NORTHWEST'S COST-CUTTING TO AFFECT AD SPENDING

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Northwest Airlines said it is going on an aggressive cost-cutting initiative as the economy cools that will affect its ad and marketing outlays. New CEO Richard Anderson made the announcement during a company meeting. The plan includes slashing spending totaling more than $200 million and goes beyond advertising to impact management training and payroll.

Mr. Anderson said individual departments will decide how to implement their cost reductions and that decisions are expected by May 1. The spending cuts could have an impact on Northwest's role in the upcoming upfront broadcast buying period. The airline spent more than $48 million from January through November of last year, according to Competitive Media Reporting. -- David Goetzl

Copyright March 2001, Crain Communications Inc.

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