Northwest Airlines Annual Report 1970

NO I EST ORIENT IRLI -S
1970 ANNUAL REPORT
TABLE OF CONTENTS
Pre idcnt' Me age ..... Page 4-5
1970 Highlights ..... Page 6-7
inancial Review ..... Page 8-9
Northwest Orient' Jet Fleet .. . ... Page 10
Financial Report. .. Pages 11-19
Route Map ... Pages 20-21
Officer and Director . . .... Page 23
Front over: A ortlnvesl
Orie,11 747 poised f or take-o/r
Below: Gro1111rl support eq11ip111e11I
liner/ up al Tokyo Jntematio11al
Airport to service 011e of
1ortlnvest Orie111' 1e11 7../7's.
Total Operating Revenues .................. . ... .
Operating Income . . ........................... .
Net Earnings for th Year . ..................... .
Per Common Share ................. . ...... .
Stockholder ' Equity . .. .. . . . ... . . ... .. . . . .. . ... .
Per ommon Share ... . ........ . ....... . ... .
Dividend Paid .. . . ... .. .. . ........ . . . .. . .... . . .
Operating xpcn e -
Per Available Ton-Mile .............. . ...... .
Per Revenue Ton-Mile .. . ..... .. ..... . ..... .
Revenue Traffic-
Pa engers Carried ..... . ... . .. . ...... . . .... .
Pa enger-Miles Flow'n . . ... .. .. . .. . .... . .. . .
Ton-Mile , Mail, reight and Ex pres .. ... .. . .
ommon hare al Year End . ... .. . .. .. .. .... . . .
HIGHLIGHTS OF 1970
1970*
$ 379,040,136
51,082,622
44,439,469
2.1 1
465,210,190
22.00
9,464,532
18.0
43.5
4,682,812
4,506,256,000
204,714,000
2 l, 149,756
1969
$ 467,937,999
82,126,009
5 I ,465,53 1
2.55
426,796,925
20.41
9,117,379
15.2
34.5
7,517,780
6 208,725,000
341 ,584,000
20,914,272
*Operating re ult , in 1970 ajjecte I by a BRA C strike which extended.from July 8 through December 14.
4
44th Annual
Report to
the Stockholders
From the President:
Earnings Leadership
For the third consecutive year, your
Company led all U. S. air carriers in
net earnings with an after-tax profit
of $44,439,469 in the calendar year
1970. et earnings were down
$7,026,062 from the prior year. How-
ever, your Management considers that
the 1970 performance was effective in
view of the five-month strike and the
substantial reduction in the profit
results of the U. S. airline industry.
Strike Cut Earnings
The strike fr m July 8 through
December 14, 1970 by the Brother-
hood of Railway and Airline Clerks
union cut into gross revenue receipts
and reduced earnings.
During the first six months of 1970
the net profit was $24,595,000-an
increa e over the same period a year
earlier. During the third and fourth
quarters profits declined from a year
earlier.
The impact of the strike was re-
duced by the deci ion of your Com-
pany to continue flight operations to
the extent possible with available
employees and supervisors and with
the funds derived from the Mutual
Aid Agreement.
The initial July operation during
the trike consisted of 22 daily long-
haul flight and operations were
expanded each month so that by
December 14, i970 the Company had
52 daily flights in operation.
The expan ion wa made possible
by the decision of a number of em-
ployee rep re ented by the B RAC to
return to work and by exten ive use
of upervi ory and management
per onnel.
Continuing operations provided
several important benefits:
1. We continued service to a num-
ber of cities which were most
dependent on us for air service
- Fargo and Bismarck, orth
Dakota; Billings and Great Falls,
Montana; and Winnipeg, Canada,
as examples.
2. We continued to provide employ-
ment for nearly 4,000 of our em-
ployees-almost one-third of our
total work force.
3. We maintained our identity as
an airline in key markets like
Chicago, ew York, Seattle,
Tokyo, Seoul, Hong Kong,
Manila, Okinawa, Tai pei, San
Francisco and Honolulu.
The Boeing 7 47
Ten Boeing 747's were delivered
during 1970 and placed into operation
on both the domestic and international
routes of the Company. The first of
these remarkable new-generation air-
planes was introduced into cheduled
service on June 22, 1970. orthwest
Boeing 747' now fly from ew York
Chicago, Minneapolis /St. Paul
Miami , Seattle, Los Angele San
Franci co, Hawaii, Tokyo, Taipei
Manila and Hong Kong. The capital
expenditure for these 10 airplanes and
spare engines and equipment in 1970
was approximately $245,000 000.
During 1971 the Company will take
delivery of five Boeing 747B airplanes.
The "B Model" will have an increased
operating range of approximately
1,000 nautical miles.
1ew Ground Facilities
The arrival of the Boeing 747 into
the aircraft fleet and the expansion of
our freight and passenger busines
required the planning and construc-
tion of new facilities.
In Seattle and in Minneapoli /St.
Paul new 747 hangars and mainte-
nance shops have been built at a cost
of 23,800,000. A new flight services
building to handle air freight and pro-
vide space for pilot training has also
been completed in Minneapolis /St.
Paul at a cost of $3,500,000.
ew facilities for the comfort and
convenience of our passengers were
completed in 1970. A sparkling new
satellite terminal building constructed
for us at the Wash ington ational
Airport give orthwest Airline a
very real marketing advantage in this
important market.
ew Routes
Boston and Baltimore became citie
on our route tructure on August 10,
1970 under authority granted us by
the Civil Aeronautics Board in the
Twin Cities-Milwaukee Long-Haul-
Investigation.
Inauguration of service to these
cities from Minneapolis /St. Paul and
Milwaukee has been delayed because
of the BRAC strike and the necessity
to first restore service to our existing
route structure. Plans now call for
introduction of Boston service on
June 1, 1971.
Increased competition on orth-
west's routes was evident in 1970 as
two airlines began nonstop opera-
tions from Milwaukee to ew York
-Western Airlines began Minne-
apolis /St. Paul service to Seattle and
Portland and United Airlines began
nonstop service from Minneapolis /
St. Paul to ew York.
Merger Abandoned
orthwest Airlines announced on
March 10, 1971 that the agreement of
merger between orthwest and orth-
east Airlines, Inc., had been terminated
by the WA Board of Directors.
The merger agreement filed with
the Civil Aeronautics Board in Jan-
uary 1970 provided that the merger
would not become effective if the CAB
imposed conditions that would
adversely and materially affect the
surviving corporation, orthwest Air-
lines, Inc.
The CAB on December 31 , 1970
conditioned the approval of the mer-
ger by prohibiting the operation of
Segment 7 of Route 27 between Miami
and Los Angele by orthwest Air-
line and, in addition, proposed to
initiate a new proceeding to determine
whether that roule segment should be
tran ferred to some other air carrier.
ortheast Airlines and orthwest
Airlines filed peLition for recon ider-
ation with the CAB on January 15,
1971, seeking a reconsideration by
the CAB and the removal of limiting
conditions concerning route authori-
zations.
