Syracuse

Welcome to Chapt 11 team! ^

We are only waiting for Continental and AA now.

wask

Airlines filing for Chapter 11 is fast becoming a "premier status" symbol.

Syracuse

agree! ^ Welcome NWA and Delta!

DBCme

Isn't Airlines filing for Chapter 11 the "in" thing to do these days? =)
"everyones doing it".

kdinino

LOL. Well, everone's predicted this for years--so it's not a surprise. The LCC's are wiping the floors w/ the legacies asses.

It'd be hard to see AA or CO file Ch 11, but fuel prices are speeding up the process.

I don't think NW or DL will survive long-tern as a standalone. DL is in more dire straits but with NW's fleet, clearly they are in need as well.

bk42

Wait, since when was Northwest number five in the nation? I knew they went to #5 in the world after the AF-KLM hook-up, but not in the nation.

Anyways, yeah, it'll probably be in chp 11 in a couple of days.

I saw something interesting during all the mechanics hoopla, that NW wanted only 1,200 or so mechanics left. 300 were to be based in Duluth, and the remaining 900 were to be split between Minneapolis and Detroit. Notice something missing? Yeah, they didn't say they'd leave anyone in Memphis. You think they're going to cut Memphis in chp 11?

bk42

Well, travelerjim, I can see the point of view you take. But I don't think it's really either of their faults, considering that soon, what, 50% of airline seats flying in the U.S. will be under bankruptcy protection if NW and Delta both goes into Chp 11 as it appears?

mjcasta

A thought provoking question for the BK observers

A foreign entity may not have a greater than 49% interest in a US carrier. Does this restrict foreign entities from providing or participating in DIP financing??

With NWA having a largely Canadair & Airbus fleet; Pratt & Whitney having little interest in providing DIP financing, a/c leases primarily held through foreign entities; and, AF / KLM being out of the mix - will Northwest struggle or pay a premium for DIP financing??

Large providers of previous financing have been Boeing & GE. I cannot imagine either being a part of the NWA plan, especially with such a small mix of the current and future pleet plan and GE will be tied into the DL financing.

I recall LH and AC expressing interest in the UA / US / HP procedings; but, encountered a roadblocks as foreign entities.

CVG_Kid

What impact will a bankruptcy filing have on Worldperks rewards?

I don't follow either NW or Worldperks extensively but I just saved enough for a free hop to Asia and back. Will I be able to use it?

Syracuse

Sure, no problem. Chance for redeem may be better than ever.

Chapt 11 airlines, USair and UA have most redeemable FF inventory, at least for the router I fly!

jaguar

All the poor guys at AMFA picked the wrong time to strike Northwest Airlines.

RustyC

OTOH, if the company tells you the only way they can survive is without you, do you go on caring whether the company survives?

I mean, if they're trying to eliminate your job anyway, what have you got to lose?

travelerjim

CloudsBelow...Had you been watching the large chunks of NWAC stock..in the millions of shares - being sold for the past 12 months by the NW Chairman, CEO, Officers and Board Members ...one would guesstimate that they were most interested in saving some of the value for themselves and leave the employees holding the bag so to speak...as well as abandoning the shareholders - for the shareholders will have zilch value when NWAC comes out of bk.

Sure the top guys knew what they were doing and were doing so within the rules governing sales of their holdings of NWAC...But I sense that there has been little real effort at saving the shareholders and employees values in the process...Again, just my opinion...

By the way....how much is the Worldperks program worth ??? It is interesting that airlines talk about BK often but fail to ever mention a value of their frequent flyer programs.... they show it as a debit not a credit.....??? They are probably worth more than 1 Billion dollars to the right party....a sale in canada recently of an airlines ff program produced in excess of 225 million dollars for 25 % interest in the airlines ff program.

I wish everyone associated with NW well in the trying months to come....it is not pleasant for anyone involved....management, employees, stockholders or flyers.

TravelerJim

Derrico

lol.. with the offer the union knew they would do better in bankruptcy court anyway.

Also regarding AS and CO.. I am pretty sure that they both made a profit last quarter, but with fuel prices what they are, I guess one never knows.

RustyC

Could the missed payments be causing concerns that there's something bad amiss that Wall Street doesn't know about? The problems with jet fuel, labor, etc., were well-known, but maybe they're worried about another shoe dropping on cash flow or reserves. Wall Street hates surprises.