A discussion about the airline industry, airline employees, and all things related

Northwest Airlines received permission from the bankruptcy judge to exit bankruptcy protection at the end of the month.  Their May 31^st exit from protection comes amid uproar at the union level. 

CEO Doug Steenland said the company had reached all its bankruptcy goals, which included cutting annual operating costs by $2.4 billion, reducing debt and lease expenses by $4.2 billion a year and shrinking the overall size of its business.

The airline their workforce by roughly 10%, but those who have stuck around have bore most of the pay cuts, some $2.4 billion dollars worth.   

"Northwest has some of the sharpest management, and the revenue streams are generated by the Deep South and China — that's where the growth is — and they've got the costs down to get them to be really competitive,” said Michael Boyd, an airline analyst.

Northwest airlines will start selling shares on the New York Stock Exchange under the ticker, “NWA”. 

NWA is in good shape to enter into a market that has left some airlines struggling.  Rising fuel prices and a market with more low cost carriers has left a few carriers struggling to earn a profit, even after years in bankruptcy protection.  However, NWA looks to have cut enough and positioned itself on the correct routes to have enough diversity to overcome any slowing in the domestic market. 

The only issue is how will they solve the unrest growing with their unions and their employees?  Something that might hurt customer service in an industry that has been lacking that lately.   

WCCO.com 

Related: Northwest airline’s stock price may be over valued.