Northwest Airlines Annual Report 1976

Description of Business
orthwest Airlines, Inc. , incorporated in the State of Minnesota, is a scheduled air
carrier engaged in commercial transportation of passengers, mail and property, a~d
operates under certificates of public convenience and necessity issued by the Civil
Aeronautics Board. The present route system covers approximately 24,200 route miles
and ser es directly cities in 17 states of the 48 contiguous states, as well as Alaska,
Hawaii, the District of Columbia, Canada and countries in Asia including Japan, Korea,
Taiwan, Hong Kong and the Philippines. Authorizations to serve Shanghai, Peking and
other points in continental China remain in effect although presently inoperative.
Highlig]Jts of 1976
1976 1975
Total Operating Revenues .... . .......... . ... . ......... . .... . $963 ,808,065 $800,562,989
Operating Income ... . .................. . .. . ... . . . ........ . . . 102,948,027 49,699,649
Net Earnings for the Year .................. . ... . ........... . . 51,737,015 43 ,395,834
Per Common Share ....................... . .. ... ......... . . 2.39 2.01
Per Dollar of Revenues .......................... . ........ . 5.4; 5.4;
Stockholders' Equity .......... . .......... . ..... . .. . ........ . 665 ,743,992 623,676,634
Per Common Share ........ . ................. . .......... . . . 30.81 28.87
Dividends Paid ...................................... .. .. . . . 9,707,217 9,710,098
Operating Expenses:
Per Available Ton-Mile .................... ... . . ... . ...... . 21.6 20.6
Per Revenue Ton-Mile ................... . ............ . ... . 50.5<t 50.2
Revenue Traffic:
Passengers Carried .. . .................................... . 9,818,343 8,865,263
Passenger-Miles Flown ........................ . .. . .. . .... . 10,758,683 ,000 9,471 ,282,000
Ton-Miles, Mail, Freight and Express .............. . . . ..... . 571,449,000 481 ,253,000
Common Shares at Year End .............................. . . . 21 ,606,036 21 ,604,136
Employees:
Number at Year End ............... . .... . ................. . 11,208 11,268
Total Wages and Benefits Paid ............................ . $249,521 ,454 $222,683,755
3
From the Chairn1an
50th Annual Report to the Shareholders
Th fifti th anni r ary of orthwest Orient Airlines
was ob erved in 1976 and during the year the Company
had a profit of $51,737,015; operating revenues of
963,808,065 set a new record for the Company.
orthwest Airlines was third in net earnings among
U.S. air carriers for 1976 even though Northwest ranks
only eventh in size based upon operating revenues. It is
the sixth time in the last 10 years that the Company's net
earnings exceeded $50 million - and the 26th consecu-
tive profitable year for the C~mpany.
Financial Strength Grows
The financial strength of orthwest Airlines in-
creased again in 1976. Outstanding debt was reduced by
$146.9 million during the year that ended December 31,
1976 - from $271.9 million to $125 million .
At year-end 1976, orthwest stockholders' equity was
$665,743,992. Retained earnings were $514,560,428
- highest in the U.S. airline industry. Debt as a per cent
of equity ratio was only 18.8 per cent - which is the
lowest in the airline industry.
Higher Dividend Set
The Board of Directors on March 7, 19 7 7 increased the
dividend rate of orthwest Airlines common stock by
11 per cent.
The annual rate was increased from 45 per share to
50 per share; the quarterly dividend rate is 12 per
,\'WA Directors, left to right: Melvin R. Laird,
Jam , . Land, Jr. and Lyman E. Wakefield, Jr.
share, effective with the payment to be made on March
31, 1977. orthwest has paid dividends for 87 consecu
tive quarters.
Traffic Gains
orthwest Airlines' over-all passenger traffi c growth
exceeded the industry's average in 1976. Revenue pas
senger miles increased 13. 6 per cent over 1975
9,800 ,000 passengers were carried in 1976 compared to
8,900 ,000 passengers in 1975. Air freight business -wa
up 21. 6 per cent in ton miles flown over 1975.
The 'Wide Cabin Airline'
Northwest Airlines continued its program for acquir-
ing cost efficient, modern jet aircraft to enhance its posi-
tion as the industry's "wide cabin airline". Today, 75
per cent of the available seat miles on Northwest are in
wide-bodied jet equipment.
Two used passenger version B-747's were purchased
by Northwest and were delivered in April of 1976. To-
gether with the 22 DC 10-40's and 15 747's previously
operated by Northwest in passenger service (plus three
747F all-cargo aircraft) , it boosted the total of wide-
bodied jets in NWA's fleet to 42 aircraft.
In 1977 Northwest will take delivery of 10
aircraft - one 747F jet freighter and nine Advanced
Model Boeing 727-200's. Total investment in these 10
aircraft will be $126 million with spare engines.
NWA Directors, left to right: Raymon d H. Herzog, Hadley Case.
M. Joseph Lapensky and Malcolm S. Mackay.
Northwest will ~ontinue to sell its older Boeing 707
and 727-100 airplanes; the Company has firm contracts
at this time for the sale of 7 aircraft during 1977.
New Orleans Route Award
The Civil Aeronautics Board (CAB) awarded North-
west Airlines its first new route authority in seven years
on February 11, 1977.
Non-stop authority between Chicago and New Or-
leans was granted to Northwest. In its decision, the CAB
recognized Northwest's record of carrier efficiency stat-
ing: "Northwest's position as one of the industry's
strongest carriers should permit it to make a major com-
petitive effort" against the incumbent carrier.
New Orleans is one of the truly international cities in
the United States - as well as one of the most vibrant
and rapidly growing. Northwest is proud to have been
selected to serve this market.
Officer, Director Changes
Mr. M. Joseph Lapensky was elected President and
Chief Operating Officer by the Board of Directors on
October 1, 1976. Mr. Lapensky had previously been Vice
President-Finance and Treasurer of the Company. He
has spent 31 years with Northwest in a variety of posi-
tions in the areas of finance, economic planning and
regulatory proceedings.
Two senior Directors of Northwest did not stand for
, WA Directors, left to right: Donald G. McNeely,
Donald W. yrop and Jam es H . Binger.
re-election at the 1976 annual meeting. They were C.
Frank Reavis of New York City, a partner in the law firm
of Reavis and McGrath, and Albert G. Redpath of New
York City, an investment banker with Drexel, Burnham
& Co.
Elected to the Board of Directors to replace Messrs.
Reavis and Redpath were two distinguished business
leaders: Raymond H. Herzog of St. Paul, Minnesota,
Chairman of the Board of 3M Company, one of the
world's largest multi-national firms, and James N. Land,
Jr. of New Yark City, a business consultant and long-
time officer of The First Boston Company.
James F. Redeske, age 3 7, was named Vice President-
Personnel for Northwest, replacing Robert A. Ebert, who
retired after a 33-year career with the Company. Robert J.
Phillips was named to succeed Mr. Lapensky as Vice
President-Finance and Treasurer. Mr. Phillips had pre-
viously served as Vice President-Comptroller.
Outlook for 1977
1977 will be another good year for the Company.
Transportation revenues should increase 12 to 14 per
cent. The profitability of the Company should increase
because the Company has a modern and cost-efficient
fleet of aircraft; the Company does not have any leased
airplanes (that is, no off-balance sheet financing); it has
a very favorable debt/equity ratio; and the Company has
cost controls that result in its having the lowest costs of
any U.S. airline.
Sincerely,
~~r
:-~
Chairman and Chief Executive Officer
March 15, 1977
5
al and 1orketin Highlights
New sales records established in 1976
as NWA's growth outstrips the industry
al r ord w re tablish d in a host of area b
orthw t Ori nt in 1976 as the airline's growth ex-
c d d th industr average.
n " boarding record of 959,975 passengers in Au-
gu t gen rated a new single month passenger revenue
r cord of 82.2 million.
nev ingle month air freight revenue record of $10. 9
million was established in October.
Total operating revenues of $963. 8 million in 19 76
ere the highe t in the Company s 50 year history.
A total of 9 818,343 revenue passengers were carried
in 1976 - the first time the airline exceeded the nine
million mark.
Cargo sales were a record $119.9 million in 1976 - up
35.8 per cent over the $88.3 million in 1975.
Contributing significantly to orthwest Orient's
growth in 1976 were WA's travel agents. This group
as responsible for producing nearly half of all pas-
senger revenues during the year and produced over
$100 million more in revenues in 1976 than in 1975 - a
37.6 per cent increase.
Cargo Gains Continue
orthwest Orient's innovative concept of using compu-
ter anal sis of total distribution costs has been instru-
mental in developing westbound transpacific freight
traffic. Sales presentations were made to over 500 poten-
tial shippers in 1976.
Other new ideas are being applied by WA to further
develop the rapidly expanding air freight market.
Among them is a new International Sky-Truck tariff
which will allow orthwest Orient to use substitute
trucking from off-line points in the U.S. Also, new
inter-line agreements have been made with nine trunk
and eight local service carriers for pick up and delivery
ser ice of small package shipments.
'Package' Tours Popular
ome of the most popular package air tours in the indus-
tr were produced by orthwest Orient in 1976.
Group and individual pleasure tour traffic increased
38 per cent over 1975 and produced $70 million in
re enues for orth est Orient. Tour traffic on Orient
routes showed increases of up to 50 per cent. Air/Sea
crui e tours to the Caribbean proved ver popular and
orth west Orient was the dominant air carrier of this
traffic from Chica0
o and the Upper Midwest.
6
TOKYO TICKET COU TER ... Two of orthwest
Orient's Japan ese employees at Han eda Airport in Tokyo
assist passengers about to board A's fligh t 10 to the
U.S. orthwest Orient will celebrate its 30th year of
service to Japa n on July 15, 1977.
