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Northwest Cans Midway:
After purchasing 21 of bankrupt Midway Airlines” gates at Chicago last month, Northwest Airlines has cancelled plans to acquire the remaining assets of the smaller carrier following the discovery that Midway’s actual traffic and yield performance was rather different than what had been reported. .
The takeover of Midway was the latest attempt by Northwest to continue a policy of rapid expansion. Recent successes include a 25% stake in the failing Hawaiian Airlines and a $US20m injection into bankrupt America West which secured a marketing agreement while a further $US15m secured Japanese route rights. Attempts to purchase the Trump Shuttle last September were. abandoned, while Northwest has ambitions to purchase all or part of Continental plus a strategic stake in Qantas.
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