Northwest Airlines

Northwest Airlines, Inc. (often abbreviated NWA) is the principal subsidiary of Northwest Airlines Corporation (NYSE: NWA) and is a major United States airline headquartered in Eagan, Minnesota, near Minneapolis-St. Paul International Airport in the United States. Northwest has three major hubs in the United States: Detroit Metropolitan Wayne County Airport, Minneapolis-Saint Paul International Airport, and Memphis International Airport. Northwest also operates flights from a small hub in Asia at Narita International Airport near Tokyo and also operates transatlantic flights in cooperation with partner KLM from Schiphol Airport in Amsterdam. Additionally, it maintains focus city operations at Indianapolis International Airport, Honolulu International Airport, and Seattle-Tacoma International Airport.
As of 2006 Northwest was the world's sixth largest airline in terms of domestic and international scheduled passenger miles flown and the U.S.'s sixth largest airline in terms of domestic passenger miles flown. In addition to operating one of the largest domestic route networks in the U.S., Northwest carries more passengers across the Pacific Ocean (5.1 million in 2004) than any other U.S. carrier, and carries more domestic air cargo than any other American passenger airline. It is the only U.S. combination carrier (passenger and cargo service) operating dedicated Boeing 747 freighters. The airline, along with its parent company, Northwest Airlines Corporation and subsidiaries, operated under Chapter 11 bankruptcy protection which, in the United States, allows continued operation during the reorganization effort, not cessation of flights as in the case in some countries. Northwest emerged from bankruptcy protection on May 31, 2007.
Northwest Airlines' regional flights are operated under the name Northwest Airlink by Mesaba Airlines, Pinnacle Airlines, and Compass Airlines. Northwest Airlines is currently a minority owner of Midwest Airlines, holding a 40% stake in the company. Its frequent flyer program is called WorldPerks. Northwest Airlines' tagline is "Now you're flying smart."
On April 14, 2008, Northwest announced it will be merging with Delta Air Lines, subject to regulatory review. If approved, the new airline will retain only the Delta Air Lines name and brand, and become the largest airline in the world.

Beginnings
Northwest Airlines was founded in 1 September 1926 by Col. Lewis Brittin, under the name Northwest Airways. Like other early airlines, Northwest's focus was not in hauling passengers, but in flying mail for the U.S. Post Office Department. The fledgling airline established a mail route between Minneapolis and Chicago, using open cockpit biplanes such as the Curtiss Oriole.
Northwest began flying passengers in 1927. In 1928, the airline started its first international route with service to Winnipeg, Canada. The airline's operations were expanded to smaller cities in the region by the end of the decade. In 1931 Northwest sponsored Charles and Anne Lindbergh on a pioneering flight to Japan, scouting what would become known as the Northwest Airlines Great Circle route, and proving that flying through Alaska could save as much as 2,000 miles (3,000 km) on a New York-Tokyo route. In 1933, Northwest was designated to fly the Northern Transcontinental Route from New York City to Seattle, Washington; it adopted the name Northwest Airlines the following year as a result of the Air Mail Scandal. Northwest stock began to be publicly traded in 1941.
During World War II, Northwest joined the war effort by flying military equipment and personnel from the continental United States to Alaska. During this time, Northwest began painting their aircraft tails red, as a visual aid in the often harsh weather conditions. This experience with the severe northern climate led the government to designate Northwest as the United States' main North Pacific carrier following the war.
In the spring of 1947 Northwest began staffing its Tokyo base with company personnel, flying them on the Great Circle route in twin-engine Douglas DC-3 aircraft. On 15 July 1947, Northwest became the first airline to fly a commercial passenger flight from the U.S. to Japan, using The Manila, a Douglas DC-4 aircraft. The flight originated at Wold-Chamberlain Field (the predecessor of today's Minneapolis-St. Paul International Airport), and made its way to Tokyo by way of Edmonton, Anchorage, and Shemya in the Aleutian Islands. From Tokyo, the flight continued to Seoul, Shanghai, and Manila. Taipei replaced Shanghai after the end of the Chinese Civil War in 1949. With its new routes, the airline re-branded itself as Northwest Orient Airlines, although the legal name of the company remained Northwest Airlines.

