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Click below for data links:
NWA-2003-01 LAST 727
NWA-2005 9 MTHS
NWA-2005 INTNL 9 MTHS
NWA-2006 WLD TOP RPK
FOUNDED AND STARTED OPERATIONS IN 1926. TOOK OVER REPUBLIC AIRLINES IN 1986. DOMESTIC, REGIONAL AND INTERNATIONAL, SCHEDULED AND CHARTER, PASSENGER & CARGO, JET AIRPLANE SERVICES.
2700 LONE OAK PARKWAY
MAIL STOP A1310
EAGAN, MINNESOTA, MN 55121, USA
5101 NORTHWEST DRIVE, INTERNATIONAL AIRPORT
ST PAUL, MN 55111-3034, USA
USA (United States of America) was established in 1776, it covers an area of 9,363,123 sq km, its population is 280 million, its capital city is Washington DC, and its official language is English.
DECEMBER 1992: MAIN HUBS ARE MINNEAPOLIS/ST PAUL, DETROIT, MEMPHIS, AND TOKYO NARITA.
TO >240 CITIES IN 22 COUNTRIES. WORLD'S 4TH LARGEST AIRLINE (RPK - PASSENGER TRAFFIC). EMPLOYEES OWN 27%, (KLM) 18.8%, ALFRED CHECCHI 11%, & GARY WILSEY 11%.
JANUARY 1993: 1992 = -$277.4M (-$3.1M) (NET LOSS): +9.4% RPM (PASSENGER TRAFFIC), +4.4% PASSENGERS (PAX) +7.7% FTM (FREIGHT TRAFFIC).
CANCELLED 50 OPTIONS A320 & 24 A340'S. IN 1993, 10 A320'S, 2 757'S, DELIVERIES, & 17 AIRPLANES TO BE RETIRED.
JUNE 1993: TAIPEI TO GUAM (727-200, 12F, 124Y) FEEDS GUAM TO HONOLULU (HNL) - LOS ANGELES (LAX) (DC-10 DAILY).
JULY 1993: 757 = 99% (1ST TIME HIGHER THAN A320'S 98%).
AUGUST 1993: NEW ROUTE TO MOSCOW & ST PETERSBURG.
CANCELLED 2 747-400'S 1993 DELIVERIES, PICKED UP BY UNITED AIRLINES (UAL). ALSO, 6 OPTIONS 747-400, 40 OPTIONS 757, 30 OPTIONS A321, & 6 OPTIONS A340'S.
JANUARY 1994: 1993 = -$115.3M: -.8% RPM (TRAFFIC), -2.7% ASM (CAPACITY), 66.7% (LOAD FACTOR) LF.
JANUARY 1995: 1994 = +$295.5M: -.3% RPM, -2.4% ASM, 68.1% LF.
SEATTLE TO OSAKA (747-400 NONSTOP).
FEBRUARY 1995: TO ACCELERATE DELIVERY OF 15 757'S, IN 1995, & 1996, AND DELAY REMAINING 25, TO > 2000.
MAR 1995: 4 ORDERS (4/97) 747-451. 1 DC-9-30 (JT8D-9A), EX-ALITALIA (ALI).
MAY 1995: RAY JOHNSON, DIRECTOR 757/DC-10 MAINTENANCE; VIC SEAVERS MANAGER MAINTENANCE HUMAN FACTORS; LOREN SWART, MANAGER 757 PRODUCTION; JOHN LOEBNER, MANAGER 757 OPERATIONS; WILLIAM BALDWIN, MANAGER 757 OPERATIONS; TOM MONROE, MANAGER 757 OPERATIONS;, NORM WHINNERY, MANAGER 757 OPERATIONS; & LEON KOPITSKI, MANAGER 757 OPERATIONS.
APRIL 1995: INCDT: UNCOMMANDED 30 DEGREE ROLL OF A320-211 (318), LANDED OK AT MINNEAPOLIS (MSP).
JANUARY 1996: 4TH QTR = +$100M (+$63.23M). 1995 = RECORD +$506.33M (NET PROFIT) (+$429.84M)!: +8% RPM (TRAFFIC), +2.9% ASM (CAPACITY), 71.5% LF (LOAD FACTOR) (+3.4) RECORD, (49,313K PASSENGERS (PAX).
CODE SHARE WITH EUROWINGS (RFG) AMSTERDAM TO NUREMBURG, STUTTGART, DUSSELDORF, LEIPZIG, HANNOVER & DRESDEN. ALSO, FLIES LOS ANGELES (LAX) TO BEIJING 3/WEEK, VIA TOKYO. TO MONTREAL (DC-9-30). DAILY 757'S DIRECT TO FAIRBANKS.
MARCH 1996: DEFERRING 16 A330's, BUT $500M, +20 ORDERS A320's, TO ADD TO EXISTING 50. TO HUSHKIT +32 727-200'S & DC-9-30'S. 3 757 DELIVERIES. 2ND DC-10-30 (46640), EX-MALAYSIAN AIRLINES (MAS), LEASED FROM GREYROCK CAPITAL. 3 DC-10-30'S (46912; 46915; 46934) EX-KOREAN AIR (KAL).
CHRIS DOAN, VP AIRCRAFT MAINTENANCE OPERATIONS RESIGNS. ALLAN DOLLIE, DIRECTOR ENGINEERING.
CODE SHARE WITH AIR CHINA (BEJ).
MAY 1996: DETROIT TO BEIJING (747-400). 747F TO KANSAI
(240,000 LBS). ALITALIA (ALI) CODE SHARE WITH ALASKA AIRLINES (ASA), TO RUSSIA - ANCHORAGE, MAGADAN, KHABAROVSK, VLADIVOSTOK, PETROPAVLOVSK, & KAMSHATSKI. ALSO (KLM) CODE SHARE TO MOSCOW & ST PETERSBURG. CODE SHARE WITH AIR CHINA (BEJ), TO CHINA, & LEISURE INTERNATIONAL (UKL) TO UK. CODE SHARE WITH HAWAIIAN (HWI) FROM SEATTLE (SEA), SAN FRANCISCO (SFO), LOS ANGELES (LAX) TO HONOLULU (HNL), LIHUE, KAHULUI, MOLOKAI, HILO LANAI, AND KONA.
HUSHKITS OF 20 727-200'S & 12 DC-9-30'S, THE LATTER MANUFACTURED BY SAFETY HARBOR, FLORIDA, BASED ABS PARTNERSHIP, CONSISTING OF AIRBORNE EXPRESS (ABX), BURBANK NACELLE, & SANFRAN. 727 HUSHKIT IS PROVIDED BY FEDEX (FED) AVIATION SERVICES.
BOUGHT 1 747-200, 1 747-200F, EX-SINGAPORE AIRLINES (SIA). 1 DC-9-32 (47433). BOUGHT 15TH DC-9-32 (47128), EX-ALITALIA (ALI), & 1 DC-9-32 (47469), (CIS) LEASED. NOW HAS 22 DC-9-10'S, 106 DC-9-30'S, 12 DC-9-40'S, & 35 DC-9-50'S.
JULY 1996: TO BUY STOCK BACK FROM (KLM), FOR $378M. (KLM) NOW HAS 19%.
16TH DC-9-32 (47544), EX-ALITALIA (ALI).
APPROVAL FOR DETROIT TO ANTIGUA & BARBUDA (757).
2ND Q = +$217.6M (+$131.7M). 1ST 6 MONTHS = +$275.65M (+$151.58M).
CEO SAYS NO INTENTION TO BUY MD-95.
PRESENT 175 DC-9'S, AVERAGE 60,000 CYCLES.
SEPTEMBER 1996: SYSTEMS OPERATIONS CENTER, NOW HAS ACCESS TO BOEING ON-LINE DATA (BOLD), INCLUDING LINE MAINTENANCE, & MAINTENANCE OPERATIONS, & TECHNICAL REPRESENTATIVES.
LARRY GRIMARD, VP AIRCRAFT MAINTENANCE OPERATIONS, EX-VP OPERATIONS, AT AERO SYSTEMS ENGINEERING. HARRY GREGORY, VP COMPONENT MAINTENANCE OPERATIONS RESIGNED.
1 DC-9-32 (47129), EX-ALITALIA (ALI), (ATS) LEASED. 15TH 757 DELIVERY.
CODE SHARE WITH MAHALO AIR, HONOLULU (HNL) - MAUI - MOLOKAI.
TIMCO MAINTENANCE CONTRACT FOR "H" CHECK (LIKE "C") ON DC-10-30 (46961), EX-MALAYSIAN AIRLINES (MAS).
OCTOBER 1996: $100M FOR WIDE-BODY FLEET INTERIOR (BINS, LAVATORIES UPPER DECK), TO BE COMPLETED BY 2002.
70TH ANNIVERSARY OF 1ST FLIGHT AND 10TH SINCE TAKEOVER OF REPUBLIC AIRLINES.
NEW MINNEAPOLIS (MSP) TO OSAKA SERVICE. 747F TO MANILA. CODE SHARE WITH (KLM), NEWARK TO AMSTERDAM (DC-10). AWARDED LOS ANGELES (LAX) - VANCOUVER.
DIRK MCMAHON, VP LINE MAINTENANCE, REPLACED FRANK JAUREGUI, WHO RETIRED.
$300M, 12/24 ORDERS (4/97) AVRO RJ85 SUB-LEASED TO MESABA, 16F, 53Y, 69 PAX, TO REPLACE DC-9-10'S (28 - 31 YEARS OLD).
3RD Q = +$270.7 (+9.9%) (+$254.8M) RECORD!
NOVEMBER 1996: HAS USED PORTABLE MAINTENANCE AID (PMA) AT DETROIT FOR SEVERAL MONTHS. HAS NOW RECEIVED AIRBUS VERSION CALLED "CAATS."
CODE SHARE WITH (KLM), VIA AMSTERDAM, TO MOSCOW, AND ST PETERSBURG. NEW ROUTE TO TORONTO.
DELAYED DELIVERY OF 2 747-400'S (PW4056) FROM 1998 TO 2002. 18TH DC-9-32 (47591), EX-(ALI), (ATS) LEASED
OPENS 89,000 SQ FT, 3-BAY, NARROWBODY, MAINTENANCE BASE, AT DULUTH, MICHIGAN, FOR A320'S.
NORTHWEST AIRLINES (NWA) CONSORTIUM WITH EMERY AIR FREIGHT (EAF) & US AIRWAYS (USA), RECEIVED $22.5M, 1 YEAR CONTRACT FROM USA DEPARTMENT OF DEFENSE (DOD), FOR DAILY TRANSPORT OF USA ARMY EQUIPMENT (APPROXIMATELY 1.6M LB/MONTH) TO GERMANY, ITALY, AND JAPAN.
DECEMBER 1996: (SASCO) DOING 747 STRUT MODIFICATIONS. 92 OF 106 DC-9'S COMPLETED INTERIOR & ENGINE MODIFICATIONS - ALL DONE BY 5/97.
LARRY CHESTLER, DIRECTOR GROUND OPERATIONS, DIRK MCMAHON, VP LINE MAINTENANCE.
PURCHASED 2 MD-82'S (48054; 48057) THAT WERE LEASED.
JANUARY 1997: CODE SHARE WITH GARUDA INDONESIAN (GIA). NEW "SUN" DESTINATIONS PROVIDENCIALES (TURKS & CAICOS ISLES) ANTIGUA, AND LOS CABOS.
DAMAGE TO AIRCRAFT INCIDENTS LAST YEAR WERE 30 (26) WITH COST $6M ($3.7M).
RICHARD ANDERSON, SENIOR VP TECHNICAL OPERATIONS AND STATE AFFAIRS.
1996 = +$536M: +9.8% RPM, +7.4% ASM, 73.1% LF (+1.6), MARKET SHARE (RPM) = 12.62% (12.27%). NORTHWEST AIRLINES (NWA)'S AGING FLEET PHILOSOPHY, SAVES CAPITAL EXPENSES, BUT MAINTENANCE COST HAS INCREASED: +98.6%. 4TH Q & +40.7% 1996. 4TH Q = +$32.45M (+$100.00M): 70.0% LF (+1.6). 1996 = 68.63B RPM (#4 HIGHEST IN WORLD).
MARCH 1997: JAPAN'S MINISTRY OF TRANSPORT SAID LAST YEAR NARITA HAD TURNBACKS: 21 NORTHWEST AIRLINES (NWA); 7 UNITED AIRLINES (UAL); 7 CONTINENTAL MICRONESIA (MCR), OF TOTAL 205 = 1 IN 760, COMPARED, TO 1 IN 2,400, FOR OTHER CARRIERS, AND 1 IN 4,860 FOR JAPAN AIRLINES (JAL).
CODE SHARE WITH GARUDA INDONESIAN (GIA), TO JAKARTA.
47,000 EMPLOYEES (INCLUDING 15,900 FLIGHT CREW (FC).
747 (RT410) "WORLDPLANE" WORLD TOUR TO COMMEMORATE 50TH ANNIVERSARY OF SERVICE TO ASIA. 747 FUSELAGE PAINTED WITH CHILDREN'S ARTWORK.
PACIFIC SERVICE IS MORE THAN ANY OTHER OPERATOR (50,000 PASSENGERS/WEEK TO JAPAN FOR APPROXIMATELY $2.2B, REVENUE THIS YEAR, OF TOTAL SYSTEM $10B. LOAD FACTOR (LF) GENERALLY IN 70%+. OSAKA HANDLES GROWTH POTENTIAL TO KANSAI INDUSTRIAL REGION (23M POPULATION), AND HAS A GROSS DOMESTIC PRODUCT > CANADA. SERVES OSAKA FROM DETROIT, MINNEAPOLIS (MSP), LOS ANGELES (LAX), AND SEATTLE (SEA). 28 WIDEBODIES/WEEK TO JAPAN.
MAY 1997: AL CHECCHI RESIGNS, TO RUN FOR CALIFORNIA GOVERNOR. DAVID FIELDING, VP SPECIAL PROJECTS. BARRY LARSON, MANAGING DIRECTOR, AIRCRAFT PROGRAM MANAGEMENT (NEW & USED AIRPLANE INTRODUCTION). DASBURG HAS DECLINED SALARY SINCE, 1990 BUT STOCK OPTIONS YIELDED $6.8M.
1ST ALL FEMALE FLIGHT CREW, HONOLULU TO OSAKA.
NEW 65,000 SQ FT, $25M, CARGO FACILITY AT NEW YORK (JFK), TO BE COMPLETED IN SPRING 1998.
TAKES PART OWNERSHIP OF CHAMPION AIR (GRD).
21ST DC-9-32 (47229), EX-ALITALIA (ALI), (ATS) LEASED.
JUNE 1997: PARIS AIR SHOW ANNOUNCEMENT OF 50/100 ORDERS (1999) A319'S, 125 PAX. 22ND EX-ALITALIA (ALI) DC-9-32 (47235), (ATS) LEASED.
NEWARK TO AMSTERDAM NONSTOP (DC-10).
JULY 1997: DEPARTMENT OF TRANSPORTATION (DOT) OK'S (KLM) CODE SHARE TO PRAGUE. APPLIES FOR MINNEAPOLIS (MSP) TO HONG KONG (747-400, 15 HOURS 30 MINUTES, WORLD'S 2ND LONGEST, SINCE UNITED AIRLINES (UAL) FLIES CHICAGO (ORD)/HONG KONG 15 HOURS 55 MINUTES) IN 10/97.
WITH (TWA) REPLACING 747'S & L-1011'S WITH NEW 757'S & 767'S, (NWA) HAS DUBIOUS HONOR OF HAVING OLDEST USA FLEET (AVERAGE 19 YEARS) WITH SEVERAL DC-9-10'S >31 YEARS.
+24 ORDERS (5/98) RJ85'S CONVERTING OPTIONS TO TOTAL 36 ORDERS.
2ND Q = +$136.2M (-32.8%) DUE TO 10% TICKET TAX, AND YEN, +36.6% MAINTENANCE COST DUE TO MORE ENGINE OVERHAULS (1ST 6 MONTHS = +30.6% = $320.3M).
50TH ANNIVERSARY OF PACIFIC OPERATIONS. HAS DC-4 IN 1947 LIVERY.
AUGUST 1997: BUYS BACK 19% (KLM) STAKE FOR $1.17B, WITH 1ST INSTALLMENT OF $40/SHARE.
(DOT) OK'S PHILIPPINES ALL-CARGO FREQUENCY (747F), LOS ANGELES (LAX) - SAN FRANCISCO (SFO) - ANCHORAGE - BANGKOK - MANILA. CODE SHARE WITH AIR EXEL AMSTERDAM, TO MAASTRICHT. NONSTOP DETROIT TO NEW YORK (JFK) (DC-9-30).
CREATES EXECUTIVE 727'S, 56(F) LEATHER SEATS, WITH 7 YEAR LEASES TO 7 (NBA) TEAMS: LAKERS, CLIPPERS, ROCKETS, SPURS, WARRIORS, PACERS & NUGGETS +1 (NHL): AVALANCHE, BY CONVERTING 5 727-200'S, 149 PAX.
CODE SHARE WITH ALASKA AIRLINES (ASA) EXTENDED TO RUSSIA.
LACROSS 70TH ANNIVERSARY OF NORTHWEST AIRLINES (NWA) 1ST FLIGHT STOP.
SEPTEMBER 1997: EXPECTS $20M IN REVENUES IN 1997 FROM ITS CONTRACT SERVICES BUSINESS AT LOS ANGELES (LAX), VS $3M, IN 1996. HANDLES 44 DAILY FLIGHTS, FOR 14 AIRLINES, +21 NORTHWEST AIRLINES (NWA) FLIGHTS.
KEN HYLANDER , EX-DIRECTOR QUALITY ASSURANCE UNITED AIRLINES (UAL), NOW VP ENGINEERING, REPLACES JOSEPH VREEMAN, NOW VP TECHNICAL OPERATIONS.
1 747-200F (JT9D-7Q), EX-KOREAN AIR (KAL).
OCTOBER 1997: STARTS 2 YEAR, EXEMPTION CODE SHARE WITH GARUDA INDONESIAN (GIA), TO JAKARTA. TO DROP SEATTLE (SEA) TO HONG KONG, & ADD MINNEAPOLIS (MSP) TO HONG KONG. NEW ROUTE (SEA) TO AMSTERDAM. MEMPHIS - CANCUN. STARTS FLIGHTS TO MUMBAI AND NEW DELHI. CODE SHARE WITH JET AIRWAYS (JPL) TO 18 INDIAN CITIES. ADDS TO EXISTING (JPL) AGREEMENT WITH (KLM). (DOT) OK FOR CODE SHARE WITH (KLM), TO JOHANNESBURG, CAPE TOWN, & HARARE, VIA AMSTERDAM.
47,536 EMPLOYEES, 45,756 (3RD Q).
TO SPEND $1B OVER NEXT 3 YEARS TO BUY BACK 24M SHARES OF ITS STOCK HELD BY (KLM), TO REDUCE OUTSTANDING SHARES BY 22%.
3RD Q = +$294.1M (+$271M): 75% LF (HIGHEST IN INDUSTRY). 1ST 9 MONTHS = 88,113M RPK (4TH IN WORLD).
DONATES DC-9 TO NORTHLAND COMMUNITY & TECHNICAL COLLEGE, THIEF RIVER FALLS, MN.
NOVEMBER 1997: E-TICKETING NOW 29% OF TOTAL USA BOOKINGS = 80% IN-HOUSE INTERNET BOOKINGS, SAVES $4, OVER PAPER TICKET.
DECEMBER 1997: EXPANDS DETROIT - BEIJING, AND TO SHANGHAI, VIA TOKYO. 14TH JOINT SERVICE, USA (PHILADELPHIA) WITH (KLM), TO AMSTERDAM. CODE SHARE WITH BRAATHENS (BRT), (HAS 300 DAILY FLIGHTS WITH 51% NORWEGIAN MARKET, 14 NORWEGIAN AND 8 INTERNATIONAL ROUTES, WITH 27 737'S). JOINT SERVICE AGREEMENT (EXCLUDING CODE SHARE) WITH ALOHA AIRLINES (ALO).
JANUARY 1998: 4TH Q = +$105M (+305%) RECORD! CARGO 4TH Q = +8.5% FTM. 1997 = +$597M RECORD!: 1997 = +4.9% RPM, +3.2% ASM, 74.3% LF (+1.2) = HIGHEST IN INDUSTRY. RECORD 54.649M PAX (52.682M), AND 72.031B RPM (68.639B). INTERNATIONAL: +4.9% RPM, +4.8% ASM; 79.4% LF DOMESTIC: +5% RPM, +2.2% ASM, 70.8% LF (+1.8); +3% FTM. USA MARKET SHARE 1997 = 4TH 11.86%, 3RD LF.
WITH ITS OLDER FLEET, NORTRHWEST AIRLINES (NWA) BENEFITS MORE THAN MOST OPERATORS, WHEN JET FUEL PRICES FALL.
1998 GOALS, INCLUDE IMPROVED PRODUCT & SERVICE, LABOR AGREEMENTS, & "TO IDENTIFY & CAPTURE STRATEGIC OPPORTUNITIES THAT WILL SECURE THE PROFITABLE FUTURE."
$500M, FOR (CFM56-5A) ENGINES, FOR 50/100 A319'S. >$100M, 5 YEAR (PW4056) ENGINE MAINTENANCE CONTRACT, TO UNITED AIRLINES (UAL) SERVICES.
BUYS 14% OF CONTINENTAL AIRLINES (CAL), AS PART OF NEW CODE SHARE ALLIANCE TO MAKE COMBINED CARRIERS THE SAME SIZE AS UNITED AIRLINES (UAL), AMERICAN AIRLINES (AAL) & DELTA AIRLINES (DAL). TOGETHER THEY WOULD CONTROL 19% OF USA DOMESTIC CAPACITY, COMPARED TO (UAL)'S 19.6%, (AAL) 17.8%, & (DAL) 16.9%.
DC-10-30 (47844), EX-VARIG (VAR). 1 A320-211 (766) DELIVERY.
FEBRUARY 1998: 2/WEEK, ALL-CARGO 747, TO MANILA, VIA NEW YORK & CHICAGO (ORD), ANCHORAGE, TOKYO AND BANGKOK. TO JACKSON, MISSISSIPPI (DC-9).
51ST A320 DELIVERY.
MARCH 1998: EXTENDS SEATTLE - OSAKA (DC-10-30 CARGO) TO TAIPEI. IN 6/98, DETROIT TO BIRMINGHAM, ALABAMA (DC-9, 100 PAX). ALSO, DETROIT - NAGOYA (747-400), LINKING WORLD'S TWO LARGEST AUTOMOBILE MANUFACTURERS. NEXT MONTH, OSAKA - TAIPEI.
BUYS EXTRA SHARES IN CONTINENTAL AIRLINES (CAL) FOR TOTAL 15.4%, FOR 57.8% VOTING POWER, WORTH $59.5M, OR $60.82 PER SHARE.
RANDY MILLER, VP MAINTENANCE, EX-(CAL) RETIRED, SENIOR STAFF VP MAINTENANCE.
APRIL 1998: 47,536 EMPLOYEES (INCLUDING 15,900 FLIGHT CREW (FC) & 30 MAINTENANCE TECHNICIANS (MT)).
1ST Q = +$71M (+9.9%): 16.801B RPM (+1.3%), +3.1% ASM, 70.7% LF (-1.3), -3.4% FTM; MAINTENANCE EXPENSES= $318.33M (14.84% OF TOTAL OPERATIONS EXPENSES).
RECEIVED 3 DC-10-30ER (48267; 48290; 48319), EX-THAI INTERNATIONAL (TII). DC-9-14 (31-45744) SOLD TO THIEF RIVER FALLS VOCATIONAL INSTITUTE.
MAY 1998: NORTHWEST AIRLINES (NWA)/(KLM), SEATTLE TO AMSTERDAM NONSTOP. COOPERATIVE MARKETING AGREEMENT WITH KENYA AIRWAYS (KEN), FOR (NWA)/(KLM) ACCESS TO 13 AFRICAN CITIES WITH CODE SHARE, AMSTERDAM TO NAIROBI & LILONGWE. AIR CHINA (BEJ) CODE SHARE WITH (NWA), CONTINENTAL AIRLINES (CAL), ALASKA AIRLINES (ASA), AND AMERICA WEST (AMW). THE GLOBAL ALLIANCE ALSO INCLUDES (KLM) AND ALITALIA (ALI).
TRANSPACIFIC CARGO CODE SHARE THIS SUMMER WITH NIPPON CARGO
AIRLINES (NCA), OSAKA - CHICAGO.
BOB BALL, VP CUSTOMER SERVICE GROUND OPERATIONS - DETROIT, EX-FEDEX (FED). RICHARD ANDERSON, EXECUTIVE VP TECHNICAL OPERATIONS, FLIGHT OPERATIONS & AIRPORT AFFAIRS. DON WASHBURN, EXECUTIVE VP/CHAIRMAN NORTHWEST CARGO, REPLACES BILL SLATTERY, WHO RETIRED. CLAY FOUSHEE, VP REGULATORY AFFAIRS.
JUNE 1998: TOKYO - LAS VEGAS (747-200). NEW ROUTES TO MISSOULA, BUFFALO, WHITE PLAINS, FAIRBANKS/KALISPELL. DETROIT - ANCHORAGE.
