be:  fifty (50)
          seats while the Company's fleet size is less than 190;
          fifty four (54) seats while the Company's fleet size is
          between 191 and 195; fifty six (56) seats while the
          Company's fleet size is between 196 and 200; and sixty (60)
          seats while the Company's

                                                                  235

<PAGE>
<PAGE>

          fleet size exceeds 200.  The relationship of the Company's
          fleet size to the number of Jet Aircraft that may be
          operated by TWA Commuter Carriers and the average seating
          capacity of the Jet Aircraft that may be operated by TWA
          Commuter Carriers is shown in Section 9 below.

     (5)  (a)  In no event will TWA Commuter Carriers operate more than
               a maximum aggregate of thirty (30) Jet Aircraft, and in
               no event will the certificated seating capacity of any
               Jet Aircraft operated by any TWA Commuter Carrier exceed
               seventy (70) seats.

          (b)  If TWA owns (or leases) and operates regional jets,
               TWA employees covered by IAM Agreements shall perform
               all covered work.  If regional jets are operated by a
               wholly-owned subsidiary of TWA, TWA employees
               otherwise covered by IAM agreements shall perform all
               covered work, provided that IAM and TWA enter into a
               new, separate agreement establishing fully competitive
               market rates and market working conditions for the
               performance of such work.  All work on regional jets
               operated by a commuter carrier shall be performed by
               employees of the commuter carrier of its service
               provider.

     (6)  As a limited exception to the restrictions contained in
          Sections 1, 2, 3, 4 and 5 above, the Company may enter into
          or maintain code sharing agreements with:

          (a)  Carriers other than United States air carriers (as
               defined in 49 U.S.C. 40102 (a)(2)) so long as the
               Company can demonstrate by clear and convincing
               evidence, that such code sharing arrangements: (i) do
               not result, directly or indirectly, in the furlough of
               any Company flight attendant or a reduction in pay
               status for any Company flight attendant and (ii) do
               not directly or indirectly result in the involuntary
               furlough from his/her location of any active Mechanic
               & Related and Passenger Service Employees employed as
               of the signing and as listed on the Attached Exhibit A
               ("Active Employees").

          (b)  United States air carriers (as defined in 49 U.S.C.
               40102 (a)(2)) other than TWA Commuter Carriers that
               permit such carriers to apply the Company's designator
               code to their operations within the United States and
               its territories as long as (i) the number of quarterly
               block hours operated by such carriers utilizing the
               Company's designator code does not exceed four percent
               (4.0%) of the total number of block hours operated by
               the Company for the same quarter within the Untied
               States and its territories and
                    (ii) the Company can demonstrate, by clear and
               convincing evidence, that such code sharing
               arrangements do not result, directly or indirectly, in
               the involuntary furlough of any IAM represented
               employee or a reduction in pay status for any IAM
               represented employee; provided however, the IAM may,
               in its sole discretion, increase the total number of
               block hours available for such operations to up to 10%
               of the total number of block hours operated by the
               Company for the same quarter within the United States;
               and

236

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<PAGE>

          (c)  The number of quarterly block hours specified in
               Section 6 (b) (i) above may be increased as follows:
               if the Company's fleet size increases to 193 aircraft,
               then the number shall be four and one-half percent
               (4.5%); if the Company's Fleet is at least 199
               aircraft, then the number shall be five percent
               (5.0%).  The relationship between the Company's fleet
               size and the number of quarterly block hours that may
               be operated by such United States air carriers is
               shown in Section 9 below.

     (7)  The Company and its Affiliate may only enter into block
          seating arrangements (i.e., the advance purchase or
          reservation of blocks of seats on other carriers for resale
          by the Company) aboard any aircraft operated by any person
          or entity other than the Company if and to the extent that
          the Company can demonstrate, by clear and convincing
          evidence, that any such block seating arrangement does not
          result, in the involuntary furlough of any IAM represented
          IAM employee or a reduction in pay status for any IAM
          represented employee.

     (8)  Mechanic & Related and Passenger Service Employees listed on
          the Attached Exhibit A ("Active Employees") employed at a
          TWA location as of the signing shall not be involuntarily
          furloughed from that location as a direct result of a
          commuter carrier operating Regional Jets.  The Company will
          not furlough any Flight Attendant on the TWA Flight
          Attendant System Seniority List as a result of the
          acquisition, expansion over TWA's domestic route system or
          operation of Regional Jets by any TWA Commuter Carrier.

  (9)     Summary Chart - Sections (1), (4), (5) and (6)

          Company Aircraft Quarterly Code Share Domestic

<TABLE>
<CAPTION>
Company      Quarterly Code Share               No. Of Jet Air-           Max Avg.
Aircraft     Domestic Block Hours               craft That May Be         Seating
             That May Be Operated By            Operated by TWA           Capacity Of
             U.S. Air Carriers Other than       Commuter Carriers         Jet Aircraft
             TWA Commuter                                                 Operated
             Carriers                                                     by TWA
                                                                          Commuter
                                                                          Carriers
<S>          <C>                                <C>                       <C>
187-189      4.0%                               16                        50
190-192      4.0%                               17                        54
193-195      4.5%                               18                        54
196-198      4.5%                               19                        56
199-200      5.0%                               20                        56
201 +        5.0%                               21 + 1 for 2 thereafter   60
             up to 30 Maximum
</TABLE>

