Of prime importance to the company, its employees and the public was this development: NWA was moving faster that any other U.S. international air carrier to do away with government subsidy. In the short period of 13 months, Northwest’s subsidy dropped 76 percent. Comparative figures point up the decline. Subsidy payments were $403,000 in November ’53 and $208,000 in November ’54; $381,000 in December ’53, $92,434 in December ’54.  

            The downward trend in government subsidy payments was accomplished before the government recently announced its policy of increasing the volume of Army Post Office (APO) and Fleet Post Office (FPO) mail for commercial airlines. Under the Defense Department’s new mail-carrying program, Northwest probably will be one of three U.S. international airlines to which the bulk of increased APO and FPO mail loads ($18,000,000 worth annually) will be assigned. A proportionate share of this haul allocated to NWA would wipe out the airline’s need for subsidy on its international routes.

Big Weight Off Our Minds

            Twenty little metal plates, each six inches long and two inches wide, have been pried off 10 Stratocruisers and 10 DC-4s – and, remarkably enough, this simple removal of objects weighing only a few ounces apiece has given the whole airline a bit of buoyancy. This was a feat of finance rather than engineering. For each plate was a symbol, and a legal notice, that the plane to which it had been attached was mortgaged.  

            The plates were attached after Northwest, on April 1, 1953, put up the 20 airplanes as security on a $21,800,000 loan, of which $6,800,000 was to refinance the balance then outstanding on previous loans and $15,000,000 for the purchase of six Lockheed Super Constellations.

            A new bank credit agreement was entered into, and on October 29, 1954, the company became debt free when it pre-paid $1,790,000 in loan payments. So the plates came off. Best of all, they’ll stay off! For when Northwest established its new line of credit, it was specified by the company and agreed by the bankers that there would be no mortgage.

Just A Word About Finances

            The only income sources for the History Centre are Gift Shop sales, fundraisers and tax-exempt contributions from volunteers and friends. Wings Financial Credit Union has made available a program to make periodic authorized transfers of contributed funds from your accounts to ours. Please consider a monthly transfer of a couple of bucks that will go a long way to keeping the History Centre museum up and running. Many thanks for any contribution you choose to make.