CLIFF JOHNSON, MANAGING DIRECTOR, ATLANTA MAINTENANCE BASE, EX-CONTINENTAL MICRONESIA (MCR). MICKEY FORET, SPECIAL PROJECTS OFFICER.
2 A320'S, & 2 RJ85 DELIVERIES.
JULY 1998: DC-10-30 (171-46868 - "CITY OF AMSTERDAM").
1ST 6 MONTHS = 35.15B RPM (+1.2%), +.7% ASM, 73.9% LF (+.4). 2ND Q = +$49M (+$139M): +1.2% RPM, -1.7% ASM.
GARY FISHMAN, PROMOTED TO PRESIDENT TECHNICAL OPERATIONS & FLIGHT OPERATIONS ADMINISTRATION.
1997 TOP WORLD AIRLINE COMPARISONS:
EMPLOYEES (K): 1 FED 94; 2 UAL 92; 3 AAL 86; 4 DAL 63; 5 DLH 58; 6 BAB 53; 7 NWA 48; 8 USA 42; 9 CAL 40; 10 AFA 36.
RPK (TRAFFIC) (B): 1 UAL 195; 2 AAL 172; 3 DAL 160; 4 NWA 116; 5 BAB 106; 6 JAL 77; 7 CAL 77; 8 DLH 71; 9 AFA 70; 10 USA 67.
NET ($M): 1 AMR 985 (1,016); 2 UAL 949 (533); 3 DAL 934 (248); 4 BAB 754 (876); 5 SIA 670 (731); 6 NWA 597 (536); 7 FED 583 (371); 8 USA 494 (263); 9 DLH 482 (371); 10 CAL 385 (319).
PSSENGERS (PAX) (M): 1 DAL 103; 2 UAL 84; 3 AAL 81; 4 USA 59; 5 NWA 55; 6 SWA 50; 7 ANA 41; 8 CAL 39; 9 DLH 35; 10 BAB 34.
FTK (FREIGHT TRAFFIC) (B): 1 FED 9.3; 2 GRC 6.5; 3 KAL 5.7; 4 UPS 5.4; 5 AFA 5.0; 6 SIA 4.8; 7 JAL 4.2; 8 BAB 3.9; 9 KLM 3.9; 10 CAT 3.6; 11 NWA 3.3; 12 UAL 3.2; 13 CHI 2.8; 14 EVA 2.7; 15 DAL 2.5.
BUILDING $26.6M, 101,000 SQ FT, 2-BAY WIDEBODY MAINTENANCE HANGAR AT DETROIT METRO, FOR EARLY 1999 COMPLETION - CAPABLE OF HANDLING 2 DC-10'S, & 1 DC-9 SIMULTANEOUSLY.
SEPTEMBER 1998: PILOT STRIKE CONTINUES. LAYOFFS LOOM. EACH STRIKE DAY COSTS -$12M. ON 5TH DAY OF STRIKE, TEMPORARILY LAYS OFF -27,500 MECHANICS (MT), FLIGHT ATTENDANTS (CA), CUSTOMER SERVICE & OTHER GROUND EMPLOYEES. IN STRIKE'S 7TH DAY, OTHER AIRLINES GAINS: UNITED AIRLINES (UAL) +$47.6M, DELTA AIRLINES (DAL) +$27.1M, & AMERICAN AIRLINES (AAL) +$26.7M.
RETIRES 4 747-151'S (JT9D-7A) (19778, /69; 19780, /70) (74-19784; 81-19919 SCRAPPED).
OCTOBER 1998: JIM FRIEDEL, EXECUTIVE VP & CHAIRMAN, (NWA) CARGO DIVISION, REPLACES DON WASHBURN, WHO RETIRED.
3RD Q = -$224M (+$290M), DUE TO PILOT'S STRIKE: -$17M STRIKE EXPENSES, -$50M FOR OTHER STRIKE & LABOR-RELATED EXPENSES, -$84M FOR RETROACTIVE PAY, DUE TO NEW CONTRACTS, & -$30M ADDITIONAL MAINTENANCE COSTS.
STILL WORKING WITH JUSTICE DEPARTMENT ON ACQUISITION OF CONTINENTAL (CAL).
GARY FISHMAN, VP ADMINISTRATION TECHNICAL & FLIGHT OPERATIONS; KEN HYLANDER, VP ENGINEERING & FLEET RELIABILITY. BARRY LARSON, MANAGING DIRECTOR, AIRCRAFT PROGRAM MANAGEMENT.
1997 = +$603.5M (+$578.8M). 1ST 6 MONTHS = 56.6B RPK (+1.2%), -21% ASM; 73.9%; LF (+.4), 26.38M PAX (-.5%). 3RD Q MAINTENANCE COSTS = $310.8M (14.72% OF OPERATING EXPENSES).
12 MONTHS END 9/98 USA TRAFFIC RPM B:
1 UAL 123.3; 2 AAL 108.3; 3 DAL 102.6; 4 NWA 67.6; 5 CAL 49.7; 6 USA 41.1; 7 SWA 29.7; 8 TWA 25.0; 9 AMW 16.2; 10. ASA 11.0.
NOVEMBER 1998: DETROIT - NAGOYA TO CONTINUE ON TO MANILA (SATS).
RETIRES 747-100 (19785, /70), TO BE USED FOR PILOT TRAINING & SPARE AIRPLANE TIL 10/99, & RETIRES 747-251 (20356, /71).
FINALIZES CONTINENTAL AIRLINES (CAL) ACQUISITION, WITH BUY OF 8.66M SHARES OF CLASS "A" (CAL) STOCK, FROM AIR PARTNERS, HEADED BY DAVE BONDERMAN, & ITS AFFILIATES, AGREEING TO CODE SHARE WITH (CAL) ON 850 DOMESTIC & INTERNATIONAL FLIGHTS TO 95 CITIES.
A320-212'S (CFM56-5A3) (903; 907; 911) DELIVERIES.
DECEMBER 1998: TO ACAPULCO, COZUMEL, IXTAPA, KALISPELL, LIBERIA, LOS CABOS, PUERTO PLATA, PUERTO VALLARTA, ST MAARTEN, HONOLULU, AND HAYDEN. MEMPHIS - CANCUN. OSAKA - KAOHSIUNG. NEXT MONTH, TO HOUSTON & DETROIT - HOUSTON (DC-9). CODE SHARE WITH NIPPON CARGO (NCA), OSAKA - CHICAGO (ORD) - NEW YORK (JFK). (DOT) OK'S 2 YEAR EXEMPTION, FOR SCHEDULED COMBI SERVICE TO LOME, TOGO, AS CODE SHARE WITH (KLM), VIA AMSTERDAM. DETROIT - DES MOINES/DULUTH.
RICHARD ANDERSON, PROMOTED TO EXECUTIVE VP & COO, RESPONSIBILITY FOR TECHNICAL & FLIGHT OPERATIONS, CUSTOMER SERVICE, GROUND OPERATIONS, AIRPORT AFFAIRS & IN-FLIGHT SERVICES. RAY VECCHI, EXECECUTIVE VP CUSTOMER SERVICE, REPORTS TO ANDERSON. DASBURG WILL FOCUS ON THE GLOBAL ALLIANCE WITH (KLM), (CAL), (ASA), (ALI), (BEJ), (JAS), (BRT), AND EUROWINGS (RFG).
JANUARY 1999: STARTS CODE SHARE WITH CONTINENTAL AIRLINES (CAL), ON 850 DOMESTIC FLIGHTS, & COVERING 95 DESTINATIONS, WORLDWIDE: US-JAPAN & 21 WEEKLY, TOKYO TO SINGAPORE, BANGKOK, & SEOUL. (CAL) ON NEW YORK (JFK) - TOKYO, SAN FRANCISCO (SFO) - TOKYO, & DETROIT - OSAKA, WHILE NORTHWEST AIRLINES (NWA) ON (CAL)'S NEWARK - TOKYO (DAILY).
4TH Q = -$181M: FUEL = $70.6M (-20.9%), MAINTENANCE COSTS $214.8M (+40%). 1998 = -$286M, MOSTLY FROM 15-DAY PILOT'S STRIKE IN 3RD Q. THE ASIA DIVISION LOST MONEY IN 1998: 66.71B RPM (-7.3%); -5.8% ASM; 73.1% LF (-1.2); 50.49 PAX (54.65); -9.1% FTM. DOMESTIC: -6.7% RPM; -6.3% ASM; 70.5% LF.
STEPHEN GORMAN, SENIOR VP TECHNICAL OPERATIONS, & GARY FISHMAN, VP OPERATIONS ADMINISTRATION. RAY VECCI, EXECUTIVE VP CUSTOMER SERVICE, NOW ALSO PRESIDENT, MICHIGAN OPERATIONS, BASED IN DETROIT. KEN HYLANDER, VP ENGINEERING, HOSTS (NWA), TECHNICAL OPERATIONS RELIABILITY INDEX, SUMMIT REVIEW, AT LOCAL DOUBLETREE.
727-2S7 (1584-22019, N715RC), SOLD TO PEGASUS (PSS), LEASED TO CHAMPION (GRD). RETIRED 7 747-100/-200'S. 747-100 (19780) PARTED OUT. BY END OF 1998, HAD INSTALLED STAGE 3 HUSHKITS, ON 129 OF 173 DC-9'S, & 16 OF 34 727-200'S. 5 DC-9-15'S (111-47063, N91S; 120-47064, N92S; 245-47204 N94S; 250-47205, N95S; 328-47206, N96S), GROUNDED AT HONDO, TEXAS (RETIRED).
FEBRUARY 1999: CODE SHARE WITH MALAYSIAN AIRLINES (MAS), DETROIT TO KUALA LUMPUR, VIA OSAKA (DC-10). CODE SHARE WITH KENYA AIRWAYS (KEN), TO DAR ES SALAAM, HARARE ENTEBBE, KIGALI, LUSAKA, RWANDA, ZANZIBAR, & SEYCHELLES ISLES.
PLANS TO RETIRE ALL MD-80'S. PLANS TO RECEIVE 4 747-400'S (PW4056). IN 1999, TO RETIRE 8 MD-82'S, BY 10/99, & RETIRE 8 DC-9'S, BY 2003.
$1.3B, 54/70 ORDERS BOMBARDIER CRJ-200LR'S, FOR OPERATIONS BY REGIONAL SUBSIDIARIES, MESABA, OR EXPRESS 1 (4/00). DC-9-14 (45748) TO AVIATION SALE COMPANY (ASC) FOR PART OUT.
MARCH 1999: STEPHEN USERY, MANAGING DIRECTOR PRODUCT DEVELOPMENT; CHAN PHILLIPS, DIRECTOR ONBOARD COMMUNICATIONS & VISUAL SERVICES. GIL WEST, VP ENGINE & COMPONENT MAINTENANCE. JOHN PARKER, VP INFO SERVICES.
IN 5/99, TO OSLO (DC-10-30).
PAINTS DC-10-30 (336-47844, N237MW), IN DUAL COLOR SCHEME OF NORTHWEST AIRLINES (NWA)/(KLM). 11TH 747-451 "CITY OF DETROIT," & 2 A320-212'S (962, N364NW; 964, N365NW) DELIVERIES.
APRIL 1999: (DOT) AWARDS ROMANIA ROUTE BY CODE SHARE WITH (KLM), VIA AMSTERDAM TO BUCHAREST.
1ST Q = -$29M, STILL HAS EFFECTS OF LAST FALL'S PILOT'S STRIKE. LOST -$20M FROM SEVERE SNOWSTORM IN DETROIT (ONE OF ITS MAJOR HUBS) IN 1/99: -2.8% RPM, -3.2% ASM, 70.9% LF (+.2).
1998 TOP WORLD AIRLINE TRAFFIC RPK (B):
1. UAL 200 (195); 2. AAL 175 (172); 3. DAL 166 (160); 4. BAB 117 (106); 5. NWA 107 (116); 6. CAL 87 (77); 7. DLH 72 (71); 8. USA 66 (67); 9. SIA 58 (55); 10. KLM 57 (55).
2 A320-212'S (981, N366NW; 988, N367NW) DELIVERIES.
MAY 1999: 47,337 EMPLOYEES.
ACQUIRES 9TH 747-200F (22245) FOR TRANSPACIFIC CARGO OPERATIONS, EX-(STT), TO DELIVER IN 9/99.
JUNE 1999: CODE SHARE WITH ALASKA (ASA), LOS ANGELES (LAX) - MAZATLAN, PUERTO VALLARTA, & SAN JOSE DEL CABO, SAN FRANCISCO (SFO) - TO SAME PLACES, SAN DIEGO - SAN JOSE DEL CABO, & PHOENIX TO PUERTO VALLARTA & SAN JOSE DEL CABO. CODE SHARE WITH CONTINENTAL (CAL), NEWARK - CANCUN, COZUMEL, & MEXICO CITY, HOUSTON TO ACAPULCO, CANCUN, LEON, COZUMEL, GUADALAJARA, MERIDA, MEXICO CITY, MONTERREY, COZUMEL, PUERTO VALLARTA, SALTILLO, SAN JOSE DEL CABO, TAMPICO, VERACRUZ, IXTAPA AND TORREON, CLEVELAND - CANCUN, SAN ANTONIO - MEXICO CITY & SAN DIEGO - MEXICO CITY.
5 DC-9-15'S (47063; 47064; 47204; 47205; 47206), TO AVIATION SALES (ASC) FOR PART-OUT. EXERCISES OPTIONS: 18 A319'S & 12 A320'S. DC-10-30 (48282) EX-VARIG (VAR), & 2ND IN 8/99 (47845).
1998 TOP WORLD AIRLINE TRAFFIC RPM (B):
1 UAL 124.54; 2 AAL 108.87; 3 DAL 103.24; 4 BAB 72.08; 5 NWA 66.71; 6 CAL 50.94; 7 JAL 48.97; 8 DLH 46.88; 9 AFA 46.35; 10 USA 41.25; 11 SIA 35.88; 12 KLM 25.59.
JULY 1999: 1ST 6 MONTHS = +1.1% RPM, +1.3% ASM, -.2% LF. 194 FTM (+16.1%). 2ND Q = +$120M (+$49M): 19.2B RPM (+4.6%), +5.8% ASM. 1ST 6 MONTHS = +$91M (+$120M), DUE TO RESIDUAL EFFECTS OF LABOR PROBLEMS.
747-451 (1226-30268, N673US) & 3 A319-113'S (1058, N301NB; 1062, N302NB; 1071, N303NB), DELIVERIES.
AUGUST 1999: MICKEY FORET, VP CARGO.
CODE SHARE WITH JAPAN AIR SYSTEM (JAS) BETWEEN OSAKA & OKINAWA & FUKUOKA. IN 10/99, NONSTOP DETROIT - SHANGHAI & ALL-CARGO 747 SERVICE TO CHINA, VIA TOKYO.
747-400 "SPIRIT OF ASIA" DELIVERY.
SEPTEMBER 1999: "PARTNER AGREEMENT" WITH CYPRUS AIRWAYS (CYP), INCLUDING CODE SHARE, & FREQUENT FLYER PROGRAM, FROM AMSTERDAM TO LARNACA, & PAPHOS, CYPRUS.
RETURNED 727-225 (1668-22433) & MD-82 (996-48054). 3 A319-113'S (1078, N304NB; 1090, N305NB; 1091, N306NB), DELIVERIES. 747-249F (458-22245, N643NW) DELIVERY, SPECIALLY PAINTED "INVESTING IN PACIFIC TRADE" WITH LARGE GLOBE & CITIES.
OCTOBER 1999: 747-212F (710-24177, /88), FINOVA (GRB) LEASED, EX-SOUTH AFRICAN AIRWAYS (SAA), & SINGAPORE AIRLINES (SIA).
TOP WORLD AIRLINES TO/FROM USA 1998 TOTAL PASSENGERS (PAX) M
1 AAL 17.35 (14.1%); 2 UAL 9.91 (8.1%); 3 DAL 7.26 (5.9%); 4 NWA 6.91 (5.6%); 5 CAL 6.61 (5.4%); 6 BAB 6.31 (5.1%); 7 JAL 4.39 (3.6%).
RETIRED 747-151 (19785). 747-451 ("CITY OF SHANGHAI") DELIVERY. DC-9-30 (47149) PARTED OUT. 7 MD-82'S (48057; 48088) RETIRED AT MARANA, AZ.
2ND Q MAINTENANCE COSTS $271.25M (12.19% DIRECT OPERATING COSTS (DOC). 3RD Q = +$180M (-$224M) (PILOT'S STRIKE): 20.9M RPM (+38.2%), +33.4% ASM, 77.7% LF (+2.7). FUEL COSTS +10.9%.
MEMPHIS - GRAND RAPIDS, MICHIGAN (DC-9/RJ85). IN 12/99, DETROIT - HONOLULU (DC-10).
NOVEMBER 1999: CLAYTON FOUSHEE, VP REGULATORY AFFAIRS, STATES DELAYS OF AS LITTLE AS 10 MINUTES ARE "LIKELY" TO TURN A PROFITABLE, HUB-AND-SPOKE FLIGHT INTO AN UNPROFITABLE ONE, & ESTIMATES MISSED HUB CONNECTIONS COST (NWA) $60M, IN 1998.
OPENS $26.6M, 101K SQ FT, 2-BAY WIDE-BODY MAINTENANCE HANGAR, AT DETROIT METRO TO HANDLE 2 DC-10'S, AND 1 DC-9/A320, SIMULTANEOUSLY.
747-251B (135-20357) RETIRED AT MARANA.
DECEMBER 1999: WILL OPERATE 2 747'S FOR KITTY HAWK (KHC), USA POSTAL SERVICE CONTRACT FOR 2 WEEKS, PRIOR TO XMAS.
54,143 EMPLOYEES (INCLUDING 6,204 FC).
IN 4/00, NONSTOPS DETROIT - ROME AND - MILAN INCLUDING CODE SHARE, BEYOND WITH ALITALIA (ALI), AFTER USA/ITALY "OPEN-SKIES" AGREEMENT, RECENTLY SIGNED.
IN 1/00, MEMPHIS TO PHOENIX AND FORT MYERS. DETROIT - CANCUN.
ACQUIRES DELTA AIRLINES (DAL) MAINTENANCE HANGAR IN SEATTLE.
3 727-251'S SOLD TO CHAMPION AIR (GRD) (22490; 22491; 22492). A319-113 (1149, N310NB).
JANUARY 2000: 4TH Q = +$29M (-$181M DUE TO PILOT'S STRIKE): +25.1% FUEL COSTS; MAINTENANCE COSTS = $308.14M (12.99% DOC); 73% LF (+3.1). 1999 = 74.17B RPM (+11.1%), +8.9% ASM, 74.6% LF (+1.5). TRAFFIC MARKET SHARE = 12.2% 4TH (11.5%). +$300M (-$285M). LIKE AMERICAN AIRLINES (AAL), CONTINENTAL AIRLINES (CAL), DELTA AIRLINES (DAL), & UNITED AIRLINES (UAL), HAS ADDED $20 SURCHARGE, TO RETURN TRIP TICKETS TO OFFSET FUEL COSTS.
(DOT) OK'S SERVICE TO ADDIS ABABA, ETHIOPIA. PLANS VIA ITALY, WITH CODE SHARE WITH ALITALIA (ALI).
A319-114 (1164, N311NB), DAILY.
FEBRUARY 2000: RECEIVES "BEST AIRLINE TECHNOLOGY MANAGEMENT SYSTEM" AWARD FROM "AIR TRANSPORT WORLD" MAGAZINE.
52,000 EMPLOYEES. (http://www.nwa.com).
IN 4/00, DETROIT - SHANGHAI, NEW YORK (JFK) TO AMSTERDAM, MINNEAPOLIS - BUFFALO/TRAVERSE CITY. IN 5/00, DETROIT - ANCHORAGE.
747-151 (75-19785) DONATED TO WEST MICHIGAN UNIVERSITY. A319-114 (1167, N312NB), DELIVERY.
MARCH 2000: 2 A319-114'S (1186, N313NB; 1191, N314NB), DELIVERIES.
(DOT) OK'S NEWARK/HOUSTON - SANTA CRUZ, BOLIVIA; VIA LIMA; NEWARK - BELO HORIZONTE, BRAZIL; VIA RIO DE JANEIRO. ALSO, NEWARK - LIMA - SANTIAGO. ALL ROUTES CODE SHARE WITH CONTINENTAL AIRLINES (CAL).
NORTHWEST AIRLINES (NWA) HAS 116 DC-9'S OLDER THAN 30 YEARS. HAS TOP SPOT AS USA AIRLINE WITH OLDEST FLEET, AVERAGING 19.9 YEARS OLD, VIRTUALLY UNCHANGED SINCE 1998. HAS 172 AGING DC-9'S. HOWEVER, DOES OWN MORE AIRPLANES (72.1%), FOLLOWED BY SOUTHWEST AIRLINES (SWA) 67%, & DELTA AIRLINES (DAL) 61.3%. (TWA) LEASES 95.1% & AMERICA WEST AIRLINES (AMW) 93.5%.
(DOT) STATISTICS SHOW (NWA) AS TOP, US ON-TIME AIRLINE, FOR LAST DECADE (80.6%).
ATLANTA BASE, HAS 4-YEAR, MAINTENANCE CONTRACT FOR AIRTRAN (CQT) (JT8D)'S FOR 4 737-200'S & 35 DC-9-30'S.
IN 6/00, SAN DIEGO - LOS ANGELES (LAX) - TOKYO. IN 6/00, MEMPHIS - SAN DIEGO AND - CHARLOTTE. MINNEAPOLIS (MSP) - SAN ANTONIO.
APRIL 2000: 2 DC-10-30'S (436-48315, N243NW; 437-48316, N244NW), EX-JAPAN AIR SERVICES (JAS).
DIRK MCMAHON, SENIOR VP GROUND OPERATIONS. GARY KLEMMER, MANAGING DIRECTOR QUALITY ASSURANCE RESIGNS TO JOIN AMERICA WEST AIRLINES (AMW) AS SENIOR DIRECTOR LINE MAINTENANCE.
1ST Q = +$3M (-$29M), INCLUDING $37M FROM SALE OF SHARES IN priceline.com, +80.3% FUEL COSTS, +14.9% FTK (FREIGHT TRAFFIC), WITH FREIGHTERS ACHIEVING RECORD LOAD FACTORS.
IN 6/00, TO KALISPELL, FAIRBANKS, AND OSAKA. NONSTOP >14 HOURS, DETROIT - SHANGHAI (747-400).
JUNE 2000: AFTER PREVIOUS WEEK'S ANNOUNCEMENT BY UNITED AIRLINES (UAL) OF BUYING US AIRWAYS (USA), AMERICAN AIRLINES (AAL) ANNOUNCES IT WILL BUY 100% OF NORTHWEST AIRLINES (NWA).
IN 9/00, DETROIT - CHARLESTON, SOUTH CAROLINA, (DC-9-30/RJ85, 3/DAY).
(NWA) CARGO, AND JAPAN AIR LINES (JAL) CARGO, EACH OF WHICH WILL HAVE 10 747-200F'S FROM CARGO ALLIANCE STARTING 9/00, INCLUDING CODE SHARING & INTERLINE SPACE AGREEMENT. (NWA)'S 10TH 747-200F ENTERS SERVICE IN 9/00, & (JAL)'S IN 12/00.
A319 (CFM56-5A4) (1249, N316NB) DELIVERY.
JULY 2000: EXTENSIVE (FAA) SAFETY AUDIT OF ALASKA (ASA) BEING FOLLOWED BY SAME OF (UAL), (AMW), (CAL), (DAL), (NWA), (TWA), (AAL), (SWA), & (USA).
2 ORDERS 747-222'S (23738; 23736), EX-UAL (/87), CONVERTED TO FREIGHTERS BY BOEING AIRPLANE SERVICES (BAS) WICHITA FOR SERVICE IN 3/01.
AMERICAN AIRLINES (AAL) OFFERS $3.7B TO TAKE OVER NORTHWEST AIRLINES (NWA).
GENE PETERSON, VP REGULATORY COMPIANCE REPLACES JOHN KERN WHO RETIRED.
2ND Q = +$115 (-4.2%): +61.5% FUEL COSTS.
1999 WORLD TOP AIRLINES COMPARISONS:
RPK TRAFFIC (B): 1 UAL 201.9; 2 AAL 177.3 3 DAL 168.6; 4 NWA 119.3; 5 BAB 117.5; 6 CAL 93.4; 7 AFA 83.7; 8 JAL 82.9; 9 DLH 81.4; 10 USA 66.9.
NET PROFIT ($M): 1 DAL 1,285; 2 UAL 1,235; 3 AMR 985; 4 SIA 737; 5 DLH 633; 6 SWA 474; 7 CAL 455; 8 FED 442; 9 AFA 340; 10 KLM 324; 11
NWA 300; 12 CAT 282; 13 QAN 279; 14 USA 273.
EMPLOYEES (K): 1 UPS 308; 2 FED 150; 3 UAL 96.7; 4 AAL 86.1; 5 DAL 72; 6 DLH 66.2 7 DHL 60; 8 AFA 55.2; 9 BAB 53.1; 10 NWA 51.8; 11 CAL 44.1.
