Term paper on Company Analysis Northwest Airlines

Company Analysis Northwest Airlines Essays

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Company Analysis: Northwest Airlines

Introduction to Business

BN-1020

Dr. Randall

By, James Academia

Introduction

Northwest Airlines is one of the pioneers in the airline transportation industry and is ranked at the fourth largest air carrier in the United States today. The success of the carrier depends on the quality and reliability of the service at a reasonable price. Close competitors force Northwest to innovate their services by increasing efficiency. This essay will try to examine different perspectives in the services needed to successfully complete the company’s objectives. The analysis will explain historical and financial perspectives that may give a better understanding of the current market trend of the organization.

Services

“Northwest Airlines is engaged principally in the commercial transportation of passengers and cargo.” (5) NWA is a complete full service air transportation carrier that is the forth-largest air carrier in the world that services over 750 destinations located in 120 different countries on 6 continents. They operate 2,600 flights daily around the world and operate more than 200 nonstop between the United States and Asia each week. Headquarters is based in Minneapolis/St. Paul. The main connecting hubs are located at Detroit, Minneapolis, Memphis, and Tokyo. Northwest employs 50,600 employees nationwide as of Dec. 31, 1998. (6) NWA also has 1269 Stockholders as of Feb. 26, 1999. (6) Northwest continues to improve cargo shipping by proudly dedicating 12 Boeing 747 aircraft and easily becoming one of the largest cargo airlines in the world. (4) Cargo is very profitable for Northwest because “Northwest has predicted cargo revenue will top the 900 million mark in 2000”. (3) The enormous fleet of aircraft contains 400 airplanes. (1) Northwest has subsidiaries wholly owned (Unless otherwise indicated by NWA) by Northwest Aircraft, Northwest Aerospace Training corps, MLT Inc, Express Airlines, and Express Airlines I. (6)

History

Northwest Airlines began service on October 1, 1926, flying mail between Minneapolis / St. Paul and Chicago. (2) They started passenger transportation in July 7, 1927. (2) Throughout the years Northwest has grown steadily by acquiring new system routes in the northwestern region of the USA.

The year 1930 was a landmark in history because Northwest moved their home base operation to their present headquarters in St. Paul. The air service grew overnight with the acquisition of Southern Airways in 1936. Northwest’s famous red tail was introduced for the first time on...

1. http://www.nwa.com/corpinfo/profin/vision
2. Passages: news letter pg. 3, Volume 4, 6/25/00
3. Traffic World: Krause, Kristen; Issue 13, Vol. 263 pg. 36-37
4. Aviation & Space technology: McGraw-Hill; Issue 7, Vol. 153, pg 8
5. Moody’s Transportation Manual: Mergent; Vol. 7, pg 788, 1999
6. The Valueline Investment Survey: Edition 26, Vol. 26, pg 270 You should cite this paper as follows:

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