Global expansion
On 1 August 1949, Northwest took delivery of its first double-deck Boeing 377 Stratocruisers, which allowed the airline to establish higher service standards and reduce flight time. They were used to fly the Tokyo route nonstop from Seattle, and – with one stop in Anchorage – from Chicago. In 1951, Northwest helped establish Japan Airlines by leasing its aircraft and crew to the new company. In 1952, under the U.S.-Japan bilateral aviation treaty, Northwest and Pan American were the two U.S. flag carriers awarded rights to fly not only from the U.S. to Japan, but to pick up and carry passengers beyond Japan. Northwest remains the largest non-Japanese carrier at Tokyo's Narita Airport, with flights to several cities in Asia including Seoul, Busan, Manila, Hong Kong, Beijing, Shanghai, Guangzhou, Bangkok, Singapore, Saipan and Guam.
Northwest meteorologists pioneered the first clear-air turbulence forecasting system in 1957, important since the airline flew many northern routes over turbulence-prone mountain areas. Northwest remains a leader in turbulence prediction, providing TPAWS (turbulence prediction and warning services) to other airlines.
On 1 June 1959, Northwest took delivery of its first turboprop jet aircraft, the Lockheed L-188 Electra. On 8 July 1960, Northwest put the Douglas DC-8 into service, offering the shortest flight times on routes to Asia. In August 1960, Northwest retired the last Boeing 377 Stratocruiser. The airline took delivery of the Boeing 720B in 1961, and in 1963, with the new Boeing 707, and the retirement of the last propeller aircraft, Northwest became the first U.S. airline with an all-turbofan jet fleet, hence the slogan "Northwest Orient: The Fan-Jet Airline." Northwest began operating the Boeing 727-151 in 1964.
Northwest took delivery of its first Boeing 747-151 aircraft in 1970. The airline began retiring the older Boeing 707s, and using the newer 747s on high-density domestic routes, where the 727 lacked sufficient capacity.

Merger with Republic and the 1990s
After airline deregulation, Northwest began nonstop flights to other Asian cities, returned to China in 1984 after a 34 year hiatus, and gradually strengthened its presence in the southern United States. It also began flying to the United Kingdom, Ireland, Germany, and Scandinavia. On 1 October 1986, Northwest purchased its competitor, Minneapolis-St. Paul-based Republic Airlines, and adopted its three-hub network centered around Minneapolis-St. Paul, Detroit, and Memphis. Northwest dropped the word Orient from its brand name after the merger.
In 1989, Northwest introduced a new identity designed by Landor Associates superseding the 1970 logo and livery, which had been used since 1986, minus the word "Orient." A new livery, nicknamed the "bowling shoe" by employees, featuring colors of red, white, gray, and blue, was adopted at the same time.
1989 also saw major changes in ownership at the airline. Northwest was purchased in a 1989 leveraged buyout by an investment group headed by Al Checchi, Fred Malek and Gary Wilson, with KLM, and many others. To pay off the debt incurred in their takeover, the new management sold many of the airline's aircraft to leasing companies, and sold property around the world, including land in central Tokyo. The expense of the buyout was so great that in 1993, following several years of losses due to industry overcapacity and a traffic downturn following the Gulf War, Northwest threatened bankruptcy unless its employee groups agreed to three years of wage cuts. After signing the concessionary agreements, Northwest made its first profit since 1989.
Also in 1993, Northwest began its strategic alliance with KLM, which was the largest airline partnership ever conceived at the time. This partnership eventually became the Wings Alliance. However, the alliance never grew beyond the two airlines, and is now obsolete from a passenger's perspective, because both airlines are part of the larger SkyTeam Alliance. (From a legal perspective, the Northwest/KLM alliance remains important: it has antitrust immunity, whereas the broader SkyTeam alliance merely has code-sharing privileges.) Northwest gradually pulled out of its minor European destinations and once more focused its attention on the domestic and Asian markets. On 1 May 1996, Northwest began the first nonstop service from the U.S. to China, on the Detroit-Beijing route. Nonstop Detroit-Shanghai service followed in April 2000. Later, these nonstop services were suspended in 2002 due to the outbreak of severe acute respiratory syndrome (SARS). Northwest currently serves these routes via Tokyo. The airline sought government approval to restore nonstop Detroit-Shanghai service in March 2007 but lost its bid to United's Washington Dulles-Beijing route; however, Northwest recently received tentative authority to restart nonstop Detroit-Shanghai service starting March 25, 2009.
Throughout the late 1990s and early 2000s, Northwest enjoyed profits and focused on improving technology to increase convenience while reducing costs. The airline has offered airport self-service check-in kiosks since 1997, and has more than any other airline. Northwest was also the first large U.S. airline to offer passengers Internet check-in, with service from December 2000. During the early 2000s, Northwest Airlines acquired a reputation of refusing to adopt industry-wide fare increases that had been accepted by other United States airlines. This changed in March 2005, when Northwest adopted fare hikes in response to rising oil prices.