FTK (FREIGHT TRAFFIC) (B): 8 JAL 4.42; 9 KLM 4.15; 10 CAT 3.77; 11 UAL 3.58; 12 CHI 3.38; 13 CLX 3.25; 14 EVA 3.15; 15 NWA 3.02.
ADVANCES DELIVERIES OF 5 757-200'S FROM /04 TO 6/01.
AUGUST 2000: GARY MAY, VP AIRCRAFT TRANSACTIONS.
JOINS E-COMMERCE VENTURE CALLED "aeroexchange" FOR AIRPLANE PARTS, MAINTENANCE SERVICES, & GENERAL SUPPLIES WITH 12 AIRLINES: (CAT); (DLH); (SIA); (FED); (ACN); (ANA); (AMW); (SAS); (KLM); (AUL); & (ANZ).
1999 = +$300M (-$285M): 119.34B RPK (+11.1%) 74.6% LF; 3.02B FTK (+21.4%); 56.11M PAX (+11.1%);
51,823 EMPLOYEES (+2.5%).
1999 TOP US AIRLINES FROM INTERNET REVENUE (M):
1 SWA 877; 2 DAL 671; 3 UAL 505; 4 USA 450; 5 AAL 416; 6 CAL 408; 7 NWA 402; 8 AMW 223; 9 ASA 143; 10 TWA 118.
SEPTEMBER 2000: 2 A319-114 (1324, N317NB; 1325, N318NB), DELIVERIES.
OCTOBER 2000: 1ST 6 MONTHS TOP WORLD AIRLINES RPK (B):
1 UAL 100.26; 2 AAL 92.41; 3 DAL 89.82; 4 NWA 62.13; 5 CAL 60.38;
6 USA 35.07; 7 SIA 33.79; 8 SWA 32.84; 9 KLM 28.94.
MD-82 (48054) PARTED OUT.
IN 4/01, CODE SHARE WITH (KLM), MIAMI (MIA) - AMSTERDAM (DC-10-30).
3RD Q = +$207M (+15%): FUEL COSTS +58.7%, PACIFIC SYSTEM RECORD 84.9% LF, DOMESTIC RECORD 75.7% LF, +14.4% FTK.
747-151 (27-19778), RETIRED, TO BE GIVEN TO SMITHSONIAN. MD-82 (48057) PARTED OUT. 1 A319-114 (CFM56-5A4) (1346, N319NB) DELIVERY.
NOVEMBER 2000: SELLS 6.7M CONTINENTAL AIRLINES (CAL) CLASS A STOCK SHARES FOR $450M TO (CAL), & RETAINS 7% VOTING INTEREST IN (CAL) & <5% EQUITY STAKE.
TO HAWAII, YEAR ROUND (747/DC-10).
NOEL DUNCAN, VP AND CHIEF SAFETY OFFICER.
DECEMBER 2000: IN 1/01, NONSTOP MEMPHIS - FORT LAUDERDALE (DC-9, A320).
PROPOSES TO TAKE CONTROLLING INTEREST IN REGIONAL MESABA AIRLINES. CURRENTLY OWNS 28%, BUT PLANS FOR 40%.
1 727-2S7 (1617-22021, /80 N686CA), LEASED TO CHAMPION (GRD)
TOP 5 WORLD AIRLINES 1ST 9 MONTHS RPK (B):
1 UAL 154.29 2 AAL 143.21; 3 DAL 133.04; 4 NWA 97.47; 5 BAB 90.35.
JANUARY 2000: COMPLETES ITS YEAR LONG PROGRAM TO EQUIP ALL ITS AIRPLANES WITH LIFEPACK 500, AUTOMATED EXTERNAL DEFIBRILLATORS, & BIOLOG 3000, ELECTROCARDIOGRAPH MONITORS, SUPPLIED BY MEDTRONIC PHYSIO-CONTROL. ALSO, HAS EXPANDED MEDICAL KITS, INCLUDING SUPPLIES, & MEDICATION FOR EMERGENCY TREATMENT OF HEART FAILURE, BREATHING DIFFICULTIES, AND SEIZURES.
REPLACEMENT OF DC-10-10/30 FLEET WITH 20 ORDERS 757-300, 2 ORDERS 747-400, 6 A319'S, & 4 A330-300'S.
4TH Q = -$45M: +31% FUEL COSTS. 2000 = +$256M (+$300M): 103.36B RPM (+3.9%), +6.7% ASM, 76.6% LF (+2).
INCORPORATES ITS NORTHWEST AIRLINES (NWA) CARGO AS WHOLLY-OWNED SUBSIDIARY, WITH MICKEY FORET AS CHAIRMAN & CEO. JIM FREIDEL, PRESIDENT, (NWA) CARGO.
IN 5/01, DETROIT - SAN JOSE (A319).
1 A319-114 (1414, N321NB) DELIVERY (CFM56-5A5).
1999 TOP WORLD AIRLINES TRAFFIC RPM (B):
1 UAL 126.88; 2 AAL 116.51; 3 DAL 107.78; 4 NWA 79.10; 5 BAB 73.88; 6 CAL 62.31; 7 DLH 58.52; 8 AFA 57.04; 9 JAL 55.30; 10 USA 46.87; 11 SIA 43.99.
FEBRUARY 2001: RICHARD ANDERSON, CEO SUCCEEDS JOHN DASBURG (WHO WILL BECOME HEAD OF BURGER KING CORPORATION). DOUG STEENLAND, PRESIDENT.
(DOT) OK'S ALL-CARGO USA - PHILIPPINES.
1 A319-114 (1434, N322NB) DELIVERY.
MARCH 2001: STEPHEN GORMAN, EXECUTIVE VP TECHNICAL & FLIGHT OPERATIONS.
PROJECTS 1ST Q = -$130-150M, DUE TO DECLINE IN CORPORATE BUSINESS TRAVEL, AND SLOW ECONOMY.
CODE SHARE WITH TRANSAVIA (TAV) TO AMSTERDAM AND ONTO ITALIAN CITIES OF PISA, NAPLES & CATANIA, AND PORTUGESE CITIES OF FARO, PORTO, AND FUNCHAL.
2 A319-114'S (1453, N323NB; 1456) DELIVERIES.
6-YEAR CONTRACT WITH UNISYS, TO MANAGE SELECTED INFORMATION TECHNOLOGY (IT) OPERATIONS. BASED ON PROJECTED USAGE TO RESULT IN -$7.2M IN COST SAVINGS.
APRIL 2001: 1ST Q = -$171M (+$3M): MAINTENANCE COSTS = $419.2M (+32.7%).
MEMPHIS - MONTERREY, MEXICO.
1 A319-114 (1483, N325NB) DELIVERY. AS PART OF $200M, COST CUTTING PLAN, WILL RETIRE 3 OF 21 DC-10-40'S, IN 11/01.
MAY 2001: DETROIT - ANCHORAGE. TO FAIRBANKS. IN 6/01, DETROIT -
CANCELED 4 A330 ORDERS. 2 A319-114'S (1498, N326NB; 1501, N327NB) DELIVERIES.
JUNE 2001: IN 9/01, MEMPHIS TO BALTIMORE/WASHINGTON (DC-9, DAILY NONSTOP). SIGNS CARGO ALLIANCE WITH LUFTHANSA CARGO (LUB) TO OPERATE 747-200F SERVICE FROM CINCINNATI TO ASIA, WITH PACKAGES, BLOCKED SPACE FOR DELIVERY, TO TOKYO, OSAKA, HONG KONG, TAIPEI, MANILA, BANGKOK, SINGAPORE, BEIJING, SHANGHAI, KUALA LUMPUR, AND SEOUL.
1 757-251 (968-26497, N550NW) & 1 A319-114 1520, N328NB) DELIVERIES.
JULY 2001: 50TH 757-251 DELIVERY. $1.7B 75/175 ORDERS (7/02) BOMBARDIER CRJ440'S (CF34-3B1), 44 PAX.
1ST 6 MONTHS US MARKET SHARE (RPM'S M, SHARE %):
1 UAL 61.5M 19.1%; 2 ALL 55.9M 17.4%; 3 DAL 51.2M 15.9%; 4 NWA 38.7M 12.1%; 5 CAL 32.2M 10.0%; 6 USA 24.9M 7.7%; 7 SWA 22.5M 7.0%; 8 TWA 12.1M 3.8%; 9 AMW 10.1M 3.1%; 10 ASA 6.2M 1.9%.
2ND Q = -$55M (+$115M), DROP IN BUSINESS TRAFFIC & HIGH FUEL COSTS: MAINTENANCE COSTS = $350.24M (+14.7%).
WILL CUT -1,500 JOBS MAINLY THROUGH ATTRITION AND VOLUNTARY RETIREMENT, BUT MINIMUM OF -550 LAYOFFS, INCLUDING -130 MANAGEMENT POSITIONS.
IN 10/01, MEMPHIS TO MONTEGO BAY, JAMAICA (A320).
727-2M7 (1455-21656) RETIRED. 2 A319-114'S (1543, N329NB; 1549, N330NB) DELIVERIES.
AUGUST 2001: OPENS 151,000 SQ FT, AIRPLANE MAINTENANCE BUILDING, WITH 86,000 SQ FT OF HANGAR FLOOR, AND A 55,000 SQ FT, CARGO FACILITY. THE NEW HANGAR CAN ACCOMMODATE 2 DC-10'S AIRPLANES. THE $45M HANGAR & CARGO BUILDINGS, WHICH ARE ON NEARLY 15 ACRES, BEGAN IN 6/00.
RECEIVES ITS 101TH AIRBUS AIRPLANE (71ST A320). NOW OPERATES 30 A319'S.
STEPHEN GORMAN, EXECUTIVE VP TECHNICAL & FLIGHT OPERATIONS RESIGNS TO BECOME PRESIDENT OF KRISPY KREME DOUGHNUTS. REPLACED BY ANDREW ROBERTS, SENIOR VP TECHNICAL OPERATIONS. KEN HYLANDER, VP SAFETY AND ENGINEERING. WILLIAM LENTSCH, VP ENGINE COMPONENT MAINTENANCE OPERATIONS.
DC-10-40 (46757) PARTED OUT. DC-10-40 (46759) SOLD TO MEMPHIS GROUP. DC-9-31 (47150) WITHDRAWN FROM USE (WFU).
SEPTEMBER 2001: 51,551 EMPLOYEES (INCLUDING 5,981 FLIGHT CREW (FC); 10,753 CABIN ATTENDANTS (CA); 5,852 MAINTENANCE TECHNICIANS (MT); 89 GENERAL MANAGEMENT; 15,501 AIRPLANE/TRAFFIC HANDLING; 361 AIRPLANE CONTROL; 3,936 PASSENGER HANDLING; 1,044 CARGO HANDLING; 433 TRAINEES/INSTRUCTORS; 3,751 RECORDKEEPING; 358 TRAFFIC SOLICITORS; 3,492 OTHERS). PRODUCTIVITY (ASM/EMPLOYEE): 2,017,011.
TOP 10 NORTHWEST AIRLINES (NWA) AIRPORTS:
1 MINNEAPOLIS/ST PAUL (MSP) 12,175; 2 DETROIT 11,643; 3 MEMPHIS 2,493; 4 SEATTLE (SEATAC) 2,143; 5 ORLANDO (ORL) 2,026; 6 LOS ANGELES (LAX) 1,962; 7 NEW YORK LAGUARDIA 1,697; 8 SAN FRANCISCO (SFO) 1,667; 9 MILWAUKEE 1,632; 10 PHOENIX 1,546.
FOLLOWING THE 9/11 TERRORIST ATTACK ON NEW YORK'S WORLD TRADE CENTER (WTC) TOWERS & THE PENTAGON, RESULTING IN GROUNDING OF USA AIRPLANE FLEET, NORTHWEST AIRLINES (NWA) WILL CUT A MINIMUM OF -20% ASM'S (CAPACITY). ALSO, TO LAY OFF -10,000 EMPLOYEES.
2 DC-9-51'S (27775; 48107) & 1 747-251B (165-20360) WFU AT ROSWELL.
A319-114 (1582, N333NB) DELIVERY.
OCTOBER 2001: 75TH ANNIVERSARY!
727-2M7 (21201) WFU ROSWELL. 757-251 (982-26500, N553NW) & 54TH 757, (987-26501, N554NW) DELIVERY. 7 DC-10-40'S (28-46750; 46756; 46760; 46763; 46765; 46769; 46770) WFU AT ROSWELL 46763; 46769 SOLD TO MEMPHIS GROUP.
3RD Q = +$19M, HAVING RECEIVED $249M IN PRE-TAX FEDERAL GRANT: MAINTENANCE COSTS = $334.42M (+12.3%). IN THE 9/11- 30 PERIOD IT SUFFERED A -$250M OPERATING LOSS. EXCLUDING FEDERAL AID & NON-RECURRING CHARGES = -$100M. RICHARD ANDERSON SAID NORTHWEST AIRLINES (NWA) IS "FINANCIALLY SOUND" AND HAS +$2.8B IN CASH.
AT END OF 3RD Q, HAD 48,166 EMPLOYEES (-8.8%), (52,830).
TOP WORLD AIRLINES 1ST 9 MONTHS TRAFFIC RPK (B):
1 UAL 149.50; 2 AAL 135.28; 3 DAL 123.87; 4 NWA 94.04; 5 BAB 82.06; 6 CAL 77.83; 7 AFA 66.52; 8 DLH 61.32; 9 USA 59.63; 10 JAL 55.73; 11 SWA 54.24; 12 SIA 53.02.
NOVEMBER 2001: CHANGES ORDERS FOR 3 757-300'S TO -200'S.
RECEIVES 4 SLOTS AT NARITA TO LAUNCH A320 SERVICE FROM 4/02, WITH 3 A320'S BASED IN TOKYO, FOR FLIGHTS TO TAIPEI, SEOUL, AND PUSAN.
GARY WILSON, CHAIRMAN ALSO APPOINTED TO BOARD OF YAHOO! INC. HE IS ALSO A DIRECTOR OF THE WALT DISNEY COMPANY & SERVES ON THE BOARD OF TRUSTEES OF DUKE UNIVERSITY.
IN 1/02, CODE SHARE WITH MALEV (HGA) AMSTERDAM - BUDAPEST.
727-251 (1299-21379) WFU AT ROSWELL. A320-212 (1633, N372NW) AT DOTHAN. 2 727-251'S (21325; 21506), WFU. 3 DC-10-40 (46753; 46764; 46768), WFU AT ROSWELL.
DECEMBER 2001: WHEN NARITA'S NEW 7,000-FT RUNWAY OPENS IN 4/02, NORTHWEST AIRLINES (NWA) WILL OPERATE A320'S TO PUSAN, SOUTH KOREA, AND KAOHSIUNG, TIAWAN. POSSIBLE SHORT-HAUL FLIGHTS TO DESTINATIONS IN CHINA, MICRONESIA, AND HONG KONG. THESE A320'S WILL BE EQUIPPED WITH DUAL HF RADIOS, AND WILL BE QUALIFIED FOR REDUCED VERTICAL SEPARATION MINIMUMS (RVSM), FOR OPERATIONS IN ALL AIRSPACE, WITHOUT RESTRICTIONS. ALSO, IN 4/02, WILL EXTEND ITS DETROIT - OSAKA SERVICE TO TAIPEI (747-400). MEMPHIS TO MONTEGO BAY, JAMAICA. TO SAN JUAN. DETROIT - BIRMINGHAM, GRAND CAYMAN, SARASOTA, & PUNTA CANA. TO ACAPULCO, COZUMEL, LOS CABOS, LIBERIA (COSTA RICA), PUERTO VALLERTA. DETROIT - LIBERIA/PUERTO VALLERTA/MONTEGO BAY.
12 MONTHS END 6/01 3RD PARTY OUTSOURCED MAINTENANCE = $305M (39.9%).
DC-10-30 (114-46577) WFU ROSWELL. 1 A319-114 (1659, N334NB) & 2 A320-212'S (1641, N373NW; 1646, N374NW), DELIVERIES.
JANUARY 2002: TO GRAND CAYMAN, IXTAPA, PUNTA CANA, & PUERTO PLATA. MEMPHIS - CANCUN. DETROIT - HONOLULU. IN 5/02, DETROIT - ANCHORAGE. IN 6/02, DETROIT - ROME. IN 4/02, TOKYO - KAOHSIUNG/PUSAN (A320). MEMPHIS TO BATON ROUGE.
4TH Q = -$216M (-$69M), $212M FROM FEDERAL BAILOUT PROGRAM: MAINTENANCE COSTS = $304.62M (+19.9%). 2001 = -$481.1M (+$269.94M): 73.13B RPM (-7.6%); -4.8% ASM; 74.3% LF (-2.3).
2001 TOP 50 WORLD AIRLINES - TRAFFIC B RPM
1 UAL 116.60; 2 AAL 106.15; 3 DAL 97.60; 4 NWA 73.11; 5 BAB 64.24; 6 AFA 59.54; 7 CAL 58.76; 8 DLH 56.76; 9 JAL 50.77; 10 USA 45.93; 11 SWA 44.50; 12 SIA 42.76; 13 QAN 42.14; 14 ACN 41.49; 15 KLM 35.76; 16 ANA 33.16; 17 CAT 27.81; 18 TII 27.43; 19 IBE 25.64; 20 KAL 23.73; 21 ALI 22.45; 22 MAS 22.29; 23 AMW 19.06; 24 VAA 17.65; 25 VAR 16.02; 26 CHI 16.00; 27 EAD 14.37; 28 SAS 14.26; 29 ANZ 13.54; 30 SAA 12.70; 31 SVA 12.56; 32 BEJ 12.39; 33 ASA 12.23; 34 JAS 10.06; 35 THY 9.35; 36 AMX 8.51; 37 PAL 8.36; 38 GIA 8.15; 39 CMA 7.99; 40 ELA 7.79; 41 GUL 7.65; 42 PIA 7.24; 43 AIN 7.10; 44 TAP 6.43; 45 EGP 5.53; 46 OLY 5.24; 47 AUL 5.06; 48 FIN 4.93; 49 IND 4.52; 50 CQT 4.51.
727-251 (22152), 727-2M7 (21742), 747-251B (20359), WFU AT ROSWELL. DC-9-31 (47150) SCRAPPED. DC-9-14 (45829) WFU 2001. DC-9-51 (888-27775, N773NC) REMOVED FROM STORAGE AND RETURNED TO SERVICE. 2 A319-114'S (1659, N334NB; 1662, N335NB), DELIVERIES.
MARCH 2002: IN 7/02, DETROIT - SAN ANTONIO (A319, DAILY).
PLANS TO ACCELERATE RETIREMENT OF REMAINING DC-10-40'S BY END OF 9/02.
APRIL 2002: ALONG WITH SOUTHWEST AIRLINES (SWA) HAS SIGNED UP FOR BOEING'S MAINSTREAM PLANNING PACK PLUS, MAINTENANCE MANAGEMENT SOFTWARE, DEVELOPED BY BOEING SUBSIDIARY, AEROINFO SYSTEMS. (NWA) HAS ALSO DEPLOYED THE BRIO PERFORMANCE SUITE, TM SOFTWARE, WHICH IS INTENDED TO CONNECT SEAMLESSLY ALL NORTHWEST AIRLINES (NWA)'S DATA SOURCES, INCLUDING FLIGHT OPERATIONS, TO ACCESS DATA ON NEARLY 1,400 FLIGHTS DAILY, THAT HAS LOGISTICS OF ACTUAL AND SCHEDULED FLIGHTS ON A REAL-TIME BASIS, RE-DETAILS OF PASSENGER AND CARGO DISTRIBUTION.
(TELEPHONE: +1 (612) 726 2331). (FAX: +1 (612) 726 3942).
MAIN BASE: MINNEAPOLIS-ST PAUL INTERNATIONAL (MSP).
HUBS: MEMPHIS INTERNATIONAL (MEM); DETROIT METROPOLITAN WAYNE COUNTY (DTW); AMSTERDAM SCHIPHOL (AMS); TOKYO INTERNATIONAL (HND).
NEWARK - AMSTERDAM. IN 6/02, MINNEAPOLIS - TRAVERSE CITY. IN 7/02, DETROIT - CALGARY.
1ST Q = -$171M: 26.67B RPK (-9.38%); -12.82% ASK; 76% LF (+2.9); 11.48M PAX (-11.45%); 629.68M FTK (-8.49%).
DC-10-40 (46765) ST MEMPHIS GROUP.
MAY 2002: TO MONTREAL. IN 6/02, MEMPHIS - JACKSON/LOUISVILLE. IN 7/01, DETROIT - SAN ANTONIO. IN 9/02, MINNEAPOLIS TO JACKSON HOLE.
727-251 (21506) WITHDRAWN FROM USE (WFU) AT ROSWELL. 757-251 (1013-33392, N556NW) DELIVERY. 757-251 (86-23202, N514US) WFU AT MARANA. DC-10-40 (46750) ST MEMPHIS GROUP, PARTED OUT.
June 2002: 2001 Top World Airlines by Traffic (RPK B):
1 UAL 187.67; 2 AAL 170.88; 3 DAL 163.66; 4 NWA 117.66; 5 BAB 106.27; 6 CAL 98.37; 7 AFA 94.42; 8 DLH 86.70; 9 JAL 84.27; 10 USA 73.93; 11 SWA 71.59; 12 SIA 69.15; 13 QAN 67.89; 14 ACN 67.03; 15 KLM 57.85; 16 ANA 56.90; 17 CAT 44.79; 18 TII 44.04; 19 IBE 41.30; 20 KAL 38.45; 21 MAS 38.31; 22 ALI 36.52; 23 SWS 32.98; 24 TWA 31.85; 25 AMW 30.69.
2001 Top World Cargo Operators B FTK:
1 FED 11.05; 2 LUB 7.08; 3 UPS 5.96; 4 SIA 5.88; 5 KAL 5.57; 6 AFA 5.12; 7 KLM 4.64; 8 JAL 4.19; 9 BAB 4.033; 10 CHI 4.030; 11 NCA 3.93; 12 CAT 3.89; 13 CLX 3.77; 14 EVA 3.28; 15 UAL 2.80; 16 NWA 2.79; 17 AAL 2.56; 18 MTH 2.40; 19 AAR 2.38; 20 DAL 2.31; 21 MAS 1.84; 22 SWS 1.79; 23 TII 1.67; 24 QAN 1.57; 25 AHK 1.55.
NORTHWEST AIRLINES (NWA) 2001: -$423M (+$256M): 117.66B RPK (-7.6%); 74.3% LF (-2.3); 54.06M PAX (-7.9%); 2.79B FTK (-13.8%); 46,364 EMPLOYEES (-15.3%).
1 A319-114 (1766, N344NB) and 1 A320-212 (1789, N375NC) deliveries.
July 2002: 2nd Q = -$93M (-$55M). 6 months = 56.61B RPK (-9.21%); -11.48% ASK; 77.5% LF (+1.9); 24.72M PAX (-10.31%); 1.4B FTK (-1.3%).
4 orders (2/04) A319 for total 78 (42 delivered). 2 orders (2/04) A320 for total 84 (74 delivered). Has 36 orders A330-300. Defers delivery of 6 of 22 A319/A320 due in 2003, will still take 9 757's in 2003, as well as 6 A330-300's, and 20 CRJ's. In 2002 will take delivery of 38 mainline jets and 23 RJ's. Will retire all remaining 727's and DC-10-40's by 9/03. 727-251 (21324) WFU at Roswell. DC-10-40 (46768) sold to (FAA) for destructive testing. 757-251 (1016-33393, N557NW) and 1st 757-300 ("Bernie Epple") deliveries. 1 A319-114 (1774, N345NB) & 1 A320-212 (1812, N376NW) deliveries.
Recalls 135 Maintenance Technicians (MT)'s.
Celebrates 55 years of service to Japan!
August 2002: Will retire its 727's by end of 2002 and is considering delay of additional Airbus deliveries in 2003 & 2004.
Proposed broad marketing alliance & 10-year pact between Delta (DAL) and codeshare partners Northwest Airlines (NWA) & Continental Airlines (CAL) brings together USA airlines ranked No 3, 4, & 5 respectively, in a deal countering a similar pact between United Airlines (UAL) and US Airways (USA). If the deal gets the OK of all 3 airlines' pilots and the (DOT), these airlines will codeshare on each other's route networks, offer reciprocal frequent flyer programs and coordinate airport and interline activities. There is the likely possibility that (CAL) & (NWA) could join the SkyTeam alliance, presently anchored by Delta Airlines (DAL), Air France (AFA) and Korean Air (KAL), a step that could lead to (KLM) joining as well. (KLM) already operates a transatlantic joint venture with (NWA) and codeshares with (CAL).
In 10/02, Memphis - Grand Cayman (A320) and Minneapolis to Billings- Helena. In 12/02, Memphis to Fort Myers. Code share with Malev (HGA), New York (JFK) to Budapest and Budapest - Frankfurt.
727-251 (21325) WFU at Roswell. 757-351 (1001-32982, N581NW), & 2 A319-114's (1796, N346NB; 1800, N347NB), deliveries.
September 2002: Despite opening a new $1.2B terminal at Detroit, designed to be the most efficient in the USA, it still has seen fewer flights land on time, and the number of lost bags rise.