   (10)      In addition to and apart from the Jet Aircraft carrying only
             that TWA Commuter Carrier's and TWA's or Affliliate's
             designator code that TWA Commuter Carriers are otherwise
             authorized to operate by this agreement, TWA Commuter
             Carriers may additionally operate a maximum of three (3) Jet
             Aircraft with a

                                                                      237

<PAGE>
<PAGE>

        capacity of no more than seventy (70) seats for which that
        TWA Commuter Carrier has a code-sharing agreement involving
        both (a) TWA or an Affiliate and (b) a third-party code-
        sharing carrier ("Shared Code-Sharing Jet Aircraft").  These
        3 Shared Code-Sharing Jet Aircraft are not subject to and
        will not count towards maximum average seating limitations
        of Section 4 and the 30 aircraft aggregate limitation of
        Section 5.  All other restrictions and limitation imposed by
        this Section remain in effect for these Shared Code-Sharing
        Jet Aircraft.

                         REGIONAL JET BIDS

TWA will make its best efforts to submit competitive bids for all work
performed on regional jets operated by Commuter Carriers ("Regional Jet
Bids").  The Company shall schedule two meetings each year with the IAM
to discuss the results of the Regional Jet Bids it has submitted and
review those situations where it chose not to submit such bids.

If the aforementioned confirms our understanding of the subject please
indicate so by signing below.

                                             Very truly yours
                                             /s/ Linda Ferchland

                                             Linda Ferchland
                                             Director Labor Relations

Agreed and Accepted:
/s/ William O'Driscoll

William O'Driscoll

238

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August 1, 1999

Mr. William O'Driscoll
President- Directing General Chairman
District 142 IAMAW
400 NE 32nd Street
Kansas City, MO 64116

SUBJECT: Chicago Air Freight

The Company and Union agree to meet and resolve the off field vendor
operation in Chicago as expeditiously as possible.

                                         Very truly yours,
                                         /s/ Linda Ferchland

                                         Linda Ferchland
                                         Director Labor Relations

Agreed and Accepted:
/s/ William O'Driscoll

William O'Driscoll

                                                                      239

<PAGE>
<PAGE>

August 1, 1999

Mr. William O'Driscoll
President - Directing General Chairman
International Association of Machinists
  and Aerospace Workers
District Lodge 142
400 NE 32nd Street
Kansas City, MO 64116

Re: Back Pay Bonds

Dear Mr. O'Driscoll:

The Company shall solicit from the Back Pay Bond holders their consent
to an amendment to the Back Pay Bond indenture such that the collateral
for the bonds under the indenture shall include the collateral now held
in trust outside of the indenture (indirect interest in Worldspan LLP)
for the benefit of the bond holders, and make other conforming changes,
including, but not limited to releasing any collateral to which the
Trustee currently holds and interest (or possible claim of interest).
Such amendment shall (to the extent permissible) further state that the
Company may prepay the entire indebtedness or shall have the right
alternatively to prepay one half of the outstanding principal amount of
the bonds and substitute collateral with an appraised value equal to or
in excess of the collateral coverage rate of 1.66% of the debt remaining
outstanding upon the disposition by the Company of its indirect interest
in Worldspan (not including consummation of any merger predating such
disposition).  The indenture shall be further amended to reinstate the
rights of the IAM relative to instructing the Trustee on collateral
substitution matters.

It is agreed that the consent solicitation will also request
authorization for the release and termination of that certain Aircraft
Chattel Mortgage [Engines] by and between the Company and Joseph
Adinolfi, as Mortgagee dated as of May 21, 1997 as subsequently amended.
The IAM agrees, following the receipt of such authorization, to execute
and deliver such documents as shall be required to effectuate such
release and termination.

The IAM agrees that it will execute such documents as required to
effectuate a transfer of collateral and to release the Company from
further obligation to secure the Monthly Contributions to the Retirement
Savings Plan for Flight Attendants of Trans World Airlines, Inc. and the
Annuity Plan for Machinists of Trans World Airlines, Inc.

In addition, 1993 Interest Guaranty Note having been satisfied in full,
the IAM hereby releases the Company from all obligations under the
Agreements relative to the C Plan.

Obligations and covenants to authorize, direct and take or cause to be
taken all such actions as shall be necessary to evidence and effectuate
the termination of the Agreements

240

<PAGE>
<PAGE>

with respect to the C Plan Obligations, including but not limited to the
execution and delivery of a Release Notice to the Collateral Trustee.

                                        Very truly yours,
                                        /s/ Linda Ferchland

                                        Linda Ferchland
                                        Director Labor Relations Ground

Agreed & Accepted:
/s/ William O'Driscoll

William O'Driscoll

                                                                      241

                              
<PAGE>
<PAGE>

                               COVENANTS

1. A.   Within thirty (30) business days of the effective date of
        this agreement ("effective date"), TWA shall meet with the
        City of Kansas City for the purpose of beginning
        negotiations to secure leases for the Kansas City
        Maintenance Base.  Within five (5) business days of the
        effective date, TWA shall advise the City of Kansas City in
        writing of its desire to begin such negotiations.

