reuters: Northwest files for bankruptcy protection

[bigworld]

http://today.reuters.com/news/newsArticleSearch.aspx?storyID=245114+14-Sep-2005+RTRS&srch=northwest

[bigworld]

1. oops - forgot the text

...what there is of it...

NEW YORK, Sept 14 (Reuters) - Northwest Airlines Corp. (NWAC.O: Quote, Profile, Research) on Wednesday filed for bankruptcy, weighed down by high fuel and pension costs, low airfares and steep competition from rivals.

The Minnesota-based carrier, whose mechanics have been on strike since Aug. 20, filed for Chapter 11 protection in the U.S. Bankruptcy court in Manhattan.

[donheld]

2. Northwest files for Chapter 11 protection

Wednesday, September 14, 2005

By JEWEL GOPWANI
FREE PRESS STAFF WRITER

Time ran out for Northwest Airlines Corp. on Wednesday, as Michigan's most important carrier filed for Chapter 11 bankruptcy protection.


The filing was expected, as Northwest gave notice that it had a $65 million pension payment due Thursday and couldn't pay bills due earlier this week.


After a long battle with soaring fuel bills, industry-high labor costs and bruising competition, Northwest sought bankruptcy protection to peel away its expenses to compete in the skies against more efficient airlines.


The airline is losing $4 million a day and expects to lose more than $1 billion during the first nine months of the year.



Northwest, which

more
http://www.freep.com/news/latestnews/pm6037_20050914.htm


http://today.reuters.com/news/newsArticle.aspx?type=businessNews&storyID=2005-09-14T214821Z_01_MOR452096_RTRIDST_0_BUSINESS-AIRLINES-BANKRUPTCIES-DC.XML

[DemoTex]

3. Northwest, Delta, US Airways, and United now in CH-11.

Funny that the three Texas airlines (Continental, Southwest, and American) are doing relatively well. Real funny.

[napi21]

5. I just read several articles about American barely avoioding

bankruptcy in 2003. They managed to get $1.5 Billion in financing then, but if they were that close then, my guess is that they aren't doing that great now either!

Scary stuff! I can't even guess how many thousands of workers we are talking about here!!!

[napi21]

4. I just got an email from CNN-Northwest Airlines also filed Chap 11.

-- Northwest Airlines files for bankruptcy protection under Chapter 11, a spokeswoman announced.

Watch CNN or log on to http://CNN.com and watch FREE video.
More Americans watch CNN. More Americans trust CNN.
*************
Delta Air Lines and Northwest filed for bankruptcy Wednesday, making them the third and fourth major U.S. carriers to be operating under bankruptcy protection. The two companies follow United Airlines and US Airways into bankruptcy. United, the No. 2 airline, has been in bankruptcy court for almost three years. US Airways has been in bankruptcy court twice since the September 11 terrorist attacks that shook the airline industry.

[VegasWolf]

6. Bush says, "The economy is just roaring along!!" Stay the course!! nt

[amandabeech]

7. This is an opportunity for Midwest Airlines, based in Milwaukee,

to pick up slots in Detroit and Minneapolis.

Midwest is the airlines that runs MD-80s and the newest Boeing small jets in a 4-abreast first-class configueration.

Nonetheless, I'll mourn Northwest. I'm a long-term flier, originally from West Michigan, who flies in and out of Muskegon, a dying industrial city on Lake Michigan with a beautiful lakefront. Their small airport is the only one that my Mom wants to drive to. She likes to pick me up there. Northwest has the only decent aircraft going in there--30-seater Saab turboprops from Detroit.

The only alternative is BE-1900D flying cigars from Milwaukee on Midwest. I love the MD-80 and Boeing 717 four-acrost seating on Midwest for its longer flights, but those BE's are pretty bad.

Detroit, Memphis and Minneapolis will feel a hit. Detroit will be the worst, where they built a brand=-new geat terminal that is dedicated to Northwest/KLM.

[Puglover]

8. What are you talking about?

Detroit,Memphis,Minneapolis won't feel a thing. They didn't file chapter 7 which is liquidation, they filed 11 or 13 which is a reorganization. There won't be any flight disruption.

[amandabeech]

9. I'm talking about an ineveitable reduction in service.

I used to work for a law firm that represented airline union and their pension funds in bankrupcy. I've kept up on this stuff since I left them.

You won't see anything at first, except perhaps some confusion, but problems will arise later. Generally, airlines will sell gates to generate operating revenues. In Minneapolis and Memphis, other airlines will pick them up. In Detroit, that may not be the case, and who knows how much NW is responsible for the continued operation of those three airports. In Detroit, a whole new facility opened two or three years ago just for NW. Will SW go for more gates in DTW?

Then there are the commuter lines. NW has two or three of them. One, Mesaba hasn't received payment. Mesaba flies into many Midwestern airports, and is the primary or only carrier to do so.
Some of these are lifeline routes subsidized by the Feds since deregulation. Service is sure to be cut back, and dreams of jet service into these airports, which is necessary for economic development, fall into the toilet. Don't get me going on urban concentration and sprawl and deregulation/lack of jet service.

All around, uncertainty will prevail, which is not good for anyone. And in the end, who will step up to the plate?

[Lindacooks]

10. I want to know what kind of cuts the executives have taken.

If any.:sarcasm:

[mediaman007]

11. From MSP: Look for a Delta/Northwest merger!

The same person who told me that Delta's bankruptcy would be followed by Northwest, also said that Delta would merge with Northwest!

I'm not an insider, so I'm only sayin'...