Northwest Flight Attendants Receive Equity Claim
July 2, 2007
Washington, DC - Northwest Airlines flight attendants, represented by the Association of Flight Attendants-CWA (AFA-CWA), today received the proceeds of a $182 million equity claim negotiated by the union during the company's bankruptcy. The payout provided some much needed financial relief for flight attendants who gave $195 million in annual concessions as part of Northwest Airlines' reorganization and exit from bankruptcy.
"Today our flight attendants received some much needed cash and 401(k) contributions," said Kevin Griffin, AFA-CWA president at Northwest. "This by no means makes up for the fact that we are still working under 40 percent wage and benefit cuts, but it is a bit of good news for flight attendants who have had a very rough year."
AFA-CWA's broker, Athena Advisory Group, LLC, completed the sale of 100 percent of the Northwest flight attendants' $182 million bankruptcy equity claim to a group of buyers led by JP Morgan Chase Bank, N.A. Based on market conditions, the claim brought a gross price of approximately 64.75 cents on the dollar. That yields about $14,500 per eligible flight attendant before taxes. The proceeds were distributed 40 percent in cash (subject to applicable taxes) and 60 percent as a 401(k) contribution.
For over 60 years, the Association of Flight Attendants has been serving as the voice for flight attendants in the workplace, in the aviation industry, in the media and on Capitol Hill. More than 55,000 flight attendants at 20 airlines come together to form AFA-CWA, the world's largest flight attendant union. AFA is part of the 700,000-member strong Communications Workers of America (CWA), AFL-CIO. Visit us at www.afanet.org.