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Latest Business News

Judge OKs Northwest Bankruptcy Plan

Friday, May 18, 2007 5:07:20 PM
By VINNEE TONG

NEW YORK (AP) - After 20 months of a wrenching reorganization, Northwest Airlines got approval on Friday to emerge from bankruptcy protection into an industry besieged by higher fuel costs and crowded with competitors.

Eagan, Minn.-based Northwest Airlines Corp. announced it would exit bankruptcy on May 31, after Judge Allan Gropper approved its reorganization plan Friday. Northwest, the nation's fifth-largest airline, also plans to announce any post-bankruptcy marketing plans when it emerges.

Chief Executive Douglas Steenland said the company had reached all its bankruptcy goals, which included cutting annual operating costs by $2.4 billion, reducing debt and lease expenses by $4.2 billion a year and shrinking the overall size of its business.


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