Northwest Airlines Corp. remained one of the most financially sound carriers in the nation in 2004, largely due to cost cutting.
In January, then-CEO Richard Anderson asked pilots for concessions to help keep the Eagan-based carrier out of bankruptcy. In November, they reached a two-year deal that would save the airline $265 million per year, cutting pay 15 percent for its 5,300 pilots who earn upwards of $130,000 a year. Northwest executives also took a hit, but Anderson left in October for a position with UnitedHealth Group, Minnetonka. Northwest's new CEO is Doug Steenland.
Throughout the fall, Northwest aggressively took advantage of its rivals' weaknesses by adding several non-stop routes out of Milwaukee and Indianapolis.
Minneapolis-St. Paul International Airport faced changes as well. The Metropolitan Airports Commission (MAC) voted in June to approve changes to the airport's retail and food and beverage concessions that are projected to more than double revenue to $20 million. Previously, MAC was contractually obligated to give priority to Bethesda, Md.-based HMSHost Corp. Several companies were awarded space under the new plan.
In September, Gov. Tim Pawlenty and Northwest announced a proposed $860 million expansion of the airport. Under the plan, several larger carriers, such as United Airlines and American Airlines, would move to the little-used Humphrey Terminal. The expanded Lindbergh Terminal would be reserved for Northwest and alliance partners, such as Delta Air Lines and Continental Airlines. The MAC in December delayed its vote on the expansion project, citing the need for more information.
