If Northwest Airlines manages to avoid a destructive confrontation with its unions, industry experts say the airline would be well placed to survive and perhaps even thrive once it emerges from bankruptcy.
The airline heads back to U.S. Bankruptcy Court today as hearings resume on its request to cancel its union contracts with pilots and flight attendants -- moves the company says are necessary under its plan to cut $1.4 billion in costs. The unions contend Northwest's demands surpass what the company needs and have threatened to strike should U.S. Bankruptcy Judge Allan Gropper rule for the company.
Northwest, which employs 7,900 workers in Michigan, has said a strike could lead to its liquidation. But if Northwest and its unions reach an understanding without a strike, analysts say, Northwest should be able to emerge from bankruptcy relatively quickly.
"The prospects of Northwest surviving are excellent," said Terry Trippler, an airline expert and longtime Northwest observer for Cheapseats.com. "I think they'll come out of this a little smaller but a much stronger airline. ... Once this hearing is over, the worst is clearly past them."
Detroit Free Press
The airline heads back to U.S. Bankruptcy Court today as hearings resume on its request to cancel its union contracts with pilots and flight attendants -- moves the company says are necessary under its plan to cut $1.4 billion in costs. The unions contend Northwest's demands surpass what the company needs and have threatened to strike should U.S. Bankruptcy Judge Allan Gropper rule for the company.
Northwest, which employs 7,900 workers in Michigan, has said a strike could lead to its liquidation. But if Northwest and its unions reach an understanding without a strike, analysts say, Northwest should be able to emerge from bankruptcy relatively quickly.
"The prospects of Northwest surviving are excellent," said Terry Trippler, an airline expert and longtime Northwest observer for Cheapseats.com. "I think they'll come out of this a little smaller but a much stronger airline. ... Once this hearing is over, the worst is clearly past them."
Detroit Free Press