On March 1, 1971 the Civil Aero-
nautics Board rejected the petitions
for reconsideration.
The Year Ahead
With our costs in hand and the
prospect of an upward across-the-
board adjustment in fares being ap-
proved by the Civil Aeronautics
Board, we look ahead to recover from
the adverse effects of the BRAC strike.
The impact of sharply increased
labor costs and rising prices for fuel,
materials and services will certainly
be felt in the year ahead. A resurgence
in the U. S. economy could provide
the stimulus needed for the regenera-
tion of growth in the airline industry.
In summary, your Management
views 1971 as a year both of challenge
-and of opportunity.
March 19, 1977
Donald W. yrop
President
5
B
1970 ... Highlights
of the year in review
The delivery of ten Boeing 747
super-jets-a nd their introduction
into cheduled ervice-was without
question one of the highlights of the
year 1970.
Arrival of the first of the $22.5 mil-
lion aircraft on April 30, 1970, trig-
gered th e imple menta ti o n o f th e
planning that had gone on for more
than a year in advance.
747 Service
A fter flight training fo r initial crews
wa completed, fi rst scheduled 747
service was introduced on June 22
with a daily round trip between the
T win Citie and ew York.
On Ju ly 1, 7 4 7 se rvice was ex -
panded to provide a daily ew York-
Chicago-Seattle-Tokyo round trip, a
second Twin Cities- ew York daily
round tri p and a once-weekly ew
York-Chicago-Honolulu ro und trip.
With delivery of additional aircraft,
747 ervice was extended to other
sy tern cities including Miam i, H ong
K ong, Taipei and Manila.
In 1971, 747 service is planned fo r
Los Angeles, San Francisco Hono-
lulu and A nchorage as well.
ew Facilities
The heer size of the Boeing 747 re-
quired con truction of new facilities
for maintenance, overhaul and pas-
enger handling.
Project now completed, or nearing
completion, include the 747 hangar
exten ion in Seattle, a new 747 ter-
minal addition at Minneapo lis /St.
Paul International Airport, a major
$1 million expansion of maintenance
shop and con truction of two new
74 7 hangars in the Twin Ci tie .
Other major project completed in
1970, not directly related to the op-
eration of the 747, included a triking
new atellite pa enger terminal at
Wa hington ational airport, comple-
tion of a new dining room, coffee hop
and cocktail Joung in Anchorage,
la ka, and a nev flight service
building in t he T in Cit i e ho u in g
pi! t training and air cargo facilitie
ew Ideas
Th arri al f the 747 m ant new
appr a he had to b developed in a
numb r of area .
Northwest Airlines brought a new
concept for cabin service to the 747,
called "Zone Group" . This method
provides individual service to pas-
sengers in each cabin, yet permits
overall coordination of passenger
service in the airplane. This method
is also applied to emergency proce-
dures for the 747 and its value was
proven when orthwest became the
first airline to successfully evacuate
passengers for the required Federal
Aviation Administration demonstra-
tion on the first attempt.
To expedite customs clearance of
in bound 747 passengers from the Ori-
ent through Seattle, orthwest per-
suaded th e Customs, Immigration
and Public Health Service to convert
to a screening /inspection system in
late 1970 which materially reduced
the time required.
New Computer Services
The change-over from the U nivac
490 to the U nivac 494 computer sys-
tem was completed on Februa ry 1,
1970.
In addition, the second phase of
the I ST A-RES program was put
into operation on October 15, 1970.
This computerized reservations sys-
tem, the most modern and compre-
hensive in use by any airline today,
provides reservation, sales a nd air-
port agents the a bility to create, re-
trieve a nd amend passenger-n a me-
record (P R) by use of keyboard
act ivated co nsoles which resemble
miniature TV sets. This capa bility is
added to the earlier a bility to view
sched ules, seat inventories, fares and
other pertinent information-and to
make instant reservatio ns for the cus-
tomer and have them confirmed.
Other benefits afforded by the new
Univac 494 system include enhance-
ments to communications message
witching weather analysis, data col-
lection, payroll processing and jet
engine monitoring programs.
Environmental Concern
Ccntinuing leadership in the field
of noi e abatement was demonstrated
b the Flight Operation Department
of orthwe t Orient and the Com-
pany' pilot during 1970.
Advanced anti-noise take-off pro-
cedure were de eloped and imple-
mented which meet the requirement
of all airports into which orthwest
operates.
Evidence of W A's leadership in
this field has come in recognition
given us by the Federal Aviation Ad-
ministration and by the Metropolita n
Aircraft Sound Abatement Council
in the Twin Cities.
The modification program on the
JT8D jet engines to incorporate the
new anti-pollution smokeless burner
cans was also begun in 1970, although
delayed by the strike.
Orient Region Firsts
Growth continued in the Orient
R egion during 1970 with a number of
'firsts' being recorded.
First service from Tokyo-Honolulu-
Los A~geles was begun in January,
1970 with Seoul-Hong Kong service
begun in April, 1970. First 747 flights
into T aipei a nd M a nila were also
reco rd ed by o rthwest within the
year.
ew facilities completed included
ticket offices in T okyo's Imperial H o-
tel, K yoto International H otel a nd
ew D elhi's Janpath H otel. Addi-
tionally, a new 74 7 gate with d ual
loadi ng bridges was constructed at
Tokyo International Airpo rt a nd a
new cargo faci lity co nstructed at
Osaka Airport.
Affirmative Action Program
orthwe t Airline continued it
active participation in equal oppor-
tunity activities in the citie it erves
through it Affirmative Action Pro-
gram _and cooperated with minority
agenc1e and the 1ational Alliance of
Bu ine smen to fulfill it announced
objective .
3
5
2
1. A fish e; e 1 iew of one of rw A's
three ff igh r simulators al I now
housed in the neH flight services fa-
cility in Min11eapolis Sr. Paul. A
747 flighr simulator costing S3 mil-
lion was recently i11sta/led.
2. U11der co11structio11 and sched-
uled for completio11 in rhe last half
of 1971, ortlrn est Orie11t's new
747 satellite pier at Twin Cities
Internatio11al Airport.
3. The nell' 53 million fli0 ht serv-
ices faciliry in rhe Tll'in Cities
house W As air freight head-
quarter a11d is rhe center of flight
training as ll'el/.
4. Two new 747 hangar are nearing
complerion a parr of the I mil-
lion e.Y.pan ion pro ram of Norrh-
ll'e (s maimenance and orerhaul
base in rhe T11i11 Citie .