3rd 757-351 (1019-32983, N583NW) & 3 A319-114's (1810, N348NB; 1815, N349NB; 1819, N350NB), deliveries. Last DC-10-40 (151-46766, N157US), leaves (NWA) fleet.
October 2002: Bernard Han, CFO, ex-America West Airlines (AMW) and formerly with Northwest Airlines (NWA) replaces Mickey Foret, who retired.
Airlines around the world are suffering losses and job cuts, while airport operators, including Japan's Narita airport, the world's costliest hub, are still raking in the profits (IATA) report). In the wake of the 9/11/01 terrorist attacks, airlines lost -$18B in 2001, and expect to lose another -$12B in 2002. Although shortly after in 10/01, airports in Singapore and Hong Kong cut landing rates by -10-15%, Narita was a stubborn holdout, charging a fee of # 2,400 yen a tonne, or about $7,755 for each 747 airplane, 2.3 times the cost in Hong Kong, 3.9 times that in Singapore, and 14.9 times the cost at London's Heathrow (LHR).
Closes its Atlanta maintenance center, transferring the work done there to its main base in Minneapolis, resulting in the layoffs or transfers of 1,450 employees. Also, closes its reservations center in Long Beach, California, city ticket offices in New York's Rockefeller Plaza, at the Mall of America, in Bloomington, Minnesota; and in San Jose, California. Approximately 250 reservation agents will be able to transfer to other Northwest Airlines (NWA) centers.
3rd Q = -$46M (+$19M). Doug Steenland states "(NWA) has the ability to ride out the storm."
1st 6 months Top World Airlines Traffic B RPK:
1 AAL 95.18; 2 UAL 84.56; 3 DAL 74.53; 4 NWA 56.50; 5 BAB 49.30; 6 AFA 48.21; 7 CAL 47.49; 8 DLH 42.06; 9 JAL 39.44; 10 SWA 36.03; 11 SIA 36.00; 12 ACN 33.69; 13 USA 33.06; 14 KLM 27.54; 15 CAT 23.07; 16 IBE 19.53; 17 KAL 16.47; 18 CHI 15.70; 19 AMW 15.20; 20 ALI 14.21; 21 EAD 13.45; 22 VAR 12.68; 23 GUN 12.49; 24 SAS 12.01; 25 BEJ 10.32.
To Palm Springs. Detroit - Fort Wayne. In 1/03, Detroit - Honolulu. In 5/03, Detroit - Madrid.
Will defer some of the 53 jets originally scheduled for delivery in 2003.
727-251 (21376) WFU at Roswell, DC-9-31 (47471) WFU at Dothan. 1 757-351 (1020-32984, N584NW) & 6 A319-114's (1810, N348NB; 1815, N349NB; 1819, N350NB; 1820, N351NB; 1824; N352NB; 1828, N353NB), deliveries. DC-9-31 (473-47471), parted out. DC-10-40 (164-46768) sold.
November 2002: In 12/02, to Jackson Hole, and to Regina - Saskatoon. Detroit to Anchorage, Bozeman, Sarasota. Detroit - Osaka - Manila (2/week). Memphis - Fort Myers. In 2/03, to Rochester (New York); Detroit - Puerto Vallarta; Memphis - Mexico City; & Memphis - West Palm Beach.
Minneapolis-St Paul International Airport, is $2B into a $3B building and renovation project, has grown 20% in last year. 37 new gates, new waiting areas, for those flying regional airlines, new bus drop-off zone, more walkways and food courts, a new escalator to the 2nd level of the parking ramps, and lockers that require a ticket and a fingerprint to use. Northwest Airlines (NWA) has 80% of the airport's traffic.
John Bendoraitis, Managing Director Minneapolis (MSP) Line Maintenance.
1st 9 months Top World Airlines Traffic RPK B:
1 AAL 148.39; 2 UAL 132.89; 3 DAL 123.75; 4 NWA 88.26; 5 BAB 76.23; 6 AFA 74.00; 7 CAL 73.12; 8 DLH 67.07; 9 SIA 55.60; 10 SWA 55.20; 11 JAL 54.81; 12 ACN 54.41; 13 USA 50.38; 14 KLM 48.87; 15 QAN 43.76; 16 CAT 36.14; 17 IBE 30.78; 18 KAL 28.06; 19 AMW 23.82; 20 TII 19.76; 21 ALI 19.68; 22 SAS 18.82; 23 CHI 18.23; 24 VAR 17.47; 25 GUN 17.21.
727-251 (22543) sold to Antonov. 2 757-351's (1021-32985, N585NW; 1022-32987, N586NW), deliveries. DC-9-14 (16-45729) donated to Northland Community & Technical College. 2 A319-114's (1833, N354NB; 1839, N355NB), deliveries.
December 2002: Minneapolis to Cancun, Acapulco, Los Cabos, Liberia, Puerto Vallarta, Cozumel (Saturdays) and San Juan (weekends). Detroit to Nassau (daily), Sarasota, Montego Bay, Puerto Vallarta, and Punta Cana (Saturdays). In 1/03, to Grand Cayman, Ixtapa (Saturdays) and Puerto Plata. Detroit to Grand Cayman (Saturdays), and to Cancun (5/week). Detroit to Nassau/Paradise Island (daily nonstops).
747-251B (163-20359) parted out. 757-351 (1023-32986, N587NW) delivery. 2 A319-114's (1870, N356NB; 1875, N357NB), deliveries.
January 2003: 4th Q = -$488M (-$216M). 2002 = -$798M (-$423M): 72.03B RPM (-1.5%); -5% ASM; 7 Minneapolis - Punta Cana (Saturdays). Minneapolis - Montego Bay (Saturdays). In 4/03, Memphis - Baltimore, Memphis - Mexico City. Detroit - Myrtle Beach. In 6/03, Memphis - San Diego (Saturdays), Detroit - Reno (Saturdays). Seattle - Osaka.
In another cost-cutting move, Northwest Airlines (NWA) will close its maintenance operations in Portland, Oregon; Phoenix; Tampa, and Miami, in 3/03, with 60 mechanics (MT) having the option of accepting (NWA) jobs elsewhere. About one-third of the recent elimination of -1,200 (MT) jobs at Atlanta, quit their jobs rather than move elsewhere within (NWA).
Northwest Airlines (NWA) Cargo, Air Canada (ACN) Cargo, United Airlines (UAL) Cargo and Unisys Corp, announced that Cargo Portal Services (CPS), an internet-based portal, that allows users to book and manage shipments, is "live." (CPS) is available to freight forwarders, free of charge.
Retired its last 727-251 from revenue service (WFU). Plans on continuing to operate 6 727-251's for professional sports team charters through 6/03. DC-10-40 (53-46752), WFU at Roswell. Converted order for 10 A330-300'S to A330-200's, and deferred delivery of 9 A319/A320's & 4 A330's from 2003 - 2005 until 2006 - 2008.
INCDT: A319-114 (1186, N313NB), written-off (W/O) in ground collision at New York LaGuardia (LGA).
February 2003: With -63 pilots (FC) to be furloughed this month, -35 in 4/03, and -25 in 5/03, this will bring the total (FC) number on furlough to -693.
Minneapolis - Saginaw. Memphis - Grand Rapids. Memphis - Panama City. In 4/03, Memphis - Greensboro (CRJ, 2/day).
Launches interline e-ticketing with Delta Airlines (DAL) and Alaska Airlines (ASA).
727-251 (1648-22155, N202US), sold to Charlotte Aircraft. 757-351 (1024-32988, N588NW), and A319-114 (1923, N359NB) deliveries.
March 2003: In 6/03, Minneapolis - Manchester. Detroit - Nassau.
Armed conflict with Iraq, results in Northwest Airlines (NWA) cutting its flight schedule by -12% ASM, removing 20 airplanes including 747-200's, 757's, DC-9's, DC-10'S, & A320's, and reducing overall staff by -4,900. Over last 2 years has reduced workforce by -17,000.
2 757-351's (1025-32989, N589NW; 1027-32990, N590NW) & A319-114 (1897, N358NB) deliveries.
April 2003: 1st Q = -$396M (-$171M): +41% fuel expenses; +13% labor costs; +18% landing fees.
World Top 20 Airlines 1st Q Traffic (B) (RPK)
1 (AAL) 44.67; 2 (UAL) 39.66; 3 (DAL) 36.82; 4 (NWA) 26.65; 5 (BAB) 23.31; 6 (AFA) 23.27; 7 (CAL) 21.35; 8 (DLH) 20.62; 9 (SWA) 17.53; 10 (KLM) 14.04; 11 (USA) 13.28; 12 (SIA) 12.20*; 13 (ACN) 9.65*; 14 (CAT) 8.51*; 15 (AMW) 7.84; 16 (QAN)* 7.18; 17 (KAL)* 6.72; 18 (IBE) 6.17*; 19 (EAD) 5.69*; 20 (AAT) 5.42. * 2 months only.
In 6/03, Memphis - Norfolk. In 7/03, Memphis - Vancouver.
45,000 employees. (Telephone: +1 (612) 726-2111).
Richard Anderson, CEO, states he will take a -15% pay cut, and will cut management salaries by -5 to -15%, effective 7/03, the same time pay cuts for union employees will occur.
4 727-251's (21323; 21375; 21789; 22154), & 1 727-2M7 (21741), stored at Roswell, 3 757-251's (23204; 23206; 23207), DC-9-51 (48149), A320-211 (281), & A320-212 (339), stored at Marana.
May 2003: 727-251 (1648-22155) & 727-225 (22557) WFU at Roswell. DC-9-31 (318-47138), WFU at Marana.
June 2003: Will furlough a further -150 pilots and close its Honolulu 747-200 and Minneapolis/St Paul DC-10 bases as a result of cutbacks in response to the impact of the Severe Acute Respiratory Syndrome (SARS) virus epidemic in China and Asia, on the airline's traffic. (NWA) will reopen a Honolulu DC-10 base. The number of pilots on furlough will total -738 at end of 6/03, rising to -1,093 by 1/04. Will eliminate -150 mechanic (MT) positions.
(DOT) OK's service to Iraq for Northwest Airlines (NWA), World (WLD), and Kalitta Air (KAC). Memphis - Fayetteville (XNA).
Nortwest Airlines (NWA) Cargo. Anchorage - Osaka - Seoul (747-200F, 5/week).
3 727-225's (1775-22553; 1781-22554; 1783-22555), WFU at Roswell. 757-251 (104-23204, N516US), removed from storage. DC-9-32 (47591) WFU at Roswell. 2 A319-114's (1982, N362NB; 1990, N363NB), deliveries.
July 2003: 2nd Q = +$227M (-$93M). However, excluding +$387M in unusual items: +$209M in government compensation, +$199M from sale of its 34% stake in Worldspan, and a +$21M charge related to the writedown of certain airplanes, (NWA) 2nd Q = -$160M, its worst 2nd Q in its history: -9.1% ASM; 76.4% LF (-2.5).
2002 = -$798M (-$423M): 115.96B RPK (-1.5%); -5% ASK; 77.1% LF (+2.8); 52.7M PAX (-2.6%); 3.58B FTK (+2.9%); 44,300 EMPLOYEES (-1.6%).
2002 TOP 25 WORLD AIRLINES - TRAFFIC - B - RPK
1 (AAL) 195.81; 2 (UAL) 176.15; 3 (DAL) 152.66; 4 (NWA) 115.91; 5 (BAB) 99.71; 6 (AFA) 96.80; 7 (CAL) 95.51; 8 (DLH) Grp 88.57; 9 (JAL) 83.54; 10 (QAN) 75.23; 11 (SWA) 73.05; 12 (SIA) 71.12; 13 (ACN) 69.42; 14 (USA) 69.42; 15 (KLM) 58.89; 16 (ANA) 52.97; 17 (CAT) 49.04; 18 (TII) 48.51; 19 (KAL) 41.80; 20 (IBE) 40.47; 21 (MAS) 36.90; 22 (AMW) 31.98; 23 (SAS) Grp 30.91; 24 (EAD) 30.17; 25 (ALI) 29.84.
2002 TOP 25 WORLD FREIGHT CARRIERS - B - FTK
1 (FED) 13.20; 2 (LUB) 7.16; 3 (UPS) 6.62; 4 (KAL) 6.25; 5 (SIA) 6.08; 6 (AFA) 4.87; 7 (CAT) 4.85; 8 (CHI) 4.60; 9 (JAL) 4.39; 10 (CLX) 4.16; 11 (BAB) 4.12; 12 (KLM) 3.99; 13 (EVA) 3.28; 14 (NWA) 3.24; 15 (AAL) 2.93; 16 (UAL) 2.79; 17 (AAR) 2.75; 18 (NCA) 2.21; 19 (POA) 1.97; 20 (EAD) 1.96; 21 (MAS) 1.92; 22 (BEJ) 1.88; 23 (TII) 1.824; 24 (DAL) 1.823; 25 (ACN) 1.58.
Northwest Airlines (NWA) Cargo added domestic shipping products to its menu of services available through its website. Freight forwarders now can look and track (NWA) Cargo's Standard domestic 2-day freight and VIP small-package products via the Cargo Portal Services website.
(DOT) selected 6 carriers to operate cargo services between Hong Kong and 3rd country cities in conjunction with USA - Hong Kong services: FedEx (FED), United Parcel Services (UPS), Evergreen International (EVR), Kalitta Air Services (KAC), Northwest Airlines (NWA), & Polar Air Cargo (PAO).
Launched interline e-ticketing with US Airways (USA), enabling travelers to use single itineraries that incl travel on both carriers.
A319-114 (1186) sold to Universal Aircraft Management. In 10/03, (NWA) will replace all A320's currently operating in Asia with 757's. 2 DC-9-32's (298-47175; 529-47369), WFU at Marana. A330-323X (533, N802NW) delivery.
August 2003: Detroit - Amsterdam (A330-300). In 10/03, Tokyo to Nagoya (daily) and Nagoya - Saipan. In 12/03, Minneapolis/St Paul - Honolulu and Seattle - Maui & Kahuli. Minneapolis - Liberia (Sats).
1st 2 A330-320's deliveries, (NWA)'s 1st entirely new airplane type to join its fleet in 14 years. It will officially enter commercial service at (NWA) in 9/03 on flights between (NWA)'s Detroit WorldGateway and its Amsterdam hub. The A330-320 will become (NWA)'s trans-Atlantic flagship airplane, gradually replacing the 22 DC-10-30's. One of the most important new features of the new A330's will be new business class (C) seats that recline 176 degrees, or within 4 degrees of flat. They also have an adjustable headrest, a snake-arm resting light, power outlet for laptop computers, and a canopy for privacy while sleeping. They also have a state-of-the-art entertainment system with a 10.25-inch monitor. Even coach passenger (Y) will have their own personal television monitor with on-demand television and video. The coach (Y) section will also have premium seats from rows 10 through 28 that will have power outlets under the seats for laptop computers. (NWA) is expected to install business-class seats like the ones on its A330's on its transpacific 747's in the near future.
A319-114 (2013, N365NB) delivery. 747-251B (141-20358, N613US) & 757-251 (119-23616, N522US) WFU at Marana. DC-9-32 (596-47472, N925US, 74 75) WFU at Marana. A330-323X (524, N801NW), delivery.
September 2003: 2 747-227B's (375-21683; 437-21991) & 747-251B (642-23547) WFU at Marana. DC-9-31 (551-47370) WFU at Marana. A319-114 (2026, N366NB) & 2 757-351's (1035-32994, N594NW; 1036-32995, N595NW), deliveries. A320-211 (306, N329NW) stored at Marana. 2 A330-323X's (542, N803NW; 549, N804NW), deliveries.
October 2003: After refinancing its loan from the Minnesota Airports Commission, Northwest Airlines (NWA) now owes the state $282M.
3rd Q = +$42M (-$46M): 18.95B RPM (-4.1%); +1.1% ASM; 81.4% LF (+2.6). 1st 9 months = -$127M (-$310M): 51.87B RPM (-5.5%); -4.5% ASM; 77.2% LF (-.8).
Detroit - Cincinnati, Memphis - Oklahoma City. Minneapolis - Flint. Minneapolis - Palm Springs. In 12/03, Flint/Grand Rapids - Orlando/Tampa. Detroit - Tucson. Detroit - Honolulu. Detroit - Bozeman.
DC-9-31 (492-47362) WFU at Marana. DC-9-32 (706-47591, N623NW) & 757-251 (108-23207, N623NW) removed from storage. 747-251B (379-21708) WFU at Marana. 757-251 (122-23618, N524US) WFU stored at Marana. 757-351 (1037-32996, N596NW) delivery. 2 A319-114's (2028, N367NB; 2039, N368NB), deliveries. A330-323X (552, N805NW) delivery.
November 2003: In 12/03, Las Vegas to Los Angeles. Memphis - Philadelphia. In 2/04, seasonal Minneapolis/St Paul to Sarasota, Bradenton, & Puerto Vallarta; and Detroit to Grand Cayman, (all daily nonstops). Also, Milwaukee to Phoenix (daily nonstop) and Milwaukee - Las Vegas (Fri - Suns, nonstop). Detroit - Salt Lake City (daily nonstop).
1 747-212B (470-21941, N641NW), 1 747-227B (465-22234); 3 747-251B's (378-21707, N625US; 442-22389, N628US; 651-23549, N638US); & 1 757-251 (83-23201, N513US), all WFU at Marana. A319-114 (2047, N369NB) & A320-212 (2082, N377NW) deliveries.
December 2003: Minneapolis - Kalispell. Minneapolis - Jackson Hole/Steamboat Springs (Hayden)/Vail (Eagle). Minneapolis - Regina, Flint - Tampa/Orlando, Flint - Fort Lauderdale (Sats). Detroit - Cincinnati. Detroit - Kalamazoo. Detroit - Knoxville. Detroit - Tucson/Anchorage. Minneapolis - Cancun. Detroit - Nassau/Sarasota. Minneapolis - San Juan (weekend). Minneapolis - Puerto Vallarta (Sats). Detroit - Montego Bay (weekends). Detroit - Grand Cayman (weekends). Seoul - Manila (747, 2/week). In 1/04, Detroit - Cancun (weekends). Minneapolis - Puerto Plata (Sats). Minneapolis - Ixtapa/Punta Cana/Grand Cayman (Sats). Minneapolis - Montego Bay (Sats). In 2/04, Detroit - Salt Lake City. Detroit - Bozeman (weekends). Detroit - Honolulu. In 5/04, to restart seasonal Detroit - Rome (A330-300, 298 PAX, daily nonstop).
747-251B (651-23549, N638US) removed from storage. DC-9-31 (583-47517) stored at Marana. 2 A319-114's (2087, N370NB; 2095, N371NB), deliveries.
January 2004: In 4/04, Denver - Los Angeles. In 6/04, Portland - Tokyo (Narita).
4th Q = +$363M (-$488M): -7.3% ASM; 77.7% LF (+3.3). 2003 = +$236M (-$798M): 68.48B RPM (-4.9%); -5.2% ASM; 77.3% LF (+.2); 51.98M PAX (+.3%); 3.01B FTK (+.5%); incl $199 from sale of Worldspan and $209M from a federal security tax rebate.
Innovative Solutions & Support selected (CSSI) to support the domestic reduced vertical separation minima upgrade of (NWA)'s DC-9 fleet.
3 727-225's (1775-22553, N816EA; 22554; 22555), leased to Champion Air (GRD). 757-251 (23619), stored at Marana.
February 2004: Detroit - Myrtle Beach. Begins code sharing on Delta (DAL)'s Atlanta - Guatemala City. In 7/04, Los Angeles - Honolulu.
Will close its remaining 25 city ticket offices by end of 03/04.
A320-212 (339, N334NW) removed from storage.
March 2004: In 5/04, Memphis - Quad City International Airport (CRJ,
daily, 2/day in 6/04).
April 2004: 1st Q = -$223M (-$396M): 26.95B RPK (+.49%); -3.64% ASK; 76.5% LF (+3.1); 12.54M PAX (+1.75%); 767.64M FTK (+17.89%).
Code share with Delta (DAL), Atlanta - Santiago (Chile) and Los Angeles - Mexico City, as part of extensive marketing agreement between Delta (DAL), Northwest (NWA) and Continental Airlines (CAL).
Will get $2.1M from Portland, Oregon, in the form of landing fee waivers and marketing aid for the 1st year of its new Portland to Japan route scheduled to launch in 6/04.
Memphis - Grand Rapids. In 5/04, Memphis - Fayetteville. Minneapolis - Saskatoon. In 9/04, Milwaukee - Baltimore/Washington International Airport (2/day nonstop). Milwaukee - St Louis (nonstop).
Lays off -2,700 maintenance mechanics (MT) but outsources more airplane maintenance.
DC-9-32 (596-47472, N925US) & DC-9-51 (807-47659, N670MC) removed from storage. A330-323X (591, N808NW) delivery.
May 2004: Detroit - Anchorage. In 6/04, Portland, Oregon - Tokyo. Minneapolis - Jackson Hole. Detroit - Vancouver. In 7/04, Seattle - Kahului - Kona - Seattle (daily). In 8/04, Seoul - Tokyo; 9/04, San Francisco - Tokyo; 10/04, Tokyo - Beijing; 11/04, Tokyo - Seattle; (all routes, A330-200's as 7 are delivered this summer).
Sold 12 727-200's to Aero Controls, WA (AEO). DC-9-31 (551-47370, N1799U), removed from storage.
June 2004: Portland, Oregon - Tokyo (DC-10-30, daily nonstop). Minneapolis - Fayetteville (XNA). Detroit - Green Bay. Memphis - Springfield (MO). Detroit - Knoxville. Minneapolis - Traverse City. Detroit - Montego Bay (Sats). In 9/04, Memphis - Jackson.
USA and China have signed a landmark air services agreement that will more than double the number of US airlines that may serve China and will permit a nearly 5-fold increase in weekly flights between the 2 countries over the next 6 years.
The agreement allows for +5 airlines from each country, the US may name +1 additional all-cargo carrier, while China may name either a passenger or cargo carrier, to start service later in 2004. The other 4 new-entrant airlines may be either passenger or cargo carriers, with 1 new carrier entering the market in each of the years 2005, 2006, 2008, & 2010. United Airlines (UAL), Northwest Airlines (NWA), FedEx (FED), & United Parcel Service (UPS) currently serve China.
The agreement allows +195 weekly flights for each side, +111 by all-cargo carriers, & +84 by passenger airlines, resulting in a total of +249 weekly flights at the end of a 6-year phase-in period. A total of +14 of these flights will be available for new passenger services later this 2004.
Each country's carriers are now allowed to serve any city in the other country. Currently, Chinese carriers are limited to 12 US cities, and US passenger carriers may fly to only 5 Chinese cities. The agreement allows unlimited code-sharing between US and Chinese carriers, thus expanding the current agreement which only allows code-sharing only to a limited number of cities.
The agreement also provides that when carriers establish cargo hubs in the other country, they will be afforded a high degree of operating flexibility, and expands charter opportunities beyond those provided by the existing agreement.
Trade between the countries has grown dramatically fromn $4.8B in 1980 to >$170B in 2003. The USA is China's largest export destination, and China is the US's fastest-growing market.
SkyTeam: Aeroflot (ARO) (applicant); Aeromexico (AMX); Air France (AFA)/(KLM); Alitalia (ALI); (CSA) Czech Airlines; Continental Airlines (CAL) (agreed to join); Korean Air (KAL); & Northwest Airlines (NWA) (agreed to join).
DC-9-31 (310-47255, N959N) WFU at Marana. A330-323X (588, N807NW) delivery, first revenue flight (FRF) Detroit - Paris.
July 2004: Last 6 months = -$412M (-$169M): 35.48M RPM (+7.8%); +1.5% ASM; 79.6% LF (+4.7). 2nd Q = -$182M (+$227M): +14% RPM; +12.7% ASM; +6.1 LF.
Detroit - Guangzhou, via Tokyo (daily). In 10/04, Indianapolis - Fort Myers, Florida; - Las Vegas; - Los Angels (LAX); - Orlando (A319/DC-9). In 12/04, Detroit - Nassau.
10 727-251's (22154; 21323; 21324; 21325; 21375; 21377; 21506; 21788; 21789; 22152) & 2 727-2M7's (21201; 21656) sold to ST Aero Controls. 747-251B (21705), WFU at Marana. 747-251B (651-23549, N638US), removed from storage. A330-223 (609, N851NW) delivery.
August 2004: In 12/04, will change Seattle - Honolulu (currently 757-300) to using DC-10, 273 PAX.
DC-9-14 (67-45825) WFU at Marana. A330-223 (614, N852NW) delivery.
September 2004: (DOT) named Polar Air Cargo (PAO) as a new entrant in the USA - China market and will distribute 39 new weekly all-cargo routes among (PAO) and 3 US airlines: FedEx (FED), Northwest Airlines (NWA), & (UPS). (PAO) will receive initially 9 weekly flights, 6 available now, and +3 in 3/05. (FED) & (UPS) each would be awarded +12 weekly flights, and (NWA) +6. Of these flights, half would be available now and the other half in 3/05.
