Northwest Loses CEO to Burger King

EAGAN, Minn. —  Northwest Airlines Corp., the fourth-largest U.S. airline, said Chief Executive John Dasburg is leaving to head Diageo’s Burger King hamburger chain.

Dasburg, 58, has been Northwest’s president and CEO since 1990. He will join Miami-based Burger King on April 1, Northwest said in a statement distributed by PR Newswire.

Eagan, Minn.-based Northwest said its board promoted Chief Operating Officer Richard H. Anderson, 46, to CEO and Chief Corporate Officer Douglas Steenland, 49, to president.

Anderson and Steenland are taking over just as the union representing Northwest’s mechanics is telling members to prepare for a strike as early as March 12.

The airline’s 9,000 mechanics and aircraft cleaners are represented by the Aircraft Mechanics Fraternal Organization. Anderson said the change won’t affect the negotiations with AMFA.

“[Steenland] and I have together been in charge of negotiations with our machinists,” Anderson said.

“We will continue the strategy we have pursued over the past year, which is to reach a fair agreement with the mechanics and technicians as quickly as possible.”

Burger King officials could not immediately be reached for comment.

The union was released Feb. 9 from contract talks by the National Mediation Board, which oversees airline negotiations.

Though the NMB’s action began a 30-day countdown toward a strike, President Bush has said he will appoint an emergency board to study the dispute if it is not resolved by March 12. That step would postpone any job action for at least another 30 days.

Union President O.V. Delle-Femine said this month that the union wants a hike in base pay of more than 40%, to $32 an hour from the current $22.50.

Contract talks began with the AMFA in October 1999 after the union won the right to represent the mechanics. The workers previously were represented by the International Assn. of Machinists.

“The board clearly had the preference to promote internally because that promotes a stable and continuous relationship,” Steenland said.

“John [Dasburg] was born in Miami and came to Northwest from Marriott. This is an opportunity for him to go back to a business he started in and an opportunity for him to go home,” he added.

Dasburg said that “leaving Northwest is a very difficult personal decision.”

Diageo had named Colin Storm as acting CEO of Burger King last June after Dennis Malamatinas quit to become CEO of Priceline.com Inc.’s European venture.

Anderson said he will continue the company’s strategy of increasing business through domestic hub airports and on international routes and “refocus our efforts on passengers to make their experience on Northwest easy and convenient.”

Northwest shares fell 63 cents to $22 in Friday trading. Diageo shares rose 47 cents to $39.95.

U.S. stock exchanges were closed Monday for the Presidents Day holiday.