Northwest Airlines Corp. can abandon several out-of-commission airplanes, a bankruptcy judge ruled Friday.
Some companies that lease planes to Northwest argued that if the airline did not return the aircraft properly or with the proper equipment and documentation, it could cost them millions of dollars.
U.S. Bankruptcy Judge Allan Gropper said he would not decide how the nation's fourth-largest airline, which filed for bankruptcy protection on Sept. 14, should return the planes but asked the parties "not to act unreasonably."
The aircraft in question were seven planes sitting in the desert and not being used. Some are missing parts, and are unmovable and unmarketable in their current condition.
"One of our engines is in a repair shop in Germany ... We would have to pay the repair shop $2 million," said Michael Richman, an attorney representing ABN Amro Holding NV, which leases about four aircraft to Northwest.
Northwest, based in Eagan, Minn., has recently been seeking $1.4 billion in concessions from workers, but so far, talks have resulted in just a preliminary deal with pilots and a mechanics strike. Northwest has said it plans to slash costs of up to $2.5 billion, eliminate jobs and create a subsidiary to bring the company out of bankruptcy.
Northwest will probably need to abandon more planes if it cannot refinance them.
Also on Friday, Northwest reiterated it was close to settling a lawsuit with American Express Co.'s travel services unit, which the airline claims has withheld payments worth about $63.4 million for tickets on its flights. Northwest lawyers said the dispute should be resolved by early next week.
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