5. Aerial riew of .\"orrhwest Orient
Airline headquarter in the Twin
Cirie of .Hi11neapoli t. Paul.
4
B
Financial review
of 1970
Revenues
Total operating revenue for 1970
amounted to $379,040 136 compared
with 467,937,999 for 1969. Thi re-
duction in operating re enue is pri-
maril the re ult of the strike by the
Brotherhood of Railway and Airline
Cl rk (B R C) from Jul 8 1970
through December 14, 1970.
Operating re enue included mu-
tual aid-net of payment to other -
of 46,324 695. The Ci it Aeronau-
tic Board on ovem ber 23, 1970
is ued a n Order remanding for review
only the amended portion of the Mu-
tual Aid Agreement which provided
for increa ed le el of supplemental
pa ment . The Order tate that con-
ideration will be gi en to ma king any
modification to thi agreement pro-
spective onl .
The y tern pa enger-mile yield in-
crea ed to 5. 7 ~ or 2.3 percent over
the i Id of 5.65 in 1969. Thi yield
impro ement ov r the prior ear was
the re ult of fare increa e placed into
effect b the Ci ii Aeronautic Board
in February a nd October of 1969. In
I 970 the CAB in tituted a Dome tic
Pa enger Fare lnve tigation which
ha proceeded on an expedited basi
to determine the level and tructure of
pa enger fare within the 4 tate .
nder thi accelerated chedule, the
Board anticipate deci i n in virtual!
all area of the inve tigation by April
197 l. In addition, certain court ac-
tion ha e cau d the CAB to initiate
rat proceeding bearing on the
r nab! ne f the genera l I el of
tic fa r effecti e between Oc-
tober I, 1969 and Oct ber 14, 1970.
proc dur ha e b n et in
th nev d ck 10 determination
an be made at thi - time of the out-
om roe eding .
T o in tituted an in-
e ti air freight
d d th rat for
addition, the
prio d
been
Ida
igati
dm
-u due
strike. Revenue for charter and other
transportation declined to $20,800,298
in 1970 compared with $35,089,363
in 1969. This reduction was primarily
due to the military's decreased re-
quirement of commercial services for
charter operations, which amounted
to 17,478,295 in 1970, or a decrease
of 4 l.9 percent from 30 059,792 in
1969. The Military Airlift Command
contract extend to June 30, 1971,
and we will seek a renewal contract
for the Government's fiscal year 1972.
Expenses
Operating expen es in 1970 were
327,957 514 compared with $385,-
811 ,990 in 1969. This operating ex-
pense reduction from 1969 is a result
of the reduced flying operations and
the company's efforts to minimize all
other operating costs during the
lengthy B RAC trike. Productivity
a nd efficiency comparison with the
full prior year are of limited value due
to thi interruption of operations.
Depreciation and amortization ex-
pen es amounted to $69,173,449 in
1970 compared with $60,833,257 in
1969. This increa ed expense is pri-
maril the re ult of the adding of ten
Boeing 747 aircraft to our fleet.
orthwe t Airlines, as well as the
indu try a a whole, ha experienced
a spiraling inflationary trend in wages,
materials, ervice and fuel and oil
co ts, Your Company ha emphasized
continual effort in co t control pro-
cedures and while unit costs for 1970
including the trike period, were 18.0G:
per available ton-mile, normal opera-
tion for the fir t ix month preceding
the trike had a unit cost of 16.1 ~ per
a ai la ble ton-mile compared to 15.2
per a ai lable ton-mile for th year
1969.
1et Earnings
et earning for 1970 amounted to
44,439,469, or 2.11 per average
hare of common tock o ut randing.
Thi compare with $51,465,531, or
$2.55 per hare in 1969.
Op rating income amounted to
51 ,0 2 62_ in 1970 down from 2,-
126,009 in 1969. Thi reduction in
perating incom reflect the effect of
th BR C trike the oftening in the
.. e on my and re ultant ~fall-off
in air tra el and th effect f th co t
price queeze. Other income and de-
ductions include interest on long-term
debt of $6,295,259, up from $2,334,634
in 1969, income of$739,108 on the dis-
posal of property and other deduc-
tions of $966,302 compared with an
income of $429,850 in 1969. This
change in other deductions was due
primarily to the exchange loss of
$1,272,000 on Philippine blocked cur-
rency, released early this year at the
then current market rate of exchange.
Taxes on Earnings
Taxes on earnings for 1970 totaled
$120,700 compared to $29,507,200 for
last year. This substantially reduced
income tax amount is made up of a
normal tax provision including cur-
rent and deferred taxes amounting to
$21,574,600 less inve tment tax credit
of $21,453,900.
The normal tax provision reflected
the reduction in tax surcharge from
10 percent in 1969 to an effective rate
in 1970 of 2.5 percent. The Company
adopted the flow-through method of
accounti ng for the investment tax
credit effective January 1, 1969, and
has used this method for both 1969
and 1970. Investment tax credit flow-
through in 1970 amounted to $16,-
969,500. Of this amount $443,300 wa
applied agai nst current year taxes and
$16,526,200 was carried back to prior
years. Continued amortization of the
deferred investment tax credit balance
as of December 31 1968 amounted
55%
50%
45%
40%
35%
BREAK-EVEN AND
ACTUAL PAYLOAD FACTOR
I
3::
1963
(STRIKE)
1967 1968 1969 1970
(STRIKE)
to $4,484,400 in 1970. At December
31 1970 there remained 15,373 300
to be amortized over future years.
All investment ta credit available
to orthwest to date, as a re ult of
equipment purchases, has been u ed
to reduce current income taxes.
Cash Flow
Fund of 129,014 218 were gen-
erated in 1970 from operation which
included net earnings, depreciation
and amortization, deferred income
taxes and inve tment tax credit. Other
source of fun ds included net pro-
ceed from the ale of common stock
through the Employee Stock Pur-
cha e Plan of $3,438,328, increa e in
long-term debt of $148,914 635 and
di po al of operating property
amounting to $2,725,579.
Application of funds included flight
equipment and property addition of
$176,256,285, advance depo its for
aircraft on order of $38,049,353, de-
ferred Boeing 747 training costs of
$2,786,927 and in addition ca h divi-
den ds of $9,464,532 were paid to
stockholders in quarterly payments
during 1970 at an annual dividend
rate of 45 cent per common hare.
Your Company has completed six-
teen years of consecutive dividend
payments on its common stock.
Traffic and Capacity
orthwest Airlines' traffic re ults
OPERATING REVENUES AND EXPENSES
MILLIONS OF DOLLARS
500
REVENUES
EXPENSES
400
300
200
100
1966 1967 1968 1969 1970
'STRIKE) lSTRIKE)
in 1970 reflected the effects of the
BRAC trike. The Company contin-
ued partial operations durin g the
strike and flew approximately 29 per-
cent of the cheduled available seat-
mile during that period. The industry
in total was affected by the slowing of
the U.S. economy and a re ultant de-
cline in the u e of air travel.
