Undaunted by Bids, NWA to Pursue Asian Expansion

Despite various takeover threats, the parent of Northwest Airlines is going ahead with its expansion plans, the carrier said Monday.

Steven G. Rothmeier, NWA Inc. chairman and chief executive, told shareholders at the firm’s annual meeting here that NWA plans to beef up service to Asia this summer, while it considers acquisition bids that will determine its future.

NWA, the largest U.S. carrier in the Pacific market, is the target of at least four possible takeover bids. Two Los Angeles investors, Marvin Davis and Alfred A. Checchi, are considering separate bids, as is Pan Am Corp., parent of ailing Pan American Airlines. In addition, Northwest’s machinists union has said it might make an offer.

Rothmeier made no new disclosures about the auction under way for NWA. Reiterating the company’s public position, he said NWA’s board was continuing to review a number of options, including a special dividend, a sale of the airline or liquidation. As he has in the past, he said it was possible the board would do nothing.

“We must decide the best course financially for NWA Inc. to maximize shareholder return,” he said.

Rothmeier touched only briefly on the possible takeover. He preferred instead to discuss what he felt were NWA’s achievements, including what he said was Northwest’s improved service, contract settlements with most employee groups and a potential $8-billion fleet expansion.

Rothmeier said the takeover contest was one of three major challenges for the airline. Referring to the planned addition of new jets, Rothmeier said Northwest needed to “continue an aggressive approach to fleet planning” to expand service to Asia and Europe.

He said Northwest would increase service to Hong Kong, Seoul, Tokyo and other Asian cities this summer.