Northwest Airlines this morning named president Douglas Steenland as its new CEO, effective immediately, following the surprise resignation of Richard Anderson, the company's leader since early 2001. Anderson left Northwest to become executive vice president of UnitedHealth Group, effective Nov. 1.
"The board of directors is very pleased that Doug, who has been our president since 2001 and a key member of the Northwest senior management team since 1991, will continue to lead the company," said Northwest chairman Gary Wilson. "His in-depth knowledge of all areas of the global airline industry, his expertise in major strategic areas and his outstanding leadership skills will be a powerful asset as we continue our drive to return the company to profitability."
Steenland, 53, joined Northwest in 1991 as vice president and deputy general counsel. He was named president when Anderson became CEO and a few months later joined the company's board. His more recent responsibilities have included alliance development, government and legal affairs, human resources and labor relations.
Northwest credited Steenland for key involvement in the company's 1993 restructuring, the 1994 initial public offering and a trendsetting international joint venture with KLM Royal Dutch Airlines in 1997. The company also said Steenland played critical roles in settling a pilots strike in 1998, negotiating long-term agreements with labor groups in the late 1990s and implementing massive cost reduction programs after the 2001 terrorist attacks.
Steenland has many challenges to overcome as leader of the world's fourth-largest airline, most notably the urgent need for deep cost reductions. "Despite the increasingly challenging environment, we have accomplished much together: excellent operating performance, a significant revenue premium, industry-leading liquidity and a global network, recently enhanced by our membership in SkyTeam," Steenland said. "With our very experienced management team, I intend to follow our proven strategy, working with our employees to achieve a competitive cost structure and building Northwest for long-term success."
Northwest today announced other executive changes. For example, executive vice president of marketing and distribution Tim Griffin was given responsibility for sales and customer relations and named executive vice president of marketing and sales. The move aligns all sales and distribution efforts under Griffin. Phil Haan, executive vice president for international and information services, now also will handle alliances, inflight services and cargo. Both report directly to Steenland.
CEO of Northwest since February 2001
(BTN, Feb. 21, 2001), Anderson will remain on the company's board. The company hailed his contributions to the airline during his career, including his expertise in operations and efforts toward airport development, fleet renewal and use of technology. He oversaw development of the carrier's strategy to further expand operations in the Midwest, including the huge airport development project completed in Detroit in 2002 and more recent service increases throughout the heartland. He also cultivated close ties with Northwest's alliance partners, including new domestic and international allies within the SkyTeam group.
On the job for less than one year when the United States was attacked in 2001, Anderson was named to the airport security task force formed by U.S. Department of Transportation Secretary Norman Mineta. He also has been an advocate of the Registered Traveler program and lobbied for the airline industry during a stint as chairman of the Air Transportation Association executive committee.
"This company has a long track record of dealing with challenges and finding ways to succeed," Anderson said. "Under Doug's proven leadership, I know Northwest's people will continue to run a great airline, put customers first and secure the future of Northwest."