In a move that would allow Northwest Airlines to get out of an agreement to keep its headquarters at Minneapolis Airport, Delta has agreed to make Minneapolis its “Delta North” headquarters.
The Minneapolis Star Tribune reports that the agreement also calls for Delta to pay $1 million a year in rent, keep 10,000 jobs and maintain 400 flights a day at Minneapolis-St Paul Airport. The number of jobs is 1,500 less than current levels.
The agreement also says that Delta would oversee its regional carriers from Minnesota and Northwest’s regional airline, Compass, would move from Virginia to Minnesota and Mesaba would stay in Minnesota.
Reservations centers in Chisolm, Minn. and Bloomington, Minn. would also stay.
The fleet serving various routes would also change. For example, Delta’s 767 would fly from Minneapolis to Paris and Northwest’s A330 would take over the Atlanta-London Gatwick route.
Starting in May, Northwest’s 747, now in Delta colors, would fly the Atlanta-Tokyo Narita route along with Delta’s current 777.
If Delta hadn’t agreed to the deal, the Minneapolis Airport Commission would have the power to demand immediate repayment of some $245 million in bonds it issued on Northwest’s behalf. It could also have revoked a rent reduction worth $1.9 million per year along with as much as $10 million per year in revenue-sharing from the sale of items like food and parking.