Minneapolis - Helena. Memphis - Newark. In 12/04, Minneapolis/St Paul to Asheville (daily). Indianapolis - Fort Lauderdale. Milwaukee - Fort Myers, Phoenix. Indianapolis - Tampa. In 2/05, Anchorage - Honolulu via Maui (757-300, seasonal, 4/week). Also, Anchorage - Kahului - Honolulu - Anchorage.
Northwest Airlines (NWA), (KLM), & Continental Airlines (CAL) became the newest members of the SkyTeam alliance to join Aeromexico (AMX), Air France (AFA), Alitalia (ALI), (CSA) Czech Airlines, Delta Airlines (DAL), & Korean Air (KAL).
Jun Mokudai, Chairman (NWA) Japan. Fred Deschamps, President Pacific Operations, Finance & Administration. Laura Liu, VP International Marketing & Sales.
2 A330-223's (618, N853NW; 620, N854NW) deliveries.
October 2004: Richard Anderson, CEO, 49, to resign 11/04 to become Executive VP of United Health Group, a health care insurer. He will be replaced by Doug Steenland, 53. Barry Simon, Executive VP & General Counsel, ex-Eastern Airlines (EAL) & Continental Airlines (CAL).
Memphis - Madison. Minneapolis - Palm Springs.
9 months = -$436M (-$122M): 55.22B RPM (+6.5%); +1.8% ASM; 80.7% LF (+3.5). 3rd Q = -$46M (+$42M), due to high fuel costs: +4.2% RPM; +6.8% ASM; +1.5 LF.
DC-10-30 (336-47844, N237NW) stored at Marana. 2 A330-223's (621, N855NW; 631, N856NW), deliveries.
November 2004: Recalls 600 flight attendants (CA) from furlough to fill vacancies in Detroit & Minneapolis/St Paul. Will recall 200 pilots (FC) from furlough. The union stated there are still 750 pilots (FC) on furlough. Pilots (FC) have approved a new 2-year contract which cuts pay -15%, but offers stock options and profit sharing.
Minneapolis - Cancun. Guangzhou - Tokyo (757-200, 2 class, 6/week). In 12/04, Minneapolis - Vail (Eagle), Steamboat Springs (Hayden), Jackson Hole, San Juan (wkends). Detroit - Anchorage, Bozeman, Honolulu, Kalispell, Montego Bay, Nassau, Sarasota. Will increase its Indianapolis schedule to 44 departures serving 16 destinations. In 1/05, San Francisco - Honolulu - Kahului, Kahului - Honolulu - Portland. In 2/05, Indianapolis - Phoenix.
Three creditors: J P Morgan Chase, Deutsche Bank, & Citigroup, are restructuring a $975M loan to Nortwest Airlines (NWA) and will agree to forfeit rights to demand early repayment as long as the (NWA)'s cash levels stay above $1.7B.
747-251B (595-23112) & DC-10-30 (241-46949) WFU at Marana. A330-223 (633, N857NW), delivery.
December 2004: Minneapolis - Regina, Saginaw. Detroit - Omaha. In 2/05, Milwaukee/Indianapolis - Cancun (Sats).
DC-10-30 (336-47844, N237NW), removed from storage. A330-323E (690, N811NW), delivery.
January 2005: 4th Q = -$420M (+$363M). 2004 = -$878M (+$236M): 18.09B RPM (+8.9%); +7.4% ASM; 78.7% LF (+1).
In 7/05, Detroit - Charlottetown, Prince Edward Island (seasonal daily).
2 DC-9-14's (45929; 45830), 1 DC-9-15 (45787), & 2 DC-9-31's (47252; 47253), WFU at Marana. +8 orders A330's (including 2 orders A330-200's and 6 orders A330-300's), to replace its DC-10-30's on a one-for-one basis on transatlantic routes beginning in 2006.
February 2005: Filed a request with (DOT) for broad authority to serve India with priority for service beginning 10/05, Minneapolis/St Paul to Bangalore, via Amsterdam.
Cargo codesharing with Korean Air (KAL) under which Northwest Airlines (NWA) will place its NW code on (KAL) cargo flights, Seoul to Anchorage, Atlanta, Chicago, Dallas/Fort Worth & San Francisco. (KAL) in turn is marketing its KE code on (NWA)-operated freighters from Anchorage to Chicago & Cincinnati, as well as between Seoul and Anchorage.
March 2005: Plans to remove -30 DC-9 airplanes from fleet and cut -930 jobs.
April 2005: 1st Q = -$458M (-$223M): 18.17B RPM (+8.8%); +4.3% ASM; 79.8% LF (+3.3).
May 2005: Neal Cohen, CFO, 45, ex-US Airways (USA), replaces Bernie Han, who resigned.
INCDT: At Minneapolis/St Paul Airport, ground collision whereby DC-9-51 (47716, N763NC) was taxiing to the gate, when it impacted the starboard wing of A319-114 (2039, N368NB), which was backing away from its gate. DC-9 sustained substantial damage and is likely to be an insurance write-off (W/O). The A319 suffered minor impact damage to its wing, which will be repaired.
Wants to lay off -2,840 of its 5,294 mechanics (MT).
$2.2B, 18/50 orders (8/08) 787-8's, 36C, 185Y, 8,500 nm range. 747-251B (23111) stored at Marana, pending conversion to freighter.
2 A319-114's (2464, N374NB; 2474, N375NB) & A330-323X (663, N809NW) deliveries.
June 2005: Northwest Airlines (NWA) serves more than 220 domestic destinations with about 1,500 daily departures. With its affiliate airlines, this is extended to more than 500 cities in more than 100 countries throughout the Americas, Europe, Asia, Africa, and the Middle East.
39,100 employees (including 6,000 Flight Crew (FC)).
(IATA) Code: NW - 012. (ICAO) Code: NWA - NORTHWEST.
Parent organization/shareholders: Employees (16%); original investors (11%).
Owns: Mesaba Airlines (27.8%); & Northwest Airlines (NWA) Cargo (100%).
Main Base: Mineapolis/St Paul (MSP).
Hubs: Amsterdam Schiphol (AMS); Detroit Metropolitan Wayne Couty (DTW); Memphis International (MEM); & Tokyo Narita International (NRT).
Domestic Scheduled Destinations: Albany New York; Albuquerque; Allentown/Bethlehem/Easton; Anchorage; Atlanta; Austin; Baltimore; Baton Rouge; Billings; Birmingham; Bismark; Boise; Boston; Bozeman; Buffalo; Cedar Rapids; Charlotte; Chicago; Cincinnati; Cleveland; Colorado Springs; Columbus Ohio; Dallas/Fort Worth; Denver; Des Moines; Detroit; Duluth/Superior; Fargo; Fayetteville Arkansas; Flint; Fort Lauderdale; Fort Myers; Grand Forks; Grand Rapids; Great Falls; Green Bay; Greensboro/High Point; Greenville South Carolina; Gulfport/Biloxi; Harrisburg; Hartford; Honolulu; Houston; Indianapolis; Jackson Mississipi; Jackson Wyoming; Jacksonville Florida; Kahului; Kalamazoo; Kalispell; Kansas City; Kona; La Crosse; Lansing; Las Vegas; Lexington; Little Rock; Los Angeles; Louisville; Madison; Manchester; Memphis; Miami; Milwaukee; Minneapolis/St Paul; Minot; Missoula; Myrtle Beach; Nashville; New Orleans; New York; Norfolk; Oklahoma City; Omaha; Ontario; Orlando; Palm Springs; Philadelphia; Phoenix; Pittsburgh; Portland; Providence; Raleigh/Durham; Rapid City; Saginaw; Salt Lake City; San Antonio; San Diego; San Francisco; San Jose; Santa Ana; Sarasota/Bradenton; Savannah; Seattle; Sioux Falls; Spokane; St Louis; Steamboat Springs; Syracuse; Tampa; Traverse City; Tucson; Vail; Valparaiso; Washington; West Palm Beach; & Westchester County.
International, scheduled destinations: Acapulco; Amsterdam; Bangkok; Beijing; Busan; Calgary; Cancun; Cozumel; Edmonton; Frankfurt; Grand Cayman Island; Guam; Guangzhou; Hong Kong; Ixtapa/Zihuatanejo; Liberia; London; Manila; Mazatlan; Mexico City; Montego Bay; Montreal; Mumbai; Nagoya; Nassau; Osaka; Paris; Puerto Vallarta; Punta Cana; Regina; Saipan; San Jose Cabo; San Juan; Saskatoon; Seoul; Shanghai; Singapore; Taipei; Tokyo; Toronto; Vancouver; & Winnipeg.
In 10/05, Osaka to Saipan (daily nonstop). In 11/05, Nagoya to Guam (daily nonstop).
William Lentsch, VP Station Operations, ex-Champion Air (GRD) COO, replaces Suzanne Boda, now VP Inflight Services.
DC-10-30 (48282, N241NW) stored at Marana. A330-323E (674, N810NW), delivery.
July 2005: Northwest Airlines (NWA) mechanics (MT) union, Aircraft Mechanics Fraternal Association filed an unfair labor practices grievance over (NWA)'s use of Airbus employees in violation of its union agreement to repair an A319 (2039) that was damaged in a ground collision with a DC-9-51 (47716) in 5/05. (NWA) had their (MT)'s disassemble the plane, then issued layoff notices to the (MT)'s and brought in Airbus replacements to finish the work.
1st 6 months = -$683M (-$412M): 38.19B RPM (+7.6%); +4.4% ASM; 82.1% LF (+2.5). 2nd Q = -$225M (-$182M): +6.6% RPM; +3.1% ASM; +1.7 LF. Warns of Chapter 11 filing, if labor cost savings not achieved.
In 8/05, Flint, Michigan to Las Vegas (A319, nonstop).
August 2005: 38,000 employees (-2.8%).
Heading into day four of a strike by its mechanics and aircraft cleaners, Northwest Airlines (NWA) continued to maintain silence on its operational performance, declining to provide data on daily completion factors and ontime performance. In a taped message to employees, the airline said it expects to complete 96% of its flights in the first full week. Approximately 4,400 members of the Aircraft Mechanics Fraternal Association went on strike Saturday.
(NWA) named Nathaniel Pieper to the position of VP-alliances and Jim Friedel, president of (NWA) Cargo, to the additional role of senior VP-Pacific, a new position, effective immediately. Pieper, who joined (NWA) in 1997 and most recently served as MD-financial planning and analysis, replaces Gary Fishman, who retired. Friedel is a 14-year veteran of the carrier.
September 2005: Northwest Airlines (NWA) continues to operate its full early fall flight schedule despite a strike by the Aircraft Mechanics Fraternal Association (AMFA). Ten days into the strike, the carrier's operating metrics remained at or very close to the level of performance it expects to meet or exceed an average of 26 days per month.
Contract talks between (NWA) and the (AMFA) aimed at ending a 23-day walkout broke down and the company said it will begin hiring "permanent replacements" for striking mechanics today. Negotiations apparently collapsed over the issue of severance pay for workers whose jobs were to be eliminated or outsourced.
(NWA) raised its cost-saving target for (AMFA) from $176 million to $203 million per year. According to the union, (AMFA) negotiators accepted this figure and agreed to the elimination of -3,181 jobs, leaving 1,080 members at the airline. In return, the union sought "job protection" for these workers and 20 weeks of severance pay "at the company imposed wage rates" for those being fired. (NWA) refused to move beyond 16 weeks' pay.
In a statement, the carrier said the severance "was equal to the maximum amount available to any (NWA) contract employee." (NWA) has raised its cost-saving target for all labor groups to $1.4 billion from $1.1 billion previously and pilots have agreed to reopen negotiations.
(NWA) raised the level of concessions it is seeking from striking mechanics and aircraft cleaners while cutting the number of workers it will bring back. (NWA) is seeking $203 million in labor cost savings from (AMFA), up from the $176 million it sought prior to the strike. Additionally, whereas it previously wanted to eliminate roughly half of the 4,400 positions filled by (AMFA) members, it now seeks to bring back just 1,000 of the workers. The carrier earlier told (AMFA) that it had outsourced the aircraft cleaning jobs held by 789 union members permanently, along with line maintenance at small stations. Prior to the strike, line maintenance was the largest job function for (NWA) mechanics, accounting for 1,384 positions. JP Morgan analyst Jamie Baker said he expects (NWA) to increase its labor cost reduction goal formally from $1.1 billion to $1.4 billion and issue a deadline of mid-October, beyond which it will file for bankruptcy.
(NWA), in a filing with the US Securities and Exchange Commission late last week, said it expects to report a loss of -$350 to -$400 million for the third quarter excluding unusual items. It noted that its unrestricted cash position deteriorated to $1.7 billion at the end of August from $2.14 billion on June 30 and reiterated a warning that without pension relief legislation "that significantly reduces future funding requirements," it will be forced to consider a bankruptcy filing. (NWA) also said that owing to its worsening financial condition, it likely will have to increase the $1.1 billion annual labor cost savings target it set last March. A prime factor in the carrier's escalating losses is the high price of fuel, which has a greater impact on (NWA) than most other USA carriers because it still operates some 150 DC-9s. It estimated that fuel expense will be in excess of $900 million in both the third and fourth quarters and that full-year fuel expense will total $3.3 billion versus $2.2 billion in 2004 and $1.6 billion in 2003. On the good news front, (NWA) achieved a completion factor of 99.4% Aug. 29-31 after adjusting for the impact of Hurricane Katrina despite the continuing strike by its mechanics and aircraft cleaners.
Delta Air Lines (DAL) and Northwest Airlines (NWA) filed for bankruptcy yesterday, meaning that four of the Big Six US legacy carriers currently are restructuring under Chapter 11 protection.
The filings, which occurred in the US Bankruptcy Court for the Southern District of New York within an hour of each other, had been expected. Both airlines said they will maintain their full schedules as they cited the impact of soaring fuel prices since Hurricane Katrina as the immediate cause of the filings. Each previously had warned that filings might be necessary owing to impending financial commitments, continuing losses since 2000 and huge pension obligations. (DAL) cited debts of more than $28 billion, while (NWA) owes almost $18 billion.
(NWA) in its filing noted that it has $1.5 billion in unrestricted cash and that the continuing strike by its mechanics and aircraft cleaners was not a factor in the filing. "We can no longer continue to incur sizeable losses and reductions in liquidity as we attempt to complete implementation of the plan. By filing for Chapter 11 now, we ensure that we have the means to complete the transformation of (NWA) quickly and effectively," President and CEO Douglas Steenland stated. The airline will continue to pursue its $1.4 billion labor savings target through the bankruptcy process.
During a conference call with media, Steenland said the filing was precipitated by a $65 million pension payment due today that the company would have been obligated to make if it had not filed for bankruptcy protection. He also said (NWA) will use the bankruptcy process to shrink and to return airplanes to lessors, but he declined to be specific about the size of job cuts. "The airline is not going to look materially different, but it will be somewhat smaller," is how he characterized it.
Lack of DIP financing is owing to carrier's large cash balance entering bankruptcy as well as the fact that many of its assets are already pledged to secure existing financings. "We are no longer an asset rich company," Steenland said.
(NWA) has defined pension obligations totaling $3.3 billion from 2006 through 2008 and continues to seek pension reform legislation to stretch out the payment schedule. "Hopefully we will be able to avoid the kind of pension plan termination that the employees of (UAL) and (USA) experienced," Steenland told reporters during the briefing.
(NWA) said that it will "indefinitely suspend" its daily 747-400 New York (JFK) - Tokyo Narita nonstop service beginning Oct. 2 owing to the record high price of jet fuel. It will continue to offer New York-area passengers connecting service through Detroit and Minneapolis/St Paul. The (JFK) - Narita route represented 2% of (NWA)'s system ASMs in August and 8% of its Pacific ASMs. The 747-400 will be redeployed to Los Angeles - Tokyo service, replacing a 747-200. Additionally, the carrier is operating its fall schedule with 30 fewer DC-9s than originally planned. As a result, domestic mainline capacity is off -17% compared to the summer peak, versus a -13% decline in a typical year.
(NWA) named David Davis as its new senior VP-finance and controller replacing Jeff Putnam, who resigned. Davis returns to (NWA) after serving most recently as CFO of Houston-based Kraton Polymers LLC.
(NWA) has begun shrinking their operations. (NWA) told its pilots union it intends to cut flying hours by -13% over the next eight months, which will result in furloughs for -400 of the 5,200 pilots currently flying, according to the Air Line Pilots Association.
Separately, it asked the bankruptcy court for authority to reject leases or finance agreements on 13 stored airplanes comprising one 747, one DC-10-30, six 757s, one A320 and four DC-9s. It also identified an additional 102 airplanes "that, under existing lease or debt terms, are not of benefit" to the airline, but could be of benefit "if the lease or debt terms were revised." These comprise 35 BAe 146s/Avro RJ85s operated by Regional partner airlines, 22 757s, 20 A320s, six A319s, seven DC-10-30s, eight 747-200s and three 747-400s.
2 DC-9-32's (47282; 47479), returned to Fifth Third Leasing. A330-323E (690, N811NW) delivery.
October 2005: Northwest Airlines (NWA) wants permission from its pilots, represented by the Air Line Pilots Association (ALPA), to create a new feeder carrier separate from the mainline that will operate airplanes seating up to 100 passengers in the Northwest Airlink program with "no numerical or use restrictions. "The scope clause in the existing pilot contract sets a maximum size limit of 69 seats and a numerical limit of 54 RJs with 50 - 69 seats.
The information is contained in the company's Section 1113(c) proposal filed on Wednesday and provided to (ALPA). If (NWA) is unable to reach agreement consensually, it will ask the bankruptcy court to impose the changes. It is seeking -$358 million in new savings from its pilots in addition to -$250 million they contributed last year. Reductions in hourly pay account for -62% of the new savings goal.
The proposed airline - - dubbed "Newco" in the filing - - would be the exclusive operator of Airlink aircraft seating between 77 and 100 passengers. Pilots would be represented by (ALPA) but would not be on the (NWA) pilot seniority list and would be paid at "Regional airline industry average pilot labor costs." Their contract would include a no-strike/no-lockout clause, with wage disagreements subject to "binding expedited interest arbitration" and the arbitrator required "to apply a Regional airline industry average pilot labor cost standard."
(NWA) also wants authority to codeshare with feeder airlines operating airplanes seating up to 76 passengers with no numerical or use restrictions. It wants "no restrictions on domestic codesharing agreements with other domestic airlines," and the right to wet-lease up to 10% of scheduled block hours of international passenger flying.
Also in the contract, top pay for a 747-400 captain would fall from $232.18 per hour to $178.91, which, according to (NWA), is the same scale used by United Airlines (UAL) for its 777 captains. At the other end, a DC-9 first officer's top pay would drop from $110.51 to $61.11. The weighted average decrease is -28.4%.
(NWA) is seeking to outsource a majority of the slots on international routes now reserved for senior (NWA) flight attendants to foreign-based cabin staff. According to the Wall Street Journal, the airline is proposing to have 75% of its transatlantic and transpacific flights staffed by "regional flight attendants" who are not members of the Professional Flight Attendants Association (PFAA), which represents (NWA) attendants. The carrier also wants to staff its proposed Regional subsidiary with attendants not on the mainline seniority list. NWA is seeking $195 million from (PFAA) members and has asked the bankruptcy court for permission to impose its contract if the union does not agree to its proposals. "The situation at (NWA) is potentially devastating to all flight attendants across the country," said Patricia Friend, president of the Association of Flight Attendants - CWA, which offered "unconditional" support to (PFAA) in a statement. A (NWA) spokesperson said the airline "has issues" with parts of the WSJ report but would not comment further.
(NWA) will suspend service from Minneapolis to London's Gatwick Airport from Oct 30th.
n its first quarterly report since filing for bankruptcy last month, Northwest Airlines (NWA) Corporation said its net loss widened to -$475 million for the three months to Sept 30 compared to a loss of -$46 million in the year-ago period.
Excluding $82 million in pension curtailment charges and $159 million in charges related to its Chapter 11 reorganization, net loss for the current period was -$234 million. The airline did not address the impact of its continuing mechanics strike on the quarter's performance.
"Our third-quarter results clearly demonstrate the need for (NWA) to restructure expeditiously," President and CEO Doug Steenland said in a statement.
Operating revenues rose +10.7% to $3.38 billion. Yield climbed +4.4% to 12.14 cents on a +3.5% increase in RPMs (traffic). Load factor improved +1.7 points to 84.6% LF, pushing passenger RASM up +6.5% to 10.27 cents on +1.5% more ASMs (capacity).
Operating expenses jumped +19.2% to $3.55 billion, or +16.5% if unusual items are excluded. Fuel expense surged +47.6%. Operating loss, net of the $82 million charge, was -$167 million compared to an operating profit of +$79 million last year. Cost per ASM excluding special charges rose +12.1% to 11.48 cents. CASM excluding fuel and unusual items climbed +3.3%.
For the nine months ended Sept 30, (NWA) posted a deficit of -$1.25 billion, up from a loss of -$458 million in the year-ago period.
Minneapolis St Paul International Airport opened its fourth runway last week. The new 8,000-ft. Runway 17/35 increases airfield capacity by +25%, according to the Metropolitan Airports Commission. Approximately 37% of departing flights and 17% of arrivals will use the new runway.
(NWA) won bankruptcy court permission to cancel leases on 106 airplanes. This includes 3 747-400s, 9 747-200s, 28 757-200s, 8 DC-10-30s, 4 DC-9-30s, 22 A320s, and 6 A319s.
2 747-451's (23720, N662US; 23818, N663US), 6 757-251's (26483, N536US; 26484, N537US; 26486, N539US; 26487, N540US; 26488, N541US; 26489, N542US); 2 DC-9-31's (47390, N9341; 47440, N9344); 1 DC-9-41 (47286, N758NW), 1 DC-9-51 (48121, N781NC); 3 DC-10-30's (46579, N221NW; 46961, N232NW; 46640, N233NW), 9 A319-114's (1071, N303NB; 1078, N304NB; 1090, N305NB; 1091, N306NB; 1126, N307NB; 1129, N308NB; 1131, N309NB; 1164, N311NB; 1167, N312NB) & 8 A320-211's (060, N306US; 106, N307US; 107, N308US; 118, N309US; 121, N310US; 318, N331NW; 319, N332NW; 329, N333N2), all withdrawn from use (WFU) at Marana.
November 2005: Northwest Airlines (NWA) and negotiators for the Air Line Pilots Association (ALPA) reached a tentative agreement on temporary pay and benefit concessions valued at $214 million, or 60% of the $358 million the carrier is seeking to have imposed by the bankruptcy court through a Section 1113 filing.
(NWA) agreed to defer its request until mid-January if its unions agreed to the interim request. A delay will give the carrier and unions more time to reach consensual restructuring agreements.
The temporary deal with the pilots, which is subject to union ratification, calls for a -23.9% reduction in hourly and supervisory base pay rates among other changes. It will reduce pilot costs by approximately -$17.9 million per month, according to (ALPA). The agreement also requires (NWA) to obtain "proportional savings" from the International Association of Machinists (IAM) and the Professional Flight Attendants Association (PFAA).
In a statement, (NWA) said, "We are pleased that we were able to consensually reach a tentative interim agreement with (ALPA)."
(NWA) said it reached agreement with its pilots and flight attendants on voluntary pay and benefit reductions that will save it -$332 million on an annual basis, but failed to reach a similar deal with workers represented by the International Association of Machinists (IAM). As a result, it filed a0 Section 1113 (e) motion with the bankruptcy court to impose $114 million in "temporary wage and benefit reductions" on (IAM) members.
(NWA) previously offered to defer until mid-January Section 1113 requests for unions that acceded to 60% of its long-term savings goals on a temporary basis. The interim agreement with the pilots, which is subject to ratification by members of its Air Line Pilots Association (ALPA) unit, is valued at $215 million, while the agreement with the Professional Flight Attendants Association is valued at $117 million.
(NWA) pilots yesterday ratified the concessions agreement reached earlier this month, approving a -23.9% reduction in pay valued at approximately $214 million annually. The interim contract will give the parties more time to reach a final deal. According to an MEC hotline statement, the measure passed 2,563 (63.6%) to 1,465 (36.4%).
The airline also confirmed that it reached tentative accords on permanent wage and benefit reductions with employees represented by the Aircraft Technical Support Association and the (NWA) Meteorology Association. (NWA) said it hopes to reach an agreement with the Transport Workers Union shortly.
Northwest Airlines (NWA) said the Aircraft Technical Support Association, representing some 200 technical writers, trainers and maintenance planners at the airline, ratified a long-term labor cost restructuring agreement that will save the company -$2.25 million per year. The agreement includes a -9.9% wage reduction, profit-sharing and benefit changes. It will be in effect until the conclusion of the fourth full calendar year after (NWA) emerges from its Chapter 11 reorganization.
(NWA) yesterday received bankruptcy court approval to impose temporary wage and benefit reductions valued at -$114 million per year on its ground workers represented by the International Association of Machinists (IAM). (NWA) sought authority under Section 1113e after it was unable to reach agreement with the union on temporary pay and benefit reductions. Pilots ratified an interim contract Tuesday totaling -$215 million in annual givebacks, while flight attendants have consented to -$117 million in cuts. The airline is seeking -$1.4 billion in permanent annual labor cost reductions but agreed to the interim cuts while it seeks to negotiate long-term agreements.
