Richard Anderson goes to United Health, president Douglas Steenland takes over

Northwest Airlines CEO Richard Anderson (photo below) has resigned from his post at the airline after 42 months and is leaving the company to accept a position at United Health. The president of the airline, Douglas Steenland has taken over the responsibilities of CEO and will now deal with the struggle of the airline to survive amid low fares and tough competition.

"He's going to a better job," said Ray Neidl, aviation analyst at Calyon Securities, to the Associated Press. "He's going to a profitable company."

The airline has been going through the same woes as virtually every other US airline after the economic disaster caused by the September 11, 2001 attacks, as well as fuel cost increases with no end in sight. It reported a loss in July for the quarter ended in June. As part of ongoing cost-cutting efforts, the airline continues to negotiate with its pilots.

According to Neidl, Anderson's continues to show the trend of airline CEO's resigning over poor performances. "You will see some more airline executives leaving," he said. "All of them are taking salary cuts, and can make more money by leaving the industry. Also, there is the frustration of having to deal with businesses that need restructuring."

Douglas Steenland has extensive experience within the airline, having been responsible for various areas, from alliances with other airlines to labor relations. "We continue to tackle our overall cost issues, both with respect to labor and with respect to how the rest of the airline operates," Steenland said in a conference call.

Steenland is not planning to waver from the target of cutting Northwest's labor costs by nearly $1 billion annually. He also said that he expects to reach an agreement with pilots sometime in the fall.

FMI: www.northwest.com