Company Analysis Northwest Airlines Essay

This essay has a total of 819 words and 5 pages.


Company Analysis Northwest Airlines




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 February 1948. The reason why Northwest selected a red tail is because
the majority of flights flew over the northern hemisphere. If a flight were to have an
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