Alfred A Checci

Eastern Airlines' management is apparently unimpressed with an acquisition offer for the struggling carrier from Northwest Airlines Chairman Alfred A. Checchi. "It is still in the formative stages," said a source familiar with the situation. "It is not dramatically different from earlier proposals that were rejected." Checchi delivered a proposal to Eastern's creditors committee last week, but refused to disclose details. Checchi did say, however, that he doesn't intend to pay cash for Eastern.

Los Angeles financier Alfred A. Checchi said Tuesday that he will not take on a new equity partner to replace $225 million of the equity that KLM Royal Dutch Airlines contributed in June to help him buy NWA Inc., parent of Northwest Airlines. Checchi, who assumed the title of chairman and chief executive last week after the sudden resignation of Steven G. Rothmeier, also said in a telephone interview that he was not surprised that Rothmeier decided to leave.

Eastern Airlines' management is apparently unimpressed with an acquisition offer for the struggling carrier from Northwest Airlines Chairman Alfred A. Checchi. "It is still in the formative stages," said a source familiar with the situation. "It is not dramatically different from earlier proposals that were rejected." Checchi delivered a proposal to Eastern's creditors committee last week, but refused to disclose details. Checchi did say, however, that he doesn't intend to pay cash for Eastern.

The Transportation Department announced Friday its approval of the takeover of Northwest Airlines but ordered a reduction of more than 50% in the investment in the new company by KLM Royal Dutch Airlines. The Bush Administration, which is determined to avoid the prospect of foreign control of an American carrier, insisted on the changes in the structure of the complex buyout of NWA Inc., the parent company of Northwest.

The Department of Transportation has told the owners of Northwest Airlines that it wants KLM Royal Dutch Airlines to reduce its investment in the airline, according to a source close to the situation. The action by the DOT could affect future airline mergers, particularly the pending buyout of UAL Corp., the parent of United Airlines. UAL is being acquired by an employee group with the help of a $750-million investment by British Airways.

Los Angeles financier Alfred A. Checchi said Tuesday that he will not take on a new equity partner to replace $225 million of the equity that KLM Royal Dutch Airlines contributed in June to help him buy NWA Inc., parent of Northwest Airlines. Checchi, who assumed the title of chairman and chief executive last week after the sudden resignation of Steven G. Rothmeier, also said in a telephone interview that he was not surprised that Rothmeier decided to leave.

The Transportation Department announced Friday its approval of the takeover of Northwest Airlines but ordered a reduction of more than 50% in the investment in the new company by KLM Royal Dutch Airlines. The Bush Administration, which is determined to avoid the prospect of foreign control of an American carrier, insisted on the changes in the structure of the complex buyout of NWA Inc., the parent company of Northwest.

The Department of Transportation has told the owners of Northwest Airlines that it wants KLM Royal Dutch Airlines to reduce its investment in the airline, according to a source close to the situation. The action by the DOT could affect future airline mergers, particularly the pending buyout of UAL Corp., the parent of United Airlines. UAL is being acquired by an employee group with the help of a $750-million investment by British Airways.