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Tuesday, September 13, 2005

The end of Northwest Airlines?

A lot of people said that when AMFA mechanics went on strike, it was the end of their jobs and probably the union. Time has shown that these people are probably right. Now, it looks like Northwest itself may be no more if they declare bankruptcy.

Now, let's get one thing straight: Northwest Airlines may well survive bankruptcy proceedings and live again. However, for the thousands of current and former workers who will lose pensions and other benefits, the new Northwest won't be much good to them, and it's hard to argue that whatever happens after bankruptcy will be Northwest, even if it keeps the same name.

If this happens, it will be a very bad thing for the state of Minnesota.


At 1:51 PM, September 14, 2005, Blogger halfback jack said...

As one of the last "legacy" airlines, it is inevitable that they will end up in bankruptcy court. Not "if," but rather "when."

The results will, IMHO, be significant:

* Mesaba (serving the smaller markets, for the most part) will be put out on its own. Trying to stay in the black when you fly into the smaller cities could be a challenge.

* What's left of Northwest will be much, MUCH smaller in terms of routes, gates, equipment, etc. And payroll. I suspect they will move heaven and earth to try and retain the orient routes in particular since those are the crown jewels of the airline--and the routes that the other airlines would love to get their hands on. My guess is that it will happen at the expense of domestic routes.

* MAC better start thinking about a post-Northwest existence. They control about 80% of the gates at MSP and they are NOT going to need all of them.

* And the BIG question will be whether or not MAC approves other airlines to come in and/or expand at MSP.

At 12:09 PM, October 02, 2005, Blogger Steve Austin said...

Enjoyable blog. Please visit my bankruptcy attorney blog.


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