New York : The fifth largest US carrier Northwest Airlines Corp. has overcome bankruptcy protection after more than two years of severe cost-cutting measures.
Northwest emerged from bankruptcy Thursday. It was the last major US airline to enter and now last to emerge from insolvency after United Airlines, Delta Airlines and US Airways all came through the process since 2001.
Northwest lost $4.62 billion between 2001 and 2005, and another $2.84 billion last year, but expects to post a profit of $794 million in 2007. The Minnesota based company reorganised routes, reduced and upgraded its fleet, slashed salaries and fired about 6,000 workers on its way to cutting some $2.4 billion in production costs.
Major airlines in the US were severely impacted by the September 11, 2001 terrorist attacks and by stiff competition from low-fare carriers.