Feb 8, 2008 3:13 pm US/Central
NWA CEO: 'Consolidation Is Highly Likely'
MINNEAPOLIS (AP) ―
-
-
NWA CEO Doug Steenland wrote that any deal would have to create "a more stable, financially secure airline; one that offers world-class service with an end-to-end network and competes strongly as a truly global carrier." (File)
NWA
Northwest Airlines CEO Doug Steenland told employees that "consolidation is highly likely at some point" and said doing nothing "could be our worst alternative."
Northwest Airlines Corp. and Delta Air Lines Inc. have been talking about joining the two carriers, and other combination ideas have been floated involving United and Continental, too.
In the letter sent to workers on Wednesday, Steenland said executives and Northwest's board "would not move forward with any transaction that did not serve the interests of our employees, our shareholders, our customers, and the communities we serve."
He added, "doing nothing in this area could be our worst alternative. It's always preferable to be in control of our own destiny rather than have it dictated to us."
"I do believe that consolidation is highly likely at some point -- particularly with the high cost of fuel and the other challenges that the industry faces."
He wrote that any deal would have to create "a more stable, financially secure airline; one that offers world-class service with an end-to-end network and competes strongly as a truly global carrier."
Also Friday, 29 Minnesota business leaders called on Steenland and Delta CEO Richard Anderson to increase service to Minneapolis if the two airlines merge.
The letter signed by CEOs including those at Best Buy, U.S. Bancorp, General Mills, and Medtronic, pointed out that Minnesota has 20 companies in the Fortune 500, more than many larger states.
"World-class air service will be essential to our success -- and profitable to the carrier that serves the region," the letter said.
The idea of combining Atlanta-based Delta and Eagan-based Northwest has also prompted elected officials in Minnesota and Georgia to remind the airlines of commitments they have made to their home bases. Both airlines employ thousands of people in their home states, and businesses factor in air service when they decide where to locate or expand.
(© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
Click to enlarge
Stumble It!
![](<a href="http://wcco.com/formsection?fid=693283"><img src="http://static.cbslocal.com/station/wcco/images/knowmoresend.jpg"></a>){kind=link}