How times have changed: a handy guide to NWA’s dealings with the state of Minnesota

The Minnesota Legislative Reference Library has compiled a historical guide to the relationship between Northwest Airlines (NWA) and the state of Minnesota. The guide begins in 1989 when a group of investors purchased NWA for $3.65 billion and ends with the April 14 announcement of a merger with Delta Airlines. It includes details on public subsidies, labor concessions, the threat of bankruptcy and the all-important 1991 authorization of the requirements for a $761 million public-financing package for the construction of aircraft maintenance and repair facilities in Minnesota.

Highlights from the historical guide after the jump.

Continued: Click “Read more” 1989 JUNE: NWA sold to a group of investors, including Gary Wilson, Al Checchi, KLM Royal Dutch Airlines and others, for $3.65 billion.

1992 MARCH: State officials sign a $761 million public-financing package for NWA. 

1992 NOVEMBER: NWA’s six unions agree in principle to accept $900 million in employee concessions over the next three years. NWA seeks a $300 million loan. KLM Royal Dutch Airlines, a part owner of NWA, and Bankers Trust, pledge $100 million if other lenders will commit to the rest.

1993 JANUARY: More than 1,000 NWA employees are laid off.

1993 JUNE: NWA warns unions that it will file for Chapter 11 bankruptcy protection within two or three weeks if contract concessions are not promptly approved.

1993 AUGUST: $886 million worth of contract concessions go into effect.

1995 JANUARY: Northwest Airlines posts record earnings of $295 million in 1994 after five years of losses.

1996 JANUARY: NWA reports record earnings for 1995.

1997 JANUARY: NWA reports record earnings for 1996.

1997 DECEMBER: Northwest decides to send its jet engines to a French overhaul facility. This decision permanently cancels a 1991 agreement the airline had negotiated with Minnesota state officials to build an engine overhaul facility in Hibbing.

1999 FEBRUARY: Northwest Airlines issues a report to demonstrate how it has fulfilled its 1994 commitments to the state.

2005 SEPTEMBER 14: Northwest Airlines voluntarily files for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code.

2005 TO 2007: Northwest faces a variety of difficulties: filing for bankruptcy, debt-restructuring, layoffs, a series of strikes and labor negotiations. A January 16, 2007, Star Tribune article states that Northwest still owes $262 million on the $270 million it borrowed from the Metropolitan Airports Commission in 1991.

2008 APRIL 14: Northwest Airlines and Delta Air Lines announce their plan to merge, which would create the world’s largest airline.