Northwest Emerges From Bankruptcy

May 31, 08:52 AM

Current Headlines: Northwest Airlines, flirting with liquidation in 2005, emerged from bankruptcy Thursday planning major upgrades and mended fences.

Northwest Chief Executive Officer Doug Steenland, who signified the airline's return by ringing the bell to open the New York Stock Exchange Thursday, told the Star Tribune in Minneapolis that the airline would spend $6.2 billion on new AirBus and Boeing jets with accent on expanded international flights.

The airline, fifth largest by traffic in the United States, also listed two paramount goals as repairing employee relations and improving customer service. In regard to the latter, Northwest said each employee would be given a trip with family members or a companion.

Northwest, the last airline to step out of Chapter 11 after a six-year industry downturn that sent many airlines into bankruptcy, sought protection from creditors 20 months ago, weighed down by high labor costs, an old and overly large aircraft fleet, heavy debt and huge pension liabilities.