During 1976 more than one half million passengers
(553,828} chose orthwest Orient transpacific flight
services for their business and pleasure travel. A new
'quiet zone' seating section for individual passengers on
transpacific flights was introduced and proved ex-
tremely popular. Located next to the first class section,
this new area was a favorite of business travelers who
wanted to work with minimum distraction.
The wide cabin superiority of Northwest Orient's jet
fleet contributed substantially to the Company's above
average growth in passenger traffic for 1976. This ad-
vantage even carried over into the charter market where,
in 1976, orthwest Orient operated nine Boeing 747
passenger charter flights between the Twin Cities and
Honolulu. The program was so successful that plans for
1977 include 25 of these 747 charter flights in this mar-
ket.
In summary, 1976 was another record sales perfor-
mance by orthwest Orient. The sales goal for 1977 ha
been set at $1 .1 billion with confidence that it can be
achieved by another good effort.
TAIPEI TRAFFIC . . . flows
through the downtown area of that
hustling city, served by Northwest
Orient si nee 1950.
ALASKA'S MOUNTAINS . .. provide a majestic background for one of
Northwest Orient's DC 10-40's during a stop at Anchorage International Airport.
al ~ and Mark ting Highlights
Northwest Orient advertising features
'Wide Cabin Airline' theme;
Convention Central shows rapid growth
I si in orthw st Ori nt' adv rti ing dur-
on t airlin ' cl ar uperiorit in wid
raft. n w them , featuring orthwest
ri nt a 'th id abin airlin ', emerged.
With its fl t of 22 D 10-40's nd 17 passenger ver-
ion 747's, orthwe t Orient offers 75 per cent of its
a ailabl eat miles in wid cabin equipment. The com-
p titi e advantage enjoyed by WA by virtue of the
public' demonstrated preference for the 'jumbo jets' is
outlin d in newspaper advertisements like those illus-
trated b low. The message is r,einforced in radio, televi-
ion and magazine advertising as well.
VIP Travel Plan
In March of 1976, a major new marketing program was
launched called the VIP Travel Plan. It represented the
most comprehensive transpacific passenger travel plan
of it kind.
Features of this unique program include: offers from
16 distinguished Orient hotels to provide discounts on
standard rooms or upgraded rooms at standard rate with
late 6 p.m. checkout privileges; discounts up to 30 per
cent on fine merchandise from respected merchants in
When we say we're #1 in comfort,
we put our wide-cabin schedule on the line.
8
Today. 21 roomy
Northwest Wlde-<:abln
JelsWII take off
from lhe Twin OtJes.
Thars 20 more than
an lheother ai~ines
combined. Step aboard
any of our 747s or
DC-10s ard er.pf extra
room at no extra cost.
We want you to
comfortable. Thats
whywe'relhe
Wlde-<:ablnleader
from lhe Twin Croes.
Tokyo and Hong Kong plu substantial savings on ity
tours and translation servi es.
Customer ervices introduced as part of the VIP Trawl
Plan included: a special coach se tion for the business
traveler who wishes to work onboard with a minimum
of distraction; advance seat reservations; on-board
duty-free shopping; Regal Imperial food service and an
all-7 4 7 operation across a choice of transpacific rout s
Within the Orient in 1976, WA advertising concen-
trated on generation of tour traffic. Television and
magazines were the prime media employed. Hawaii and
California continued as the most popular destination
for residents of the Orient - but Alaska began to regis-
ter very strong interest for Japanese tour traffic.
Convention Central
orthwest Orient established its reputation as the air-
line industry leader in convention and corporate meet-
ing travel service in 1976 as Convention Central, created
in 1975, continued its rapid growth.
While six other airlines followed NWA's lead by in-
troducing centralized convention telephone systems,
only orthwest Orient's Convention Central provided
Save 15% to Florida
with Northwest's low ~time excursion fares.
=--..:,~~~- --
"::.--:::-~.-=-~-..;..---
S.V.1S"-.ontant'
:::::-.: .. =~
E~
~~~~
Daily ~
Nons~ops to Florida
- 61
>-- oc
oc,..rOl'oc"
OD- ,,... IOOJdfOI"
...
_ - .,..... ,.,
, . _ ,ao- ft..,tol'.llfl,c,.oc
- - ..:,-. - 1'0P
FcwfHefYabons.,ca.llnve!agent
cwNotthwfft346-41900
the meeting planner and his travel agent with a toll free
travel center specifically designed to coordinate all
phases of an organizations nation-wide convention
transportation needs.
In 1976 Northwest Orient introduced its exclusive
new money-saving Convention Dollar program. This is
a direct expansion of the advertising theme promoting
Convention Central - and assists both the meeting
planner and his delegates to get more for their conven-
tion dollar.
Arrangements were made with companies in the con-
vention supply industry to provide the meeting planner
with substantial discounts on vital merchandise and
services needed to run a successful convention. A 24
page booklet entitled "How to Get More for Your Con-
vention Dollar" was also produced,. explaining the op-
eration of the program in detail.
Individual delegates whose reservations were made
with Convention Central received NWA Delegate Dis-
count Dollars and a complimentary expense record and
guide. These items enabled the delegate to obtain sav-
ings on rental cars and film processing.
Impact of the new Convention Central programs have
been significant. Revenues in 1976 were $11.5
million - a 28 per cent increase over 1975.
Here's what's
in it for
your company
or association!
Here's
what's
in it for
Free ConventJon DoU ra,
an exduslve new money-saving
program lrom Northwest- the
alr1me Industry leader in convention
andcorporatemeeling travel
S8MC8SI
your delegates!
We've made arrangements for
selected companies to give you
discounts on vital merchandise and
services found mos! useful In
rumlng a successful convention
meeting,
Convention Dotlars are available In
a checkbook of 14 checks- each of
wNch extends a s'9nlflcant money-
saving dlaoount otter by a
pafbeipating company. Check the
line-up of discounts listed here
and you11 see that your savings
canbesubstantiall
How to get Convention Dollal"8?
lt'aeasyl If you're Interested just
call Convention Central~
800-328-7747" toll.free and discuss
the detaUs of your next meeting. _
~i=':;?::!u~~1:.~;~~ c:.~=lnqu n1tUutfl<AnllOPH
Budget Re4"1tA-C.r Oi1C011n1 on ca, r11nl.al SI/CMy, llOl'WHk
FlknCofp ol AtNrlu Olacounlon him P~l'ICI $300 pw roll
Free Vacation Dollars
for Florida, California,
Hawaii
We're making convention
travel more convenient and
en}oyable for your delegates
than ever before And we're
saving lhem money-wllh our
exciuslveVacatlonOollars-
good for discounts ranging
from S40 to S60 per couple
Each ol your delegates on
Northwest Jets bOund tor
Aonda. CaJ1lornla or Hawaii
wUI receive a free bundle ol
Vacation Dollars Depending
on their des11nat1on, deJegates
can use their Ooftars for
d1scoun1s on golf, sightseeing,
ca, and bike rentals,crv1ses.
shopping. d1n1ng - and more
New - Our Orient
VIP Travel Plan
All delegates aboard Nonhwest
Nights to the Onenl will receive
a checkbOOk ol VIP 01scoun1
Dollars-good lor discounts ol
up to 30illilo a1 stores In Tokyo
and Hong Kong,
15% discounts on secretanal/
translation services are also
available No olher autme can
match this Onent discount plant
CONVENTION
EXPENSE
RECORD AND
GUIDE
Plus, these
extra values!
Free convention upe;,se
record and guide
Convenient. pocket-size
bOOkJet for recording day-to,.
day convenoon expenses -
alsohstsNorth~estreservauons
numbers.system-wide
Free convention baggage
tags
Makes luggage ldenllhcanon
easy (new ATA regutatK>ns
require ID on all checked
luggage)
Airfare savings
Ask our COnvent10n CentraJ
experts abou1 money-saving
!are pfans, Including spaclaJ
Group rates for delegates,
Excursion Fares and lour
packages
~
NORTHWEST ORIENT
HOWTO
GET MORE
FORYOUR
CONVENTION
DOLLAR
9
Financial review and management analysis for 1976
Source and Distribution of Revenues
(Percent of Total - Dollars in Millions)
Passenge~Coach--
73 6% $709.0
Passenger-1st Class --
8 0'o $77.4
Fre,gh and E press ...__________
12.40 $1199
Charter and Other
3 40 $32 4 -------------
2 60 25 1
a, I ------
10
Source: Distribution:
Employee Wages
- -and Benefits
25.9% $249.5
- - Fuel and 011
21.6% $208.5
Materials and
--Services
18.5% $1 78.5
Deprec1at1on and
-Amortization
10.7% $102.7
_ Comm1ss1ons
7.9% $76.1
Landing Fees
- and Rentals
5.2% $50.2
__ 1
ncome Taxes
4.8% $46.5
--Earnings
5.4% $5 1.7
Operating Revenues
Operating revenues in 1976 reached an all-time
high of $963 ,808,065 or 20.4% over 1975 revenu
of $800 562 ,989 and 27 % over 1974 revenue of
$758,990,979.
ew records were established in the passenger and
cargo categories reflecting both increased traffic and
increased fares and rates granted by the Civil Aeronau
tics Board. System scheduled passenger-mile yield in-
creased to 7.30 in 1976 compared with 6.94 in 1975
and 6.81 in 1974. Cargo revenues increased signifi-
cantly to $119,882,259 in 1976 or 35 .8% over the
$88,307,610 in 1975 and 57.4% over the $76,157,097 in
1974. Cargo revenue ton-mile yield in 1976 increased to
25.65q; compared with 22.86<t in 1975 and 23.99 in
1974. This growth reflects the emphasis the Company is
placing on broadened and improved air freight services
with the addition of the Boeing 747F all-cargo wide-
bodied aircraft.
