Sat, Oct 02, 2004
Richard Anderson goes to United Health, president Douglas
Steenland takes over
Northwest Airlines CEO Richard Anderson (photo below) has
resigned from his post at the airline after 42 months and is
leaving the company to accept a position at United Health. The
president of the airline, Douglas Steenland has taken over the
responsibilities of CEO and will now deal with the struggle of the
airline to survive amid low fares and tough competition.
"He's going to a better job," said Ray Neidl, aviation analyst
at Calyon Securities, to the Associated Press. "He's going to a
profitable company."
The airline has been going through the same woes as virtually
every other US airline after the economic disaster caused by the
September 11, 2001 attacks, as well as fuel cost increases with no
end in sight. It reported a loss in July for the quarter ended in
June. As part of ongoing cost-cutting efforts, the airline
continues to negotiate with its pilots.
According to Neidl,
Anderson's continues to show the trend of airline CEO's resigning
over poor performances. "You will see some more airline executives
leaving," he said. "All of them are taking salary cuts, and can
make more money by leaving the industry. Also, there is the
frustration of having to deal with businesses that need
restructuring."
Douglas Steenland has extensive experience within the airline,
having been responsible for various areas, from alliances with
other airlines to labor relations. "We continue to tackle our
overall cost issues, both with respect to labor and with respect to
how the rest of the airline operates," Steenland said in a
conference call.
Steenland is not planning to waver from the target of cutting
Northwest's labor costs by nearly $1 billion annually. He also said
that he expects to reach an agreement with pilots sometime in the
fall.
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