Northwest Airlines Emerges as a Stronger, Globally Focused Carrier
Company rings opening bell on NYSE
EAGAN, Minn.–(BUSINESS WIRE)–May 31, 2007–Thirteen Northwest
Airlines (NYSE:NWA) employees rang the opening bell today on the New
York Stock Exchange (NYSE), signaling the completion of the airline’s
restructuring process as well as its recommitment to customers and
employees.
The thirteen employees, representing the company’s various work
groups, are recipients of the President’s Award, the highest honor
bestowed on a Northwest Airlines employee. Nominated by their peers,
the President’s Award winners were recognized for their ongoing
dedication to Northwest and its customers.
Assisting the employees on the NYSE bell podium was Doug
Steenland, Northwest Airlines president and chief executive officer.
After ringing the opening bell, the Northwest CEO made the first “buy”
of new “NWA” common stock.
“Today is a landmark day in the 81 year history of Northwest
Airlines. We have successfully repositioned the company as a stronger,
globally-focused airline with a great route network, a revitalized
fleet, a competitive cost structure and a recapitalized balance
sheet,” Steenland said.
“Going forward, we intend to build on our core assets and increase
our focus on our customers and employees.”
Discussing the airline’s fleet, Steenland said, “We are continuing
to spend more than $6 billion to renew our fleet. Our international
fleet now features the Airbus A330, which replaced the DC10 on
European and Asian routes. We are proud to be the first North American
carrier to operate the new Boeing 787, which we plan to place into
commercial service in the fall of 2008.”
“Domestically, we will be introducing the first of 72, dual-class
regional jetliners to our customers next week. These new,
fuel-efficient jets, which will be flown by Northwest subsidiaries
Compass Airlines and Mesaba Airlines, allow us to offer first class
seating to more customers while permitting Northwest to open up new
routes that were not feasible to operate with larger aircraft.”
Discussing the airline’s route network, the Northwest CEO added,
“While Northwest has one of the largest U.S., Canadian and Asia
Pacific route networks, we continue to expand our reach through our
joint venture partnership with KLM Royal Dutch Airlines and the
SkyTeam alliance. In addition, our domestic marketing agreements with
Alaska Airlines, Continental and Delta allow us to offer unparalleled
schedule convenience to our customers.”
“One of our key focus areas is the continual improvement of our
customers’ travel experiences. We plan to spend at least $50 million
during the year on product enhancements that we believe our customers
will value.”
Steenland added, “We believe the work that was accomplished during
our restructuring: achieve a competitive cost structure, develop a
more efficient business model and recapitalize our balance sheet will
clearly benefit our shareowners. We believe that we have a viable
business plan that will continue to deliver profits in the future.”
Discussing employees, the company’s most important asset,
Steenland added, “The past 20 months of restructuring, with all the
change that the restructuring process entailed, has certainly been
difficult for our employees. However, over the past year and a half,
NWA’s employees have continued to deliver excellent service to our
customers. Without the assistance of our employees, we could not have
completed our restructuring in near-record time.”
“Because of their involvement, I am pleased that our employees are
already realizing financial benefit in the forms of unsecured claims
and profit sharing. In total, we hope to be able to share with
employees some $1.6 billion through unsecured claims and profit
sharing payments through 2010.”
RESTRUCTURING
On May 18, Northwest completed its restructuring process when
Judge Allan L. Gropper of the U.S. Bankruptcy Court for the Southern
District of New York signed the order confirming Northwest’s Plan of
Reorganization. On May 9, Northwest had announced that 98.4 percent of
the dollar amount of claims that voted and 96.9 percent of the
airline’s creditors who voted, approved the Northwest Plan.
In preparation for its emergence, the company had announced a new
board of directors and it was approved to trade its new common stock
on the New York Stock Exchange under the ticker symbol “NWA.”
Trading on the NYSE commenced May 21, on a “when issued” basis
(Ticker Symbol: NWA WI). The company began “regular way” trading on
May 31, 2007. Northwest emerged from Chapter 11 protection earlier
today after meeting the closing conditions of the Plan and receiving
the proceeds from its $750 million new equity rights offering.
In accordance with Northwest’s prior announcements, and as
required by the Plan of Reorganization approved by the Bankruptcy
Court, the outstanding common stock traded under the ticker symbol
NWACQ.PK, and the preferred stock of the company has been cancelled
for no consideration, and, therefore, the company’s former
stockholders no longer have any interest as stockholders in the
company.
FORWARD-LOOKING STATEMENTS
Certain of the statements made in this news release are
forward-looking and are based upon information available to the
Company on the date hereof. In connection with the “safe harbor”
provisions of the Private Securities Litigation Reform Act of 1995,
the Company is hereby identifying important factors that could cause
actual results to differ materially from those contained in any
forward-looking statement made by or on behalf of the Company. Any
such statement is qualified by reference to the following cautionary
statements. The Company believes that the material risks and
uncertainties that could affect the outlook of an airline operating
under Chapter 11 and in a global economy include, among others, the
ability of the Company to continue as a going concern, the ability of
the Company to obtain and maintain any necessary financing for
operations and other purposes, the ability of the Company to maintain
adequate liquidity, the ability of the Company to absorb escalating
fuel costs, the Company’s ability to obtain court approval with
respect to motions in the Chapter 11 proceedings prosecuted by it from
time to time, the ability of the Company to consummate a plan of
reorganization with respect to its Chapter 11, the ability of the
Company to operate pursuant to the terms of its financing facilities
(particularly the related financial covenants), the ability of the
Company to attract, motivate and/or retain key executives and
associates, the future level of air travel demand, the Company’s
future passenger traffic and yields, the airline industry pricing
environment, increased costs for security, the cost and availability
of aviation insurance coverage and war risk coverage, the general
economic condition of the United States and other regions of the
world, the price and availability of jet fuel, the war in Iraq, the
possibility of additional terrorist attacks or the fear of such
attacks, concerns about SARS, Avian flu or other influenza or
contagious illnesses, labor strikes, work disruptions, labor
negotiations both at other carriers and the Company, low cost carrier
expansion, capacity decisions of other carriers, actions of the U.S.
and foreign governments, foreign currency exchange rate fluctuations,
inflation and other factors discussed herein. Additional information
with respect to these factors and other events that could cause
differences between forward-looking statements and future actual
results is contained in “Item 1. Business – Risk Factors Related to
Northwest and the Airline Industry” in the Company’s Annual Report on
Form 10-K for the year ended December 31, 2006. We undertake no
obligation to update any forward looking statements to reflect events
or circumstances that may arise after the date of this release.
Developments in any of these areas, as well as other risks and
uncertainties detailed from time to time in the Company’s Securities
and Exchange Commission filings, could cause the Company’s results to
differ from results that have been or may be projected by or on behalf
of the Company.
Northwest Airlines is one of the world’s largest airlines with
hubs at Detroit, Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam,
and approximately 1,400 daily departures. Northwest is a member of
SkyTeam, an airline alliance that offers customers one of the world’s
most extensive global networks. Northwest and its travel partners
serve more than 900 cities in excess of 160 countries on six
continents.
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CONTACT: Northwest Airlines
Northwest Media Relations, 612-726-2331
www.nwa.com