Separately, the Transport Workers Union, representing about 160 dispatchers and flight planners, ratified a long-term labor cost restructuring agreement worth -$1.5 million in savings to the airline. It will be in effect through the conclusion of the fourth full calendar year following (NWA)'s emergence from Chapter 11.
(NWA) reported an October load factor of 82.9% LF, a +2.6-point climb over the year-ago month. Systemwide RPMs (passenger traffic) declined -4% from 6.15 billion to 5.9 billion while capacity narrowed -6.9% from 7.65 billion ASMs to 7.12 billion.
The ten largest USA passenger airlines in aggregate lost -$3.24 billion in the third quarter ended Sept 30, a threefold increase over a loss of -$1.04 billion in the third period of 2004. However, current-period results include more than $2.5 billion in bankruptcy-related charges at Northwest (NWA), Delta (DAL) and United (UAL). Revenue for the group, which comprises AirTran (CQT), Alaska Air Group (ASA), AMR Corp (AAL), Continental (CAL), Delta (DAL), JetBlue (JBL), Northwest (NWA), Southwest (SWA), United (UAL) and US Airways (USA), rose +13.6% to $25.32 billion while expenses climbed just +11.4% in spite of the dramatic run-up in fuel prices throughout the quarter. The result was an industry operating profit of +$213.3 million compared to a loss of -$180.8 million in the year-ago period. Excluding fuel, the third-quarter operating costs grew less than +3% compared to last year, while unit costs dropped -2.3% excluding fuel and special charges.
Northwest Airlines (NWA) named Anna Schaefer VP-finance and chief accounting officer effective Dec 1. A 14-year veteran of the airline, she most recently served as Managing Director, Accounting. (NWA) also named Todd Anderson General Manager - Philippines, Australia and New Zealand.
5 DC-9-31's (47097; 47163; 47389; 47406; 47416), 5 DC-9-32's (47282; 47450; 47469; 47473; 47479), 3 DC-9-51's (47718; 47774; 47786), & 2 DC-10-30's (46551; 46552), WFU at Marana.
December 2005: SkyTeam members Delta Air Lines (DAL), Northwest Airlines (NWA), and Continental Airlines (CAL) announced that their club members will have access to each others' airport lounges beginning today. The three carriers have more than 90 lounges worldwide.
Northwest Airlines (NWA) lost -$346 million in its first six weeks in bankruptcy including a net of $158 million in reorganization-related charges, according to a filing with the USA Securities and Exchange Commission (SEC). The Sept 14 - Oct 31 reporting period encompasses 16 days of the airline's third quarter. (NWA) previously reported a loss of -$475 million for the July - September period. In its (SEC) filing, it did not provide separate loss figures for September and October. Revenues during the period totaled $1.57 billion while expenses were $1.7 billion, resulting in an operating loss of -$136 million.
Northwest Airlines (NWA)'s passenger traffic fell -5.1% to 5.47 billion (RPM)s last month against a -9.1% decline in capacity to 6.74 billion (ASM)s. Passenger load factor rose +3.5 points over the year-ago month to 81.2% LF.
Northwest Airlines (NWA) will eliminate its Memphis - Lincoln, Nebraska, service Jan 3. Northwest Airlines (NWA) will pull service from Reno/Tahoe International Airport and John Wayne Airport in Orange County, California, from Jan 3 as part of systemwide capacity reductions related to seasonal scheduling and its reorganization. Northwest Airlines (NWA) will discontinue its daily A319 service from Detroit to Orange County and double daily A319 service from Minneapolis to Reno on Jan 3rd.
Detroit Metro Airport will return $11 million to airlines after beating budget forecasts in fiscal year (FY) 2005. Nearly 70% of the surplus will go to Northwest Airlines (NWA), the Detroit Free Press reported. The airport said it hoped the gesture would entice carriers to increase service.
Metropolitan Airports Commission, which runs Minneapolis-St Paul International Airport (MSP), voted unanimously Wednesday to raise user fees by +$14.64 million - - +18% - - per year, ignoring pleas from principal tenant Northwest Airlines (NWA). An (MSP) spokesperson said the hike was driven by deferred costs related to its recently completed six-year, $3.1 billion construction program, which went to "facilities the airlines have been using but not paying for." Regarding (NWA)'s request that landing and gate fees remain frozen, (MSP) said, "We want to have the whole picture in front of us, what their intentions are in bankruptcy, so we know how much money we have to work with in terms of providing relief." The airline still owes (MSP) $269 million on a 1992 loan.
Northwest Airlines (NWA) said it will need $2 billion in new funding in order to exit bankruptcy protection and finance new airplanes, the Financial Times reported. (NWA) said it does not expect to generate "significant liquidity" from its operations until at least 2009.
Northwest Airlines (NWA) received approval from the USA Bankruptcy Court for its airplane financing deal with Airbus and Pratt & Whitney. Airbus will finance 85% of soon-to-be-delivered A319s and 10 A330s scheduled for delivery in the next two years, according to media reports. Prepayments of approximately $100 million made by (NWA) prior to its entry into bankruptcy will be allocated to the airplane costs. Pratt will finance four additional airplanes.
Separately, (NWA) reached an agreement with JPMorgan Chase to make $24.5 million in interest payments on its $975 million loan, giving the airline the latitude to shift certain key assets, such as landing slots on its Pacific routes and aircraft, to secure other obligations, the Associated Press reported. (NWA) attorneys said negotiations for a debtor-in-possession loan are in progress.
2 A319-114's (2618, N376NB; 2641, N377NB), deliveries.
January 2006: Northwest Airlines (NWA) reported systemwide December passenger traffic of 5.82 billion (RPM)s, a decline of -5.7% from December 2004. (ASM)s dropped -8.6% to 7.21 billion and load factor was up +2.5 points to 80.7% LF. Full-year traffic rose +3.4% to 75.82 billion (RPM)s against a +0.4% increase in capacity to 91.77 billion (ASM)s, sending load factor up 2.4 points to 82.6% LF.
Full year 2005 = Passenger traffic 121.99B (RPK) (5th highest in world).
Northwest Airlines (NWA) mechanics (MT) voted last week to continue their four-month strike against what their union called a "renegade, union-busting airline" as 56% of the Aircraft Mechanics Fraternal Association voting members opted to reject the latest settlement proposal, which would not have brought back any of the more than 4,000 striking mechanics but would have offered severance pay and some unemployment benefits.
A Northwest Airlines (NWA) newsletter is calling the company plan to create a new regional airline "Newco" flying 70 to 100-seat jets in medium-sized markets a key to its growth. Newco is expected to be operational by 2007 and operate an estimated 105 airplanes by 2010.
Northwest (NWA) said it is restricted by a contract with its pilots to fly airplanes of this size, and therefore the carrier's fleet consists of airplanes that are the wrong size for its core markets.
Details of the new airline met with scorn from the Air Line Pilots Association (ALPA). (ALPA) said in a bankruptcy court filing that while the new airline would initially be controlled by Northwest (NWA) "it could eventually be sold or come under the control of other entities, taking with it up to one fifth of all pilot positions at the company." (ALPA) called on Northwest (NWA) to establish a new division within itself for 60 - 100 seat operations with pilot pay rates competitive with similar operations.
Northwest Airlines (NWA) pilots (FC), represented by the Air Line Pilots Association, threatened a walkout if the company moves forward with proposed plans to launch a separate carrier dubbed NewCo to operate 70/100-seat RJs. The union's (MEC) called the initiative "absolutely unacceptable" and warned that if Northwest (NWA) receives bankruptcy court approval to reject the current pilot agreement and impose terms including the establishment of NewCo, it "should expect a strike by the Northwest (NWA) pilot group (FC)."
Northwest Airlines (NWA)'s markets are particularly well-adapted for new-generation large regional jets, the company argues in a special edition of its internal newsletter "Passages."
"Northwest (NWA) has a disproportionate need for smaller regional jets," the company stated. "Despite having only 12% of domestic revenue, the lowest" among the Big Six network airlines, "Northwest (NWA) operates in 20% of the markets that would be optimally served by 70- to 100-seat jets." It said approximately 100 of its domestic markets are the right size for the RJs. Example city-pairs include Minneapolis-Albuquerque and Detroit-El Paso. Already, competitors fly large RJs in 111 city-pairs "in the Heartland," a situation Northwest (NWA) "must quickly address."
By 2010, (NWA) estimates it will need 60 70/76-seat RJs and 45 100-seaters. Thirty-five of the smaller airplanes will be used to replace 35 Avro RJs "that are simply too expensive and inefficient to operate," with 25 more acquired for growth. Of the 45, 100-seat jets, 19 are needed to replace DC-9s that must be retired soon and 26 are intended to meet new demand.
The size requirement appears to rule Northwest (NWA) out as a possible launch customer for Bombardier's proposed C-Series, which would seat 110-130 passengers, but makes it a likely buyer of the Embraer EMB-170/190 and/or CRJ700/900 families. For those in the company who worry the airline will use the small jets to replace its DC-9s, "Passages" states that it will continue to operate DC-9s, primarily DC-9-40s and dash 50s, well into the future - - 2015 and beyond.
Three weeks after the USA Department of Transportation (DOT) tentatively rejected their request for transatlantic antitrust immunity, SkyTeam members Delta Air Lines (DAL), Northwest Airlines (NWA), (KLM) Royal Dutch Airlines, Air France (AFA), Alitalia (ALI) and Czech Airlines (CSA) withdrew their application. In a joint filing to (DOT) yesterday, the airlines said they believe "the department reached the wrong decision for the wrong reasons," but added that "in light of the fact that [DOT] remains open to a grant of antitrust immunity. . .in the future, [they] have decided at this time to withdraw their request." At the same time, they asked the department to finalize its tentative approval of blanket codesharing authority among the six carriers.
Separately, Northwest (NWA) in a statement, blasted (DOT)'s decision as "arbitrary, capricious and inconsistent with established (DOT) precedent and international aviation policy [and] a giant step backwards in a battle USA airlines and their employees - - and ultimately consumers - - are engaged in and losing." (NWA) further noted that "the USA airline industry is in a state of crisis. Four major air carriers, including Northwest (NWA) and Delta (DAL), are operating under Chapter 11, as are several national carriers. Foreign airlines are profitable."
Northwest Airlines (NWA) asked the bankruptcy court overseeing its Chapter 11 reorganization to permit it to reject the collective bargaining agreements covering its pilot (FC) and flight attendant (CA) workforces and allow it to make changes to retiree medical benefits. In a filing in support of applications for Section 1113 (pilots (FC) and cabin staff (CA)) and Section 1114 (retirees) relief, (NWA) argued that after enduring -$3.8 billion in losses since third-quarter 2001, "there is no more furniture left to burn." Its ability to borrow "has been exhausted and there are no unencumbered assets of any substantial value left to sell."
The airline also said it reached a tentative agreement with its baggage handlers, aircraft cleaners and customer service staff represented by the International Association of Machinists (IAM). It has delayed its Section 1113 request for (IAM)-represented employees pending ratification.
At the end of 2005, the company had just $1.24 billion in cash and equivalents, among the lowest of large USA airlines. It told the court that "in the absence of some level of additional labor cost relief, [its] liquidity will continue to decline though 2006 and by [year end] will be at dangerously low levels," raising "a real and genuine prospect of radical changes" to its operations including asset sales, "substantial downsizing, massive layoffs or liquidation."
Even if (NWA) is able to achieve desired labor savings, it expects to lose -$230 million on a pre-tax basis in 2006, excluding reorganization items.
The carrier also said it would be willing to forego its proposal to launch a separate subsidiary operating 70/100-seat jets if the Air Line Pilots Association (ALPA) agrees to scope relief to permit its Airlink partners to fly jets seating fewer than 77.
(IATA) announced the launch of its (IATA) Catering Quality Assurance (ICQA) program, which it called "the industry's first global food processing safety and quality assurance" initiative. The association will partner with Medina Quality Assurance Services, which will audit catering facilities in compliance with (ICQA) standards on a contractual basis for program participants. Medina will conduct two types of audits: Unannounced on-site Validation Audits and Web-based e-Audits, which are "customized questionnaires designed to identify deficiencies." An (ICQA) Council will be established to oversee the program, approve the audit schedule and update standards, guidelines and audit procedure. (IATA) said Air Canada (ACN), Aeroflot (ARO), Japan Airlines (JAL), (KLM) and Northwest Airlines (NWA) have confirmed their participation in (ICQA).
Sabre Holdings and Northwest Airlines (NWA) signed a five-year, full content agreement to make available through the Sabre (GDS) all Northwest (NWA) published fares and inventory, including special Web fares. Concurrent with the announcement, the companies said they agreed to settle all current litigation.
Northwest Airlines (NWA) pilots (FC), represented by the Air Line Pilots Association (ALPA), remain adamantly opposed to the carrier's plan to create a separate airline subsidiary to operate large regional jets or to relaxing their scope agreement to permit Northwest (NWA)'s Regional partners to fly RJs seating up to 76. In a message to pilots (FC)s, (ALPA) said, "(NWA) management needs to realize that "NewCo" or 'NewCo-like' is unacceptable to the (NWA) pilot group." (NWA) has filed a Section 1113 request with the bankruptcy court for authority to impose an agreement and hearings on the matter resume tomorrow. The union said it proposed to operate 70/100-seat airplanes "at regional industry standard wages, work rules and benefits. However, (NWA) management continues to dismiss our "N Star" proposal."
In a related matter, the executive council of the (ALPA) national organization granted the (NWA) pilots up to $10 million to assist "in contingency preparations" in the event the court okays the company's request for contract relief. The pilots have threatened to strike if (NWA) moves forward with "NewCo."
3 747-451's (23818; 30267; 30268), 2 757-251's (23207; 26485), 1 DC-9-31 (47417), 6 DC-9-32's (47128; 47129; 47229; 47518; 47544; 47591), 1 DC-9-41 (47288), & 1 DC-10-30 (46961), WFU at Marana. A320-212 (400), returned to (DEA), leased to Nouvelair (NOU) 4/06, 1 A330-223 (718, N858NW), delivery.
February 2006: Northwest Airlines (NWA) flew 5.43 billion (RPM)s passenger traffic in January, a -6.7% decrease from the year-ago month. Systemwide capacity fell -11.5% to 6.71 billion (ASM)s and load factor rose +4.1 points to 80.9% LF. Domestic traffic declined -5.3% to 3.06 billion (RPM)s, capacity dropped -11.5% to 3.99 billion (ASM)s and load factor climbed +5 points to 76.7% LF. International traffic was down -8.4% to 2.37 billion (RPM)s, capacity decreased -11.5% to 2.72 billion (ASM)s and load factor rose +3 points to 87.1% LF.
Northwest Airlines (NWA)'s first full quarter under bankruptcy protection ended Dec 31 with a -$1.31 billion loss, triple the -$434 million deficit posted in the corresponding 2004 period.
However, much of that difference came from reorganization charges and unusual items. Excluding those, (NWA) lost -$387 million in the fourth quarter, just +3.7% more than the corresponding figure from the year-ago quarter. It ended the year -$2.55 billion in the red compared to a net loss of -$891 million in 2004. Excluding special items, its 2005 loss dropped to -$1.4 billion from -$726 million a year earlier.
Fourth-quarter operating revenue rose +5.9% to $2.91 billion while expenses remained static at $3.18 billion, narrowing operating loss to -$261 million from -$424 million. Some $922 million in reorganization items made the difference on the bottom line. For the year, operating revenues jumped +8.9% to $12.29 billion against a +12.1% increase in expenses to $13.2 billion, widening operating loss to -$919 million from -$505 million.
Northwest's fourth-quarter passenger traffic declined -4.9% to 17.2 billion (RPM)s as capacity fell -8.2% to 21.08 billion (ASM)s. Load factor rose +2.9 points to 81.6% LF. Operational performance was strong during the three-month period - - yield increased +7.6% to 11.85 cents while (RASM) climbed +11.5% to 9.67 cents versus a +4.3% rise in (CASM) to 11.85 cents.
Annual passenger traffic rose +3.4% to 75.82 billion (RPM)s on a +0.4% hike in capacity to 91.77 billion (ASM)s, lifting load factor +2.4 points to 82.6% LF. Yield increased +2.1% to 11.74 cents, (RASM) grew +5.1% to 9.7 cents and (CASM) climbed +8.6% to 11.53 cents.
(NWA) said it is on target to realize $2.5 billion in annual business improvements and "continued to make noteworthy progress" through capacity reduction, the rejection or abandonment of 51 airplanes and new leasing/financing arrangements on an additional 140 airplanes, and continued efforts to restructure labor agreements and cut other employment costs, among other initiatives. The USA Bankruptcy Court is scheduled to rule today on the carrier's request to void its contracts with pilots and cabin staff.
Northwest Airlines (NWA) is expanding its Indianapolis, Indiana, flight schedule to include new nonstop service to San Francisco, an additional daily flight to Los Angeles, the return of seasonal service to Seattle and improvements to its schedule to New York’s LaGuardia Airport.
Northwest (NWA) will increase capacity between Indianapolis and New York LaGuardia with the addition of larger, mainline airplane service on the frequencies currently operated by Northwest Airlink with 50-seat Canadair Regional Jets (CRJ). Currently, two of the round-trip flights are operated with Northwest (NWA) mainline airplanes, while a third is operated with a CRJ. The change is to a Northwest (NWA)-operated DC-9. Northwest (NWA) will offer new daily nonstop service to San Francisco starting June 1, 2006 using an A319. Through San Francisco, travelers will also gain another single-connection option from Indianapolis to Northwest (NWA)’s Asia/Pacific hub in Tokyo. Northwest (NWA), which currently provides the only nonstop service between Indianapolis and Los Angeles, will increase its Los Angeles schedule to two frequencies beginning June 8 using A319's. The airline also announced that seasonal daily service to Seattle will be offered from June 8 through Aug 21, 2006 operating an A319.
757-251 (23846), DC-9-31 (47246), 3 DC-9-32's (47436; 47573; 47664), & 2 A320-211's (106; 107) WFU at Marana. 757-251 (26484, N527US), returned to service. A330-223 (722, N859NW), delivery.
March 2006: Northwest Airlines (NWA) and its flight attendants (CA), represented by the Professional Flight Attendants Association (PFAA), reached an eleventh-hour agreement on a new collective bargaining agreement yesterday that, if ratified by union members, will result in the carrier achieving the -$195 million in labor savings it sought from cabin staff when it entered bankruptcy. The bankruptcy court judge had been scheduled to rule on a request by (NWA) to reject the existing contract with the attendants. (PFAA) members have been working under an interim agreement providing the airline with -$117 million in savings on an annual basis.
Concurrently, the bankruptcy court was set to rule on an airline request to be permitted to impose a new pilot (FC) contract, while negotiations between (NWA) and the union continued. The company is seeking -$358 million in wage and benefit cuts and productivity improvements from cockpit crew. The pilots have said they will strike if (NWA) imposes an agreement.
Later, Northwest Airlines (NWA) and negotiators for its pilots union reached a tentative agreement on a new contract, postponing the near-term possibility that the USA Bankruptcy Court will impose a settlement, potentially leading to a walkout by the pilots. In a statement, (NWA) said the agreement provides all of the -$358 million in annual labor and benefit cost savings it is seeking from cockpit crewmembers. Further details were not provided.
The accord is subject to approval by the Air Line Pilots Association (ALPA). This includes the Master Executive Council (MEC) at (NWA) as well as (ALPA) members. According to a taped message to members, the tentative agreement was to have been presented to the (MEC) for consideration.
(NWA) reached agreement with its flight attendants union on a tentative labor contract that if ratified by union members will provide -$195 million in labor savings. (NWA) is seeking to reduce its total annual labor costs by $1.4 billion through its Chapter 11 reorganization.
Northwest Airlines (NWA) resumes nonstop service from Minneapolis to London Gatwick. The airline will operate a daily flight using its A330-300.
Northwest Airlines (NWA) confirmed that it "executed an agreement to purchase FLYi (BLR)'s air operating certificate (AOC) and related assets" subject to certain conditions. According to the Associated Press, which cited a FLYi (BLR) bankruptcy filing, (NWA) paid $2 million for the certificate, which should enable it to expedite the startup of a new subsidiary that will operate 76-seat regional jets using furloughed mainline pilots. FLYi, which operated as Independence Air (BLR), shut down in January.
Northwest Airlines (NWA) expects to have its new Regional carrier, now named "Compass Airlines," up and running by June, based on a filing with the USA Department of Transportation (DAT) asking (DOT) to transfer Independence Air (BLR)'s Air Operating Certificate (AOC) to Compass. (NWA) asked its pilots union last fall for permission to create a wholly owned regional subsidiary under the working name of NewCo that would operate 70-seat regional jets. "To operate at a profit, we must invest in these airplanes and we must do so quickly," President and CEO, Doug Steenland told employees in January. "We have a need for these airplanes."
A company spokesperson would not comment on the airplane selection process, but according to (DOT) filings and press reports, (NWA) is eyeing CRJ-900s or Embraer EMB-175s as the choice for the Compass fleet. (NWA) pilots (FC) are in the process of ratifying an agreement that will permit Compass to operate 76-seat RJs using pilots furloughed from the mainline. The Associated Press reported that the new carrier could have as many as 36 jets flying within five years.
(NWA) in its monthly report to the bankruptcy court said it lost -$496 million in the month of February, including -$431 million in Chapter 11 reorganization-related expenses. Excluding the impact of special charges, the carrier's loss was -$65 million. Comparisons with the year-ago period were not provided, but (NWA) lost -$458 million in the first three months of 2005, or -$440 million excluding special charges, an average of -$147 million per month.
February 2006 operating revenues totaled $889 million while expenses reached $919 million, resulting in an operating loss of -$30 million. Labor costs totaled $215 million and fuel expense was $238 million. Of the $431 million in bankruptcy-related charges, $400 million was related to restructured airplane lease/debt charges and $25 million from airplane rejection charges.
(NWA) is trying to cut -$2.2 billion in total expenses from its annual budget through its bankruptcy restructuring while reducing debt and lease obligations by -$4.2 to -$4.4 billion.
DC-9-31 (45840, N8925E), WFU at Marana.
April 2006: Northwest Airlines (NWA) flew 6.43 billion (RPM)s passenger traffic in March, a +6.1% decrease from the year-ago month. Capacity fell -8.8% to 7.38 billion (ASM)s and load factor rose +2.5 points to 87.1% LF. Domestic traffic dropped -9.5% to 3.77 billion (RPM)s against a -12.9% fall in capacity to 4.46 billion (ASM)s, lifting load factor +3.2 points to 84.5% LF. International traffic dipped -0.9% to 2.66 billion (RPM)s, capacity decreased -1.8% to 2.92 billion (ASM)s and load factor rose +0.9 point to 91.1% LF.
The Professional Flight Attendants Association (PFAA) is objecting to Northwest Airlines (NWA)'s new Coach Choice scheme, which allows passengers to pay $15 to reserve selected exit row or aisle seats. The (PFAA), which represents (NWA)'s cabin staff (CA), said the initiative is "ill-conceived" because "it takes away from the primary reason 'qualified' passengers occupy exit row seats," according to National Security & Regulatory Affairs Coordinator, Jeanne Elliot. She also said it will add to cabin staff workloads as unqualified passengers must be shifted from exit row seats. Northwest (NWA) defended Coach Choice, which is expected to bring in an additional +$15 million in revenue per year based on initial customer response. In a statement, the airline said it worked with the (FAA) on administration of the program's exit row aspect and that "the qualification process to secure a Coach Choice exit row seat assignment is exactly the same" as the process to secure an exit row seat assignment for a seat that isn't part of the program.
Northwest Airlines (NWA) pilots (FC) will receive an $888 million stock claim when the carrier emerges from bankruptcy, according to press reports citing a video on the Air Line Pilots Association (ALPA) website. Voting on the new labor deal, which was reached last month and is worth $358 million in savings to the airline, is being conducted through May 3. The stock claim will represent 13% of all unsecured claims on (NWA) and will be paid in shares of the reorganized company. "We did get the lion's share of it and we got a lot more of it than anybody else got," (ALPA) negotiator Bill Dollaway said in the video, according to the Associated Press. The union is counting on the bankruptcy court to overrule objections of other creditors. The contract also calls for performance-based incentive payments to be made to pilots regardless of (NWA)'s profitability.
The tentative pilot contract at Delta Air Lines (DAL), if ratified by its (ALPA) membership, will drop the carrier from having the third-highest-paid narrowbody captains to the middle of the pack, while Northwest Airlines (NWA), if its pilots ratify their agreement, will fall even further, from having the second-highest-paid work group to the No 8 position, just above JetBlue (JBL).
Interestingly, the (NWA) and (DAL) pilot (FC) ratification voting periods overlap. This sets up a scenario in which the (NWA) pilots may develop a case of "Delta (DAL) envy" because the terms of the (DAL) (TA) "appear significantly richer than those at Northwest," according to a report from JP Morgan.
The analysis, which cited as sources JP Morgan research, Atlanta-based AIR, Inc, and union contracts, shows that a 12-year Northwest (NWA) A320 captain currently earns $180 per hour, which falls to $137 under the (TA). By comparison, a 12-year Delta (DAL) 737 captain's hourly pay will fall from $173 to $149. Prior to their November 2004 concessionary agreement, Delta (DAL) captains were the highest-paid in the industry, earning $202 per hour.
