Feb 15, 2008 7:01 pm US/Central
Reality Check: MN Money Invested In NWA
(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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