Delta To Pay Off $175M In Minnesota Debt

MINNEAPOLIS (AP) — Delta Air Lines Inc. will have to repay $175 million in loans tied to a long-ago bailout of Northwest Airlines because it is closing training centers for pilots and flight attendants in Minnesota, where Northwest was based.

The agency that runs Minneapolis-St. Paul International Airport confirmed the early repayment on Wednesday. Delta has said it will close the facilities to save money.

An airport spokesman says the money is expected to be repaid around the beginning of next year — four years early — and will go to bondholders, not the government. Repaying the money frees Delta of its last commitment tied directly to the help that Northwest got in the early 1990s. However, Delta’s lease at the airport still requires it to keep at least 10,000 workers in Minnesota.

(© Copyright 2011 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

  • Repo Man

    Now if we can that sleezebag Governor Walker from Wisconsin to make good on the $57 million that Wisconsin owes Minnesota.

  • Delta To Pay Off $175M In Minnesota Debt « CBS Minnesota

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  • JOHN

    why not leave in total but leave the cash and interest and then fire those if they are still around who got us this deal its interesting that lawyers stucture the deal and also know wherein that deal the escape clauses are

  • Swamp Rat

    To the state Treasury;
    Make sure to collect MN back taxes, TIF & incentive monies, and, any expenses that skipping town will entail. We want our moneys back. What a waste of effort trying to save North West and then keeping Delta here when the writing on the proverbial indicated this pull-out would happen.

    Way to go Delta! You will get your comeuppance when people realize there are alternate airlines or other modes of transport to take.

    Oh, by the way, I hope you lose your DoD contracts over transporting returning GI’s from the war zones. Charging excess baggage fees for the returning troops is bad business when you have US government transportation contracts! Isn’t that called ‘fraudulent’ illegal and excessive overcharging for contracted services?

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