Revenue in 1976 from commercial charter and other
income amounted to $13,249,974 and from military
charters $12 ,704,567. These compare with $12,561,055
and $16,457,917 in 1975 and $12,811,474 and
$14,510 212 in 1974, respectively. Military charter re-
venue in 1975 reflected the increased activity from
evacuation of military and civilian personnel from Viet-
nam. The Military Airlift Contract expires on September
30, 1977 and the Company will seek a renewal contract
for the government's 1978 fiscal year.
Fares and Rates
The Civil Aeronautics Board approved a series of far
and rate increases in 1976 which were required a a
result of inflationary pressures. Passenger fares in the
domestic 48 states increased during the year by 7%
while excursion fares and domestic charter rates in-
creased 4% and 10% respectively. Mainland-Alask.
fares increased 3% and Mainland-Hawaii promotiona
fares increased by 9%. International passenger fares .!_Q
Taiwan, Hong Kong and the Philippines were increaseG
3% to 5% with similar increases from these countrie~
still pending foreign government approval.
Cargo rate increases in the domestic 48 states rangec
between 12% and 24%. Mainland-Alaska cargo rate.
increased 17% and Mainland-Hawaii cargo rates in
creased by 7% to 10%. Proposed increases in interna
tional cargo rates, based on orthwest Airlines' ne
containerization concept, are awaiting approvals by th
respective governments.
Passenger fare increases have also been approved 1
1977. Mainland-Hawaii fares were increased 2% for
normal fares and 4.5% for promotional fares , effective
January 1. Domestic 48 state passenger fares were in-
creased 2% on February 15, 1977.
Operating Expenses
Operating expenses in 1976 were $860,860,038, up
14.6% from $750,863,340 in 1975 and 26.4% from
$681,205,682 in 1974.
Continued inflationary pressures required constant
cost control surveillance in all areas. Operating expense
per available ton-:-mile increased to 21 .61 in 1976 from
20.61 in 1975 and 19. 85 in 197 4. This cost level is one
of the lowest in the airline industry as measured by this
common unit of cost measurement.
Depreciation and amortization expense amounted to
$102,713,531 in 1976 and compares with $98,879,815 in
1975 and $96,212,517 in 1974. Increases between years
reflect the addition of new aircraft which was partially
offset by the disposal of the older, less productive air-
craft. Significant increases continued in the cost of
labor, agency commissions and aircraft fuel. Agency
commissions on passenger and freight traffic increased
to $76,129,464 in 1976 and compares with $41 ,288,370
in 1975 and $30,077,265 in 1974.
The system fuel analysis chart on this page shows the
upward trend in fuel costs since 1973. The Company in
1976 experienced some slow-down in the rate of infla-
tion. However, fuel cost is a significant portion of the
revenue dollar.
Earnings and Dividends
Earnings in 1976 were $51,737,015 or $2.39 per average
share of common stock outstanding. This compares
with $43 ,395,834 or $2.01 per share in 1975. The 1976
earnings figure of orthwest Airlines is the third high-
est in the U.S airline industry for the year.
Gain from disposals of property before related income
taxes in 1976 was $9,118,984, down from $13,616,020 in
1975 and $39,161,170 in 1974. The disposals of property
primarily include gains from the sale of older aircraft
and related spare parts. Sales agreements have been
made for delivery of some additional older aircraft in
1977.
Northwest Airlines continued its dividend payment
policy in 1976 with quarterly payments resulting in an
annual rate of $.45 per common share. These payments
represent the 22nd consecutive year in which the Com-
pany has paid dividends. Effective with March 1977,
dividends were increased to an annual rate of $.50 per
common share. The principal market in which orth-
west common stock is traded is the ew York Stock
Exchange. The following table shows the sale price
ranges for the years 1976 and 1975 and the dividends
paid per share for the same period.
Sales Price of Dividends
Common Shares Per Share
Quarter 1975 1976 1975/1976
1st
High 19 32
$.1125
Low 115/a 23
2nd
High 221/s 34
.1125
Low 16 253/a
3rd
High 223/s 36
.1125
Low 171/s 27
4th
High 23 31 .1125
Low 171/s 26
System Fuel Analysis
1973
Price Per Gallon (Includes Sales Taxes) .. 12.66
Gallons Used (000) '
......... . .. '
...... 616,930
Fuel Cost (000) ........ . ............ . .. $78,134
Revenue Ton Miles (000) ...... . .... . ... 1,254,074
Revenue Ton Miles Per Gallon ........... 2.03
Total Revenues (000) .. ........ .... . . ... $584,348
Fuel Cost % of Revenues .............. . 13.37%
Year Ended December
1974 1975
27.20 31 .67
587,302 593,821
$159,753 $188,049
1,411 ,862 1,494,669
2.40 2.52
$758,991 $800,563
21 .05% 23.49%
1976
33.29
618,325
$205,853
1,705,987
2.76
$963,808
21 .36%
% Change
1976/1975
+ 5.1 %
+ 4.1%
+ 9.5%
+1 4.1 %
+ 9.5%
+ 20.4%
- 9.1%
11
Financial review for 1976
( ontinued)
Ta 'e on Earnings
In om ta on earning in 1976 w re $4 ,527,200 and
compar \,\ ith 3,693,200 in 1975. The current year con-
i t of a normal ta pro ision of $48,375,400 of which
27 ,881 ,100 ha been deferred for future pa men ts due
primaril to the ompan ' use of accelerated methods
for computation of depreciation for income tax pur-
po e . Investment tax credits of $1 ,848,200 were ap-
plied against the income tax provision in 1976 and
compare ith $18,704,300 in 1975. These credits in
197 include $1,326 000 generated in the current year
from the purchase of flight equipment and related
spares and ground equipment and $522,200 from the
amortization of investment tax credits from 1968 and
prior ears.
Investment tax credits which could not be applied to
income ta returns but which were offset against defer-
red income taxes were $53 ,527,600 for 1976 and prior
ears down from $62 158,300 in 1975. Further reduc-
tion of this deferred investment tax credit is anticipated
in 1977 and 1978 due to the changes in the 1976 Income
Tax Reform Act which permits utilization of investment
tax credit at the rate of 100% of the current tax liability in
these years.
Cash Flow
Funds generated in the current year from all sources
amounted to $196 ,792 817.
Benefits from the Company's policy of owning its own
equipment, rather than leasing, has provided funds
through depreciation which, with amortization,
amounted to $102,713,531 in 1976 and $98,8i9,815 in
19 7 5. Additional funds provided through the disposal
of previously purchased equipment amounted to
$15 ,095 ,379 in 1976 compared with $21 ,739,116 in
1975.
Application of funds in 1976 totaled $215 ,126,436.
Flight equipment and other property additions, includ-
ing advance deposits on aircraft scheduled for 1977
deli er , amounted to $81 ,593,258. Payments for reduc-
tion of long-term debt amounted to $124,000 ,000, cash
dividends $9,707,217 and other miscellaneous applica-
tions $174 039 credit.
Traffic
cheduled operations in 1976 reflected gains in both
traffic and capacity o er 1975.
cheduled a ailable seat-miles increased 6.3% over
197 5 and re enue passenger-miles flown increased
13.6%. Pas enger load factor increased to 48.40% com-
12
Stockholders' Equity vs Long Term Debt
Millions of Dollars
700
600
500
400
300
200
100
0
1972 1973 1974 1975 1976
pared with 45.29% in 1975 and 45.83% in 1974. Thes
increases were achieved with only a 4.2% increase in
revenue aircraft miles flown, reflecting the increased
capacity of the larger, more productive aircraft received
in 1975 and 1976.
Available ton-miles flown increased 9.8% over 1975
and revenue ton-miles flown increased 15.3%. Pa -
senger and freight revenue ton-mile increases over 1975
were 13.6% and 21.6% respectively. The weight load
factor increased to 42.28% in 1976 compared with
40.26% in 1975,and 40.13% in 1974.
Financial Condition
The Company continued to improve its financial posi-
tion in 19 7 6 and retained its ranking as one of the
strongest carriers in the airline industry.
Internal cash generation provided the Company with
funds for all its financial needs in 1976. This included the
purchase of two used 747 passenger aircraft with spare
engines and related spare parts. In addition, long-term
debt was reduced by $124,000,000. Details of the
Company's long-term debt arrangements are described
in Note B to the Financial Statements.
Present financial arrangments, along with internally
generated funds , are expected to cover the purchase
from Boeing Aircraft Company of one 747F all-cargo
airplane and nine 727-200 passenger airplanes which
will be delivered in 1977. These airplanes, with spare
engines, will require an expenditure of $126,492,000 of
which $31 ,502,000 has been deposited with Boeing at
year end.
Stockholder equity at December 31 , 1976 amounted to
$665 743 ,992 , compared with $623,676,634 in 1975.
Book value per common share increased to $30.81 in
1976 compared with $28.87 a year ago. Outstanding
debt at year end was $125,000,000 which is a significant
reduction from the $271 ,900,000 at the end of 1975.
Outstanding debt is only 18.8% of stockholder equity in
1976 compared with 43.6% in 1975. This preferential
debt ratio is the lowest of the U. S. trunkline carriers.
Statements of Earnings
NORTHWEST AIRLINES, INC. AND SUBSIDIARIES
Operating Revenues
Passenger ....... ... ..... .. . . . . . .... . . .... .. . . .... ..... .
Cargo . ......... . .. .. ...... . .... .. .. .. .... .. .... ..... .. . . .
Mail ...... . . . .... . .... . . . .... . ....... . . . . ... .. .... .. . . .
Charter and other transportation . . .. .. . . .. .. .... . . ... .. . .
Mutual Aid Agreement . . .. . .......... ... . ..... . . .. . .... .
Nontransport . ............ . ........ . .. . ... . . .. .. .. . .... .
Operating Expenses
Flying operations . . .. . .. . .. .. . . ...... .. . . . ... ....... . . . .
Maintenance . ..... . . . .............. . .. . ......... .. .. . . .
