Northwest Is Flying On A Threat And A Prayer

Can one more airline fit into the U. S. Bankruptcy Court's hangars? Northwest Airlines Inc., which last year lost $405 million before special charges, has been heading toward a Chapter 11 filing for months. To avoid that, Co-Chairmen Alfred A. Checchi and Gary L. Wilson demanded $900 million in concessions from Northwest's six unions last year. But as talks with the unions drag on, the carrier is running low on cash. One source close to the board says that "if there is no deal with the unions, Northwest could go into bankruptcy" as early as March.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.