NWA pilots concerned about possible bankruptcy
In an 8-K report filed July 1, 2005, with the Securities and Exchange Commission, NWA management stated it had discussed with the NWA Board of Directors that failure to obtain necessary labor cost savings and pension relief could cause the company to consider seeking protection under Chapter 11 of the bankruptcy code.
The report claimed the spike in fuel prices has accelerated the need for labor cost savings.
The union analysis of NWA's financial condition confirmed that the time for NWA to achieve a solution outside of Chapter 11 is rapidly decreasing and based upon a statement by NWA President and CEO, Doug Steenland, Chapter 11 could come as soon as this fall.
Judy Tarver
7/12/2005
In a memo to Northwest Airlines pilots, ALPA Master Executive Counsel (MEC) Chairman, referenced a Wilson Center poll that indicated most NWA pilots recognize bankruptcy is a possibility at the company. It also indicated the pilots believe the possibility of bankruptcy lies in some distant future. 7/12/2005
In an 8-K report filed July 1, 2005, with the Securities and Exchange Commission, NWA management stated it had discussed with the NWA Board of Directors that failure to obtain necessary labor cost savings and pension relief could cause the company to consider seeking protection under Chapter 11 of the bankruptcy code.
The report claimed the spike in fuel prices has accelerated the need for labor cost savings.
The union analysis of NWA's financial condition confirmed that the time for NWA to achieve a solution outside of Chapter 11 is rapidly decreasing and based upon a statement by NWA President and CEO, Doug Steenland, Chapter 11 could come as soon as this fall.