   B.   TWA shall enter into leases for the Kansas City Maintenance
        Base within six (6) months of the effective date, provided
        that IAM shall agree to extend this deadline for as long as
        negotiations continue.

   C.   Paragraph B of this Section shall be subject to the City of
        Kansas City offering terms, rates, and conditions which are
        economically reasonable when compared to leases offered to
        other airlines by other lessors for similar facilities,
        adjusted for local market conditions, and which are for a
        commercially reasonable period taking into account
        economically reasonable amortization periods for capital
        expenditures/improvements made within the new lease
        agreement.

   D.   TWA shall provide the IAM with reasonable but not less than
        five (5) days notice of any meeting with the City of Kansas
        City. The IAM shall have the right to participate in all
        such meetings.

   E.   TWA will continue to perform major aircraft overhaul and
        maintenance work at the Kansas City Maintenance Base,
        provided that it is a tenant in that facility.

2. A.   Within forty five (45) business days of the effective date,
        TWA shall meet with the Port Authority of New York and New
        Jersey ("Port Authority") for the purpose of beginning
        negotiations to secure a lease for Hangar 12 at JFK
        International Airport ("JFK").  Within five (5) business
        days of the effective date, TWA shall advise the Port
        Authority in writing of its desire to begin such
        negotiations.

   B.   TWA shall enter into a lease for Hangar 12 within six (6)
        months of the effective date, provided that IAM shall agree
        to extend that deadline for as long as negotiations
        continue.

   C.   Paragraph B of this Section shall be subject to the lessor
        offering terms, rates and conditions which (i) are
        economically comparable to leases entered into by other
        carriers for maintenance hangars at JFK; (ii) include
        economically reasonable financing for capital expenditures/
        improvements (either as required by the lessor or necessary
        for habitability and functionality purposes comparable to
        facilities of the same type, i.e. "Capital Expenditure/
        Improvements"); and (iii) is for a commercially reasonable
        period taking into account economically reasonable
        amortization periods for Capital Expenditures/Improvements
        made within the new lease.  The Company shall continue to
        have the right to adjust, amend or sublease portions of such
        leasehold consistent with the provisions of Article 2
        relating to Technical Service Locations.

242

<PAGE>
<PAGE>

   D.   In the event TWA is unable to secure a lease for Hangar 12
        from the Port Authority containing the terms, rates, and
        conditions set forth in Paragraph C of this Section, TWA
        shall seek to secure such a lease from a third party.  TWA's
        efforts and obligations in that regard shall be governed by
        Paragraphs A-C of this Section.

   E.   In the event TWA is unable to secure a lease for Hangar 12
        from any lessor containing the terms, rates and conditions
        set forth in Paragraph C of this Section, TWA shall seek to
        secure such a lease for Hangar 19.  TWA's obligations in
        that regard shall be governed by Paragraphs A-C of this
        Section.

   F.   TWA shall provide the IAM with reasonable but no less than
        five (5) days notice of any meeting with the Port Authority
        or third party lessor.  The IAM shall have the right to
        participate in all such meetings.

   G.   TWA shall perform work at Hangar 12 consistent with the
        provisions of Article 2 relating to Technical Service
        Locations, provided that it is a tenant in that facility.

3. A.   Within forty-five (45) business days of the effective date,
        TWA shall meet with the Port Authority for the purpose of
        beginning negotiations to secure a lease for Terminal 5 at
        JFK.  Within five (5) business days of the effective date,
        TWA shall advise the Port Authority in writing of its desire
        to begin such negotiations.

   B.   TWA shall enter into a lease for Terminal 5 covering the
        property covered by the current Terminal 5 lease within six
        (6) months of the effective date of this agreement, provided
        that the IAM shall agree to extend that deadline for as long
        as negotiations continue.

   C.   Paragraph B of this Section shall be subject to the Port
        Authority offering terms, rates and conditions which are
        economically comparable to leases entered into by other
        carriers for passenger terminals at JFK and which are for
        commercially reasonable amortization periods for capital
        expenditures/improvements made within the new lease
        agreement.

   D.   TWA shall provide the IAM with reasonable but no less than
        five (5) days notice of any meeting with the Port Authority.
        The IAM shall have the right to participate in all such
        meetings.

   E.   Within one-hundred fifty (150) days of the effective date of
        this Agreement, TWA shall prepare a feasibility study, to be
        shared with the IAM, on the:

        1.   Physical expansion and expansion of flights out of
             Terminal 5: and

        2.   Use of slots allocated to TWA at JFK, LaGuardia
             Airport, O'Hare Airport and Washington National
             Airport.
        IAM shall have thirty (30) days to provide comments before
        the study is finalized.

                                                                      243

<PAGE>
<PAGE>

4. If as a result of airport expansion in St. Louis the STL hangar is
   demolished, the Company shall, subject to the lessor offering
   terms, rates and conditions consistent with standards established
   in Paragraph 2C, enter into a lease for a comparable facility at
   the St. Louis Airport.

5. Adopt previously discussed corporate governance provision side
   letter.

6. Back Pay Collateral Letter of Agreement dated August 1, 1999.

7. A summary of the lease term and termination provisions for STL
   hangar, ORD reservations facility, STL reservations facility, LAX
   hangar and ORF reservations facility is attached (Exhibit B).  The
   listing of these lease provisions in this agreement confers no
   legal or contractual right upon the Union, under Section 6 of the
   RLA or otherwise, and does not in any way affect the rights of the
   Company either under or with respect to those leases.

