Steenland: Northwest is 'fixed,' will not merge
Maybe all this talk about airline consolidation is overblown. Northwest on Tuesday became the latest airline to reiterate plans to go it alone, with CEO Doug Steenland saying the Minnesota-based carrier has no plans to merge in 2007, The Associated Press reports. But the St. Paul Pioneer Press (free registration) writes that "he declined to comment on whether Northwest has had or is having merger talks with Delta or another airline. Delta has denied talks with Northwest as it fends off a hostile bid from US Airways, and also insists it intends to emerge from bankruptcy court as an independent business." Steenland says he doubts a hostile airline takeover could be successful under current market conditions. "The odds on it are very small. If it does, it puts pressure on the rest of the industry as to what their options are," he is quoted as saying by the Pioneer Press. Steenland added that the difficult task of combining airlines is tough to pull off even when "everyone is working on a friendly basis," a likely reference to US Airways' hostile bid for Delta. As for Northwest and its future, Steenland claimed that "the airline is fixed" and ready to exit bankruptcy as a stand-alone carrier, according to the Minneapolis Star-Tribune (free registration). He went on to say that Northwest's restructuring is "basically complete," adding that Northwest is "going to be a successful airline for the long term. It has a competitive cost structure." The Pioneer Press writes that "in the past 16 months under bankruptcy court protection, the airline has cut $2.5 billion in annual costs, shrunk its fleet, cut workers' wages and benefits and renegotiated key union, vendor and financing contracts." I love the part where Steenland states "the airline is fixed." That's like saying a 40 year drug addict who completes his first day of rehab is "fixed." Hilarious...
