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

Monday

Tuesday

Wednesday

Thursday

Friday

Airborne On ANN

Airborne 02.23.15

Airborne 02.24.15

Airborne 02.25.15

Airborne 02.26.15

Airborne 02.20.15

Airborne Hi-Def On YouTube

Airborne 02.23.15

Airborne 02.24.15

Airborne 02.25.15

Airborne 02.26.15

Airborne 02.20.15

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

FAA Certifies Continental IO-360-AF Alternative Fuel Engine

Flight Design Scheduled For The First Delivery Of The New Powerplant The FAA has granted type certification to Continental Motors Group for its IO-360-AF (Alternative Fuel) engine.>[...]

Airborne 02.25.15: Orion Data, ALPA OPines On UAS, Blakey's New Gig

Also: Rutan Celebration, Orbis Flying Eye Hospital, Prince Harry, 1300th PC-12, Malaysian Pipers, Chalet Suzanne Auction NASA’s Orion spacecraft continues on the agency&rsquo>[...]

Airborne 02.25.15: Orion Data, ALPA OPines On UAS, Blakey's New Gig

Also: Rutan Celebration, Orbis Flying Eye Hospital, Prince Harry, 1300th PC-12, Malaysian Pipers, Chalet Suzanne Auction NASA’s Orion spacecraft continues on the agency&rsquo>[...]

Airborne 02.24.15: Becker ADS-B Tracking, TTD Elections, ADS-B Experimental News

Also: Antarctic Balloon, Royal Albanian Team?, A400M Refuel, A4A Joins UAV Program, AFASF Standdown, WAI Award Bombardier Commercial Aircraft has announced that Transport Canada in>[...]

AD: Sikorsky Aircraft Corporation (Sikorsky) Helicopters

AD NUMBER: 2015-04-05 PRODUCT: Certain Sikorsky Model S-76A, B, C, and D helicopters.>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2015 Web Development & Design by Pauli Systems, LC