   Dated August 1, 1999

/s/William O'Driscoll            /s/Linda L. Ferchland

William O'Driscoll               Linda Ferchland
President - General Chairman     Director Labor Relations

244

<PAGE>
<PAGE>

August 1, 1999

Mr. William O'Driscoll
President - Directing General Chairperson
International Association of Machinists
And Aerospace Workers
400 NE 32nd Street
Kansas City, MO 64116

Dear Mr. O'Driscoll:

This letter will confirm our agreement that TWA will make certain
contributions to the IAM National Pension Plan.  Effective March 1,
2000, TWA will begin contributions on behalf of eligible IAM represented
employees to the IAM National Pension Fund, National Pension Plan up to
a maximum of forty (40) straight time hours per week paid as follows.
The terms and conditions of such contributions, including employee
eligibility, shall be as set forth in the National Pension Plan
Contract.

Mechanic and Higher Classifications        $1.00
Below Mechanic Classifications             $ .75

If this letter accurately reflects our agreement, please sign this
letter where indicated below.

                                                Very truly yours,
                                                /s/ Linda Ferchland

                                                Linda Ferchland
                                                Director Labor Relations

Agreed and Accepted:
/s/ William O'Driscoll

William O'Driscoll

                                                                      245

<PAGE>
<PAGE>

                             ARTICLE 29

                    EFFECTIVE DATE AND DURATION

Schedule A (Rate of Pay) shall become effective as indicated thereon.

Except as specifically provided elsewhere in this Agreement, the
provisions of same shall become effective upon the signing of this
complete Agreement.

The entire Agreement shall remain in full force and effect to and
including January 31, 2001, and, thereafter shall be subject to change
as provided in Section 6 of the Railway Labor Act, as amended.

Signed this 1st day of August, 1999.

FOR TRANS WORLD AIRLINES, INCORPORATED

William Compton

/s/ William Compton
Chief Executive Officer

Terry Hayes

/s/Terry Hayes
Managing Director Labor Relations

Linda Ferchland

/s/Linda Ferchland
Director Labor Relations

FOR THE INTERNATIONAL ASSOCIATION OF MACHINISTS
  AND AEROSPACE WORKERS

 William O'Driscoll

/s/William O'Driscoll
President - General Chairman

Edward LaClair

/s/Edward LaClair
General Chairman

246

<PAGE>
<PAGE>

SCHEDULE A - EMPLOYEES HIRED BEFORE MARCH 1, 1992

CLASSIFICATIONS                           PRESENT      8/1/99      8/1/00
---------------                           -------      ------      ------
Crew Chief Systems Technicians
         Flat Rate                         20.73       22.49       23.17

Crew Chief flight Simulators
         Flat Rate                         20.22       21.94       22.60

Flight Simulator Technicians
         1st Year                          14.26       15.47       15.94
         2nd Year                          15.30       16.60       17.10
         3rd Year                          16.34       17.73       18.26
         4th Year                          17.38       18.86       19.42
         5th Year                          18.42       19.99       20.59
         Thereafter                        19.46       21.11       21.75

Crew Chief Inspector
         Flat Rate                         19.83       21.52       22.16

Inspector
         Flat Rate                         19.08       20.70       21.32

Crew Chief Mechanic
         Flat Rate                         18.98       20.59       21.21

Mechanic
         1st Year                          12.73       13.81       14.23
         2nd Year                          13.77       14.94       15.39
         3rd Year                          14.81       16.07       16.55
         4th Year                          15.85       17.20       17.71
         5th Year                          16.89       18.33       18.88
         Thereafter                        17.93       19.45       20.04

Crew Chief Stores Clerk
         Flat Rate                         15.97       17.33       17.85

Stores Clerk
         1st Year                          10.13       10.99       11.32
         2nd Year                          11.17       12.12       12.48
         3rd Year                          12.21       13.25       13.65
         4th Year                          13.25       14.38       14.81
         5th Year                          14.29       15.50       15.97
         Thereafter                        15.33       16.63       17.13

Crew Chief Fire Inspector
         Flat Rate                         15.59       16.92       17.42

Fire Inspector
         1st Year                           9.70       10.52       10.84
         2nd Year                          10.74       11.65       12.00
         3rd year                          11.78       12.78       13.16
         4th Year                          12.82       13.91       14.33
         5th Year                          13.86       15.04       15.49
         Thereafter                        14.90       16.17       16.65

                                                                      247

<PAGE>
<PAGE>

Crew Chief Ramp Serviceman
         Flat Rate                         15.73       17.07       17.58

Ramp Serviceman
Assistant Ramp Serviceman
         1st Year                           9.65       10.47       10.78
         2nd Year                          10.69       11.60       11.95
         3rd Year                          11.73       12.73       13.11
         4th Year                          12.77       13.86       14.27
         5th Year                          13.81       14.98       15.43
         Thereafter                        14.85       16.11       16.59

Crew Chief Guard
         Flat Rate                         14.64       15.88       16.36

