Jan 26, 2009
MINNEAPOLIS-ST.PAUL, MINN., Jan. 26, 2009 – The Metropolitan Airports Commission (MAC) today voted in favor of an agreement with Delta Air Lines (NYSE: DAL) that would commit Delta to maintain 10,000 Minnesota jobs and 400 daily departures from its Minneapolis-St. Paul hub.
Delta CEO Richard Anderson called the agreement a win for all parties involved. "I want to commend the MAC and the leadership of Jeff Hamiel and Jack Lanners for approving an agreement that we believe is good for the State of Minnesota, the traveling public and our employees who live here," Anderson said. "This agreement solidifies our commitment to Minnesota and continues to build upon a long-standing relationship that Northwest, and now Delta will have with the state moving forward."
Anderson added, "I also want to thank Governor Pawlenty, and members of the state legislature from both parties, for their leadership in crafting an agreement that protects jobs and air service for the people Minnesota."
The new agreement is part of renegotiated repayment terms for approximately $245 million on bonds that the MAC issued for Northwest Airlines’ use in 1992. Northwest is now a wholly owned subsidiary of Delta and, at issue, is a requirement that Northwest maintain a corporate headquarters in Minnesota.
In exchange for relief from this requirement, Delta agreed to increase its daily flight commitments from 187 in the original agreement to 400; to shorten the bond repayment period to 2016 from 2022; and to go beyond the original bond covenants and specific job functions that will stay in Minnesota as part of the 10,000 jobs commitment, including pilot and flight attendant bases; reservations centers in Chisholm and the Twin Cities; the pilot training center and technology center in Eagan; and the headquarters of Mesaba Airlines. In addition, Delta committed to place other well-paid airline management functions in Minnesota, including the Delta North headquarters; the new headquarters for management of Delta’s regional airlines (Delta Connection); and to relocate the Compass Airlines headquarters from Virginia to Minnesota.
Northwest’s outstanding obligations to the MAC are collateralized by assets valued at 140 percent of the amounts owed. Therefore, there was little or no risk to the state or the MAC for amending the covenants and extending the existing agreement. Repayment of the $245 million in outstanding obligations goes directly to the bondholders, not the state, MAC or Minnesota taxpayers.
I will respond with help from my iPod:
Billy Preston said it best nothing from nothing means nothing if you want to be with me. Got to have something to be with me.
Sublime sang the answer is always waiting at the liqour store and I am not going back because a 40 oz to freedom makes me feel good when I feel bad.
I see a bad moon rising, John Foggerty is bummed.
Hitting some heavy ******************** now, Goodnight Saigon, we sang to our doors tapes.
Believe it or not tubthumper is playing pissing the night away. Are you ever going to keep me down. Don't cry for me next door neighbor.
Now a little Alice In Chains playing laying low want to take slow find me sitting by myself no excuses that I know
It's All Right Curtis Mayfield a great song
Kiss Me by Sixpence none the richer not my proudest contribution to this sacred treasure chest but a song that defines a moment in my life getting up early next to a beautiful woman
California gurls my boys love this song and snoop is one of my favorites
Texas Radio and the Big Beat the negros in the forest brightly feathered they are saying forget the night live with us in forests of azure