In addition, Delta (DAL) pilots will receive a $2.1 billion unsecured claim and management has agreed that if the pilot pension plan is rejected - - as appears likely - - they will get cash and securities worth $650 million. Furthermore, the Delta (DAL) contact runs through 2009, versus 2011 for (NWA). Voting on the (NWA) contract began April 6 and ends May 3. Pilots can recast their votes up until polls close at 10 am on May 3.
The overall salary leader among USA passenger carriers is Southwest Airlines (SWA), whose 12-year 737 captains earn $186 per hour, according to JP Morgan. Among legacy network carriers, the leader is American Airlines (AAL) at $161. At the bottom is US Airways (USA) at $125, followed by United (UAL) at $131 and America West (AMW) at $134. US Airways (USA) and America West (AMW) pilots are in discussions about merging seniority lists.
ATA Airlines (AAT) appointed John Kelly as VP, Maintenance and Engineering. He most recently was Managing Director, Line Maintenance operations at Northwest Airlines (NWA)'s Detroit hub.
Sibir Airlines (SBR) (S7/Novosibirsk) is planning to add 10 ex-Northwest Airlines (NWA) A319-100s to be delivered from July at a rate of 2 a month.
757-251 (23207, N519US), returned to service. 757-251 (26501, N554NW), WFU at Marana.
May 2006: Northwest Airlines (NWA) flew 6.04 billion (RPM)s passenger traffic in April, a -4.6% decline from the year-ago month. Capacity fell -8.8% to 7.12 billion (ASM)s, lifting load factor +3.7 points to 84.9% LF. Domestic traffic dropped -5.7% to 3.58 billion (RPM)s as capacity decreased -12% to 4.25 billion (ASM)s, sending load factor up +5.6 points to 84.3% LF. International (RPM)s lowered -3% to 2.46 billion while capacity fell -3.8% to 2.87 billion (ASM)s. Load factor inched up +0.7 point to 85.9% LF.
Bankruptcy-related charges totaling $975 million, propelled Northwest Airlines (NWA) to a net loss of -$1.1 billion for the first quarter of 2006 from a loss of -$537 million in the year-ago period. (NWA) filed for Chapter 11 protection last September. Excluding reorganization and unusual items, the carrier trimmed its first-quarter deficit to -$129 million from -$450 million in 2005, largely on the strength of improved cost performance.
President and CEO, Doug Steenland said, "During the quarter, Northwest (NWA) continued to make progress on its restructuring goals to address the carrier's cost structure, resize and optimize its fleet and restructure its balance sheet."
Revenues rose an anemic +3.3% to $2.89 billion. With mainline passenger revenues virtually flat at $2.05 billion, the improvement resulted from a +22.8% gain in revenue from fee-for-departure agreements with Regional partners as well as smaller gains in cargo and other revenues.
Operating costs dropped -6.3% to $2.91 billion, attributable to a -29.9% decline in labor costs, that more than offset a +18.1% rise in fuel expense and a +31.3% jump in maintenance costs related to (NWA)'s move to outsource most of its Maintenance Repair & Overhaul (MRO) requirements. Operating loss was -$15 million, improved from a deficit of -$301 million last year.
Mainline yield rose +7.9% to 12.09 cents on a -6.7% decline in passenger traffic (RPM)s. With capacity (ASM)s down -10.8%, load factor at the mainline climbed +3.7 points and passenger (RASM) lifted +12.9% to 10.09 cents. Despite the double-digit decrease in capacity, cost per (ASM) rose just +1.4% to 11.16 cents while nonfuel (CASM) fell -6.7% to 7.97 cents.
Northwest Airlines (NWA) pilots (FC) ratified the Restructuring Tentative Agreement reached with the carrier in March by a 63.4% to 36.6% margin, the Air Line Pilots Association (ALPA) said.
By the time voting closed at 10 am, 4,554 of 4,801 eligible pilots had cast ballots, with 2,888 voting in favor and 1,666 voting in opposition. The 5.5-year deal will reduce (NWA)'s pilot costs by -$358 million.
"The agreement is a painful but necessary part of a successful restructuring of Northwest Airlines (NWA)," Master Executive Council (MEC) Chairman, Mark McClain said. "Our goal in negotiations was to provide contract changes which addressed Northwest (NWA)'s needs but also provided security for Northwest (NWA) pilot jobs. Our negotiators did a remarkable job preventing Northwest (NWA) management's excessive small-jet demands and retaining merger and fragmentation rights for Northwest (NWA) pilots."
The contract retains the -23.9% pay cut agreed to in November, gives pilots an $888 million unsecured claim in the company and provides for "significant" scope protection under which Northwest (NWA) pilots will continue to fly all airplanes with 77 or more seats while the number of airplanes with 51 - 76 seats will be limited to 55, or 90 if placed with an affiliate.
"(ALPA)'s contract ratification is a major step in ensuring the long-term success of our airline," (NWA) President and CEO, Doug Steenland said. "We look forward to continuing to work with (ALPA)'s leaders as we reshape Northwest (NWA) going forward. In particular, we will be working with our pilots to help secure expeditious passage of pension legislation that would secure the pensions that our pilots have earned and deserve."
The (MEC) said the contract does not go into effect until the conclusion of Northwest (NWA)'s 1113(c) cases against its flight attendants (CA) and certain equipment service employees represented by the International Association of Machinists (IAM). Professional Flight Attendants Association balloting on the tentative agreement reached in March concludes June 6, while the hearing for those (IAM) members who rejected their tentative agreement is scheduled to start on May 15.
Northwest Airlines (NWA) flight attendants (CA) union expressed anger over a May 12 letter from Suzanne Boda, the airline's VP Inflight Services, that promised the carrier was through bargaining and warned of potential ramifications if the Professional Flight Attendants Association (PFAA) members reject the tentative labor agreement reached in March, that provides -$195 million in annual savings to (NWA). After outlining the potential benefits cabin staff (CA) might enjoy by ratifying the deal when voting concludes June 6, Boda wrote that the company "does not have the luxury of returning to the bargaining table," and that if the contract is rejected, it will "seek to implement terms and conditions" including additional furloughs, assigning 30% of international flying to foreign cabin staff, elimination of "early out" or severance programs, and more. She also indicated that a change in union representation would have no effect on (NWA)'s position. In a response to Boda posted on the (PFAA) website, President, Gary Meek said the letter constituted "the latest of many incredible attacks on our flight attendants" and was a "blatant scare tactic." He said a "full-scale legal campaign would occur if Northwest (NWA) took improper actions on abrogating our Collective Bargaining Agreement, if the (TA) were to be rejected . . . Be confident that the (PFAA) will not stand by and allow you to break the law by way of a unilateral abrogation."
Northwest Airlines (NWA)'s 5,600 ramp service employees (MT) and stock clerks will see their hourly base wage rates reduced by -11.5% if they ratify a tentative five-year agreement reached between the airline and negotiators for the International Association of Machinists (IAM), on May 22). But if they reject it, as they did an earlier contract in March, they likely will receive even worse terms from a court-imposed settlement, union leaders told membership. "The [negotiating] committee unanimously recommends ratification of this tentative agreement to avoid the elimination of our contract," leaders said in a letter posted on the (IAM) website.
According to the letter, Judge Allan Gropper "indicated that given Northwest Airlines (NWA)'s dire financial condition, he is prepared to rule promptly on June 14 in the event of a failed ratification vote."
Employees are working under a court-imposed -19% reduction in base pay rates. Under the latest Tentative Agreement (TA), base rates will increase +1% on January 1, 2008, and +1.5% on January 1, 2009. The agreement calls for -719 jobs to be abolished. There are reductions in medical and dental plan benefits and sick leave, and three paid holidays are eliminated. A new profit-sharing arrangement is created as well as a new defined contribution plan to replace the defined benefit plan, which will be frozen subject to passage of federal pension relief.
(ARINC) and (SITA) announced formation of an industry technical work group to define the next generation of business-to-business, messaging among air transport operators. The workgroup consists of Northwest Airlines (NWA), British Airways (BAB), Worldspan, Amadeus, Lufthansa (DLH) Systems, Sabre, Galileo and Mercator.
Worldspan and Northwest Airlines (NWA) signed a five-year, full-content distribution agreement designating the Global Distribution System (GDS) as a "preferred distribution channel." The companies said that "in conjunction with the agreement, Worldspan has developed two new optional products to introduce into the marketplace" but did not define the products.
Northwest Airlines (NWA) and Farelogix signed a distribution agreement under which users of the Farelogix FLX Platform will gain direct access to (NWA)'s full content. "Our strategy is to offer travel agents and corporate accounts access to our products through the most economical channels, using a variety of distribution technologies," (NWA) VP, Distribution & E-commerce, Al Lenza said. According to Farelogix, the FLX platform "aggregates content from all four major global distribution systems (GDS), as well as airline, private and Internet fare sources, while its sophisticated pricing technology enables comparative shopping across sources."
2 757-251 (23204, N516US; 33391, N555NW), WFU at Marana. 757-251 (23846, N531US), returned to service. 2 A319-114's (1126, N307NB; 1131, N309NB), returned to Wells Fargo (as trustee).
June 2006: Northwest Airlines (NWA) flight attendants (CA)overwhelmingly rejected a tentative agreement reached in March that would have provided the bankrupt carrier with $195 million in annual work rule, benefit and salary concessions. According to the Professional Flight Attendants Association (PFAA), 85% of the 7,625 eligible workers cast votes and of those, 80% voted to reject the agreement. "The Flight Attendants understood how harsh and unfair the bankruptcy process can be to loyal employees. The company went too far," said (PFAA) President, Guy Meek. "The flight attendants rejected this contract and continue to reject the continuing mismanagement of the airline as well as the everyday mistreatment of (NWA) employees."
In a statement, Northwest (NWA) said it was "disappointed" in the vote and that it has asked the US Bankruptcy Court to rule on its Section 1113[c] motion to reject the existing labor agreement and impose new contract terms "as soon as possible." It also filed a motion with the court "asking for a preliminary injunction to prevent" a strike. (PFAA) workers have voted to strike if a contract is imposed.
The rejection leaves the status of (NWA)'s contracts and tentative agreements with its other work groups unsettled since these will not take effect until contracts are in place with all unions. The company noted that "today's (PFAA) vote further delays implementing permanent labor cost reductions, which will result in ongoing losses of -$30 million per month."
Northwest Airlines (NWA) equipment service and stock clerk employees, represented by the International Association of Machinists, ratified their new labor contract Friday, with 62% of those voting approving the five-year deal reached last month. The group had rejected an earlier deal. "It was a choice between bad and worse," IAM District 143 President Bobby DePace said, referring to the possibility that the US Bankruptcy Court might impose terms if a second agreement was rejected. Together with the deal already approved by IAM-represented customer service, reservations and office employees, the agreement will contribute $190 million in cost savings toward NWA's $1.4 billion goal.
Northwest (NWA) is considering starting a new route from Detroit to Brussels. The plan would be to begin service in the summer of 2007 using a 757-200. The airline is also considering new service to Dublin and Manchester amongst a series of new destinations in Europe.
Nine SkyTeam member carriers signed a Memo of Understanding (MOU) with the British Airports Authority (BAA) confirming their co-location at London Heathrow (LHR)'s Terminal 4 in 2008, when the new T5 opens and the airport reorganizes. The alliance said nearly 3.5 million passengers travel through (LHR) each year aboard Aeroflot (ARO), Air France (AFA)-(KLM), Alitalia (ALI), (CSA) Czech Airlines, and Korean Air (KAL). (KLM) already operates out of T4. AeroMexico (AMX), Delta Air Lines (DAL), and Northwest Airlines (NWA) are parties to the agreement and will have the option to take a place in T4 should they serve Heathrow (LHR) in the future.
The alliance will upgrade the terminal to include 32 check-in desks, additional luggage drop-off locations, lounges and space for self-serve kiosks.
Northwest Airlines (NWA) said it will accelerate the retirement of its 12 remaining DC-10s, all GE (CF6-50)-powered DC-10-30s, over the next seven months. It is the last Major US passenger airline to operate the type. The DC-10s will be replaced with newly arriving A330s on transatlantic services and three parked 747-400s that are being returned to service on transpacific routes, (NWA) said. Currently, DC-10s operate on seven routes. After October 31, the only remaining DC-10 service will be the carrier's daily Minneapolis/St Paul (MSP) - Honolulu trip. The final flight will take place January 7 - 8 from Honolulu to (MSP).
Northwest (NWA) placed its first DC-10 into service in 1972 out of an order for 22 signed four years earlier. (NWA) and Japan Airlines (JAL) were the only customers to opt for the P&W (JT9D)-powered version of the jet, the DC-10-40. Beginning in 1989, (NWA) started adding DC-10-30s it acquired in the aftermarket. The fleet peaked at 21 DC-10-40s and 24 DC-10-30s in 2001, but shrank quickly following 9/11, and the airline retired its last DC-10-40 in late 2002. The remaining DC-10s, include five of the last six off the production line before McDonnell Douglas switched to the MD-11. Ironically, the DC-10 proved to be a more durable type in North America. American Airlines (AAL) and Delta Air Lines (DAL), the two US customers for the MD-11, both have disposed of their fleets.
July 2006: Northwest Airlines (NWA) reported an operating profit of +$72 million for May, its third month in a row to show a profit outside bankruptcy reorganization and other expenses. After taking into account those special charges, the airline showed a May net loss of -$88 million.
The bulk of May's loss was driven by reorganization expenses of $120 million and interest expenses of $46 million. Northwest (NWA) had almost $1.1 billion in operating revenue for May.
Northwest (NWA)'s operating profit was +$80 million in March and +$53 million in April.
A US Bankruptcy Court gave Northwest Airlines (NWA) permission to terminate its labor contract with 9,300 flight attendants and replace it with a tentative concessions agreement reached between the airline and union leaders in March. But the court instituted a 14-day stay on the decision so as to give negotiations for a new agreement more time. Northwest (NWA) and the flight attendants' union reached a tentative agreement on a contract providing $195 million in annual concessions, but the deal was rejected overwhelmingly in a ratification vote last month.
The chances of reaching a new accord may hinge on a July 6 vote in which the flight attendants will decide whether to retain the Professional Flight Attendants Association (PFAA) as their bargaining representative or replace it with the Association of Flight Attendants - CWA.
Northwest (NWA), which already has reached concessions agreements with five other unions, said in a statement that it "bargained in good faith" and made "substantial compromise" to reach the March tentative agreement. It added that it will implement the terms of that accord if a new deal cannot be reached during the two-week negotiating window.
Northwest Airlines (NWA) signed a five-year, full-content agreement with Galileo International, which said the deal made it the first GDS (Global Distribution System) to sign full-content deals with every network carrier in the USA.
(NWA) announced the retirement of Barry Simon, Executive VP and General Counsel, on June 30. It named Perry Cantarutti VP-Reservations.
DC-9-31 (47083), sold to Evergreen International (EVR). DC-10-30 (160-46934, N236NW), sold to Omni Air International (OAE).
August 2006: Northwest Airlines (NWA) flew 7.31 billion consolidated (RPM)s passenger traffic in July, a -9.4% decrease from the year-ago month. Capacity fell -11.1% to 8.3 billion (ASM)s and load factor rose +1.6 points to 88.1% LF. Domestic traffic declined -9.4% to 4.05 billion (RPM)s against a -11.8% decrease in capacity to 4.62 billion (ASM)s, raising load factor +2.3 points to 87.6% LF. International (RPM)s dropped -7.7% to 2.78 billion as (ASM)s fell -8% to 3.04 billion, lifting load factor +0.3 point to 91.3% LF.
Northwest Airlines (NWA) reported a second-quarter net loss of -$285 million, widened from -$234 million in the year-ago period, but insisted it is making "steady progress" as it works toward emerging from bankruptcy protection. Excluding reorganization-related items, the carrier said it earned +$179 million in the period, improved from a net loss of -$288 million, excluding unusual items last year.
President and CEO, Doug Steenland said yesterday that (NWA) received a boost when Congress passed pension reform legislation that "will enable [it] to preserve its frozen defined benefit pension plans" and that (NWA) has achieved -$1.4 billion in annual savings, more than halfway to the targeted -$2.5 billion.
Operating revenues increased +3% to $3.3 billion, while expenses decreased -11.5% to $3 billion. Operating income was +$295 million, reversing an operating loss of -$190 million a year-ago quarter. Yield grew +12% to 13.93 cents as (RPM)s fell -6.3% to 20.25 billion. With capacity down -9.9% to 23.45 billion (ASM)s, load factor rose +3.3 points to 86.4% LF, pushing up (RASM) +16.1% to 11.41 cents while (CASM), excluding fuel costs, fell -13.1% to 7.44 cents.
"We are pleased to have made progress in both revenues and costs during the quarter as evidenced by double-digit improvements in both (RASM) and (CASM), excluding fuel, which marks the first such time during the company's restructuring that this has been achieved," CFO, Neal Cohen said.
(NWA) cited several areas of progress, including finalizing concessionary agreements with nearly all of its labor unions. Its flight attendants, however, twice have rejected tentative accords and are threatening a strike. The company also said it has either rejected or entered into "new, more favorable lease or debt arrangements" covering 243 airplanes. It is targeting -$400 million in annual fleet ownership cost savings.
"Notwithstanding these accomplishments, we still have work ahead of us to ensure that the airline is positioned for long-term success," Steenland said. "Going forward, with fuel costs forecasted to remain at record levels, we must maintain our relentless focus on all elements of our [restructuring] plan."
Northwest Airlines (NWA) received approval yesterday from a US Bankruptcy Court for $1.38 billion in debt refinancing that the carrier said will save it money on interest payments and increase its liquidity. The bankrupt company was allowed to refinance an existing $1.125 billion loan, which reportedly will save it $34 million annually in interest payments and an additional $900 million in debt repayment through 2010, as well as secure a new loan from Citigroup for $250 million to increase its liquidity, according to press reports.
Northwest Airlines (NWA) flight attendants (CA), represented by the Association of Flight Attendants-CWA (AFA), will not be prevented from striking by the US Bankruptcy Court, which denied a preliminary injunction request from (NWA). The union said it could exercise its right to strike as early as the evening of August 25. "While we are disappointed with Judge Gropper's ruling and will appeal it, we remain committed to continuing to serve our customers," (NWA) President and CEO, Doug Steenland said. The airline added that it "has a range of contingency options to respond to any (AFA) work disruption and it will take all necessary actions to continue to operate its normal flight schedule." Both parties said they were interested in continued negotiations, but (AFA) Interim Master Executive Council President, Mollie Reiley warned that (NWA) management "needs to reduce their demands and do it in a hurry." The airline wants $195 million in annual concessions from its cabin staff.
Later, the USA Deptartment of Justice (DOJ) yesterday waded into the dispute between Northwest Airlines (NWA) and its flight attendants (CA), arguing in a Statement of Interest filed with the US District Court for the Southern District of New York that the (AFA) does not have the right to strike because the parties still are bound by the Railway Labor Act (RLA). Last week, the US Bankruptcy Court for the Southern District of New York overseeing the carrier's reorganization denied (NWA)'s request to enjoin the attendants from striking. The union set a deadline of 9:01 p.m. Central time Friday for the start of unannounced, targeted actions. In arguing that the court was mistaken, (DOJ) said that the USA "has a vital interest in this matter" and warned that a strike "would cause serious disruptions not only to Northwest (NWA)'s operations, but to the air transportation system generally." It said that "neither [NWA) or the (AFA] has been released from mediation and the flight attendants' resort to self-help would therefore violate the (RLA)."
Meanwhile, flight attendants are offering passengers the opportunity to register on the (AFA) website to receive an e-mail warning if their flights might be affected by work actions scheduled to begin Friday. "Due to the nature of "CHAOS," that notice may come at the last minute for some strikes," the union said. "We will endeavor to provide as much notice as possible, but cannot guarantee that the notice will prevent all disruptions to your travel plans."
A schedule posted on the site indicated cabin staff would picket or distribute leaflets during the day Friday at Honolulu, Los Angeles, Memphis and San Francisco airports.
Later, The USA District Court for the Southern District of New York issued a temporary injunction preventing Northwest Airlines (NWA)flight attendants (CA) represented by the (AFA) from conducting any strike or work action, granting the airline's appeal and reversing an earlier ruling by the US Bankruptcy Court.
Judge Victor Marrero said a decision on whether or not (NWA) cabin staff have the right to engage in their program of targeted strikes, dubbed "CHAOS," will come this week. The union had set a Friday night deadline.
US (DOJ) said last week that the parties still were bound the Railway Labor Act (RLA) and that therefore (AFA) did not have the right to disrupt the airline's operations. The flight attendants (CA) argued that any unilateral change in a labor contract, in this case, the airline's imposition of terms rejected by union members in a vote last month, triggered the right to strike.
"Management and the courts can stall us, but they cannot defeat us," (AFA) Interim (MEC) President Mollie Reiley said. "We will continue to prepare ourselves and our members for "CHAOS." This is not over. Something is terribly wrong when a company that just made a quarterly operating profit of nearly +$200 million continues to insist on the same cuts it demanded from flight attendants (CA), when it was losing money." (NWA) reported a second-quarter net loss of -$285 million but earned +$179 million excluding reorganization-related items.
(NWA) CEO, Doug Steenland said, "We remain committed to negotiating a consensual agreement with our flight attendants (CA) and hope to accomplish that goal in the near future."
Northwest Airlines (NWA) announced successful completion of the (IATA) Operational Safety Audit and the US Department of Defense Commercial Air Carrier Quality and Safety Survey.
Northwest Airlines (NWA) applied for authority to operate a daily Detroit - Shanghai service beginning around March 25 aboard a 747-400. "Detroit to Shanghai nonstop service is Northwest (NWA)'s top international route priority. Our 122-gate WorldGateway at Detroit terminal complex is perfectly situated to serve as an efficient gateway to China and is the only major hub that can easily offer competitive service to existing nonstop service from Chicago O'Hare," Executive VP, Phil Haan said. American Airlines (AAL), Continental Airlines (CAL), and United Airlines (UAL) also have applied to serve China daily starting next year.
Northwest Airlines (NWA) and Air France (AFA), SkyTeam partners, who were rebuffed by the USA Department of Transportation (DOT) as part of the alliance's bid for transatlantic antitrust immunity last December, opted to move forward with a codeshare agreement.
(NWA) will place its code on (AFA)'s six weekly Paris Charles de Gaulle (CDG) - Detroit (DTW) flights and (AFA) will do likewise on (NWA)'s daily service. In the fall, the agreement will be expanded to include (AFA) connections into Europe, Africa and the Middle East and (NWA) flights from Detroit throughout the USA. Passengers will have access to each airline's loyalty programs and to the carriers' respective lounges at (CDG) and (DTW).
INCDT: Northwest Airlines DC-10-30 en route from Minneapolis to Mumbai via Amsterdam yesterday abruptly returned to Schiphol Airport (AMS) shortly after departure, at which point 12 passengers were arrested by US air marshals for "suspicious" behavior. News reports from Amsterdam said passengers were using mobile phones in flight, attempting to pass phones among one another and ignoring "fasten seatbelt" signs. Other reports said some passengers had suspicious-looking plastic bags. Air marshals, who usually remain undercover, reportedly announced their presence onboard and the flight returned to (AMS). The 12 arrested passengers were not formally charged; Dutch law allows them to be detained for three days before charges are brought. (NWA) said only that some passengers on the flight had raised "concern" and that it was cooperating with Dutch authorities. It cancelled the flight, saying the service would resume today. UK authorities said this week they had seized 200 cellphones as part of the investigation into the transatlantic airline bombing plot and have indicated the plotters could have used cellphones to detonate explosives inflight.
Later, Dutch authorities released all 12 passengers detained Wednesday after a Northwest Airlines (NWA) DC-10-30 bound for Mumbai abruptly returned to Amsterdam. US air marshals onboard the flight thought the 12 male Indian citizens aged 25-35, reportedly dressed in traditional South Asian clothing, were acting in a suspicious manner. The plane returned to Schiphol accompanied by Dutch fighter jets shortly after departure. The passengers reportedly were passing cellphones to each other, behavior deemed potentially threatening in light of UK authorities' contention that the transatlantic airline bombing plotters may have been planning to use phones to detonate explosives. A Dutch prosecutor's office said in a statement that "a thorough investigation of the cellphones in the plane found that the phones were not manipulated and no explosives were found onboard the plane." It added that interrogations of the men and other witnesses yielded "no evidence . . . that these men were about to commit an act of violence."
Northwest (NWA) was among the most vocal critics of the December (DOT) decision, calling it "arbitrary and capricious." The department did give tentative approval for blanket codesharing authority among (NWA), (AFA), Delta Air Lines (DAL), (KLM), Alitalia (ALI) and (CSA) Czech Airlines, which it said would give carriers the opportunity "to achieve most of the benefits they are seeking."
"This is the tangible result of our strategy of network development and alliances," Air France (AFA) said of the deal.
September 2006: (NWA) said it flew 7.05 billion (RPM)s in August, down -6.2% from the year-ago month. Capacity fell -8.8% to 8.2 billion (ASM)s and load factor rose +2.3 points to 85.9% LF. Domestic traffic dropped -4% to 3.85 billion (RPM)s against a -7.4% decline in capacity to 4.52 billion (ASM)s, raising load factor +3.1 points to 85.2% LF. International (RPM)s were down -7.3% to 2.73 billion, (ASM)s fell -8% to 3.06 billion and load factor rose +0.6 point to 89.4% LF.