Guard
Part Time Guard
         1st Year                           8.85        9.60        9.89
         2nd Year                           9.89       10.73       11.05
         3rd Year                          10.93       11.86       12.21
         4th Year                          11.97       12.99       13.38
         5th Year                          13.01       14.12       14.54
         Thereafter                        14.05       15.24       15.70

Mechanic Helper
         1st Year                           8.97        9.73       10.02
         2nd Year                          10.01       10.86       11.19
         3rd Year                          11.05       11.99       12.35
         4th Year                          12.09       13.12       13.51
         5th Year                          13.13       14.25       14.67
         Thereafter                        14.17       15.37       15.84

Crew Chief Fleet Service Helper
         Flat Rate                         14.36       15.58       16.05

Fleet Service Helper
         1st Year                           8.61        9.34        9.62
         2nd Year                           9.64       10.46       10.77
         3rd Year                          10.68       11.59       11.94
         4th Year                          11.72       12.72       13.10
         5th Year                          12.76       13.84       14.26
         Thereafter                        13.80       14.97       15.42

Crew Chief Janitor
         Flat Rate                         13.30       14.43       14.86

Janitor
         1st Year                           7.66        8.31        8.56
         2nd Year                           8.70        9.44        9.72
         3rd Year                           9.74       10.57       10.88
         4th Year                          10.78       11.70       12.05
         5th Year                          11.82       12.82       13.21
         Thereafter                        12.86       13.95       14.37

248
                             
<PAGE>
<PAGE>

                                SCHEDULE A

              EMPLOYEES HIRED MARCH 1, 1992 AND THEREAFTER

CLASSIFICATIONS                           PRESENT      8/1/9      8/1/00
---------------                           -------      -----      ------

Mechanic
         1st Year                          12.13       13.16       13.56
         2nd Year                          13.77       14.94       15.39
         3rd Year                          14.81       16.07       16.55
         4th Year                          15.85       17.20       17.71
         5th Year                          16.89       18.33       18.88
         Thereafter                        17.93       19.45       20.04

Ramp Serviceman
Assistant Ramp Serviceman
         1st Year                           7.22        7.83        8.06
         2nd Year                           8.21        8.91        9.18
         3rd Year                           9.20        9.98       10.28
         4th Year                          10.33       11.20       11.54
         5th Year                          11.46       12.43       12.80
         6th Year                          12.59       13.66       14.07
         7th Year                          13.71       14.88       15.33
         Thereafter                        14.85       16.11       16.59

Guard
         1st Year                           6.45        7.00        7.21
         2nd Year                           7.44        8.07        8.31
         3rd Year                           8.43        9.15        9.42
         4th Year                           9.56       10.37       10.68
         5th Year                          10.68       11.59       11.94
         6th Year                          11.81       12.81       13.20
         7th Year                          12.94       14.04       14.46
         Thereafter                        14.05       15.24       15.70

Fleet Service Helper
         1st Year                           6.22        6.75        6.95
         2nd Year                           7.21        7.82        8.05
         3rd Year                           8.20        8.90        9.16
         4th Year                           9.32       10.11       10.42
         5th Year                          10.44       11.33       11.67
         6th Year                          11.56       12.54       12.92
         7th Year                          12.67       13.75       14.16
         Thereafter                        13.80       14.97       15.42

Janitor
         1st Year                           5.32        5.77        5.95
         2nd Year                           6.31        6.85        7.05
         3rd Year                           7.30        7.92        8.16
         4th Year                           8.41        9.12        9.40
         5th Year                           9.53       10.34       10.65
         6th Year                          10.64       11.54       11.89
         7th Year                          11.75       12.75       13.13
         Thereafter                        12.86       13.95       14.37

                                                                      249

                              
<PAGE>
<PAGE>

 Examples of the Application of Article 8(b) as Negotiated
      In Mediation Proceedings in N.M.B. Case No. 3355

                              Pay Rate
                              --------
 Example 1
 ---------

Twenty-four    8 hours work   Straight Time
   hour        8 hours off
  period       8 hours work   4 hours @ time and one-half
                              4 hours @ double time
               8 hours work   Straight Time
               16 hours off

 Example 2
 ---------

Twenty-four    8 hours work   Straight Time
   hour        8 hours off
  period       8 hours work   4 hours @ time and one-half
                              4 hours @ double time
               12 hours work  8 hours Straight Time
                              4 hours @ time and one-half
               12 hours off

 Example 3
 ---------

Twenty-four    8 hours work   Straight Time
   hour        6 hours off
  period       6 hours work   4 hours @ time and one-half
                              2 hours @ double time
               4 hours off
               4 hours off    Straight Time
               4 hours work   Straight Time
               16 hours off

 Example 4
 ---------

Twenty-four    8 hours work   Straight Time
   hour        6 hours off
  period       6 hours work   4 hours @ time and one-half
                              2 hours @ double time
               4 hours off
               4 hours off    Straight Time
               8 hours work   4 hours @ straight time
                              4 hours @ time and one-half
               12 hours off

250
                              
<PAGE>
<PAGE>

             MECHANICS AND RELATED EMPLOYEES AGREEMENT

                              INDEX

ARTICLE                                                        PAGE
-------                                                        ----
     1    PURPOSE OF AGREEMENT
          (a)  Safety, Efficiency, Reasonable Hours, Working      2
               Conditions and Mutual Cooperation
          (b)  No Discrimination                                  2

