Northwest encourage staff to be open minded about mergers
Published: 09/08/08
Northwest Airlines’ chief executive have warned their employees that staying on the sidelines during their rivals consolidation could hurt the US carrier’s future, a signal that he may be ready to discuss a merger with Delta Air Lines. Doug Steenland, chief executive of Northwest sent a memo out to the employees of Northwest Airlines shortly after a board meeting took place on Delta’s board on Friday. They were discussing whether to merge with Northwest Airlines or United Airlines.
Doug Steenland’s memo noted that, while Northwest’s recent emergence from bankruptcy protection left the company in better financial footing than many of its peers, escalating fuel costs have made it harder to remain profitable. Steenland also said: “Doing nothing could be our worst alternative,” Mr Steenland wrote. “If we wait to react to what others do, we could be left with options that are undesirable or with no options at all.”