Sy tern re enue plane-mile flown
in scheduled operation decrea ed
32.9 percent and available seat-miles
operated decreased only 24.2 percent.
This reflects uspension of all-cargo
operation during the trike and the
addition of the Boeing 747 aircraft
into revenue ervice with increa ed
seating capacity. Scheduled ervice
revenue passenger-mile decreased
27.4 percent and the passenger load
factor declined to 44.03 percent from
45.98 percent in 1969.
Financial Condition
The financial condition of orth-
west Airlines continues its high rank-
ing among the strongest in the airline
indu try. Stockholder equity at year
end amounted to $465,210,190 up
from $426 796,925 at December 31
1969. Book value per common hare
increased to S22.00 at the end of 1970
compared to S20.41 last year.
Ou tstanding d ebt at year end
amounted to $278 914,635 or 60 per-
cent of stockholder equity which
repre ents a very favorable debt ratio
compared to the balance of the air-
line indu try.
The out tanding debt includes
25 ,000 ,000 from ote Purchase
Agreements with twelve insurance
companies, $15 ,000,000 from the
Fourth Amendatory Credit Agree-
ment with fifteen banks and 215,-
000 000 from a Credit Agreement with
twenty-four banks which provide for
a re olving credit of 250,000 000. As
of December 31 , 1970 this agreement
make available at any time an addi-
tional 35,000,000 for working capital
and other purpo es.
In addition to the above agree-
ments, your Company ha borrowed
23 914 635 in credit agreements with
aircraft and aircraft engine manufac-
turer providing for financing of pur-
cha e from those manufacturers on
five-year note . These agreement with
manufacturers provide for a maxi-
mum of S60 000,000, which makes
available at December 31 , 1970 36 -
085,365 for future purchases.
The Company has on order from
the Boeing Company and the Mc-
Donnell Douglas Corporation nine-
teen additional aircraft, which with
spare engines will require expendi-
tures of S408 368 000. Of this amount
$63,335,000 has been deposited with
the manufacturers at December 31 ,
1970. These aircraft are scheduled for
delivery in 1971 through 1973.
5.0%
U.S. AND
SOURCE AND DISTRIBUTION OF REVENUES
5.5% FOREIGN
CHARTER MAIL
AND OTHER .7%
TRANSPORT OTHER
PASSENGER AND MUTUAL AID
80.9%
SOURCE
11 .7%
7 0
EA:!~GS
0/'
o/~1>
11.3%
FUEL AND
OIL
1a.21,
DEPRECIATION
AND
AMORTIZATION
31.0%
MATERIALS
AND
SERVICES
27.7%
EMPLOYEE WAGES
AND BENEFITS
DISTRIBUTION
8
10
Northwest Orient's current fan-jet fleet
32 BOEING 727-100 FAN-JETS
Statistics: length, I 33 fr.; range, 2,380 miles with 93 passengers;
cruisina peed, 570 mph; cruising altitude, 42,00() ft . max.
++++++++
++++++++
++++++++
++++++++
24 BOEING 727-200 FAN-JETS
Statistics: length, 153 ft.; range, 1,760 miles with 122 passengers;
cruising speed, 570 mph; cruising altitude, 42,000 ft. max.
++++++++
++++++++
++++++++
16 BOEING 720B FAN-JETS
Sratisric : length, 137 ft.; range 3,600 mile 1l'ith 109 passengers ;
crui ing speed, 565 mph ; cruising altitude 42,000 ft. max.
10 BOEING 747 FAN-JETS
Statistics: Length, 231 ft.; range 5,850 miles with 362 passengers;
cruising speed, 585 mph; cruising altitude, 45,000 feet max.
36 BOEING 707-320B/C FAN-JETS
Statistics: length, J 53 ft.; range, 5,620 miles with 142 passengers;
cruising speed, 550 mph; cruising altitude, 42,000 Ji. max.
TOTAL 118 AS OF DECEMBER 31, 1970
NORTHWEST AIRLINES, JNC. AND SUBSIDIARlES
Operating Revenues
Passenger .......................................... .
Cargo ............................................. .
Mail ............................................... .
Charter and other transportation ...................... .
Mutual Aid Agreement-Note H ...................... .
Nontransport ....................................... .
Operating Expenses
Flying operations ................................... .
Maintenance ....................................... .
Passenger service .................................... .
Aircraft and traffic servicing ......................... .
Reservations, sales and advertising .................... .
Administrative and general ........................... .
Depreciation and amortization-Note F ............... .
Other Income and (Deductions)
Interest on long-term debt ............................ .
Disposals of property ................................ .
Other .............................................. .
Earnings Before Taxes .................................. .
Taxes on Earnings, including deferred taxes
and investment credit-Note D ....................... .
Net Earnings for the Year ................................ .
Average shares of Common Stock
outstanding during the year ........................... .
Earnings per share of Common Stock ..................... .
*Operating results in J 970 were affected by a BRAC strike which
extended from July 8 through December 14, l 970. See Note H.
See notes to financial statements.
Year Ended December 31
1970* 1969
$260,335,218 $350,504,331
30,052,685 51,006,242
18,958,456 29,386,081
20,800,298 35,089,363
46,324,695 (508,861)
2,568,784 2,460,843
379,040,136 467,937,999
87,899,274 117,876,029
41,240,434 52,362,726
31,383,737 41,074,486
49,183,105 59,009,092
36,706,873 42,735,394
12,370,642 11,921,006
69,173,449 60,833,257
327,957,514 385,811,990
51,082,622 82,126,009
(6,295,259) (2,334,634)
739,108 751,506
(966,302) 429,850
(6,522,453) (1,153,278)
44,560,169 80,972,731
120,700 29,507,200
$ 44,439,469 $ 51,465,531
21,023,949 20,166,280
$2.11 $2.55
NORTHWEST AIRLINES, INC. AND SUBSIDIARIES
ASSETS
Current Assets
Cash ............................................... .
Accounts receivable .................................. .
Recoverable federal income tax ....................... .
Flight equipment spare parts, at average cost, less
allowances for depreciation of $5,544,776
(1969-$5,267,576) ... .' ............................ .
Maintenance and operating supplies at average cost ...... .
Prepaid expenses ..................................... .
Total Current Assets
Property and Equipment
Flight equipment at cost .............................. .
Less allowances for depreciation ....................... .
Advance payments on new flight equipment-Note C ..... .
Other property and equipment at cost .................. .
Less allowances for depreciation ....................... .
Deferred Charges and Other Assets
Training and development costs-Note F ............... .
Rentals ............................................. .
Other ............................................... .
