| About Our Restructuring | For Our Customers | For Our Suppliers | Media Information | Legal Information |
| For Our Suppliers
|
| Supplier Q&A |
| Accounts Payable Hotline 612-726-3656 |
| September 14, 2005
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| Dear Business Partner:
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| As you may have learned already, Northwest Airlines today took an important
step in our transformation to a competitive, new-era carrier by voluntarily
filing for protection under Chapter 11 of the U.S. Bankruptcy Code. |
| Although this was a very difficult decision, it will come as no surprise to
those who understand the changes now occurring in the airline industry, the
tremendous disadvantages faced by legacy carriers in light of competition with
low-cost carriers, and of course, the impact of skyrocketing fuel costs. We
have been very candid in our public statements about our high debt levels,
labor and pension costs that impede our ability to compete, and about the need
to significantly lower our costs.
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| I want to assure you that Northwest Airlines is not going out of business and
will continue to operate a full schedule. However, the simple
fact is that our losses are growing rapidly, and we must take action now to
restructure. We believe this Chapter 11 filing is the most prudent way to
ensure that we transform and will be able to compete, now and in the future.
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| The Company’s current unrestricted cash and short-term investments balance is
$1.5 billion, which we will use as working capital. This will provide adequate
resources to purchase goods and services and fund operations throughout the
reorganization period. |
| Unfortunately, U.S. Bankruptcy law prohibits payment for goods and services
received before today’s filing date. We regret any hardship this may present,
but we sincerely hope that we can look forward and continue to work together in
a positive fashion in the weeks and months ahead.
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| As you may know, the Bankruptcy Code provides a priority status for
post-petition purchases – goods and services received after filing. We can and
will pay for such post-petition purchases in the normal course of business, in
accordance with the terms of our purchasing agreements.
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| We are committed to keeping you fully informed as our restructuring moves
forward. A special Web site – www.nwa-restructuring.com – has been established
to provide information about our filing. If you have any further questions,
please feel free to speak with your regular contacts at Northwest Airlines, who
will address your inquiries. Additionally, you may contact us on our Accounts
Payable Hotline at 612-726-3656.
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| We look forward to continuing our relationship as we work together to provide
outstanding service to our customers and to keep Northwest on the strongest
course possible toward a successful future. |
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Sincerely,
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|
Doug Steenland
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