From the NY times -- June 11, 2005
The chairman of Northwest Airlines has sold more than half his common stock in the last two weeks, amid heightened labor tensions and concerns that the airline might have to seek bankruptcy protection, according to regulatory filings released yesterday.
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Tim Shaffer/Reuters
Gary L. Wilson, the chairman of Northwest Airlines, has sold some 2.5 million shares since May 13.
Gary L. Wilson, who has been Northwest's chairman since 1997, has sold nearly 2.5 million shares since May 13, about 59 percent of his stock. Mr. Wilson sold more than a million shares this week, according to filings with the Securities and Exchange Commission. The price ranged from $5 to $6.64 a share.
Mr. Wilson remains Northwest's biggest shareholder, with 1.74 million shares, the filings showed. But that is down from about 3.8 million shares two weeks ago. He owned 4.34 million shares at the beginning of May.
A spokesman for Northwest, William D. Mellon, said Mr. Wilson was selling the stock as a "personal decision."
Mr. Wilson, 65, has been a director at Northwest since 1989 and became a co-chairman in 1991.
Northwest, the nation's fifth-biggest airline, has lost $3.3 billion since 2001, including more than half a billion dollars in the first quarter.
It is pushing its employees to grant $1.1 billion in wage and benefit cuts, so that it can lower costs to match those of other major airlines. Only Northwest's pilots and salaried employees have agreed to cuts, though.
The airline is engaged in verbal and legal sparring with unions representing its flight attendants and mechanics. Both unions have accused the airline of lining up nonunion replacements in the event of a strike.
Northwest has denied that it is seeking replacement workers, but said it would do everything it could to keep flying, even if a work stoppage occurred. The airline has placed ads on Web sites seeking applicants for a flight attendant training program. The ads say the applicants could be offered employment "in the event of a labor dispute or strike."
If a walkout occurs and other union members refuse to cross picket lines, analysts fear Northwest could be forced to seek bankruptcy protection.
Northwest has been aggressively cutting costs and eliminating amenities from its flights. On Thursday, the airline stopped giving free bags of pretzels to passengers in coach class and also dropped magazines, moves it said would save $2.5 million a year.
The chairman of Northwest Airlines has sold more than half his common stock in the last two weeks, amid heightened labor tensions and concerns that the airline might have to seek bankruptcy protection, according to regulatory filings released yesterday.
Skip to next paragraph
Gary L. Wilson, the chairman of Northwest Airlines, has sold some 2.5 million shares since May 13.
Gary L. Wilson, who has been Northwest's chairman since 1997, has sold nearly 2.5 million shares since May 13, about 59 percent of his stock. Mr. Wilson sold more than a million shares this week, according to filings with the Securities and Exchange Commission. The price ranged from $5 to $6.64 a share.
Mr. Wilson remains Northwest's biggest shareholder, with 1.74 million shares, the filings showed. But that is down from about 3.8 million shares two weeks ago. He owned 4.34 million shares at the beginning of May.
A spokesman for Northwest, William D. Mellon, said Mr. Wilson was selling the stock as a "personal decision."
Mr. Wilson, 65, has been a director at Northwest since 1989 and became a co-chairman in 1991.
Northwest, the nation's fifth-biggest airline, has lost $3.3 billion since 2001, including more than half a billion dollars in the first quarter.
It is pushing its employees to grant $1.1 billion in wage and benefit cuts, so that it can lower costs to match those of other major airlines. Only Northwest's pilots and salaried employees have agreed to cuts, though.
The airline is engaged in verbal and legal sparring with unions representing its flight attendants and mechanics. Both unions have accused the airline of lining up nonunion replacements in the event of a strike.
Northwest has denied that it is seeking replacement workers, but said it would do everything it could to keep flying, even if a work stoppage occurred. The airline has placed ads on Web sites seeking applicants for a flight attendant training program. The ads say the applicants could be offered employment "in the event of a labor dispute or strike."
If a walkout occurs and other union members refuse to cross picket lines, analysts fear Northwest could be forced to seek bankruptcy protection.
Northwest has been aggressively cutting costs and eliminating amenities from its flights. On Thursday, the airline stopped giving free bags of pretzels to passengers in coach class and also dropped magazines, moves it said would save $2.5 million a year.