December 31
1970
$ 51,525,395
32,906,579
16,526,200
14,850,678
4,088,318
2,149,483
122,046,653
929,180,892
261,051,456
668,129,436
64,134,857
732,264,293
84,755,904
25,621,826
59,134,078
791,398,371
4,944,297
2,619,231
2,117,304
9,680,832
$923,125,856
1969
$ 26,819,462
44,587,468
10,885,810
3,744,291
1,686,939
87,723,970
697,937,880
205,696,727
492,241,153
120,654,204
612,895,357
56,189,979
22,268,715
33,921,264
646,816,621
3,300,000
2,420,845
2,470,217
8,191,062
$742,731,653
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable ..... .
............................... .
Employee compensation .............................. .
Air travel card deposits ............................... .
Unredeemed ticket liability ............................ .
Income taxes ........................................ .
Current maturities of long-term debt .................. .
Total Current Liabilities
Long-Term Debt-Note A ................................ .
Deferred Credits-Note D
Income taxes-arising principally from
accelerated depreciation methods ................ . .. .
Investment credit .................................... .
Stockholders' Equity-Note B
Common Stock $1.25 par value; authorized 40,000,000
shares; issued and outstanding 21,149,756 shares
(1969-20,914,272 shares) .......................... .
Capital surplus ...................................... .
Retained earnings ......................... . .......... .
Commitments-Note C
See notes to financial statements.
December 31
1970
$ 38,376,415
12,345,069
1,104,150
2,133,669
530,328
18,000,000
72,489,631
260,914,635
109,138,100
15,373,300
124,511,400
26,437,195
116,987,969
321,785,026
465,210,190
$923,125,856
1969
s; 48,649,676
13,619,054
1,130,925
5,843,370
7,581,603
18,000,000
94,824,628
112,000,000
89,252,400
19,857,700
109,110,100
26,142,840
113,843,996
286,810,089
426,796,925
$742,731 ,653
NORTHWEST AIRLINES, INC. AND SUBSIDIARIES
Common Stock
Shares Amount
Balance January 1, 1969 ................ ......... 9,149,628
Sale of shares, less expenses......... . . . . . . . . . 1,307,508
Two-for-one stock split ..................... 10,457,136
Net earnings for the year ................... .
Cash dividends-$.45 a share .............. . .
- - --
Balance December 31, 1969 . ..................... 20,914,272
Shares issued pursuant to Employee
Stock Purchase Plan, less expenses. . . . . . . . . . 235,484
Net earnings for the year. .................. .
Cash dividends-$.45 a share ............ . .. .
- - - -
Balance December 31, 1970 . .... . ........... _ .... 21,149,756
See notes to financial statements.
$22,874,070
3,268,770
26,142,840
294,355
$26,437,195
Capital
Surplus
$ 39,381,100
74,462,896
113,843,996
3,143,973
$116,987,969
Retained
Earnings
$244,461,937
51,465,531
( 9;117,379)
286,810,089
44,439,469
( 9,464,532)
$321,785,026
Available and Reflected in December 31
Period Utilized* Net Earnings t
Aircr~ft Type 1969 1970 On Order
1962-1969 ............. $44,985,500 $25,127,800 JET:
1970 ................. 16,969,500 21,453,900 707-320B & 320C ...... 36 36
Total. ................ $61,955,000 $46,581,700 720B ................. 16 16
To Net Earnings ....... 46,581,700
.. I 727 & 727C-100 ....... 32 32
727-200 .............. 24 24
To Be Amortized ...... $15,373,300
747 .................. 10 5
* All investment credit amounts generated 1962-1970 have been utilized DC-10 ............... 14
to reduce income taxes. -
t income benefits of investment credit generated in 1962-1968 are
Total Jet ............. 108 118 19
amortized over an eight year period. The flow-through method of PROP-JET: Electra ...... 9 6
accounting was adopted for investment credit generated after 1968
Total Fleet ..... . ..... 117 124 19
and the income benefits have been reflected in the year generated.
NORTHWEST AIRLINES, INC. AND SUBSIDIARIES
Year Ended December 31
Source of Funds
1970 1969
Net earnings ........................................ . $ 44,439,469 $ 51,465,531
Depreciation and amortization ........................ . 69,173,449 60,833,257
Deferred income taxes ................................ . 19,885,700 16,933,300
Deferred investment credit. ........................... . ( 4,484,400) ( 4,525,700)
Total from Operations 129,014,218 124,706,388
Proceeds from sale of Common Stock, less expenses ...... . 3,438,328 77,731,666
Increase in long-term debt ............................ . 148,914,635
Disposals of operating property ....................... . 2,725,579 2,000,971
Total of Sources 284,092,760 204,439,025
Application of Funds
Flight equipment and other property additions .......... . 176,256,285 117,340,010
Advance deposits on aircraft .......................... . 38,049,353 56,666,196
Deferred Boeing 747 training costs ..................... . 2,786,927
Decrease in long-term debt ........................... . 48,000,000
Cash dividends ...................................... . 9,464,532 9,117,379
Other .............................................. . 877,983 796,889
Total of Applications 227,435,080 231,920,474
Increase (Decrease) in Working Capital-Note A ............. . 56,657,680 ( 27,481,449)
Working capital at beginning of year . ....................... . ( 7,100,658) 20,380,791
Working capital at end of year . ............................ . $ 49,557,022 ($ 7,100,658)
See notes of financial statements.
NOTICE TO STOCKHOLDERS OF NORTHWEST AIRLINES, INC.
A new rule adopted by the Civil Aeronautics Board, effec-
tive August 1, 1970, requires that any person who owns, as
of December 31 of any year, or acquires ownership either
beneficially or as trustee, more than five percent, in the
aggregate, of the capital stock or capital of the air carrier,
shall file a report with the CAB containing information
required by Section 245.13 of the CAB Economic Regula-
tions. This report must be filed on or before April 1 of each
year as to capital stock or capital owned as of December 31
of the preceding year. The regulation also provides that a
report must be filed by any person acquiring more than
five percent of the capital stock or capital within ten days
of acquisition.
Any stockholder who believes he may be required to file
such a report may obtain further information by writing to
the Director, Bureau of Operating Rights, Civil Aeronau-
tics Board, Washington, D. C. 20428.
