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Reality Check: MN Money Invested In NWA

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Feb 15, 2008 7:01 pm US/Central

Reality Check: MN Money Invested In NWA

Reporting
Pat Kessler
(WCCO) Northwest Airlines made specific promises and got special assistance from the Metropolitan Airports Commission last year to help it climb out of bankruptcy.  It's TRUE. 

Northwest signed legal agreements to keep the airlines' world headquarters, its top officers, and a majority of its executives here in Minnesota. And to maintain its lucrative hub -- here.

IN FACT ... If Northwest reneges its agreement; it would forfeit $200 million in concession rebates at the airport, and rent reductions at its maintenance hangar through the year 2020.

But that's only part of what the Minnesota-based airline would owe. 

What you NEED TO KNOW is that Northwest Airlines has not yet paid back another $245 million in loans issued by the airport back in 1992.

It was part of a bailout package for Northwest, one of Minnesota's largest employers, which was threatening bankruptcy for the first time back then.

Here's the BOTTOM LINE.

If Northwest and Delta merge, and Northwest moves its headquarters or its hub ... it will be forced to immediately settle its debts, and lose future revenue.

A payback to the public of $445 million.

That's Reality Check.




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