Detroit blizzard, stranded passengers
On January 2, 1999, a heavy winter storm hit Northwest's hub in Detroit, seriously affecting flight operations. The blizzard dumped eighteen inches of snow on the airport, setting off a chain of events, caused by both human and environmental factors. Before it was over, some passengers had been stuck on board grounded aircraft up to 8.5 hours.
Poor communication between Northwest, Wayne County (operators of the airport), and air traffic control resulted in arriving flights continuing to land despite deteriorating conditions. With area roads impassable, the majority of airport employees were not able to report to work. Snowdrifts covered the ramp, taxiways and runways. Aircraft parked overnight could not be moved away from the gate due to the snow accumulation, and arriving flights had nowhere to go. Many passengers were thereby trapped on board, and unable to disembark for many hours. Eventually employees working through the storm were able to begin the slow process of clearing snow, move aircraft off unused gates, and allowing the inbound flights to park.
An official inquiry found "... [the delays] were serious and indicate that this event had important implications for passenger safety. Moreover, even if the well-being of passengers had not been an issue, the review team believes that the stranding of passengers on aircraft queued on taxiways for up to 8½ hours invites more serious problems and is simply unacceptable. None of the other airlines serving Detroit experienced ground delays approaching the magnitude of Northwest's delays." Subsequently, passengers brought various legal claims against the carrier including false imprisonment and negligence and obtained a $1.7 million settlement.
The problem of passengers stranded on aircraft during bad weather is a common problem among many U.S. airlines. This problem is exacerbated by the shortage of gates at some airports, the reluctance of airlines to ask other airlines for temporary gate use, other airlines not allowing the use of their gates, and reluctance of airlines to use stairs to disembark passengers. In late 2006 and early 2007, similar well-publicized incidents have occurred on other airlines, namely American Airlines in Dallas and JetBlue in New York. However, the above mentioned Northwest incident is noteworthy because of the large monetary settlement.