NORTHWEST AIRLINES, INC. AND SUBSIDIARIES
(Dollars in thousands except per share figures)
Operating Revenues 1970t 1969 1968 1967 1966t 1965 1964 1963 1962 1961t
Passenger ......................................... $ 260,335 $ 350,504 $ 301,277 $ 275,873 $ 216,239 $ 198,457 $ 163,807 $ 135,222 $ 121,781 $ 85,971
Cargo ............................................ 30,053 51,006 43,902 38,118 29,515 24,779 18,402 13,745 11,828 8,443
Mail ............................................. 18,958 29,386 28,605 26,898 22,557 17,421 15,313 14,233 14,228 11,701
Charter and Other Transportation ................... 20,800 35,090 41,060 41,799 39,205 21,851 12,965 6,442 2.646 1,482
Mutual Aid Agreement. ............................ 46,325 (509) 2,491 (717) (21) (12) (858) 2,563
Nontransport ..................................... 2,569 2,461 1,446 1,291 1,312 1,207 1,144 (842) 828 893
Total Operating Revenues $ 379,040 $ 467,938
Operating Expenses
$ 416,290 $ 383,979 $ 311,319 $ 262,998 $ 211,610 $ 168,788 $ 150,453 $ 111,053
Depreciation and Amortization ...................... $ 69,173 $ 60,833 $ 49,817 $ 41,252 $ 33,195 $ 24,011 $ 22,852 $ 19,159 $ 18,445 $ 17,118
Other ............................................ 258,784 324,979 268,529 229,969 177,469 153,140 135,627 123,713 I 12,802 84,213
Total Operating Expenses $ 327,957 $ 385,812 $ 318,346 $ 271,221 $ 210,664 $ 177,151 $ 158,479 $ 142,872 $ 131,247 $ 101,331
Operating Income .................................... $ 51,083 $ 82,126 $ 97,944 $ 112,758 $ 100,655 $ 85,847 $ 53,131 $ 25,916 $ 19,206 $ 9,722
Other Income and (Deductions)-Net. .................. (6,523) (1,153) (3,220) (2,391) (1,243) 224 (1,125) (4,166) (4,578) (2,828)
Earnings Before Taxes ................................ $ 44,560 $ 80,973 $ 94,724 $ 110,367 $ 99,412 $ 86,071 $ 52,006 $ 21,750 $ 14,628 $ 6,894
Income Taxes ........................................ 121 29,507 44,673 51,651 46,276 40,377 25,220 11,297 7,398 3,233
Net Earnings ......................................... $ 44,439 $ 51,466 $ 50,05 l $ 58,716 $ 53,136 $ 45,694 $ 26,786 $ 10,453 $ 7,230 $ 3,661
Earnings per Average Share As Reported Each Year<') ..... $ 2.11 $ 2.55 $ 5.47 $ 6.42 $ 5.81 $ 9.99 $ 5.86 $ 5.73 $ 3.97 $ 2.01
Cash Dividends ...................................... 9,465 9,117 7,320 6,405 5,490 3,657 2,602 1,823 1,702 1,701
Dividends per Share As Paid Each Year ................ .45 .45 .80 .70 .60 .80 .60 1.00 .80 .80
Stockholders' Equity .................................. 465,210 426,797 306,717 263,986 212,727 165,081 122,960 68,436 59,712 54,177
Number of Shares Outstanding at End of Year .......... 21,149,756 20,914,272 9,149,628 9,149,626 9,149,626 4,574,813 4,568,634 1,824,452 1,820,714 1,820,214
Book Value per Share at End of Year(l) ................. $ 22.00 $ 20.41 $ 33.52 $ 28.85 $ 23.25 $ 36.08 $ 26.91 $ 37.51 $ 32.80 $ 29.76
-
Recomputed per Share Figures After Stock Splits :<2
)
Earnings per Average Share<2
) . . 2.11 2.55 2.74 3.21 2.90 2.50 1.47 .72 .50 .25
Dividends per Share<2
) .... .45 .45 .40 .35 .30 .20 .15 .12 .10 .10
Book Value per Share at End of Year (2) ............. 22.00 20.41 16.76 14.43 11.62 9.02 6.73 4.69 4.10 3.72
Assets and Long-Term Debt
Flight Property at Cost. ............................... $ 929,181 $ 697,938 $ 582,646 $ 467,859 $ 401,476 $ 304,072 $ 219,523 $ 176,655 $ 169,413 $ 170,772
Flight Property at Net Book Value ..................... 668,129 492,241 424,522 346,029 311,803 233,858 160,925 127,074 122,980 133,485
Total Assets ......................................... 923,126 742,732 627,538 481,206 422,040 333,311 237,226 196,765 186,887 189,103
Long-Term Debt ..................................... 260,915 i 12,000 160,000 85,000 96,000 72,000 45,000 64,996 74,968 90,286
Unit Expenses
Per Available Ton-Mile ............................ 18.0 15.2 14.6 14.5 15.6 16.4 I 8.5 21.7 23.9 27.6
Per Revenue Ton-Mile . . ........................... 43.5 34.5 30.8 30.3 30.1 33.0 , 39.7 46.8 50.2 54.2
Per Cent of Operating Revenues ..................... 86.5% 82.4% 76.5% 70.6% 67.7% 67.4% 74.9% 84.6% 87.2% 91.2%
Statistics-Scheduled Services
Revenue Plane Miles (000) .......................... 83,177 123,966 107,646 93,395 67,780 61,653 52,157 45,356 41,821 31,143
Available Seat Miles (000) .......................... 10,234,060 13,504,111 10,840,758 9,198,150 6,773,257 6,140,7)7 5,129,944 4,305,147 3,697,796 2,611,840
Revenue Passenger Miles (000) ...................... 4,506,256 6,208,725 5,458,128 4,901,520 3,699,851 3,303,809 2,668,812 2,179,208 1,904,112 1,361,790
Passenger Load Factor ............................. 44.0% 46.0% 50.3% 53.3% 54.6% 53.8% 52.0% 50.6% 51.5% 52.1%
Revenue Passengers Carried ........................ 4,682,812 7,517,780 7,173,805 6,489,295 4,963,275 4,593,462 3,663,077 2,911,914 2,437,342 1,723,667
Freight and Express Ton-Miles (000) .. . ... ........... 110,215 198,494 169,416 141,175 108,914 82,715 55,100 39,417 35,179 23,035
Total Revenue Ton-Miles (000) ...................... 655,339 942,050 836,085 709,165 533,556 452,553 351,886 284,732 254,033 182,704
Statistics-Total Operations
Revenue Plane Miles (000) .. ........................ 89,938 135,563 121,077 106,197 77,715 67,125 55,477 47,207 42,718 31,658
Available Ton-Miles (000) .......................... 1,819,439 2,535,137 2,186,234 1,864,128 1,348,983 1,079,832 856,612 657,761 548,159 367,301
tAtfected by major strikes in 1961, 1966 and 1970.
1 J J Per share figures reflect the increase in outstanding shares resulting from stock issues in
1964, 1969 and l 970 and from the conversion of preferred stock as applicable in years prior to J 963.
(2) The stock v.as split "two-for-one" in 1964. 1966 and 1969. The recomputations in this section are shown to provide comparability on an
adjusted basis and follow the form recommended by the Accounting Principles Board. These figures, of course, do not reflect the way the
corporation was operated.
