Judge Also Rules Northwest Can Reject Plane Leases

Northwest Airlines reported Wednesday the carrier has lost a combined $346 million during the first six weeks of operating under Chapter 11 bankruptcy. The loss included $136 million in operating costs, and $158 million in reorganization expenses from the date NWA filed for Chapter 11, September 14, and the end of October.

During the same period, the carrier posted revenue of $1.57 billion, according to the Associated Press. Northwest said it had $1.6 billion available in cash and short-term investment capital on October 31.

In a related story, a US bankruptcy court judge Tuesday allowed Northwest to reject leases on 15 Canadair CRJ-200 regional jets (file photo of type, below). The jets were part of commuter operator Pinnacle Airlines' fleet, and had been used to fly Northwest Airlink regional routes for the bankrupt carrier.

Wells Fargo Bank, which held the paper on the aircraft, accused Northwest of favoring its other lessors at the expense of the San Francisco-based financial giant. The court viewed the issue differently, as Northwest hopes to reject leases on as many as 200 aircraft as part of its slimming down during restructuring.

Northwest had previously reported losing $475 million for the quarter that ended September 30. Overall, the carrier has said it expects to lose $1.7 billion for the year.

FMI: www.nwa.com