More About The NWA-Delta Deal
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May 21, 2008 2:05 pm US/Central
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Judge Approves $2M NWA Payment To Charity
MINNEAPOLIS (AP) ―
A bankruptcy judge on Wednesday told Northwest Airlines it can pay $2 million to a charity designated by former chairman Gary Wilson, and pay him $200,000 for consulting.
Wilson was Northwest Airlines Corp. chairman for 10 years before it emerged from bankruptcy protection on May 31, 2007. The airline originally planned to pay him $2 million directly but later sought to pay a charity of Wilson's choice instead. That's when it added the $200,000 consulting agreement, which runs through the end of this year.
Northwest's court filing did not say what Wilson will do, but said it wants him as a consultant "to allow Northwest to continue to benefit from Mr. Wilson's significant experience and relationships in the airline industry, as well as his knowledge of the broader financial community."
The $2 million on behalf of Wilson makes sense because of "the circumstances of this successful reorganization, and in consideration of Mr. Wilson's services to Northwest," the airline said in requesting permission to make the payment.
Wilson will also get medical benefits for life and travel privileges on Northwest.
(© 2008 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)