-
-
NORTHWEST AIRLINES, INC. AND SUBSIDIARIES
Years Ended December 31, 1970 and 1969
December 31
Note A-Long-Term Debt 1970
Note purchase agreements with twelve insurance companies payable $3,000,000 annually
and $4,000,000 on October 1, 1978 plus interest at 6% per annum. Certain optional pre-
payments at par are permitted. The agreements contain certain other provisions with
respect to redemption as a whole, but not from borrowed funds, at premiums ranging
from 5% to 1 % -. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 25,000,000
The Fourth Amendatory Credit Agreement with fifteen banks providing for credit which is
payable $5,000,000 quarterly and terminates October 1, 1971. Interest on funds borrowed
is at 4%. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000,000
A credit agreement with twenty-four banks providing for a revolving credit of $250,000,000
reducing to $230,000,000 by October I, 1972, to $210,000,000 by October 1, 1973, to
$90,000,000 by October l, 1974 and terminating July 1, 1975. Interest on funds borrowed
is at the prime commercial loan rate to December 31 , 1970 and at% above the prime
commercial loan rate thereafter. As of December 31 , 1970 the agreement makes available
at any time an additional $35,000,000 (1969-$183,000,000) for working capital and
other purposes.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215,000,000
Credit agreements with aircraft and aircraft engine manufacturers providing for financing
of purchases from those manufacturers through the issuance of five-year notes to aggre-
gate not more than $60,000,000 .. . ... ... ............ . ... . .. . .... . ............. .
Less amounts due within one year included in current liabilities .............. . .. . ... .
23,914,635
278,914,635
18,000,000
$260,914,635
The Company had complied with the covenants of the debt agreements at the end of both years.
1969
$ 28,000,000
35,000,000
67,000,000
130,000,000
18,000,000
$112,000,000
The aggregate repayment of the outstanding long-term debt over the years 1972 through 1975 is $3,000,000, $8,000,000,
$123,000,000 and $116,914,635, respectively.
Note B-Stockholders' Equity
Cumulative Preferred StQck, $25 par value:
Authorized . . ... .. .. . .. . ...... ...... . .. ..... . . .. ... ... . . ...... . .. . .... . .. . . . .
Issued December 31 .. . . ... ... .... . .. . ..... .. . . ..... . . .. . .... . .. . ... ... ... . .. .
Common Stock Options for officers and employees at prices ranging from $32.375/36.625
a share which were not less than 100% of market at date of grant:
Outstanding .. . .. . .. . . . . . .. ..... ..... .. . .. ..... . . . ..... . . .. .. . .. ... . ...... .
Became exercisable during year . .. . .... . ..... . . . . . ..... . ... .. . .... . .. . .. . ... .
Exercisable at end of year . ... . ....... .... . ...... . . . .. .. . . . . ..... .. .. ... .... .
Common shares reserved for additional stock options and/ or the Employee Stock Purchase
Plan at December 31 .. .. .. .. . . . ... . .. .. . . . . .. . . .. ... ... ... . .. ..... . .. ....... .
Shares
1970
1,000,000
None
71,768
24,167
43,301
792,748
1969
1,000,000
None
71 ,768
19,866
19,134
1,028,232
The Northwest Airlines 1968 Employee Stock Purchase Plan provides for the sale of Common Stock to eligible employees
through payroll deductions of up to 10% of their salary not to exceed $3,000 a year. The sales price is 90% of the highest
price of the stock on the New York Stock Exchange on specified annual dates.
Note C-Commitments
At December 31, 1970, the Company has contracted to purchase jet aircraft for delivery in 1971 through 1973 which, with
spare engines, will require expenditures of $408,368,000 ($597,446,000 at December 31, 1969). Of this amount, $63,335,000
has been deposited with manufacturers at December 31, 1970 and approximately $95,135,000, $64,338,000 and $185,560,000
become payable during the next three years, respectively.
As of December 31, 1970 annual rental payments of approximately $7,800,000 (1969-$5,500,000) were required under
various lease agreements for periods up to forty years covering airport facilities, ticket offices, etc.
Note D-Taxes on Earnings
Effective January 1, 1969 the Company adopted the flow-through method of accounting for the investment credit and has
used that method for both 1969 and _
1970. No change has been made in accounting for the deferred investment credits
arising in prior years which will continue to be amortized over eight years from the dates the credits arose.
The provision for taxes on earnings consists of the following:
Current .............. ... . ..... ....... . .. ... ....... ....................... .
Deferred ........................... . ................... .. . ............... .
Investment credit:
Amortization over eight years ............................................. .
Flow-through ........................................................... .
Carryback to prior years . .......... .... .... . ............................. .
Total ............................................................ .
Note E-Pension Plans
Year Ended December 31
1970 1969
$ 1,688,900 $26,139,600
19,885,700 16,933,300
( 4,484,400)
( 443,300)
( 16,526,200)
$ 120,700
( 4,525,700)
( 9,040,000)
$29,507,200
The Company has several pension plans covering substantially all of their employees. The total pension expense was
$5,348,098 (1969-$6,360,218) and includes, as to new plans in 1970, amortization of prior service costs over a period of
forty years. There were no unfunded prior service costs at December 31, 1969. It is the Company's policy to fund pension
costs accrued. As of the latest valuation date, the total amount of fund assets was sufficient to cover vested benefits.
Note F-Depreciation and Amortization Policies
Provision for depreciation of aircraft and related flight equipment approximated $62,993,000 (1969-$55,473,000) and was
computed on the straight line method assuming ten year lives and 15% residual values, except as to 747 aircraft as to which
the life is fifteen years and residual value of 10% .
Included in deferred charges are SST development costs being amortized over five years and 7 4 7 aircraft training costs
being amortized over seven years.
Note G-Proposed Merger
The proposed Northwest- ortheast merger was terminated on March 10, 1971.
Note H-Mutual Aid Agreement
The Company was struck by the Brotherhood of Railway and Airline Clerks (BRAC) on July 8, 1970 and the strike con-
tinued through December 14, 1970. For this period the Company received payments from other carriers under the Mutual
Aid Agreement. The Civil Aeronautics Board on November 23, 1970 issued an Order remanding for review only the
amended portion of the Mutual Aid Agreement which provided for increased level of supplemental payments. The Order
states that consideration will be given to making any modifications to this agreement prospective only. In the opinion of
management of the Company, there is no reason to believe that the modification to the Agreement will not be approved
and the total amount received by the Company during the strike period will be retained.
ACCOUNTANTS' REPORT
To the Stockholders and Board of Directors
Northwest Airlines, Inc.