     2    SCOPE OF AGREEMENT
          (a)  Inspector, Mechanic, Helper, Fire Inspector      2-3
               Stores, Guards, and Ramp Service Jurisdiction.
               Temporary Guarding
          (b)  Reasonable Rules, Regulations                      3
          (c)  Staffing Requirements Out of Classification
               Work                                             3-4
               Restrictions and Mechanic Specialty Staffing

     3    STATUS OF AGREEMENT
          (a)  Merger, Consolidation, Route Swap Protection       5

     4    CLASSIFICATIONS OF WORK
          (a)   (1) Crew Chief Systems Technician                 6
                (2) Crew Chief Flight Simulator Technician      6-7
                (3) Flight Simulator Technician                 7-8
                (4) Crew Chief Inspector                          8
                (5) Inspector                                   8-9
                (6) Crew Chief Mechanic                           9
                (7) Mechanic                                   9-10
                (8) Crew Chief Stores Clerk                   10-11
                (9) Stores Clerk                              11-12
               (10) Crew Chief Fire Inspector                 12-13
               (11) Fire Inspector                               13
               (12) Crew Chief Ramp Serviceman                13-14
               (13) Ramp Serviceman                           14-15
               (14) Mechanic Helper                              15
               (15) Crew Chief Guard                             16
               (16) Guard                                        16
               (17) Crew Chief Fleet Service Helper           16-17
               (18) Fleet Service Helper                         17
               (19) Crew Chief Janitor                           18
               (20) Janitor                                      18

                                                                251

<PAGE>
<PAGE>

ARTICLE                                                        PAGE
-------                                                        ----

     4    CLASSIFICATIONS OF WORK (continued)

          (b)  (1)  Crew Chief Employee Ratio                    18
               (3)  Composite Crew Concept                       19
               (5)  Crew Chief Guard Ratio                       19
          (c)  Making and Revising of Individual Assignments     19
          (d)  (Check C) Base Overhaul (Check D) Inspector
                Duties                                           19
          (e)  Sign Off of Mechanical Work by Mechanic        19-20
     5    EXAMINATIONS, LICENSE REQUIREMENTS AND
          TRAINING
          (a)  Mechanics Exam Committee, Review Procedures    20-21
               (1)  Part I Written and Practical, New            21
                    Employee Requirements
               (2)  Part II Written and Practical                21
               (3)  Examinations Forms                           21
               (4)  Submission of Applications                   21
               (5)  Exam Results                                 21
               (8)  Additional Mechanic Examination              22
               (9)  Scheduling of Exams                          22
               (10) Examination Completion Date                  22
               (11) Failure to Appear for Examination            22
               (12) Employees Who Fail Exams                     22
               (13) No Exam Where License Required               22
               (16) Bidding to Different Specialties             23
               (17) Bidding to Crew Chief or Inspector           23
               (19) (20) Qualified in Connection with Bids       23
          (b)  Employees Below Mechanic Taking Exams             23
          (c)  Flight Simulator Technician Training Period    23-24
          (f)  Stores and Fueling Exams                          24
          (g)  (1)  License Requirements Crew Chief
                    Inspectors and Inspectors                    24
               (2)  Crew Chief Mechanic License Requirements     25
               (3)  Mechanic License Requirements                25
               (8)  Company to Pay For State and Federal         26
                    Required Licenses
          (h)  Training Requirements                          26-27

     6    SENIORITY (COMPANY AND CLASSIFICATION)
          (a)  (1)  (2)  Definition of Seniority                 28
               (4)  (a)  (b)  (c)   Determining Senior
                                    Employee                     28
               (5)  Separating or Combining of Seniority
                    Groups                                    28-29
               (6)  Transfer and Assignment of New Work at       29
                    Overhaul Base

252

<PAGE>
<PAGE>

ARTICLE                                                        PAGE
-------                                                        ----

     6    SENIORITY (COMPANY AND CLASSIFICATION)
          (continued)
          (b)  (1)  Probationary Periods                         29
          (c)  (2)  Seniority, Protest Period, Changing
                    Seniority List                               30
               (3)  System Seniority Lists                       30
               (4)  Classifications                           30-31
               (5)  Lower Seniority Accrual                      31
          (d)  Loss of Seniority                              31-32
          (e)  Reduction and Increase of Working Force           32
               (1)  (2)  (3)  Point Reduction or Displacement 32-33
               (4)  System Displacement and Recall Rights     33-34
               (5)  (6)  Point Exercise of Seniority          34-35
               (7)  Crew Chief Mechanic and Inspector
                    Seniority Exercise Restrictions              35
          (f)  (1)  Displacement Procedure                       35
               (2)  Point Recall Provisions                      35
               (3)  Seniority Displacement Restrictions          35
               (6)  Qualification Review Procedures           36-37
               (8)  Recall Procedure                             37
               (10) Ten (10) Days Notice or Pay to Employees     38
                    Being Reduced
               (11) (a)  Point Recall: Classification,
                         Specialty and Lateral                   38
               (15) Voluntary Reduction Procedure                39
               (16) Vacancy Bidding by Laid Off Employee         39
               (19) Positions Not Covered by Agreement           40
               (21) (b)  (c)  Shift and Day Off Assignment    40-41
               (21) (d)  (e)  Penalties for Shift, Day Off
                              Refusal                            41
               (21) (f)  Grievance Committee Shift and Day Off   41
                         Assignment
          (g)  Geographical Relocation Procedure and Expenses 41-42

