Funds are to be used for general corporate purposes.
The rating is based on the company's strong liquidity, entrenched route structure incorporating dominant market shares in its principal hubs, capacity to generate cash flow through economic cycles, valuable Asian franchise and a strengthening alliance structure. The high proportion of owned planes at Northwest relative to the industry also allows flexibility in cost-effectively reducing capacity in the event of a downturn. These strengths are balanced by the seasonal, highly competitive, cyclical, capital intensive nature of the airline industry. Over the longer term, industry consolidation could pose increased event risk for the company. As with most players in the industry, escalating labor costs are a primary concern for industry profitability over the next cycle, and labor issues have the potential to pose periodic disruptions over the long term.