Saint Paul, Minnesota
We have examined the financial statements of Northwest Airlines, Inc. and subsidiaries for the years ended December 31,
i 970 and 1969. Our examinations were made in accordance with generally accepted auditing standards, and accordingly
included such tests of the accounting records and such other auditing procedures as we considered necessary in the
circumstances.
ln our opinion, the accompanying statements of financial position, earnings, stockholders' equity and source and appli-
cation of funds present fairly the consolidated financial position of Northwest Airlines, Inc. and subsidiaries at December
31, 1970 and 1969 and the consolidated results of their operations, the changes in stockholders' equity. and source and
application of funds for years ended those dates, in conformity with generally accepted accounting principles applied
on a consistent basis.
Saint Paul, Minnesota
March I, 1971 except for Notes Band G for which the date is March 10, 1971. Cer1ified Public Acco11ma111s
-
20
TAIPEI
OSAKA

,,._,
OKINAWA
NORTHWEST ORIENT
SYSTEM MAP

HONOLULU .
The 53 cities served by Northwest Orient:
Anchorage Helena Missoula St. Paul
Atlanta Hilo Moorhead St. Petersburg
Billings Hollywood New York Seattle
Bismarck Hong Kong Newark Seoul
Bozeman Honolulu Oakland Spokane
Butte Jamestown Okinawa Tacoma
Chicago Long Beach Ontario Taipei
Clearwater Los Angeles Osaka Tampa
Cleveland Madison Philadelphia Tokyo
Detroit Mandan Pittsburgh Washington, D.C.
Fargo Manila Portland Winnipeg
Ft. Lauderdale Miami Rochester
Grand Forks Milwaukee San Francisco
Great Falls Minneapolis San Jose
BOSTON
W YORK
WARK
DELPHIA
GH
New services and cities in 1970
New Cities in '70 gun between California-Hawaii and
Boston was added to Northwest the Far East. In June, nonstop serv-
Orient's route system in August of ice between Montana and Chicago
1970. Lnauguration of service has been was increased to two round trips daily.
delayed due to the strike and the Route Cases Pending
necessity to first restore service to our
existing route structure.
Pacific Islands Local Service
NW A seeks a route from Hawaii to
New Service in '70
Okinawa via the Trust Territory and
Guam. Briefs have been fi led with the
In January, we inaugurated Los
Angeles-Hawaii-Tokyo passenger
Civil Aeronautics Board (CAB) and
service on a daily basis and began the
the case is awaiting decision.
first direct jet service between Atlanta Cleveland /Detroit /Cincinnati /
and Madi on-Rochester. Atlanta
In April, all-cargo service was be- We have applied for a direct route
linking our existing Detroit, Cleve-
la nd and Atlanta stations. The case
is now before the CAB awaiting
decision.
East Coast Points-Europe
A route from Boston, Hartford,
Philadelphia, Washington and Balti-
more on the one hand and Norway,
Sweden, Denmark, Finland, Nether-
lands, Belgium, Luxembourg, Switzer-
land, Austria, Yugoslavia, Greece and
Turkey on the other is being sought
by NWA.
Chicago /Atlanta-Jamaica
Northwest has applied for exten-
sion of its route through Chicago to
Jamaica.
Omaha /Des Moines
The company is seeking a route
from Omaha and Des Moines to New
York and Washington /Baltimore in
the east and Los Angeles and San
Francisco in the west. T his case is
awaiting final action by the CAB on
petitions for reconsideration.
Flying Tiger Additional Points
Authority for all-cargo service be-
tween the Twin Cities and Boston is
being sought by NWA. The case
awaits a CAB decision.
Ohio /Indiana Points Nonstop
NWA has applied for routes be-
tween Philadelphia in the east and
Los Angeles in the west via Columbus
Cincinnati, Dayton and Indianapoli~
and Indianapolis-Cleveland /Pitts-
burgh ervice. This case awaits CAB
action.
Spokane-Los Angeles
A nonstop route between Spokane
and Los Angeles is involved. Direct
exh ibits have been filed but the case
has not been set for hearing.
21
22
New Washington National
Terminal
A gleaming new satellite terminal was opened by Northwest Orient at
Washington's ational airport in June, 1970. Built at a cost of $7 million,
the facility embraces the latest in functional design and has the capacity to
handle eight jet aircraft at one time. The striking architectural features
are well illustrated in the photos on this page.
DIRECTORS*
JAMES H. BI T
GER
Chairman of the Board, Honeywell Inc.
Minneapolis, Minne ota
HADLEY CASE
President, Case, Pomeroy & Company Inc.
ew York, ew York
A.E.FLOA
Secretary, orthwest Airlines, Inc.
St. Paul, Minnesota
MORTO H. FRY
Senior Partner, Riter, Pyne,
Kendall and Hollister
MALCOLM S. MACKAY
President, Foothills Company
Roscoe, Montana
DO ALD G. Mc EEL Y
President, Space Center, Inc.
St. Paul, Minnesota
DO ALD W . YROP
President, orthwest Airlines Inc.
St. Paul innesota
C. FRA K REA VIS
Partner R eavis and cGrath
ew York, ew York
ALBERT G. REDP TH
Vice President, Thomson and McKinnon,
Auchincloss Inc.
ew York, ew York
L YMA E. K EFIELD JR.
Vice Pre ident Piper, Jaffray and Hopwood
inneapolis, Minnesota
REGI TRAR: The Chase Manhattan Bank,
ew York, ew York
TR SFER GE T: Banker Tru t Company
ew York, ev York
STOCK LISTED: Common Stock listed on e
York Stock E change Pacific oast Stock Exchange
and Midwe t Stock E change
* of a rch I , 1971
NORTHWEST , ,
ORIENT ~-,
AIRLINES ~
General Offices
Minneapolis-St. Paul International Airport
St. Paul , Minnesota 55111
Area Code 612 726-2111
OFFICER *
DO ALD
President
YROP
JA ES . ABBOTT
Vice President-Legal
CLA YTO1 R. BR DT
Vice President-Purchasing and Store
ROBERT . CA PBELL
ice President-Budgets
J. ILLIA CA PIO
Vice President-Regulatory Proceeding
ROL D . CH BER
Assistant ice President-Properties
ROBERT . EBERT
Vice President-Personnel
ROY K. ERICKSO
Vice President-Public Relations
A.E.FLOA
Secretary
BE T
JAMI G. GRIGG JR.
ice President-Assistant to the Pre ident
DO T
ALD H. HARDE TY
ice President-Finance and Treasurer
KI).TS JR.
REGI r LD C. JE1 KI S
Vice President Orient Region
FRA T
K C. J DD
and Computer Ser ices
ice Pre ident- aintenance and Engineering
. JOSEPH L PE KY
ice President-Economic Planning
RO LD c ICK R
ice President
BRY G.
d ertising
ROBERT J. PHILLIP
ice President-Comptroller
C. L. TE RT
ice President-Tran portation Ser ice
ROBERT J. \ RIGHT
ice Pre ident-Sale
23