Northwest Airlines

Northwest Airlines (Code AITA: NW ; Code ICAO: NWA ) is the larger fifth Airline company in the world, with five hubs principal (Plateforme of correspondence) - Detroit, Mineapolis/Saint Paul, Memphis, Tokyo and Amsterdam - and approximately 2.738 flights daily. Air Northwest and its partners serve 750 cities in nearly 120 countries.

The September 15th 2005, NWA was put under the protection of article 11 (American legislative measure which protects it from the financial quasi-bankruptcy in which the crisis of the September 11th 2001 and the increase of the fuels plunged it).

History

Beginnings

Northwest Airlines was founded the 1916 by Colonel Lewis Brittin, under the name of Northwest Airways . As much of companies of this time, Northwest does not transport a passenger but concentrates on the routing of the mail on behalf of the Postal US . It is for this purpose, that the very young company opens its first connection between Mineapolis and Chicago, with biplanes such as the Curtiss Oriole.

Northwest begins transport from passenger in 1927 and opens its first line with international in 1928 in direction of Winnipeg to the Canada. The company develops thereafter in towns of less importances in the area. In 1931, Northwest sponsors Charles and Anne Linderbergh in the first flight for the Japan. In 1933, the company is indicated to operate the northern transcontinental road between New York, Washington and Seattle. The following year, following the Air Email Scandal , it changes name and becomes Northwest Airlines .

During the Second world war, Northwest supports the effort of war by convoyant men and military material between the continent and the Alaska. For this period, the tails of the planes of the fleet are repainted in red because of the climatic conditions and visual very difficult in Alaska. Thanks to this experiment of the hard Scandinavian climate, the government indicates Northwest to operate on the northern Pacific at the end of the Second world war.

In spring 1947, Northwest opens a base with Tokyo with its own personnel. It thus becomes the July 15th 1947, the first company to offer commercial flights between the the United States and the Japan with a Douglas DC-4. This first flight thus connects Mineapolis to Tokyo, while passing by Edmonton, Anchorage and Shemya. Since its base of Tokyo, Northwest continues until Seoul, Shanghai and Manila. With this new expansion, the company takes the trade name of Northwest Orient Airlines .

World expansion

The 1949, Northwest takes possession of its first Boeing 377 Stratocruiser double bridge, enabling him to offer a service higher than its passengers and, in same time, to reduce times of way. They are used for the line Seattle - Tokyo without stopover, and Chicago - Tokyo with stopover with Anchorage.

In 1951, Northwest takes part in the creation of Japan Airlines by renting apparatuses to him and by providing him crews. In 1952, following a bilateral treaty between the the United States and the Japan, Northwest Airlines and Pan American are the two only American companies with being able to transport passengers from the United States towards Japan and beyond (Today still Northwest, with United Airlines and Continental Airlines, belonged to the American companies to have the right to use Tokyo as Base operations. These agreements are the fact of the general McArthur, and were imposed on Japan to provide a civil aerial cover to Japan; country not having more airline company at the end of the Second world war). At present, Northwest is the first nonJapanese conveyer based with the airport of Tokyo Narita.

June 1st 1959, Northwest Orient Airlines is seen delivering its first apparatus Turbopropulseur, the Lockheed L-188 Electra. The July 8th 1960, the Douglas DC-8 enters in service the fleet, then offering the fastest connection towards the Asia. The company takes then delivery of the Boeing 720B in 1961 then Boeing 707. The arrival of these new aircraft is followed shrinking of the propeller planes, making of Northwest the first American company with a fleet only made up of apparatus with turbo reaction. Northwest launches its slogan " then; Northwest the East: The Airline" Fan-Jet; . In 1964, the Boeing 727-151 also enters the fleet.

Fusion, Repurchase and Alliance

After the air deregulation, Northwest opens direct connections with other Asian cities, it turns over in China in 1984 after a 34 years hiatus, and gradually reinforces its presence in the south of the United States. It also will open transatlantic lines towards the Great Britain, the Ireland, the Germany and the Scandinavia. October 1st 1986, Northwest buys its competitor Republic Airlines which is based with Mineapolis - St Paul, and adopts its network of hubs with Mineapolis-St Paul, Detroit and Memphis. At the time of this fusion Northwest gives up the " Orient" of its trade name.

