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Northwest Air Opens Doors at New Terminal

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From Bloomberg News

Northwest Airlines Corp. opened its $1.2-billion terminal at Detroit’s Metropolitan Wayne County Airport on Sunday, expanding the fourth-largest U.S. airline’s gate and ticketing capacity by 50%.

The airline, based in the Minneapolis suburb of Eagan, Minn., began working with Wayne County in 1994 on the development of the new terminal, said Wayne County Executive Edward McNamara, after whom the terminal was named. It has 97 gates and 106 ticket counters.

Northwest Chief Executive Richard Anderson declined to reduce planned spending on the new terminal when the recession and lower business travel led the carrier to cut 1,500 jobs last year. He also maintained the plans after terrorist attacks damped travel demand and resulted in Northwest reducing flight and seating capacity 20% and laying off 10,000 employees.

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Anderson has said that the airport expansion at Detroit, its biggest hub, and at its other large bases in Minneapolis and Memphis, will be the key to increasing sales and profitability.

The airline said it will determine flight and seat capacity growth for this year, if there is any, as it gets a better view of demand. For the second quarter, capacity will still be 12.5% lower than it was for the period last year, spokesman Kurt Ebenhoch said.

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