Passenger service ... . .. . .... . .. . ... ... . . .. . ..... . ... . . . .
Aircraft and traffic servicing .. . ... . ... . . . ... . . .. . . ...... .
Reservations, sales and advertising . . .... . ... . ....... .. . . .
Administrative and general . . ... .. .. . ........ . . .. . . ... . . .
Depreciation and amortization .. . . .. . .... . .. . ......... . . .
Other Income and (Deductions)
Interest on long-term debt, net of capitalized
interest of $835 ,938 (1975 - $1 ,657,011) - Note A
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 .. .. . .... . ... ... ...... .
See notes to financial statements
Year Ended December 31
1976
$786,414 ,179
119,882,259
25 ,137,346
25,954,541
559,420)
6,979,160
963,808,065
309 ,198,914
87,175,964
77,085 ,717
138,940,753
123,568,082
22 ,177,077
102,713,531
860,860,038
102,948,027
14,035 ,036)
9,118,984
232,240
4,683 ,812)
98,264,215
46,527,200
$ 51 ,737,015
21 ,605 ,493
$2.39
1975
$659,849,499
88,307,610
23,279,860
29,018,972
5,340,153)
5,447,201
800,562,989
281 ,814,492
77,880,613
69,248,885
118,521,564
83,789,048
20,728,923
98,879,815
750,863 ,340
49,699,649
16,119,659)
13,616,020
106,976)
2,610,615)
47,089,034
3,693 ,200
$ 43 ,395,834
21 ,604,136
$2.01
13
H
Statements of Financial Position
NORTHWEST AIRLINES, INC. AND SUBSIDIARIES
ASSETS
Current Assets
Cash and short-term investments ........................ .
Accounts receivable, less allowance of $1,200,000
(1975 - $1,100,000) ................................. .
Recoverable income taxes ................. . ............ .
Flight equipment spare parts at average cost,
less allowance for depreciation of $13,247,969
(1975 - $11,224,428) .................... . ........... .
Maintenance and operating supplies at average cost ...... .
Prepaid expenses ...................................... .
Total Current Assets*
Other Assets
Property and Equipment
Flight equipment at cost ............................... .
Less allowance for depreciation ......................... .
Advance payments on new flight equipment - Note E ....
Other property and equipment at cost ................... .
Less allowance for depreciation . ................... ... .. .
Deferred Charges
Training and development costs ........................ .
Rentals ............................................... .
December 31
1976 1975
$ 14,5 44 ,179 $ 49,162,168
75 ,517,199 72,492,128
-0- 6,040,800
23,764,942 24,040,408
6,933 ,321 6,731,613
2,820,483 2,626,259
123,580,124 161,093,376
10,041 ,647 10,302,405
1 ,448,401 ,928 1,420,670,459
523 ,865 ,169 443,608,223
924,536,759 977,062,236
31 ,501 ,595 -0-
956 ,038,354 977,062,236
122,445 ,236 118,929,206
66 ,559,527 58,926,846
55 ,885,709 60,002,360
1 ,011 ,924,063 1,037,064,596
503 ,587 1,259,587
5,512,879 5,426,160
6,016 ,466 6,685,747
$1 ,151 ,562 ,300 $1,215,146,124
* At December 31, 1976 an additional $86,600,000 was available for working capital under the terms of
a Revolving Credit Agreement ($29,200,000 at December 31, 1975).
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable and accrued expenses ......... . .. . .... .
Employee compensation ..... . ........ . ..... . .......... .
Unredeemed ticket liability . . .... . . . ... .. .. .. ...... . .... .
Income taxes .. . .............. .. .. .. ..... . ..... . ....... .
Current maturities of long-term debt .. . .... . .. .. . . ...... .
Total Current Liabilities*
Long-Term Debt - Note B
Deferred Credits and Other Liabilities
Income taxes - Nate D ........... . ..... . .......... . .. . .
Other ................... . .......... . .................. .
Stockholders' Equity - Nate C
Common Stock $1.25 par value, authorized 40,000 ,000
shares; issued and outstanding 21 ,606,036 shares
(1975 - 21,604,136 shares) ..... . ........ . ............ .
Capital surplus . ............ . ............. . .... . . . .. . .. .
Retained earnings ..... . ... . ............. .. ... . .... . .. . .
Commitments and Contingencies - Notes E and F
See notes to financial statements
December 31
$
1976
100,485 ,107
21 ,934,578
17,887,086
11 ,388,481
3,000 ,000
154,695,252
122,000,000
201 ,791 ,600
7,331 ,456
209,123,056
27,007,545
124,176,019
514,560,428
665 ,743 ,992
$1 ,151 ,562,300
$
1975
100,844,423
27,451 ,657
18,224,695
1,454,110
25,900,000
173,874,885
246,000 ,000
165,026,200
6,568,405
171,594,605
27,005 ,170
124,140,834
472 ,530,630
623,676,634
$1 ,215 ,146,124
15
1
Statements of Changes in Financial Position
NORTHWEST AIRLINES, INC. AND SUBSIDIARIES
Year Ended December 31
Source of Funds
et arning ............... . ..................... . .... .
It m not r quiring current funds:
Depr ciation and amortization:
Aircraft and related flight equipment ................ .
Other ............................................. .
D f rred income taxes ....... . ......... . ............. .
Deferred investment credit . ..... . .................... .
Total from Operations
Issuance of long-term debt ............................. .
Disposals of operating property - book value ........... .
Other . . ... . .............................. . ............ .
Total of Sources
Application of Funds
Flight equipment and other property additions ........... .
Advance deposits on aircraft . .......................... .
Other assets and deferred charges ....................... .
Cash dividends ........................................ .
Reduction of long-term debt ............................ .
Total of Applications
Increase (Decrease) in Working Capital ................... .
Changes in working capital consist of:
Increase (decrease) in current assets:
Ca hand hort-term inve~tments ...................... .
Receivables ........ . .. . .......... ................... .
Recoverable income taxes ............................ .
Inve11tories .......................................... .
Prepaid expenses .................................... .
Increase (decrease) in current liabilities:
Accounts payable and accrued expenses .......... : .... .
Other accrued liabilities . . ............................ .
Unredeemed ticket liability ........................... .
Current maturities of long-term debt .................. .
Increase (decrease) in working capital .................... .
not s to financial tatements
1976
$ 51 ,737 ,015
92,747,130
9,966,401
36,765 ,400
522 ,200)
190,693 ,746
-0-
5,976,395
122,676
196,792 ,817
50,091 ,663
31 ,501 ,595
174,039)
9,707,217
124,000,000
215,126,436
($ 18,333,619)
($ 34,617,989)
3,025 ,071
6,040,800)
73 ,758)
194,224
37,513 ,252)
359,316)
4,417 ,292
( 337,609)
( 22,900,000)
( 19,179,633)
($ 18,333 ,619)
$
1975
43,395,834
88,304,178
10,575,637
7,731,700
1,374,900)
148,632,449
32,100,000
8,123,096
3,920,071
192,775,616
165,096,830
-0-
1,490,373
9,710,098
-0-
176,297,301
$ 16,478,315
$ 9,091 991
13,128,489
6,040,800
3,585,891
435,359
32,282,530
7,360,967
7,171,071)
4,814,319
10,800,000
15,804,215
$ 16,478,315
Statements of Stockholders' Equity
NORTHWEST AIRLINES, INC. AND SUBSIDIARIES
Common Stock Capital Retained
Shares Amount Surplus Earnings
Balance December 31, 1974 . .. . . .. .. .. . 21,604,136 $27,005,170 $124,140,834 $438,844,894
Net earnings for 1975 . . .. . .. . . . ... . . . 43,395,834
Cash dividends - $.45 a share . . . . .. . 9,710,098)
Balance December 31, 1975 . . ........ . . 21 ,604,136 27,005,170 124,140,834 472,530,630
Exercise of stock options ............ . 1,900 2,375 35,185
Net earnings for 1976 .......... . .... . 51 ,737,015
Cash divide_
nds - $.45 a share . .... . . ( 9,707,217)
Balance December 31, 1976 ........... . 21 ,606,036 $27,007,545 $124,176,019 $514,560,428
See notes to financial statements
APPLICATION OF INVESTMENT TAX CREDIT NORTHWEST AIRLINES FLEET
Period Available*
1962-1975 ........ $123,431,700
1976 . . . . . . . . . . . . . 1,326,000
Reflected in
Net Earningst
$122,909,500
1,848,200
December 31
On
Total . . ........... $124,757,700 $124,757,700 Aircraft Type 1975 1976 Order
To Net Earnings . . 124,757,700 1
To be Amortized . . $ -0-
*Investment credits not applied on tax returns but
offset against deferred taxes through 19 76 amount
to $53,527,600. See Note D to financial statements.
tDeferred investment credits for 1968 and prior
years have been completely amortized in 1976.
The flow-through method of accounting was
adopted for investment credit generated after 1968
and the income benefits have been reflected in the
year generated.
B727 & B727C-100 .... 32
B727-200 . . ... . .. . ... 31
B707-320B & 320C . .. . 10
DC10-40 . .... .. ..... . 22
B747 . ... . .. . ........ 15
B747F . .. . ...... . .... 3
Total . ............. . . 113
See Note E to financial statements
32
31 9
8
22
17
3 1
113 10
17
18
Notes to Financial Statements
NORTHWEST AIRUNES, INC. AND SUBSIDIARIES
Years Ended December 31 , 1976 and 1975
Note A - Accounting Policies
A summary of certain accounting policies of the Company which have been consistently
followed in preparing the accompanying financial statements is set forth below:
Consolidation
The consolidated financial statements include the accounts of the Company and its wholly-
owned subsidiaries after elimination of intercompany accounts and transactions.
Foreign Currency Translation
Inventory and property and equipment are translated at rates of exchange in effect when
acquired. All other monetary assets and liabilities are translated at year-end rates of exchange.