     7    HOURS OF SERVICE
          (a)  Standard Work Day                                 42
          (b)  Standard Work Week                             42-43
          (c)  (d)  (e)  Shift Requirements:  Major Station
                         and Overhaul Base                       43
          (f)  Additional Shifts - Major Stations                43
          (g)  Line Stations, Shift Requirements                 43
          (h)  Shift Deviation                                43-44
          (j)  Rest and Clean Up Period                          44
          (k)  Work Shifts:  Exceptions                          44
          (l)  Lunch Periods                                  44-45

                                                                253

<PAGE>
<PAGE>

ARTICLE                                                        PAGE
-------                                                        ----

     8    OVERTIME AND HOLIDAYS
          (a)  Time and One-Half Rate                            45
          (b)  Double Time Rate; 8 Hour Break Option          45-46
          (c)  Shift Rotation, Break Requirement                 46
          (d)  (e) Holidays                                   46-48
          (f)  Overtime Distribution                             48
          (g)  Emergency Overtime                                48
          (h)  Recall Pay Minimum                                48
          (i)  Overtime Meal Period                              48
          (j)  Overtime Authorization                            48
          (k)  Overtime Pay Maximums                             49
          (1)  Overtime Notice Requirement                       49

     9    FIELD SERVICE
          (a)  Emergency Field Service Pay                       49
          (b)  (c)  (d)  Traveling or Waiting Pay                49
          (e)  Preparation Time                               49-50
          (f)  (1)  (2)  (3)  Expenses and Lodging               50
          (g)  Special Assignment Pay                            50

     10   VACANCIES AND BIDDING
          (a)  (1)  Vacancy Definition                           51
               (2)  Vacancy Cancellations                        51
               (3)  New Classification Bids and Moving
                    Expenses                                     51
               (4)  Vacancy Notice to Union                      51
               (5)  Successful Bidder Selection                  51
               (7)  Preference Bid                               51
               (8)  Company Seniority Bid                        51
               (9)  Bulletin Bids Filling Vacancy                51
               (10) Union Concurrence on Testing Procedures      52
               (11) Company Option to Fill Vacancy               52
          (b)  (1)  (2)  Submission, Cancellation, Renewal       52
                         and Expiration of All Bid
               (3)  Bidding For Laid Off Employees            52-53
               (5)  Bulletined Bids                              53
               (6)  Bid Cancellation Rule                        53
               (7)  (8) Bidding to Lower Classifications         53
               (9)  Bid Refusal                                  54
               (10) System Bidding Restriction                   54
               (11) Point Bidding Restriction                    54
               (15) Successful Bid Notices                       54
               (16) Trial Periods                             54-55
               (17) Transportation: Successful Bidders           55
               (18) Seniority and Wage Rate: Successful          55
                    Bidders

254

<PAGE>
<PAGE>

ARTICLE                                                        PAGE
-------                                                        ----

     10   VACANCIES AND BIDDING (continued)
               (19) Notice to Unsuccessful Bidder:
                    Qualification Review Procedures              56
          (c)  Temporary Crew Chief Assignments                  57
          (d)  Temporary Assignment to Another Seniority         58
               Grouping
          (e)  Company Promotion Policy                          58

     11   GRIEVANCE PROCEDURE
          (a)  Stewards and Committees                           59
          (b)  Full Time Committees                           59-61
          (c)  Step 1; Step 2; Step 3; Disciplinary Time      61-64
               Off and Discharge
          (d)  General                                           64

     12   SYSTEM BOARD OF ADJUSTMENT                             65
          (b)  Referee Panels                                 65-66
          (c)  Board Jurisdiction                                66
          (d)  Board Appeals                                  66-67
          (h)  Referee Selection                                 67
          (r)  Witness Expenses and Transportation               69

     13   LEAVES OF ABSENCE
          (a)  Medical Leave                                  69-70
          (b)  (1)  Applications and Extensions                  70
               (2)  Third Party Physician Resolution             72
          (c)  Union Leaves of Absence                           72
          (d)  Return from Authorized Leaves                     72
          (f)  Return From Military Leave                        72
          (g)  Leave Expiration Notice                           72
          (h)  Public Office                                  72-73

     14   SAFETY AND HEALTH                                      73
          (b)  Safe and Sanitary Working Conditions              73
          (c)  Safety Committees                                 73
               Safety Compliance Procedure                    74-75
          (h)  Uniforms                                          75

     15   FREE TRANSPORTATION                                    76
          (b)  Union Staff Passes                                77
          (c)  Laid Off Employee Pass                            77
          (d)  Retiree Pass Privilege                            77
          (e)  Vacation Pass                                     77

                                                                255

<PAGE>
<PAGE>

ARTICLE                                                        PAGE
-------                                                        ----

     16   VACATIONS                                              78
          (b)  Allotment Schedule                                78
          (c)  Accrual                                           78
          (g)  Laid Off or Leave Status                          79
          (h)  Resignation or Discharge                          80
          (l)  Company Seniority Applies in Selection of
               Vacation                                          80
          (m)  Vacation Schedules                             80-81
          (o)  Vacation Selection                             81-82
          (p)  Day-at-a-Time Vacation Procedure               82-83

