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CNN Live Event/Special

America's New War: Northwest Delays Paying Bills

Aired September 28, 2001 - 06:38   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL LIN, CNN ANCHOR: We've been talking a lot about the economic impact of these terrorist acts against the United States and layoffs at airlines and the fact that the American public simply isn't traveling anymore.

CNNfn Sasha Salama, though, this morning at the Nasdaq marketsite.

Sasha, we're hearing now about a big airline not paying its bills.

SASHA SALAMA, CNN CORRESPONDENT: That's right, Carol -- good morning.

LIN: Good morning.

SALAMA: That airline -- yes -- is Northwest Airlines, the fourth biggest airline in the United States. And Northwest, which trades here on the Nasdaq, is saying, guess what? We're not going to pay, at least not right away, our $5.5 million bill to the Minneapolis-St. Paul Airport. Northwest saying it has to delay this payment and may have to delay other payments to airports as it assesses its financial situation basically on a daily basis.

As you mentioned, since the September 11 attacks, business at the nation's airlines has been hurt and hurt hard. Companies have had to lay off thousands of workers, and now Northwest has another potential problem to contend with. State officials in the state of Utah are threatening to sue Northwest for keeping three Middle Eastern men off of a plane last week that was bound for Salt Lake City. Passengers and crew apparently said they didn't feel safe. The men were escorted off the plane. So now state of Utah officials threatening to sue Northwest.

On our end, we're watching the stock of Northwest, which trades under the symbol NWAC. It finished yesterday at $10 and change. We'll see if it comes under any pressure today.

And meanwhile, Carol, the futures, which we watch for an indication of how the market will open, are actually pointing up. So there may be some hope for an advance here on Friday trade as the markets reopen at 9:30 Eastern Time -- Carol.

LIN: So, Sasha, are there any economic reports coming out today that might stall some of that momentum?

SALAMA: There are -- in fact, a couple of important reports. One of them, GDP, which measures the output of the nation's goods and services, for the second quarter -- this is kind of a rearview mirror look at GDP, it's a revision -- that number is coming out.

And also after the market opens, a consumer confidence survey that's closely watched from the University of Michigan -- that will be including consumer confidence after the September 11 attacks, and that's going to be real important, because the Fed and others watch consumer confidence closely to see how much -- and it is expected to decline in the wake of the attacks. Consumers have been holding up pretty well even before the attacks as the nation's corporations have been feeling the heat. We'll be watching all of those reports closely -- Carol.

LIN: Yes, consumers -- the engine to the economy these days.

SALAMA: That's right.

LIN: Thanks, Sasha.

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