NW Pilots Allowed To Sell Unsecured Claims Against Airline | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Recent Daily Episodes

Episode Date

AMA Drone Report

Airborne-Monday

Airborne-Tuesday

Airborne-Wednesday

Airborne-Thursday

Airborne-Friday

Airborne-Unmanned w/AUVSI

Airborne On ANN

AMA 04.20.17

Airborne
04.24.17

Airborne
04.25.17

Airborne
04.19.17

Airborne
04.20.17

Airborne
04.21.17

Airborne-Unmanned 04.18.17

Airborne-YouTube

AMA 04.20.17

Airborne
04.24.17

Airborne
04.25.17

Airborne
04.19.17

Airborne
04.20.17

Airborne
04.21.17

Airborne-Unmanned 04.18.17

Fri, Dec 15, 2006

NW Pilots Allowed To Sell Unsecured Claims Against Airline

Pilots To Create Retirement Savings Plan With Proceeds

Northwest's CEO Doug Steenland gave the company's pilots permission to sell 20% of the their $888 million bankruptcy claim early.

As Aero-News reported last month, pilots had asked permission for the sale on reports the airline's stock was selling at over 80 cents on the dollar -- 90 cents on some days.

The pilots based their request on the fact they had taken double-digit pay cuts to help Northwest reduce costs in the company's effort to emerge from bankruptcy. They took part of those cuts in the form of unsecured debt on the airline and hold approximately $888 million.

The pilots plan to sell 20% of that debt to get back some of their losses in cash and start a retirement savings plan.

In a memo to members, the chairman of Northwest's chapter of the Air Line Pilots Association (ALPA) said, "Our investment banker tells us that these claims have been selling at unusually high prices in recent weeks, especially due to recent merger speculation."

In the past few weeks three major merger bids have rocked the airline market. US Airways made a bid for Delta, United and Continental are reportedly getting very cozy and AirTran is wooing Midwest -- and that's just in the US. Merger mania is erupting all over the world as airlines weakened by the last half-decade of decline seek ways to climb out of debt.

Steenland told the Associated Press he believes Northwest's stock is selling so well because the company's restructuring plan has gone so well.

The company also authorized its ground workers including dispatchers, meteorologists and simulator techs to sell off 20% of their claims.

"Our pilots and our ground employees and our airport employees have sacrificed to help the company restructure, and we wanted to make sure that they had the opportunity to participate in this (claims) benefit when the benefit was at the high level," Steenland said.

Curiously absent from mention in Steenland's statement were Northwest's flight attendants. They also hold an unsecured claim on the company in bankruptcy court, but an ongoing bitter labor dispute has left them without a contract. With no contract, the amount of their claim remains in dispute.

Talks between the airline and its flight attendants adjourned this past Wednesday without an agreement.

FMI: www.northwest.com

Advertisement

More News

AMA Drone Report 04.20.17: Phantom 4 Advanced, NJ NIMBYism, AMA-DJI Team Up

Also: AUVSI XPO17 LIVE!, Steady Drone Sales, Drone v Shotgun... DJI’s new Phantom 4 Advanced offers a more powerful camera and more upgraded controls. The new upgrades the or>[...]

Airborne-Unmanned 04.18.17: Drones v Volcanoes!, Boston Marathon UAVs, XPO-LIVE!

Also: State Pavilions at XPONENTIAL, MQ-8C Fire Scout, Puma UAS, Drone Bust Drones DO wind up in some of the most amazing places... As evidence by the Universities of Bristol and C>[...]

Airborne 04.21.17: Gulfstream G280, Airport $$ Abuse, Boeing Jobs

Also: Drone Power, Jerkwater Drone Regs, CBP, Wichita UAS Mtg, Cessna Accident, Co-Pilot SNAFU, Atlas Air-Polar Air Gulfstream’s super mid-size G280 recently completed two mi>[...]

RFP: ANN Considering Future Options For HQ Relocation

Some Aggressive Upgrades For ANN, Aero-TV, and Airborne May Require New Digs It's been in development for years, but we're getting to a point where we think we can pull off somethi>[...]

Aero-News: Quote of the Day (04.24.17)

"We understand that the hearing will be 8 days before the Planes of Fame Air Show and we want to assure you that your overwhelming support throughout this situation has strengthene>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2017 Web Development & Design by Pauli Systems, LC