Revenue and expense accounts are translated at a weighted average of exchange rates which
were in effect during the year, except for depreciation which is translated at the rates of exchange
in effect when the property and equipment were acquired. Exchange adjustments are charged or
credited to income currently and are not material.
Flight Equipment and Property
Provision for depreciation is computed by the straight line method over the estimated useful
lives of the assets. The calculation assumes useful lives of fifteen years with 10% residual values
for 747 and DC-10 aircraft and ten years with 15% residual values for all other aircraft. Useful
lives of buildings vary from 5-30 years and other equipment from 4-10 years.
Allowances for depreciation of flight equipment spare parts, rotables and assemblies are pro-
vided by the straight line method at rates which allocate the cost of these assets, less residual
value, over the estimated useful lives of the related aircraft.
The Company charges to operating expense when incurred, all expenditures for maintenance
and repairs and minor renewals and betterments. Expenditures which materially increase values
or extend useful lives are generally capitalized. Carrying amounts of assets sold or otherwise
disposed of are eliminated from the accounts in the year of disposal and the resulting gain or loss
is reflected in operations.
Interest on the Company's long-term debt relating to deposits advanced to manufacturers prior to
the delivery of new aircraft is capitalized as cost of the assets and is amortized over the useful life
of the aircraft. If the Company did not follow a policy of capitalizing interest, net earnings would
have been increased by $731,000 ($.03 a share) in 1976 and by $322,000 ($.01 a share) in 1975.
Training and Development Costs
The Company defers preoperating expenses of new aircraft fleets (principally training) and
amortizes such costs over future periods to be benefited, generally five years.
Pension Plans
The Company has several pension plans covering substantially all of its employees. The policy is
to fund pension costs accrued which includes the amortization of prior service costs over a
period of thirty years.
Taxes on Earnings
Taxes are provided for all items included in the statements of earnings regardless of the years
when such items are reported for tax purposes. Deferred income taxes result primarily from
Notes to Financial Statements
Note A - Accounting Policies (Continued)
using for tax purposes accelerated depreciation methods and deducting currently the interest
capitalized as cost of aircraft.
The Company uses the flow-through method of accounting for investment credits except for
those arising prior to 1969 which are amortized over eight years from the dates the credits arose.
Investment credits not applied on tax returns are offset against deferred income taxes to the
extent they are applicable to deferred taxes becoming payable in the investment credit carryover
periods.
Earned Revenue
Passenger and cargo sales are recognized as earned revenue when the transportation is provided.
Earnings Per Share
Earnings per share are based on the average number of shares of Common Stock outstanding
during each year. Shares issuable upon exercise of stock options are excluded from the computa-
tion since their effect is not significant.
December 31
Note B - Long-Term Debt 1976 1975
Revolving Credit Agreement with banks provides for revolving
credit of $200 million reducing $15. 9 million quarterly be-
ginning July 1, 1976. The Agreement terminates April 1, 1979.
Interest on funds borrowed is at % above prime commercial
loan rate prior to July 1, 1976 and% above thereafter . . . . $ 18,000,000 $139,000,000
Term Credit with banks is payable $12.5 million quarterly be-
ginning April 1, 1981. Interest is paid based on a formula
related to prime commercial loan rates; however, total interest
paid shall not exceed 7%% per annum on borrowings over the
term of the loan. Current payments in excess of that rate are
included in Other Assets in the balance sheet............. 100,000,000 100,000,000
Note purchase agreements with twelve insurance companies are
payable $3,000,000 annually and terminate on October 1,
1978. Interest is at 6% per annum. Certain optional prepay-
ments at par are permitted. The agreements contain certain
other provisions with respect to redemption as a whole, but
not from borrowed funds, at premiums not to exceed 2% . . 7,000,000 10,000,000
Credit agreements with aircraft and aircraft engine manufactur-
ers financing purchases from those manufacturers through
the issuance of five-year notes . . . . . . . . . . . . . . . . . . . . . . . . . . . -0- 22,900,000
Less amounts due within one year included in current liabilities
125,000,000
3,000,000
$122,000,000
271,900,000
25,900,000
$246,000,000
The Company was in compliance with the covenants of the debt agreements at the end of both
years. At December 31, 1976 approximately $139,000,000 ofretained earnings was unrestricted
under the terms of the agreements.
Long-term debt requires payments of $4,000,000 - 1978, $18,000,000 - 1979, none in 1980,
$37,500,000 - 1981 and $62,500,000 thereafter through 1983.
19
20
Notes to Financial Statements
Note C - Stockholders' Equity
Shares
Cumulative Preferred Stock, $25 par value: 1976
Authorized . ... . .. . .... . . ... .... . .... . .. . .. ..... ... .. . .. 1,000,000
1975
1,000,000
None
Issued December 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None
Common Stock options for officers and employees
at prices which were not less than 100% of
market at date of grant are as follows:
Shares Price Per Share
Outstanding December 31 , 1974 ... . .. . ............. . . . 36,700 $20.06
Granted ......... ............ . . .. .. . ... .. ..... . .... . 45 ,300 19.13
Lapsed ... .......... . ..... . ..... ..... . . .... . ..... .. . ( 1,000) 20.06
Outstanding December 31 , 1975 . ......... . .... . . , .... . 81,000 19.13/20.06
Exercised . ...... . .. . ... . . . ............. . .... .. . . .. . ( 1,900) 19.13/20.06
Outstanding December 31, 1976 . . .. .... .. ............ . 79,100 19.13/20.06
Options exercisable:
At December 31 , 1975 . . .. . . . .................. . . . . 35,700 20.06
At December31, 1976 .. . ..... . ..... . ...... .. . . ... . 56,450 19.13/20.06
Shares available for future stock options and other plans were 329,136 at December 31, 1976 and
1975, of which 69 ,000 were available for additional grants under the 1973 Stock Option Plan.
Note D - Taxes on Earnings
The provision for taxes on earnings consists of the following:
Current:
Provision for the year . .. . .. . .... . ....... . ........ . ..... .
Operating loss carryback for tax purposes ... . ........... .
Reduction of refund for limitation of
investment credits applied in prior years .... . .... . .... .
Investment credit flow-through ........... . ............. .
Deferred:
Provision .............. . ....... ... .. . ......... . ....... .
Investment credit:
Flow-through . ................ . .. . ................... .
Arising from operating loss carryback .. . ..... . ........ .
Deferred investment credit being amortized
over eight years . . ....... . ... . . . .. . .......... . . . ..... . (
Year Ended December 31
1976 1975
$ -0-
$20,494,300
-0- ( 12,224,500)
-0-
9,956,700)
10,537,600 - (
27,881 ,100
8,630,700
-0-
36,511,800
522,200) (
$46,527,200 $
6,183,700
-0-
6,040,800)
34,622,000
17,329,400)
6,183,700)
11,108,900
1,374,900)
3,693,200
Notes to Financial Statements
Note D - Taxes on Earnings (Continued)
Investment credits not applied on tax returns but offset against deferred income taxes at
December 31 , 1976 will expire $3,002 ,400- 1979, $20,177,300 - 1980, $11,685,100 -1981 ,
$17,328,700 - 1982, and $1,334,100 - 1983.
Exclusive of investment credit, the Company's effective tax rate is 49.2% for 1976 and 4 7 .6% for
1975.
The Company's federal income tax returns have been examined and settled through 1973.
Note E - Commibnents
At December 31, 1976 the Company has contracted to purchase jet aircraft and spare engines for
delivery in 1977 which will require expenditures of $126,492,000 of which $31,502,000 has been
deposited and the remainder is payable in 19 77.
The Company does not lease any aircraft or related flight equipment.
Rental expense was $15,116,000 in 1976 and $14,298,000 in 1975. Future minimum rental
commitments at December 31 , 1976 for all noncancellable leases of which $163 ,670,000 is for air
terminal and airport facilities follow:
1977
1978
1979
1980
1981
Five years 1982-86 ............. .. .... .
Five years 1987-91 ..... . ............. .
Five years 1992-96 .. ................. .
Remainder ........................... .
$ 11,396,000
11 ,006 ,000
10,241 ,000
9,628,000
9,450,000
44,197,000
31 ,257,000
19,850,000
23,346,000
$170,371,000
Under Financial Accounting Standards Board Statement Number 13, issued in November 1976,
leases of space in air terminals and on airports to which the Company cannot obtain title are not
financing leases. Accordingly, the present value of noncapitalized financing leases is not
material; likewise, the impact on net income if such leases were capitalized would not be
material.
Note F - Contingencies
The Company is a defendant in a class action brought in federal court in Washington, D. C. by
certain of its female cabin attendants alleging violations of certain provisions of the Equal Pay
Act of 1963 and the Civil Rights Act of 1964. The trial judge held that provisions ofboth statutes
had been violated by the Company. The Company appealed that decision and the Court of
Appeals affirmed the trial judge on all substantive issues and remanded the case for further
consideration. The Company has asked the Court of Appeals to reconsider its decision. If the
decision of the Court of Appeals is adverse the Company will seek review by the Supreme Court
21
22
Notes to Financial Statements
Note F - Contingencies (Continued)
of the United States. While it is possible to estimate that ultimate liability may range from
$1,000,000 to an amount in excess of $26,000 ,000 , neither the timing of the final outcome nor the
consequences of the lawsuit are presently determinable.
The Company is a defendant, along with other airlines, in a number of legal actions alleging
noise and air pollution resulting from aircraft operations around certain airports and violation of
anti-trust laws. Company management does not believe that these actions will result in a
material liability to the Company.
Note G - Pension Plans
The Company's pension expense amounted to $23,636,000 in 1976 and $19,782,000 in 1975.
Unfunded prior service costs at January 1, 1976 were estimated by consulting actuaries to be
$37,402,700.