     17   SICK LEAVE                                             84
          (b)  (1)  Occupational Illness                         84
          (b)  (2)  Occupational Illness and Sick Leave          84
                    Re-accrual and Restoration
          (g)  Physician's Certificate                           85
          (j)  Death in Family and Dangerous Illness             86
          (k)  Attendance Records                                86

     18   LONGEVITY                                              86

     19   SHIFT PREMIUMS
          (a)  Afternoon and Night                               87
          (b)  Shift Definitions                                 87
          (d)  Relief Schedules                                  87
               (1)  Day Off                                      87
               (2)  Vacation                                  87-88
               (3)  Rotating                                  88-89

     20   BENEFITS
          (a)  (1)  In Network Deductible                        89
               (2)  Covered Expenses                             89
               (3)  Preventive Health Care Benefits              89
               (4)  Home Health Care Benefits                 89-90
               (5)  Hospice Care Benefits                        90
               (6)  Dental Plan Benefits                      90-91
               (7)  Acute Care Prescription Drug Program         92
               (8)  Medical Plan Prescription Drug Benefits      92
               (9)  Chiropractic Care Benefits                   92
          (b)  Employee Life Insurance                           92
          (c)  Bomb Insurance                                    92
          (d)  Aviation Insurance                                92
          (e)  Retiree Benefits                               92-93
          (f)  Additional Life Program                        93-94
          (g)  Tool Box Insurance                                94

256

<PAGE>
<PAGE>

ARTICLE                                                        PAGE
-------                                                        ----

     21   WAGE RULES
          (a)  Line Differential                              94-95
          (c)  through (h) Pay                                   95
          (i)  Jury Duty                                      95-96
          (k)  License Premium                                   96
          (1)  Cost of Living                                 96-97

     22   APPRENTICESHIP PROGRAM                                 97

     23   GENERAL AND MISCELLANEOUS
          (a)  Employees Grown Old in Service                    97
          (b)  Employees Service Files                           97
          (g)  Emergencies                                       98
          (h)  Union Bulletin Boards                             98
          (j)  Work Stoppage and Lockout                      98-99
          (m)  Free Parking                                      99

     24   SAVINGS CLAUSE                                         99

     25   GEOGRAPHICAL SCOPE OF AGREEMENT                        99
          (b)  Seniority Rights                              99-100
          (d)  Return From Overseas                             100
          (e)  Selection For Overseas                           100
          (f)  Notification of Seniority Status                 100

     26   UNION SECURITY
          (a)  Membership in Good Standing                      101
          (e)  Delinquency                                  102-103
          (f)  Appeal Procedures                            103-104
          (i)  Employee Notices                                 104
          (m)  Representation Notice                        104-105
          (n)  thru (s) Dues                                106-107

     27   LAYOFF PAY                                            108
          (b)  Eligibility                                  108-109
          (c)  Pay and Restoration                              109

     28   LETTERS AND AGREEMENTS                                111

     29   EFFECTIVE DATE AND DURATION                           248

                                                                257EXHIBIT 10ZZ
                                                                    ------------

                                 PROMISSORY NOTE

$150,000.00                                                        April 1, 2000
                                                           Boston, Massachusetts

         On demand for value received, Advanced Deposition Technologies, Inc.
(the "Borrower") promises to pay to the order of Glenn J. Walters (the "Lender")
the sum of $150,000, together with interest on unpaid balances payable monthly
in arrears on the first day of each calendar month or earlier on demand at the
Prime Rate in effect from time to time plus one percentage point. Each change in
such interest rate shall take effect simultaneously with the corresponding
change in such Prime Rate. "Prime Rate" shall mean the rate of interest
published in the Wall Street Journal from time to time. Interest shall be
calculated on the basis of actual days elapsed and a 360 day year. If this note
is not paid in full on the due date, whether as stated or by acceleration,
interest on unpaid balances shall thereafter be payable on demand at a
fluctuating rate per annum equal to two percentage points above the Prime Rate
in effect from time to time.

         The Borrower and every endorser and guarantor of this note hereby waive
presentment, demand, notice, protest and all other demands and notices in
connection with the delivery, acceptance, performance, default or enforcement
hereof and consent that this note may be extended from time to time and that no
such extension or other indulgence, and no substitution, release or surrender of
collateral, and no discharge or release of any other party primarily or
secondarily liable hereon, shall discharge or otherwise affect the liability of
the Borrower or any such endorser or guarantor. No delay or omission on the part
of the holder in exercising any right hereunder shall operate as a waiver of any
such right or of any other right hereunder and a waiver of any such right on any
one occasion shall not be construed as a bar to or waiver of any such right on
any future occasion.

         The Borrower and every endorser and guarantor hereof agree to pay on
demand, all costs and expenses (including legal costs and attorneys fees)
incurred or paid by the holder in enforcing this note on default.

         This note shall take effect as a sealed instrument and shall be
governed by the laws of The Commonwealth of Massachusetts.

                                        Advanced Deposition Technologies, Inc.

Glenn J. Walters                        By:/s/ Alexander P. Boxall
----------------                           -------------------------
Witness                                    Alexander P. Boxall
                                           President

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