Merger in the Air

The nation's two major international airlines were close to agreement on a merger last week, though neither side would publicly admit it. The deal would link money-losing Trans World Airlines with money-making Pan American World Airways, to form the world's largest line. It would have routes throughout the U.S. and to all continents, a combined fleet of 125 jetliners and sales exceeding $800 million. Next step would be to persuade the Civil Aeronautics Board and the White House that one big U.S. carrier is necessary to withstand the competition of heavily subsidized state-owned foreign airlines. A shadow over the possible TWA-Pan Am combination is the attitude of elusive Industrialist Howard Hughes, who was forced by creditors in 1960 to put his 78.2% ownership of TWA in trust and is now trying to win back voting control through a suit he has in the courts. He would hardly cheer a merger in which he did not have the principal say.

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