The market value of the assets in all pension funds at December 31, 1976 was $165,401,911 and
the actuarially computed value of vested benefits projected to December 31, 1976 was
$178,857,300 or $13,455,389 in excess of the fund assets.
Note H - Replacement Cost of Property and Equipment (Unaudited)
As required by the Securities and Exchange Commission, the Company's annual report on Form
10-K contains specific information with respect to replacement cost of property and equipment
at December 31, 1976, and the approximate effect which replacement cost would have had on the
computation of depreciation expense for the year then ended.
The Company's fleet modernization program substantially mitigates the impact of replacement
cost assumptions on its historical cost financial statements. Moreover, since the Company is
regulated and entitled to a fair rate of return on its investment, any increased cost would justify
higher fares and rates to its customers.
Note I - Quarterly Results of Operations (Unaudited)
The following is a tabulation of the unaudited quarterly results of operations for the year ended
December 31, 1976:
Earnings
Operating Operating Net Per Share of
Revenues Expenses Earnings Common Stock
First quarter ....... $214,714,469 $210,026,554 $ 5,298,109 $ .25
Second quarter ..... 238,381,535 209,921,881 12,816,786 .59
Third quarter ...... 267,069,988 222,513,430 21,371,128 .99
Fourth quarter ..... 243,642,073 218,398,173 12,250,992 .56
$963,808,065 $860,860,038 $51,737,015 $2.39
Accountants' Report
To the Stockholders and Board of Directors
Northwest Airlines, Inc.
Saint Paul, Minnesota
We have examined the statements of financial position of Northwest Airlines, Inc. and subsidiaries as of December
31, 1976 and December 31, 1975, and the related statements of earnings, stockholders' equity an d changes in
financial position for the years then ended. 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.
In our opinion, the financial statements referred to above present fairly the consolidated financial position of
Northwest Airlines, Inc. and subsidiaries at December 31 , 1976 and December 31, 1975, and the consolidated
results of their operations and changes in their financial position for the years then ended, in conformity with
generally accepted accounting principles applied on a consistent basis.
Saint Paul, Minnesota
February 14, 1977
Notice to Stockholders
Any person who either owns, as of December 31 of the year preceding issuance of this annual report, or subse-
quently acquires, beneficially or as trustee, more than 5 per centum, in the aggregate, of any class of the capital stock
or capital of the air carrier, shall file with the Civil Aeronautics Board (CAB) a report containing the information
required by Section 245.12 of the CAB's Economic Regulations on or before April 1, as to capital stock or capital
owned as of December 31 of the preceding year, and, in the case of stock subsequently acquired, a report under
Section 245.13 of such Economic Regulations, within 10 days after such acquisition, unless such person has
otherwise filed with the CAB a report covering such acquisition or ownership.
A bank or broker which holds, as trustee, more than 5 per centum of any class of the capital stock or capital of an air
carrier to the extent that it holds shares on the last day of any quarter of a calendar year, shall file with the CAB,
within 30 days after the end of the quarter, a report in accordance with the provisions of Section 245.14 of the CAB's
Economic Regulations. Any person required to report under the CAB's regulatjons who grants a security interest in
more than 5 per centum of any class of the capital stock or capital of the air carrier shall, within 30 days after
granting such security interest, file with the CAB a report containing the information required in Section 245.15 of
the CAB's Economic Regulations.
Any stockholder who believes that he may be required to file such a report may obtain further information by
writing to the Director, Bureau of Operating Rights, Civil Aeronautic Board, Washington, D. C. 20428.
23
10 Year Summary
NORTHWEST AIRLINES, INC. AND SUBSIDIARIES
(Dollars in thousands except per share figures) 1976 1975 1974 1973 1972t 19711' 1970t 1969 1968 1967
Operating Revenues
$
Passenger .............. '
............. '
............ $ 786 ,414 659,849 $ 628,488 r'J 476.794 $ 277 .891 $ 331.966 $ 260.335 $ 350.504 $ 301.277 $ 275.873
Cargo .................. . ................... . .. . ... 119,882 88,308 76,157 55.280 34.694 39.641 30.053 51.006 43.902 38.118
Mail ... . . . . ... ... . ..................... .. . . ..... . . 25,137 23,280 22 .911 18.415 13.309 19.443 18,958 29.386 28.605 26.898
Charter and other transportation ............ . ... '
... 25,955 29,019 27,322 28.517 20.009 31.588 20.800 35.090 41.060 41. 799
Mutual aid agreement ............ . ............. . ... (559) (5 ,340) (1,530) (2.692) 43 .629 (462) 46.325 (509)
Nontransport ................ . ..................... 6,979 5,447 5.643 8.034 2.969 3.343 2.569 2.461 1.446 1.291
Total Operating Revenues $ "
963,808 $ 800,563 $ 758,991 584.348 $ 392.501 $ 425.519 $ 379.040 $ 467.938 $ 416.290 $ 383.979
Operating Expenses
Depreciation and amortization ...................... $ 102,713 $ 98,880 $ 96,213 87.642 $ 81.054 $ 77.245 $ 69.173 $ 60.833 $ 49.817 $ 41.252
Other ... '
..... . .... . .......... . .... . .......... '
... 758,147 651,983 584,993

445.401 296.348 330.108 258.784 324.979 268.529 229.969
Total Operating Expenses $ 860,860 $ 750,863 $ 681,206 533.043 $ 377.402 $ 407.353 $ 327.957 $ 385.812 $ 318.346 $ 271.221
Operating income .............. . .... . . . .. . .. . ........ $ 102,948 $ 49,700 $ 77,785 51.305 $ 15.099 $ 18.166 $ 51.083 $ 82.126 $ 97.944 $ 112.758
Interest expense on long_
-term debt . ........ . ... .. ..... (14,035) (16,120) (19 ,554) " (14,758) (8,356) (13 ,051) (6,296) (2,334) (3,894) (3,725)
Other income and (deductions) - net .... . ......... . . . 9,351 13.509 40.148 19,133 10.510 6,685 (227) 1.181 674 1,334
Earnings before taxes ....... .. ....... . ................ $ 98,264 $ 47,089 $ 98,379 55.680 $ 17.253 $ 11.800 $ 44.560 $ 80.973 $ 94. 724 $ 110.367
Income taxes .............. .... '
. ....... '
.. . . . . . . .. .. 46,527 3,693 33.631 3.830 (429) (9.561) 121 29.507 44.673 51.651
Net Earnings 1!1
......... . ... .. ........................ $ 51 ,737 $ 43,396 $ 64.748 51.850 $ 17.682 $ 21.361 $ 44.439 $ 51.466 $ 50.051 $ 58.716
Earnings per average share as reported each year 1
1
1
. .. . .. $ 2.39 $ 2.01 $ 3.00 ,: 2.40 $ .83 $ 1.01 $ 2.11 $ 2.55 $ 5.47 $ 6.42
Cash dividends . 1
9,707 9,710 9.722 9.722 9.620 9.518 9.465 9.117 7.320 6.405
Dividends per share as paid each y~ar . . .... . .. . ....... .45 .45 .45 .45 .45 .45 .45 .45 .80 .70
Stockholders' equity ..... .. ........ . . .. .. . ........... 665 ,744 623,677 589.991 534.965 492.837 477 .054 465.210 426. 797 306.717 263.986
Number of shares outstanding at end of year .... . ... . .. 21 ,606,036 21 ,604,136 21.604.136 21.604.1 36 21.604.136 21.149.756 21.149. 756 20.914.272 9.149.628 9.149.626
Book value per share at end of year 12.
1 .. . ............ ... $ 30.81 $ 28.87 $ 27.31 $ 24.76 $ 22.81 $ 22.56 $ 22.00 $ 20.41 $ 33 .52 $ 28.85
Recomputed per share figures after stock splits 1

1
1
. .. .. . ..
Earnings per average share I
i_i . . . 2.39 2.01 3.00 2.40 .83 1.01 2.11 2.55 2.74 3.21
Dividends per share 1
:1) ... . ............... . ........ . .. .45 .45 .45 .45 .45 .45 .45 .45 .40 .35
Book value per share at end of year 1
'.
1 ........ . .... ... 30.81 28.87 27.31 24.76 22.81 22.56 22.00 20.41 16.76 14.43
Assets and Long-Term Debt
Flight property at cost ............................. . .. $ 1,448,402 $ 1,420,670 $ 1.282 ,556 _ $ 1.216.632 $ 1.008.041 $ 1.012.568 $ 929.181 $ 697.938 $ 582.646 $ 467.859
Flight property at net book value ................... . .. 924,537 977,062 907.935 861.231 682.020 709.433 668.129 492.241 424.522 346.029
Total assets ........ . ..................... . ........... 1,151,562 1,215,146 1.121.153 ~ ,:-. 1.085.632 920.418 944.302 923.126 742.732 627 .538 481.206
Long-term debt ........ . ........ ..... . ...... . . . ...... 122,000 246,000 213,900 284,000 208.000 252.500 260.915 112.000 160.000 85.000
Unit Expenses
Per available ton-mile ...... ... ... .. ... .. .... . ... . . . 21 .6 20.6 19.9 15.Slf. 16.9<t 14.5!/: 18.Qr 15.2: 14.6: 14.5(1,
Per revenue ton-mile ....... . .. . ................... . 50.5 50.2 48.2 42.5Q' 49.6: 42.1'1: 43.5' 34.5. 30.8(1: 30.3/f,
Per cent of operating revenues ..... . ................ 89.3% 93.8% 89.8% 91 .2/o 96.2/o 95.70/o 86.5/o 82.4% 76.5,11 70.60/o
Statistics - Scheduled Services
Revenue pJane-mpes (000) .......................... 108,474 104,104 105,295 108.853 79.025 100.992 83.177 123.966 107 .646 93.395
Available seat-miles (000) ..... '
.................... 22 ,228,259 20,910,966 20,016.107 ~ - { ' ~ 19.593.379 12.963.054 15.614.614 10.234.060 13.504.111 10.840.758 9.198.150
Revenue passenger-miles (000) ............... . ...... 10,758,683 9,471,282 9.173,875 8.007.850 4.565.618 5.553.043 4.506.256 6.208.725 5.458.128 4.901.520
Passenger load factor ............................... 48.4% 45. 3% 45.8% 40.90/o 35.20/o 35.60/o 44.00/o 46.011/o 50.3,o 53 .30/o
Revenue passengers carried ......................... 9,818,343 8,865,263 8,948.373 7.987.299 5.150.636 6.089.273 4.682.812 7.517.780 7 .173.805 6.489.295
Freight and express ton-miles (000) 467,399 386,309 317.437 251.865 150,973 161 .345 110.215 198.494 169.416 141.175
.............. '
..