September 11, 2001 aftermath and beyond
Due to the effects of competition from low-cost carriers such as Southwest Airlines and increased labor costs due to a new contract with employees represented by the Aircraft Mechanics Fraternal Association (AMFA) labor union, Northwest began to make cutbacks in early 2001. Two small rounds of employee layoffs and other cutbacks were implemented in the months prior to the September 11 terrorist attacks. Following the attacks, Northwest was forced to make major changes to its business structure through major employee layoffs and other cost cutting measures. The retirement of costly and aging aircraft such as the Boeing 727 and McDonnell Douglas DC-10-40 were accelerated as new aircraft went into service. In addition, the airline pursued options to reduce costs across the board, including removing pillows, peanuts, pretzels, in-flight entertainment on domestic flights, and newspapers and magazines. Also, over 50 McDonnell Douglas DC-9, Boeing 757, Boeing 747, and Airbus A320 family aircraft were withdrawn from use in an attempt to lower overall capacity and save money. Some of these aircraft have since been returned to service.
Following many years of a pioneering and close partnership with KLM Royal Dutch Airlines, Northwest, along with partners KLM and Continental Airlines, joined the SkyTeam, an airline alliance of ten airlines from around the world, on 15 September 2004. This was partially a result of Air France acquiring KLM, forming the Air France-KLM group. The airline continued to hemorrhage money, however. In the spring of 2005, a media spectacle occurred when the news leaked that top executives in the company had been selling much of their stock. Subsequently, shareholders filed lawsuits against four top officials for insider trading, including Chairman Gary Wilson, CEO Doug Steenland, former director Al Checchi and former CFO Bernie Han.
Despite far-reaching money saving initiatives, Northwest was forced to file for Chapter 11 bankruptcy protection for the first time in its 79-year history. The filing took place in the U.S. Bankruptcy Court for the Southern District of New York on 14 September 2005. With Northwest's filing, four of the six largest U.S. carriers were operating under bankruptcy protection. Northwest joined Delta Air Lines (which filed just minutes before), United Airlines, and US Airways in bankruptcy. All four of these carriers have since emerged from bankruptcy protection. Northwest common stock shares dropped more than 50% for the second time in three days following the news, largely because stock is generally cancelled as part of the bankruptcy process. In the following weeks, Northwest Airlink carriers Mesaba Airlines and Pinnacle Airlines both announced that Northwest had missed payments to them for their Airlink flying. Northwest also announced plans to shrink its Airlink fleet by over 45 aircraft. Mesaba Aviation filed for Chapter 11 Bankruptcy on October 13, 2005. However, Northwest recently announced that it would once again increase capacity.
Northwest announced that on May 18, 2007 that shares of the company would begin to be traded on the NYSE under the ticker NWA. Initial trading on a "when-issued" basis began on May 21, 2007, and regular trading began on May 31, 2007. Also on May 18, 2007, Northwest Airlines was cleared by a federal bankruptcy judge to emerge from Chapter 11 Bankruptcy protection on May 31, 2007. It ended Northwest's 20 months of difficulty trying to slash costs, although it will still likely be an uphill battle, as labor unions who made large concessions will demand higher pay.
On July 16, 2007, Northwest Airlines applied to the United States Department of Transportation for nonstop service between its WorldGateway hub at Detroit to Shanghai (beginning in 2007 on Boeing 747-400s) and to Beijing (beginning in 2009 on Boeing 787 Dreamliners). The airline faced off against Delta Air Lines (who proposed Atlanta to Shanghai and Beijing), American Airlines (Chicago/O'Hare-Beijing), Continental Airlines (Newark-Shanghai), US Airways (Philadelphia-Beijing), United Airlines (Los Angeles-Shanghai and San Francisco-Guangzhou), and MAXjet (Seattle-Shanghai) in the route competition.
On August 12, 2007, Northwest Airlines became a possible passive investor in the purchase of Midwest Airlines by TPG Capital. They stated that while they are an investor, they will not participate in any management or control of Midwest Airlines. However, on August 14, 2007, AirTran Airways raised their offer for Midwest to $16.25 a share, 25 cents more than the TPG offer. But soon after on August 17, 2007, TPG Capital raised their offer to $17.00 a share which sealed the deal. Northwest Airlines became a minority owner of Midwest Airlines in the fourth quarter of 2007.
On September 25, 2007, Northwest Airlines received DOT approval to begin service to Shanghai from their Detroit hub beginning March 25, 2009. American, Continental, Delta, and US Airways also received new or additional China route authority to Shanghai or Beijing, and United received authority to serve Guangzhou.

Merger with Delta Air Lines
In early 2008 reports circulated about merger talks between Northwest and its SkyTeam alliance partner Delta Air Lines. The merger would transform both airlines because of vastly different aircraft fleets and hubs located very close together, making many expensive changes necessary for the future airline.
On April 4, in an announcement seemingly unrelated to the ongoing merger talks, Northwest CEO Douglas Steenland announced revenue enhancements and capacity reductions in response to the extremely high fuel prices. About 15-20 aircraft were to be removed from the fleet.
On April 11, labor unions at both airlines were reported to have struck an agreement giving the green light for a merger.
On April 14, both airlines announced their merger; the combined airline, which will be the world's largest, will retain only the Delta name.

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