Aer Lingus
Topic Author
Posts: 1217
Joined: Sun May 14, 2000 4:06 am

Northwest's Financial Status?

Wed Jul 05, 2000 6:21 am

Since I'm in Ireland and don't know the ins 'n outs of American airlines (not AA), could someone tell me how NW are doing financially, since I've read so many posts about "....not enough money" or "....in debt" ?

Thanks a lot
Martin

P.S. Happy Independance day to all across the Atlantic !
 
Iflewrepublic
Posts: 511
Joined: Wed Jun 14, 2000 11:31 pm

RE: Northwest's Financial Status?

Wed Jul 05, 2000 6:34 am

Well, since I have sixteen years of experience with Northwest, I will try and answer this question for you. First, you have to understand that Northwest Airlines was a very frugal and very wealthy airline. They were able to pay cash for their aircraft and they were able to have a bigger payload by using very little paint. The 1969 livery did just that...most of the fuselage was natural aluminum with a big painted white section over the window areas. Directly on top of the windows was a navy blue stripe that ended just aft of the forward boarding door. Last, the tail was painted red. Anyway, in 1986, Northwest Airlines (tired of competing with Republic) purchased Republic Airlines for $884 million. This was a minor financial set back that sent Northwest Airlines into heavy debt and almost forced them to be grounded. Since Northwest is the State of Minnesota's largest employer, the State of Minnesota rescued Northwest from financial ruin. In the papers that were drawn up, the State of Minnesota included a clause stating that Northwest must keep its World Headquarters in Minneapolis until the debt is paid off (if this weren't included, NWA would have shifted its focus and emphasis on Detroit). So far, every year has been a very profitable year for Northwest and they have been able to make the payments on their debt.

The last time I checked, Northwest had something like $400 million that they still owed the State of Minnesota.

Hope that helps.

Iflewrepublic.
Aviation is proof that, given the will, we have the capacity to achieve the impossible.
 
User avatar
sammyk
Posts: 1560
Joined: Mon Oct 25, 1999 11:31 am

RE: Northwest's Financial Status?

Wed Jul 05, 2000 7:08 am

Just curious, how much did Northwest actually owe in total? $400 million isn't exactly a small sum of money to have "left" to pay.

Sammy
 
Guest

RE: Northwest's Financial Status?

Wed Jul 05, 2000 7:51 am

I thought I had read somwhere if American bought Northwest.. they would have to offset Northwests 3.3 billion debt.. correct me if im wrong..

NEFlyer
 
Guest

RE: Northwest's Financial Status?

Wed Jul 05, 2000 7:53 am

", American would probably have to assume Northwest's $3.3 billion in debt, pushing the value of a deal to at least $8.9 billion. "

an excerpt from the news article by the associated press.


NEFlyer
 
Iflewrepublic
Posts: 511
Joined: Wed Jun 14, 2000 11:31 pm

Huh...

Wed Jul 05, 2000 1:25 pm

Wow! $3.3 billion! I was under the misconception that it was $400 million that they still owed...of course, when I read that I wasn't exactly reading it that closely. I think the $400 mil. is the fall out from the Republic acquisition. Or else, the $400 million is just what they owe the State of Minnesota and is the remaining debt that helped them stay afloat. (Sammy, I believe they owed something like the $884 million to MN that they paid for Republic.) Oh well...I think the $3.3 billion is the total of the acquisition price and the price for the newer aircraft and other extra niceties they employ.

Iflewrepublic.
Aviation is proof that, given the will, we have the capacity to achieve the impossible.
 
na
Posts: 9211
Joined: Sun Dec 12, 1999 3:52 am

RE: Northwest's Financial Status?

Wed Jul 05, 2000 5:11 pm

Are you sure about the $3,3 billion debt?
I read that a debt around that amount was what they owed to the banks at the time of near bancruptcy in ´92.
Last year I read an interview with Mr. Dasburg (CEO) and he said that most of the debt has been paid.
 
Iflewrepublic
Posts: 511
Joined: Wed Jun 14, 2000 11:31 pm

RE: Na

Thu Jul 06, 2000 12:48 pm

Well, all I'm saying is what I read in an article from the Minneapolis Star-Tribune. The article was discussing the possibilities of American buying out Northwest and Northwest's financial situation since the Republic takeover. Like I said, I wasn't reading the article that closely since I was on my way out the door. All I do know, is that the debt is slowly being paid off.

Iflewrepublic.
Aviation is proof that, given the will, we have the capacity to achieve the impossible.

Popular Searches On Airliners.net

Top Photos of Last:   24 Hours  •  48 Hours  •  7 Days  •  30 Days  •  180 Days  •  365 Days  •  All Time

Military Aircraft Every type from fighters to helicopters from air forces around the globe

Classic Airliners Props and jets from the good old days

Flight Decks Views from inside the cockpit

Aircraft Cabins Passenger cabin shots showing seat arrangements as well as cargo aircraft interior

Cargo Aircraft Pictures of great freighter aircraft

Government Aircraft Aircraft flying government officials

Helicopters Our large helicopter section. Both military and civil versions

Blimps / Airships Everything from the Goodyear blimp to the Zeppelin

Night Photos Beautiful shots taken while the sun is below the horizon

Accidents Accident, incident and crash related photos

Air to Air Photos taken by airborne photographers of airborne aircraft

Special Paint Schemes Aircraft painted in beautiful and original liveries

Airport Overviews Airport overviews from the air or ground

Tails and Winglets Tail and Winglet closeups with beautiful airline logos