Total revenue ton-miles (ODO) ................... ... . 1,647,317 1,428,381 1,330,803 1.140.983 672.035 81 3.403 655.339 942.050 836.085 709.165
Statistics - Total Operations
Revenue plane-miles (000) ... . ...................... 112,279 107,721 110,519 115.726 84.098 110.045 89.938 135,563 121.077 106.197
Available ton-miles (000) ........................... 3,982 ,743 3,642,650 3,431,038 3,370.694 2.236.069 2.806.407 1.819,439 2.535.137 2.186.234 1.864.128
tStrikes adversely affected 1970 and 1972 and the strike recovery period of 1971.
Ill See Financial Review pages 10 through 12 for Management's Discussion and Analysis of the Summary of Operations.
121 Per share figures reflect the increase in outstanding shares resulting from stock issues in 1969, 1970 and 1972.
l:ll The sto_
c~ was split :two-for-one" in 1969. The recomputations in this section are shown to provide
c_omparab11Ity on an ad1usted basis and follow the form recommended by the Accounting Principles Board. These
figures, of course, do not reflect the way the corporation was operated.
24 25
Operating
Highlights
of 1976
Per onnel
~ v n labor rin 3 ,3 5 emplo s in cla sifications of met or-
ologi t , t dam tic 1 rical p r onn l, Japanes , Korean and
Phi li pp in , full n gotiat d durin g 1 76.
Emp] o_ m nt opportunitie r pro ided to 765 person in entry level position ,
w r promot d or trans rr d internally a a major goal in
orporat ffirmative ction Plan. Total sy tern emplo ment on Decemb r
31. 1 7) wa 11,208.
Computer Services
omput r driven automatic ticket printer , capabl of printing a complete four seg-
ment pa senger ticket in five seconds, were installed at airports and city ticket offices
in Detroit, Milwaukee, Spokane, Chicago, Seattle and Washington, D. C.
peed of the printers is such that tickets need not be printed in advance of the
passengers arrival at the counter - thus saving clerical time and wasted ticket stock
in the case of 'no-show' passengers.
Flight Operations
A new technique in pilot training was implemented on July 1, 1976 after Federal
Aviation Administration approval.
Under this new concept, pioneered by WA, a full three-man cockpit crew is
involved in a real time, line environment trip. The simulator training flight duplicates
a scheduled flight the crew might fly. Improvement in crew coordination, problem
solving and decision making has been noted using this new technique.
Transportation Services
Two more reservation office consolidations were achieved in 1976. Detroit activities
were consolidated into the Cleveland office and the Winnipeg, Manitoba office was
combined with the Minneapolis/St. Paul office. Better customer service was achieved,
as well as some savings in costs.
A new computer program for better control of W A's air freight containers was
initiated and put on-line in September, 1976. The system enables orthwest Orient to
determine the specific location at any point in time of the airline's 2,600 container
units - as well as those of other airlines on WA's system.
Maintenance & Engineering
During 1976, WA introduced electro-static painting of large aircraft to the airline
industry. Simply stated, electro-static painting involves grounding the aircraft elec-
trically; then electrically charged paint particles are sprayed from a paint gun. The
resulting attraction of the charged paint to the grounded aircraft results in a superior
paint coating. The process also minimizes overspray - realizing up to 35 per cent
savings in paint material - and provides an environmental atmosphere that has been
approved by all state and Federal agencies concerned.
The 1976 Great Lakes Region aviation mechanic safety award was won by NWA
mechanic Edwin Wentzel. His contribution involved a modification to a runway
indicator drive system which provides a more reliable indication and contributes to
increased aircraft safety.
Properties
Major improvements in orthwest Orient facilities during 1976 were completed in:
Billings - where a new city ticket office was opened in April.
Boston - where new facilities were occupied in the South Terminal building and
WA assumed servicing of its own aircraft.
Fort Lauderdale - where construction was completed on a new concourse building
which provides WA with upper level loading to two aircraft gates.
Philadelphia - where upper level loading to two aircraft positions was completed.
Portland - where the terminal remodeling program, including new ticket counter
and baggage claim areas, was completed.
Twenty-two McDonnell Douglas DC 10-40's
Range of 5,100 miles with 236 passengers.
Three Boeing 747F's
All cargo aircraft capable of carrying
a structural payload of 262 ,900 pounds.
Sixty-three Boeing 727's
Thirty-two 727-l00's
Range of 2,380 miles with 93 passengers.
Thirty-one 727-200's
Range of 1,760 miles with 128 passengers.
+++++++++
+++++++++
+++++++++
+++++++++
+++++++++
+++++++++
++++~++++
Seventeen Boeing 747's
Range of 5,850 miles with 369 passengers.
Eight Boeing 707-3201s
Range of 5,620 miles with 156 passengers.
SEATTLE LANDSCAPE . . .
lies behind a Northwest Orient
727 and a DC 10 as the two jets
meet at Seattlerracoma
International Airport.
HO G KO G'S SKYLI E .. .
and the mountains surrounding
this incredible city con be seen
from Kai Tak Airport where a
orthwest Orient 747 awaits a
load of both freight and
passengers.
New Orleans - Chicago authority
awarded to Northwest Orient;
Trans Atlantic route recommended
New Orleans became the newest city
on the route system of Northwest
Orient when authority to operate
non-stop service in the Chicago-New
Orleans market was awarded by the
Civil Aeronautics Board on February
11 , 1977.
The route award was the first
granted to Northwest Orient since
June, 1970. Permission to reinstate
service to Edmonton, Alberta,
Canada was given by the CAB in
1974.
On July 13, 1976, the Civil Aero-
nautics Board submitted a decision
in the Trans Atlantic Route Proceed-
ing to the President of the United
States.
As part of that decision, Northwest
Orient was awarded a five-year certi-
ficate for a new route between Seat-
tle, Portland, Los Angeles, Chicago,
Detroit, Washington/Baltimore and
New York/Newark, on the one hand,
and Glasgow and points in Denmark,
Norway, Sweden, Finland and Ice-
Twin Cities

e Chicago

New Orleans
Houston/New Orleans - Yucatan
Route Proceeding
Yucatan
Peninsul:3.

Northwest Orient seeks an extension of its
existing Chicago-New Orleans route to
Merida, Punta Cozumel and Punta Cancun,
Mexico.
28
land on the other. The award is sub-
ject to a restriction prohibiting the
enplaning at New York of traffic that
was to be deplaned in Copenhagen,
and vice versa, on flights between
New York and Denmark.
On December 24, 1976, President
Ford returned the recommended
decision to the CAB for further study
and requested that the new decision
be returned to the President not later
than September 1, 1977.
Northwest Orient is also an appli-
cant for new authority in the follow-
ing route case matters:
Spokane


Denver
Spokane-Montana Points Service
Investigation
Northwest Orient is seeking an extension
from Spokane to Denver.

Milwaukee
Detroit

Atlanta e
Tampa/
St. Petersburg
Cleveland

Miami/
Ft. Lauderdale
Midwest-Atlanta Competitive Service Case
Northwest Orient has requested CAB
authorization to provide service between
Atlanta and Cleveland and between Atlanta
and Detroit. All three cities are presently
served by NW A.

Seattle
Atlanta
Tampa/St. Petersburg ii.
Miami/Ft. Lauderdale
Twin Cities

e Milwaukee
e Memphis
Seattle-Atlanta Non-Stop Case ;. .,, A emphis-Twin Cities/Milwaukee Case
Northwest Orient seeks authority to operat~ N irthwest Orient seeks authority to operate
non-stop service in the Seattle-Atlanta u1,t service between the Twin Cities and
market by elimination of the present ._ ~if\lwaukee to Memphis. The Administrative
requirement for an intermediate stop I La N Judge has set April 30, 1977 as the
between the two cities. " ta:r ,et date for an initial decision.
I
Vancouver

Chicago-Vancouver Case

Chicago
Authority to provide first nonstop service in
the Chicago-Vancouver market is requested
by NWA under terms of the U.S.-Canadian
bilateral air rights agreement. The
Administrative Law Judge has set April 15
as the target date for the recommended
decision.
NEW ORLEANS ... Home of the
French Quarter, Mardi Gras, The
Super Dome, Creole cooking - a truly
fascinating international city. Located
on the Mississippi River, New Orleans
is on one of the major convention centers
in the U.S. The New Orleans region
has a population of over 1.2 million
people. It has a highly diversified
array of industrial and commercial
operations and is one of the major
hubs in the nation for oil and gas
exploration and extraction.
e Fairbanks
Anchorage e
e seattle
e san Francisco
Los Angeles
West Coast-Alaska Investigation
Northwest Orient has requested an extension
of its existing Alaska route either non-stop
or via the Pacific Northwest to Los Angeles
and San Francisco and from Seattle to
Fairbanks.
n Anni ersar
The Early Years, 1926-1935
30
A irlin am into b ing initial! for c rriag of the
.. mail - and orthw t Airwa s ( sit was called
original! ) wa no ption . On Jun 7, 1926, pilot
Elm r L Partridg took off from the Twin ities' old
hamb rlain Fi ld with the fir t load of mail under
C.A. ir Mail) o. 9. lt was not until Jul y 1
t Airwa arried its fir t tick t d
pas enger.
o financial information is available on the fir t ear
of operation, but in 1927 orthwe t Airways had total
revenues of $77,880, a net las of $1 ,778 and carried 1(H,
passengers. B 1936, revenues had grown to $1.86
million and 38,022 passengers were carri d. It was cl ar
that airlines - orthwest Airlines included - were herP
to stay.