In 1989, Northwest is repurchased by a group of investor carried out by Al Chechi , Gary Wilson and KLM inter alia, using a LBO. To refund the debt contracted for this operation, the new owners sell a great number of plane at companies of leasing as well as goods, in particular of land in Japan. The financial problems resulting from this repurchase are such as in 1993, after several exercises of losses due to surplus production capacity of industry and a reduction in the traffic following the Guerre of the Golf, Northwest is threatened of bankruptcy. An agreement over three years, bearing on the reduction of the wages, is finalized with the employees. The company becomes again finally profit for the first time since 1989.

The year 1993 mark also the beginning of an strategic alliance with KLM, which is then greatest air association ever conceived, under the name of Wings Alliance. However this alliance forever exceeded the framework of these two companies. Moreover with fusion of KLM with Air France, the two companies entered alliance SkyTeam, Wings Alliance becoming obsolete for the passengers. (Nevertheless from a legal point of view, Northwest/KLM alliance remains important because it with antitrust immunity, whereas SkyTeam alliance profits only from the Partage of code).

Northwest gradually closes its minor destinations in Europe, leaving these destinations to KLM, to concentrate on its domestic market and Asia. May 1st 1996, it becomes the first company to open a connection not-stop between the the United States and the China, between Detroit and Beijing, Detroit - Shanghai will follow in 2000. These connections were stopped during several years because of the SARS.

Consequences of September 11th, 2001

Because of the competition of the companies Low-cost such as Southwest Airlines and of the increase in the costs of personnel, following the new agreement signed with the employees represented by AMFA, Northwest starts to make economies. Two series of dismissals, as of cost reductions were set up in the preceding months September 2001.

After the Attacks of September 11th, 2001, Northwest is in the obligation to take drastic measures to reduce its costs, that is concretized by a new wave of dismissal. Cost reductions are also made in the fleet, with the shrinking accelerated of the expensive and growing old planes like the Boeing 727 and McDonnell Douglas DC-10 and the startup of new planes. In addition to that, the company reduces the costs by removing pillows, pretzels, newspapers and entertainments on board domestic flights. Lastly, nearly 50 McDonnell Douglas DC-9, Boeing 757, Boeing 747 and Airbus A320 are withdrawn from the service to lower the capacity of the company which is too large compared to a market in crisis. Some of these planes are again exploited since.

Although Northwest constitutes Wings Alliance with KLM and Continental Airlines, these three companies join another air alliance, SkyTeam, the September 15th 2004. This decision is partly the consequence of the fusion of KLM with Air France. The entry in SkyTeam does not stop therefore the hemorrhage in the accounts of Northwest. In spring 2005, the press is made the echo of the sale of many actions of the group by some top-ranking executives of Northwest. Shareholders bring thereafter a lawsuit against four leaders for operations of offense of initiate, among whom appear President Gary Wilson , the chairman Doug Steenland , the former director Al Checchi and the former chairman Bernie Han .

In spite of important initiatives to reduce the costs, Northwest has of another choice only to be put, for the first time of its 79 stories, under the protection of the chapter 11 on the bankruptcies the September 14th 2005. On this date, four of the six larger American companies are then under the protection of the chapter 11 , Northwest Airlines thus joined Delta Airlines, United Airlines and US Airways. All four will leave there. It is only the May 31st 2007 which Northwest leaves the protection of the Chapitre 11 after 20 months of difficulties and reorganizations, and it is again with dimensions with NYSE.

In August 2007, TPG Capital repurchases the company Midwest Airlines with supports of Northwest. The formed consortium gains the stock exchange battle which opposes it to AirTran Airways with an offer with 17$ per action. Northwest thus becomes a minority shareholder of Midwest. In September 2007, it receives the authorization to reopen the line Detroit - Shanghai as from March 2009.

Float

WorldPerks

The program WorldPerks of Northwest was indicated as being more appreciated programs of development of consumer loyalty of North America by the readers of the Time Asia in Readers' Travel Choice Awards (reward decreed by the readers for the best service of voyage) of the Time in 2003. According to a study of 2003 made by J.D. Power and Associates, the airports of Mineapolis/Saint Paul and Strait, both larger hubs of Northwest, are 2nd and 4th airports the most appreciated with the the United States by the travellers.

Since September 2004, it belongs to alliance SkyTeam.

External bond

Official Internet site (in French)

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