1. SPEED HOLMA . .. was the most heralded pilot of his dar.
Winner of countless air speed races and an incredible stunt
pilot, he also was one of orthwest Airways' firs t pilots. He
stayed on to become operating manager until he was killed
in an air show crash in May, 1931.
2. FIRST PRESIDE T . .. of orthwest Airways after majority
control was purchased in 1929 by a group of Twin Cities
business leaders from Detroit interests was Richard Lilly,
president of the Merchants Bank of St. Paul (later re-named
First National Bank).
3. THE COLO EL . . . Generally regarded as one of the key
figures in fo unding Northwest Airways was Colonel Lewis I.
Brittin. Originally director of industrial development for the
St. Paul Association (p redecessor of today's Chamber of
Commerce), Colonel Brittin left that post to head the
struggling young airline in 1926.
4. THE FORD TRI-MOTOR . . . was among the earliest
passenger aircraft flown by Northwest Airways. Called 'the
tin goose', this oil-metal plane was covered with a
corrugated aluminum alloy and was the wonder of its day.
It carried 14 passengers, hod room for two pilots and
cruised at 125 miles on hour.
r
Expansion to the West -
and WW II, 1936-1945

1926 -1976
The latter part of the 30's saw orthwest Airlines
expand its routes. ew through service was begun to
Winnipeg from the Twin Cities, new service was started
to Portland, Oregon and service was resumed to
Madison, Wisconsin.
In 1941, orthwest Airlines became a publicly held
company and - for the very first time - annual
passenger revenues exceeded mail revenues.
World War II interrupted the growth of orthwest
Airlines as a commercial airline. However, NW A carried
out 11 major government war-time assignments
including operation of an aerial lifeline to Alaska, a
bomber modification center and a variety of other
special projects. Employment leaped from 881 to 10,439
employees during WWII.
1. THE ROUTE MAP . .. of Northwest Airlines looked like this
after winning a new route to the Puget Sound area.
2. THE 'MOD' CE TER ... During World War II, orthwest
Airlines employed over 10,000 persons -10 times its
pre-war figure. Many of these employees worked at the
Bomber Modification Center in St. Paul where planes like
this B24 were outfitted with the latest technology in
navigation and armament before going into war.
3. CROIL HUNTER ... shown here talking to NWA vice
president Frank Judd, at right, was one of the key figures in
Northwest Airlines' growth in the 1930's and 1940's. He
joined NWA as traffic manager on March 15, 1932 and, in
1937, became the first operating officer to be named
president.
4. THE 'GIANT' DC 3 ... When first introduced in 1939 on
Northwest Airlines, the Douglas DC 3 was a concern to
management because of its greatly increased passenger
capacity - 21 persons. It replaced aircraft carrying 10
and 12 passengers and the question was: 'Can we fill
them up?'
31
n Anni
Northwest's Passage
to the Orient, 1946-1953
W ith rid War JI end d, orthwc t Airlines went
ba k into th airline busi n ss on a f u I I-ti m basis.
n route from the Twin iti s t
Milwauk and D troit, t blished
fourth tran ontin ntal air carrier.
ew York, via
A as the nation
On July 15, 1 47, th long-tim dr am of roil Hunler
wa realized as ervice to the Orient b gan from the
Twin ities, ia nchorag , Alaska and hemya in lhl:
Aleutian Islands, to Tok o, eoul, hanghai and Mani!,
1. TO THE ORIE T . .. after years of dreaming and planning
This photograph shows the ceremony held on July 15, EJ-1 7
when orthwest Airlines inaugura ted service to the Orient
from the Twin Cities via the ' orthwest
Passage' -Anchorage, Alaska and Shemya in the Aleut1on
to Tokyo, Seoul, Shanghai and Manila. Guest speaker wc1s
then-Mayor of Minneapolis Hubert Humphrey.
2. THE VICE PRESIDE T . . . of the United Sta tes was on hond
for the inaugural ceremony when orthwest Airlines
initiated service to Was hington, D.C. via Cleveland and
Pittsburgh. Here Vice Presiden t A lben Barkley speaks to tlw
crowd on March 15, 1948.
3. THE BOEING STRA TOCRUISER ... was one of the all-time
favorites of airline tra velers. In its double decked
conf iguration, th e Stratocruiser as operated by Northwest
Airines featured a lounge in the belly of th e aircraft. A fleet
of 10 were operated by NWA with first delivery in 1948.
Th e Stratocruiser carried up to 83 passengers and cruised
at 254 miles per hour.
Years of Growth, 1954-1976
1926 -1976
On September 27, 1954, 42-year-old Donald W. yrop
became President of orthwest Airlines. Hi arrival
marked a turning point in the company' history.
Within a year after his assuming command of the
airline. orthwest Airlines resumed pa ment of
dividends on its common stock and became the first U.
airline to voluntarily remove itself from go ernment
subsidy for carriage of U .. mail. The compan also
made a net profit of $2.4 million in 1955 on total
revenues of $63 .6 million.
By the end of 1976, orthwest Airlines' 50th year of
operation and yrop's 22nd year as chief executive of
NW A, the Company had grown into the most
consistently profitable airline in the industry.
The year of pioneering, of dreaming and of growing
were behind. orthwest Orient Airlines celebrated its
golden anniversary with understandable pride.
1. BACK TO THE BEGI I G ... On October 15 , 1976,
orthwest Orient was honored by the St. Paul Chamber of
Commerce on the airline's golden anniversary. The event
was held at St. Paul's Holman Field - birthplace of
orthwest Airways. Here, NWA chief executive Donald W.
yrop is shown in the cockpit of a Waco taper wing
monoplane - the type used by orthwest Airways to fly the
mail in 1930. At his right is Robert Six, oard chairman of
Continental Airlines, who was featured speaker at the event.
2. DC 10 I A UGURAL ... Second of the new generation
wide-bodied jets to be delivered to orthwest Orient was the
McDonnell Douglas DC 10-40 - the specially designed long
range version of this jumbo tri-jet. Here the inaugural flight
from the Orient is about to depart.
3. THE JUMBO JET . .. The Boeing 747 is still an incredible
sight seven years after its introduction into scheduled
service by NWA. Carrying 369 passengers at a cruising
speed of 555 miles per hour, NWA's fleet of 17 passenger
type 74 7's operates daily on all trans Pacific routes of
orthwest Orient - from Los Angeles, Son Francisco,
Seattle, Anchorage and Honolulu to Tokyo.
33
Fly Northwest Orient to Alaska Hawaii Florida and the Orient
The Directors of Northwest Orient Airlines*
James H. Binger
Honeywell, Inc. ,
Chairman of the Executive Committee,
Minneapolis, Minnesota
(Manufacturer of automation systems)
Hadley Case
President,
Case, Pomeroy & Company, Inc.
New York, ew York
(Investments)
Raymond H. Herzog
3M Company
Chairman of the Board
St. Paul, Minnesota
(Multi-national manufac turing)
Melvin R. Laird
Senior Counsellor, Reader's Digest, Inc.
Washington, D.C.
(Magazine publishing)
James N. Land, Jr.
Business Consultant
ew York, ew York
M. Joseph Lapensky
President & Chief Operating Officer
orthwest Airlines, Inc.
St. Paul, Minnesota
Malcolm S. Mackay
President, Foothills Company
Roscoe, Montana
(Oil and gas properties)
Donald G. Mc eely
President, Space Center, Inc.
St. Paul, Minnesota
(Real estate)
The Officers of Northwest Orient Airlines*
Donald W. Nyrop
Chairman & Chief Executive Officer
M. Joseph Lapensky
President & Chief Operating Officer
James. A. Abbott
Vice Pre ident-Law
Clayton R. Brandt
Vice President-Purchasing and Stores
Robert W. Campbell
Vice President-Budgets
J. William Campion
Vice President-Regulatory Proceedings
Roy K. Erickson
Vice President-Public Relations
A.E. Floan
Secretary
Co-Registrars and Transfer Agents:
orthwestern National Bank,
Minneapolis, Minnesota
orthwestern Trust Co.,
ew York, ew York
Robert J. Glischinski
Vice President-Communications
and Computer Services
Benjamin G. Griggs, Jr.
Vice President-Assistant
to the President
John F. Horn
Assistant Vice President-Properties
William E. Huskins, Jr.
Vice President-Maintenance
and Engineering
Reginald C. Jenkins
Vice President-Orient Region
Ronald McVickar
Vice President
Stock Listed:
Common tock listed on ew York Stock
Exchange, Pacific Coast Stock Exchange
and Midwest tock Exchange
Donald W. yrop
Chairman & Chief Executi e Officer
orthwest Airlines, Inc.
St. Paul, Minnesota
Lyman E. Wakefield, Jr.
Resource Trust Co.,
Chairman of the Board
Minneapolis, Minnesota
(Investment advisors)
Bryan G. Moon
Vice President-Advertising
Robert J. Phillips
Vice President-Finance and Treasurer
James F. Redeske
Vice President-Personnel
C.L. Stewart
Vice President-
Transportation ervices
Robert J. Wright
Vice President-Sales
* As of March 15 , 1977
General Offices:
Minneapolis-St. Paul
International Airport
t. Paul , Minnesota 55111