Northwest Airlines (NWA) will expand its freighter service to Guangzhou to daily from thrice-weekly from March 25. Return flights will stop in Japan. (NWA) already serves Shanghai daily.
Northwest Airlines (NWA) reported a net profit of +$101 million in July in a filing to the USA Securities and Exchange Commission. Operating revenues totaled $1.2 billion and expenses came to $1.02 billion, resulting in a +$180 million operating profit. It recorded $39 million in reorganization costs.
Meanwhile, both the airline and its flight attendants (CA), represented by the Association of Flight Attendants-CWA (AFA), were awaiting a ruling late Friday from USA District Judge, Victor Marrero on whether work actions can go ahead. Marrero granted (NWA)'s request for a temporary injunction on August 25, but did not say when he would issue a final decision. The union said last week that it was not interested in returning to the negotiating table if it was denied the right to self-help.
Northwest Airlines (NWA) announced that it is recalling all 1,131 furloughed flight attendants (CA), including those on voluntary leave.
They will be returned to work September 30. The (AFA), which along with the company, is awaiting a US District Court ruling on its right to strike, said it was "pleased" by the decision, which "indicates Northwest (NWA)'s continued growth and the airline's return to profitability." It also said the recall "is the result of a high number of retirements and resignations over the past several months." (NWA) will consider those flight attendants (CA) who do not respond to the recall notice within a week as having resigned.
Later, US District Judge, Victor Marrero issued an injunction that prevents Northwest Airlines (NWA) flight attendants (CA) from striking or engaging in other disruptive work actions, stating that such actions could cripple the bankrupt carrier and unduly damage the USA transportation system.
The judge had issued a temporary injunction to the same effect last month. The latest ruling effectively sends the case back to the bankruptcy court, which previously declined to block the attendants from engaging in unannounced (CHAOS) work actions, claiming it did not have the legal authority to do so.
In last week's ruling, Judge Marrero said the lower court was in error and that it does indeed have the authority to block airline strikes since USA laws recognize "the importance of the nation's interstate transportation system of railroads and airlines" and the damage that could occur if work actions disrupt the system.
"Judge Marrero's decision to grant Northwest (NWA) the injunction allows our customers to continue to book Northwest Airlines (NWA) with confidence, knowing that we will get them to their destinations reliably," (NWA) President and CEO, Doug Steenland said, adding that the carrier "remain[s] committed to negotiating a consensual agreement with our flight attendants."
Cabin staff, represented by the Association of Flight Attendants-CWA, blasted the decision and accused the court of cozying up to corporate interests at the expense of workers. "Management and the courts can gang up on us but they cannot defeat us," (MEC) President, Mollie Reiley said. (AFA-CWA) General Counsel, David Borer said the union will appeal the ruling, which is "obviously an incorrect reading of the law."
Northwest (NWA) already has reached concessionary agreements with its other unions and said it is willing to reopen talks with flight attendants.
Northwest Airlines (NWA) mechanics (MT), represented by the Aircraft Mechanics Fraternal Association (AMFA), who went on strike in August 2005 are eligible for unemployment benefits following a reversal this week by the Minnesota Court of Appeals. A lower court had ruled that custodians and cleaners were eligible, but the mechanics were not, a decision reversed when the higher court ruled, "It is undisputed that Northwest (NWA)'s terms imposed on (AMFA) members of both crafts constituted -25% wage reductions, as well as benefit cuts. We agree . . . these substantial reductions were sufficient to amount to a lockout, entitling the custodians and cleaners to unemployment benefits." (AMFA) said it still represents 3,551 mechanics (MT), cleaners and custodians.
(NWA) said it will expand its Indianapolis service, offering a second daily frequency to Fort Lauderdale, Tampa (November 1 - April 30), Fort Myers (January 3 - April 30) and Orlando (from October 1). The Florida flights will be aboard 100-seat, DC-9-30s.
Northwest (NWA) announced an increase in service from Indianapolis to New York and Florida for the coming winter schedule as follows to:
New York 4th daily flight starts November 1st (CRJ-200);
Fort Lauderdale 2nd daily flight starts November 1st (DC-9-30);
Fort Myers 2nd daily flight starts January 3rd (DC-9-30);
Orlando 2nd daily flight starts October 1st (DC-9-30);
Tampa 2nd daily flight starts November 1st (DC-9-30).
Northwest (NWA) Cargo was awarded 4 additional weekly cargo flights from the USA to China for a total of 14 flights a week. The airline currently serves Guangzhou and Shanghai with Freighter airplanes. (NWA) Cargo will increase the frequency of service into Guangzhou to 7 flights a week from March 25th.
(SAS) Cargo became the eighth airline to join Cargo Portal Services (CPS), the Unisys-operated online booking portal that gives freight forwarders free Internet access to member carriers' schedules and space availability and the ability to book and confirm shipments in real time. (CPS) membership includes American Airlines (AAL), Air Canada (ACN), Austrian Airlines (AUL), (KLM), Northwest Airlines (NWA), and United Airlines (UAL). Continental Airlines (CAL) is in the process of going live.
The USA Department of Transportation (DOT) approved the transfer of the air operating certificate (AOC) of defunct Independence Air (BLR) to Northwest Airlines (NWA), moving it closer to launching its new Regional subsidiary "Compass Airlines." The proposed new service from Washington Dulles could begin as early as October. "We tentatively find that the introduction of Compass' service will likely enhance competition in the domestic airline industry, particularly in light of the recent cessation of Independence Air (BLR)'s operations at Washington Dulles International Airport, where Compass will base its new service," (DOT) wrote in a show cause order issued this week. "We also tentatively conclude that the proposed transfer will benefit Compass in its ability to initiate and sustain its proposed service."
The (DOT) further determined that Compass would "enhance air service in a variety of small and medium size markets and provide those communities and passengers with convenient connections to Northwest's domestic and international markets." (DOT) spokesperson Bill Mosley said the ruling is followed by a 14-day public comment period. (NWA) said in its filing it will begin with scheduled service between Minneapolis-St Paul and Washington Dulles (IAD) with a single 50-seat CRJ. It plans to begin taking delivery of 76-seat RJs in March. During its first year of operation, Compass would operate up to four airplanes.
Officials from Dallas/Fort Worth International Airport (DFW) said yesterday that American Airlines (AAL)'S proposed (DFW) - Beijing service would generate $180 million annually for the state economy and plans to submit its own economic impact study to the USA Dept of Transportation (DOT) in support of (AAL)'s application to win the new route authority.
The (DFW) salvo is the latest volley in an all-out campaign by four USA carriers competing for a new route to China made available in the most recent air services agreement between China and the USA.
In other proposals, United Airlines (UAL) wants to link Beijing to its Washington Dulles hub, Northwest Airlines (NWA) has proposed service between Detroit and Shanghai and Continental Airlines (CAL)would like to serve Shanghai from Newark. All are making their cases to (DOT), which likely will choose a carrier by year end.
"It's very competitive every time a new route opens up," (AAL) spokesperson Tim Wagner said. "Especially for Asia and particularly China, which is one of the last wide-open markets that is completely underserved."
Earlier in the week, (UAL) launched a campaign titled "Capital-to-Capital Coalition" with a team of former USA trade officials on its side. "We are unanimous in our belief that it is very much in our nation's public interest to do everything possible to strengthen the relationship between the USA and China," wrote the group of eight former US trade representatives, who collectively worked for Presidents Nixon, Carter, Reagan, both Bushes and Clinton.
A week ago, Continental (CAL) held a press conference in New York extolling the importance of linking two of the world's leading financial centers and pointed to the large population of Chinese living in the New York area. It currently offers service from Newark to Beijing and Hong Kong. "We have support from all over the country - - not just the New York area - - for the connecting service," (CAL) spokesperson, Mary Clark said.
In its filing with (DOT), (NWA) declared that its "Detroit hub wins hands down" for the new service, saying it will provide better connections than others, "especially (DFW) which is absurdly circuitous for large areas of the United States." (NWA) currently has authority for passenger service to Shanghai, Beijing and Guangzhou via Tokyo Narita. Spokesperson Dean Breest said more than 70,000 people have signed the carrier's online petition in support of the new service.
A330-223 (778, N860NW), delivery. DC-10-30 (46580, N223NW), WFU and stored at Marana. 2 DC-10-30's (48267, N238NW; 48316, N244NW), sold to Omni Air International (OAE).
October 2006: Northwest Airlines (NWA) flew 6.17 billion consolidated (RPM)s passenger traffic in September, a -5.5% decline from the year-ago month. Capacity fell -7.1% to 7.58 billion (ASM)s and load factor rose +1.3 points to +81.3% LF. Domestic (RPM)s dropped -3.3% to 3.17 billion as (ASM)s fell -4.4% to 4.03 billion, raising load factor +0.9 point to 78.6% LF. International traffic decreased -5.2% to 2.59 billion (RPM)s against a -7.2% decline in (ASM)s to 2.97 billion, sending load factor up +1.8 points to 87.2% LF.
Bankrupt Northwest Airlines (NWA) said that it anticipates recording a loss for September through December due to a "softening in revenue" and will earn a "modest profit" for full-year 2006 excluding reorganization items on more than $12 billion in revenues.
The carrier previously reported a +$50 million profit, excluding restructuring costs, for the first six months of 2006.
President and CEO, Doug Steenland said the full-year profit outlook partly is reflective of an anticipated 8% (ASM) decrease from 2005. He called the expected modest profit "a testament to the success of our ongoing restructuring efforts and the substantial sacrifices made by our employees and other Northwest (NWA) stakeholders."
Steenland warned that the anticipated profit does not mean (NWA)'s reorganization efforts are complete. "While a full-year profit would be an important accomplishment in the restructuring efforts at Northwest (NWA) and would help us continue to attract necessary capital, we still have work to do to meet our long-term pre-tax margin goal of 6% - 7%, which will allow Northwest (NWA) to compete successfully in the future and acquire and finance new airplanes," he said.
The company projected its pre-tax margin for 2006 will be just 2%. Steenland added that (NWA) remains "focused on emerging from Chapter 11 protection by the middle of next year."
Northwest Airlines (NWA) announced a tentative agreement with its striking mechanics (MT), represented by the Aircraft Mechanics Fraternal Assn (AMFA), which will conduct a ratification vote during the next month. (NWA) said the deal offers one week of layoff pay per year of service up to five weeks, or up to 10 weeks of separation pay for those leaving the company. Employees accepting layoff would remain on furlough status for two years and may apply for open positions, (NWA) said. Last month, the Minnesota Court of Appeals ruled that (AMFA) mechanics were eligible for unemployment benefits.
(NWA) will launch daily Hartford - Amsterdam (AMS) service on July 1. (BDL) becomes Northwest/(KLM)'s 18th North American gateway to Amsterdam. Five-times-weekly service from Detroit (DTW) to Brussels will begin May 7 and to Dusseldorf June 5. The latter is the second German destination (NWA) serves from (DTW) after Frankfurt. The two routes become daily on June 15. On the same day, it will increase frequencies to (AMS) to five-times-weekly. Winter season flights will grow to four-times-weekly. All flights will use 757-200s.
One month later, a second daily Boston - (AMS) will be added. (NWA) also will take over operation of (KLM)'s twice-daily (AMS) - Newark service. The Dutch carrier will begin operating a third daily New York (JFK) - Amsterdam flight on July 1. Up to five extra weekly flights will be added between (AMS) and Los Angeles and Toronto as well, but no further details were provided.
USA legacy carriers have made substantial progress in becoming more competitive but still trail low-cost carriers in a number of areas related to labor efficiency, a new analysis by the USA Department of Transportation's Bureau of Transportation Statistics (BTS) confirms. The analysis, based on Form 41 data filed by seven network carriers, and seven budget airlines, reveals that Low Cost Carriers (LCC)s reduced the number of full-time-equivalent employees (FTE) per airplane by -16%, from 92 in the first quarter of 2001 to 77 in the first quarter of 2006, while the network carriers reduced their (FTE)s per airplane by -23% but still averaged 99 at the end of the study period, +28.6% higher than the (LCC) group.
Among network carriers, United Airlines (UAL) showed the largest gain as (FTE)s dropped -27.5% from 160 to 116. US Airways (USA) (which was counted in the network group, while America West Airlines (AMW) was included in the (LCC) group), and Northwest Airlines (NWA) had the fewest employees per airplane at the end of the first quarter with 82.
In terms of percentage reduction in (FTE)s, JetBlue Airways (JBL) led the low-cost group as it went from 127 in 2001 to 95 in 2006. In numeric terms, however, most (LCC)s did better: Spirit Airlines (SPR)had 62 (FTE)s per airplane as of the 2006 first quarter, followed by AirTran Airways (CQT) (64), Southwest Airlines (SWA) (70) and America West (AMW) (83).
The (LCC)s also boarded an average of +67% more passengers per (FTE) than their network counterparts, 195 to 117. Southwest (SWA) led all airlines at 234 enplanements per (FTE) in the first quarter, up from 203 five years earlier. On a percentage basis, AirTran (CQT)performed better, rising from 173 to 220. Among network airlines, (USA) led the group with 149 enplanements and (UAL) lagged at 102, although this was up from 65 in 2001. Overall, the network group improved from an average of 85 enplanements per (FTE) to 117, while the (LCC) group rose from 164 to 195.
Turning to compensation (salary plus benefits), network carriers reduced their annual compensation cost gap to $7,514 compared to $22,139 in 2001, (BTS) reported. Southwest (SWA)'s average annual compensation led the industry at $95,555. Among legacy airlines, (NWA) was highest at $91,613, and (USA) was the lowest at $73,642. Among the (LCC)s, Frontier Airlines (FRO) had the lowest average employee compensation at $55,432 and AirTran (CQT) was second-lowest at $59,637.
Northwest Airlines (NWA) will complete the retirement of the DC-10 from its transatlantic network, leaving its Minneapolis - Honolulu service as the only route operated with the airplane. It will begin using an A330 on that route on January 7. It earlier deployed an A330-300 on its daily Memphis - Amsterdam service, replacing the DC-10-30 used on the route. From November 26, the route will be operated with a 243-seat A330-200. The A330-200 provides (NWA) with up to -30% in fuel savings, lower maintenance costs, and is much quieter. As an example, on the Minneapolis - Amsterdam route, the A330-200 can carry +29 more passengers, yet consume -6,100 (23,090 litres) fewer gallons of fuel each way than the DC-10.
Northwest Airlines (NWA) set the stage for post-bankruptcy operations and the launch of its "Compass" regional subsidiary with orders for 36 CRJ900s and 36 Embraer EMB-175s, plus an undisclosed number of options, which the carrier said will allow it "to pursue growth opportunities in important markets, including in the Heartland of the USA, and provide Northwest with improved airplane economics."
Compass, which received USA Department of Transportation approval last month, will operate the EMB-175s as Northwest Airlink. Another partner, yet to be determined, will operate the CRJ900s. The acquisition of CRJs was part of an agreement among (NWA), Bombardier, GECAS (GEF) and Export Development Canada, to restructure the carrier's existing fleet of 126 CRJ200s. Fifteen previously rejected CRJ200s will return to the Airlink fleet, which subsequently will total 141 airplanes.
The order fills the gap between the CRJ200 and (NWA)'s fleet of 159 DC-9s, 56 of which are in storage. President and CEO, Doug Steenland said, "We are continuing to meet with airplane manufacturers to review our requirements for a 100-seat airplane that would replace our DC-9s" but that the "introduction of highly efficient 76-seat airplanes into the fleet will allow Northwest (NWA) to offer new service and develop markets where demand does not yet support service with a 100-seat, DC-9-30, but exceeds what could be accommodated with a 50-seat Northwest Airlink CRJ200."
The value of the new orders was not disclosed. The airplanes will be configured in two classes, seat 76 passengers (12 in first, 64 in economy) and be powered by (GE CF34)s. The deal is subject to approval by the USA Bankruptcy Court.
Northwest Airlines (NWA) will revamp 10 757-200s for an expansion of its transatlantic network. The routes include two new destinations from (NWA)'s Detroit hub and the first nonstop transatlantic service from Hartford's Bradley International Airport. "The combination of our customer-focused WorldGateway at the Detroit hub, competitive costs and the 757 airplanes, which allows us to match capacity with economically viable demand, has made this major expansion possible," President and CEO, Doug Steenland said.
The 757s, which must be Extended Twin-engine OPerationS (ETOPS) certified, will be fitted with winglets and will seat 160 passengers in two classes. The business class cabin will be reconfigured in a two-aisle-two alignment with 16 new seats, providing passengers with portable on-demand In Flight Entertainment (IFE), 1.5 m of personal space, a computer port and other amenities. Coach will be configured in a three-aisle-three arrangement with 144 seats with 4 inches of additional pitch.
Northwest Airlines (NWA) announced the completion of restructured agreements with Boeing and Rolls-Royce that will allow the bankrupt carrier to begin taking delivery of its 787s in August 2008. (NWA) placed an order for 18 (Trent 1000)-powered 787 Dreamliners, with purchase rights for an additional 50, last year. The agreements, details of which were not revealed, are subject to USA Bankruptcy Court approval.
The 787 Dreamliner boasts faster speeds, greater fuel efficiency and more cargo capacity. Passengers will see a new interior layout, newfangled seats, wider aisles, bigger windows, less cabin pressure and higher humidity.
Northwest (NWA), Michigan's largest passenger air carrier, is the first North American carrier to place an order, but Chicago-based Boeing Co (TBC) says 34 airlines have ordered 432 of the planes, worth more than $68 billion. Northwest (NWA) plans to use its 787s on flights to Asia and other overseas routes.
"We have now completed restructuring contracts on our new Airbus and Boeing airplanes as well as our new and existing regional jet airplane fleets," Executive VP and CFO, Neal Cohen said. "With these agreements, as well as numerous other restructurings completed during the Chapter 11 process, Northwest (NWA) will have competitive airplane ownership costs going forward, along with the ability to add to its mainline and regional fleet some of the most efficient airplanes in the industry today."
DC-9-41 (47288, N760NW), & DC-9-51 (48110, N785NC), removed from storage and returned to service. DC-10-30 (46581, N224NW), WFU and stored at Marana. A330-323E (784, N812NW), delivery.
November 2006: Northwest Airlines (NWA) flew 6.49 billion (RPM)s passenger traffic in October, a +0.2% rise over the year-ago month. Capacity fell -0.7% to 7.83 billion (ASM)s and load factor was up +0.7 point to 82.8% LF. Domestic traffic grew +2.5% to 3.43 billion (RPM)s against a -1.4% increase in capacity to 4.2 billion (ASM)s, lifting load factor +0.9 point to 81.7% LF. International (RPM)s were up +1.9% to 2.61 billion, (ASM)s rose +1.5% to 3.03 billion and load factor increased +0.3 point to 86.1% LF.
Northwest Airlines (NWA) reported a $37 million consolidated October profit on $1.03 billion in revenues. Year-ago figures were not available, but the airline did lose -$346 million in the six weeks following its entry into bankruptcy on September 14, 2005. (NWA)'s October expenses came to $980 million and its operating profit was +$52 million. It has forecast a "modest profit" for 2006 excluding reorganization items.
Heavy bankruptcy-related charges pushed Northwest Airlines Corp (NWA) into the red for the third quarter, as it reported a net loss of -$1.18 billion, compared to a loss of -$475 million in the year-ago period.
Excluding reorganization and unusual items, that totaled $1.43 billion on a pre-tax basis, (NWA) earned +$252 million in the current period, compared to a loss of -$234 million in the 2005 third quarter, if $159 million in pre-tax reorganization items are excluded. The company noted that it lost -$13 million in September on an operating basis.
President and CEO, Doug Steenland said the improvement in quarterly results "demonstrates further, that we are making steady progress in restructuring Northwest Airlines (NWA)." The September loss, however, "indicates that we still have work to do in order to reach our goal of sustained profitability."
Third-quarter operating revenues rose +0.9% to $3.41 billion as a -15.7% drop in other revenues, largely negated a +2.9% increase in passenger revenues. Operating expenses fell -14.2% to $3.04 billion paced by a -26.2% decline in payroll and benefit costs. Operating income was +$366 million - - a 10.7% margin - - compared to a loss of -$167 million last year.
Yield per (RPM) climbed +10.4% to 14.19 cents on a -7.2% decline in (RPM)s. With (ASM)s down -9.1%, load factor lifted +1.7 points, boosting passenger (RASM) +12.8% to 12.10 cents. Cost per (ASM), meanwhile, fell -7.1% to 10.98 cents, or -11.8% to 7.27 cents, if fuel and special charges are excluded.
For the nine months ended September 30, (NWA)'s loss widened to -$2.57 billion from -$1.25 billion in the year-ago period. Current-period results were net of $2.87 billion in pre-tax reorganization items, while 2005 results included $159 million in pre-tax reorganization items.
Northwest Airlines (NWA) intends to recall approximately +150 furloughed pilots (FC) by July 2007, according to the Air Line Pilots Assn (ALPA), which issued a clarification in response to several press reports indicating the carrier was recalling "hundreds" of pilots. "The recall pace is expected to be steady throughout 2007 although the staffing situation is extremely fluid," (ALPA) said.
Northwest Airlines (NWA) said it will hire +200 ground workers at Minneapolis-St Paul.
Northwest Airlines (NWA) ground workers at Minneapolis-St Paul International Airport staged a brief walkout to protest the hiring of nonunion contract workers to clean airplanes, part of (NWA)'s effort to slash costs to emerge from bankruptcy. The protest reportedly involved 250 workers and lasted less than an hour. It is believed to be isolated and merely symbolic; the (IAM) union representing (NWA) ground workers agreed to the contract cleaners as part of a concessionary deal. The airline said the protest did not disrupt operations.
Northwest Airlines (NWA) flight attendants (CA), represented by the Association of Flight Attendants (AFA), argued in a USA appeals court for the right to strike over management's imposition of -$195 million in annual concessions. A federal judge issued an injunction in September, preventing the flight attendants (CA) from engaging in work actions and the National Mediation Board subsequently ordered the two sides back to the negotiating table. But (AFA) told the appeals court that (NWA)'s imposition of cuts despite flight attendants (CA)'s rejection of two tentative concessionary agreements gives workers the right to work actions. (NWA) said it is seeking an agreement with 7,300 flight attendants (CA), but argued that any work action would violate USA laws governing airline labor relations. It is not known when a ruling will be issued.
Northwest Airlines (NWA) said it will not renew interline agreements with approximately 50 carriers, that do not have plans to offer interline e-ticketing when the accords expire on January 1. (NWA) currently offers interline e-ticketing with 43 airlines and said, "interline agreements are the final phase in our effort to offer the many benefits of e-ticketing to all of our customers worldwide." It said the 50 carriers "involve a small volume of interline activity" and it will consider new agreements with them, if they agree to a satisfactory alternative like Worldspan's e-ticket interchange product.
INCDT: DC-9-31 (47186, N895OE), damaged beond economical repair (W/O) in collision with tug.
757-251 (28486, N539US), removed from storage and returned to service. A330-223 (796, N861NW), delivery.
December 2006: Northwest Airlines (NWA) flew 6.13 billion system (RPM)s passenger traffic in November, up +3.2% from the year-ago month. Capacity grew +1.7% to 7.51 billion (ASM)s, bumping load factor up +1.3 points to 81.7% LF. Domestic traffic rose +5.2% to 3.32 billion (RPM)s against a +2.9% increase in capacity to 4.12 billion (ASM)s and load factor improved +1.8 points to 80.6% LF. International (RPM)s rose +3.6% to 2.4 billion and (ASM)s were up +3.1% to 2.83 billion, raising load factor +0.4 point to 85% LF.
Northwest Airlines (NWA) reported a -$274 million net loss in November, but a positive operating result of +$52 million. Revenues were $981 million and expenses came to $929 million.
Northwest Airlines (NWA) last week sought permission from a USA Bankruptcy Court to hire Evercore Group as an adviser on "strategic alternatives." The move was seen widely as preparation to respond to a potential US Airways (AMW)/(USA)/Delta Air Lines (DAL) merger. United Airlines (UAL) already has retained Goldman Sachs to provide merger advice. Bankrupt (NWA) will pay Evercore $275,000 to launch the relationship and then $75,000 monthly. The bankruptcy court must approve the deal. Evercore reportedly would get $3 million upon (NWA)'s emergence from Chapter 11 protection and $2 million if it guided the airline through a merger.
A spokesperson for MAIR Holdings, parent of bankrupt Mesaba Airlines, confirmed that the company is in discussions with Northwest Airlines (NWA) about a possible acquisition.
Mesaba has been in bankruptcy since October 2005. "The discussions are at a very preliminary stage, so they don't merit specific comment at this point," MAIR's Jon Austin said yesterday. At the same time, he said the company will continue "working with Mesaba on restructuring and any opportunity it presents." Northwest (NWA) currently owns about 20% of MAIR stock. (NWA) officials indicated the deal to acquire Mesaba would be a noncash transaction subject to approval by the bankruptcy court.
Mesaba spokesperson Liz Costello said that employees were informed of the talks, but would not say which party initiated the discussions. "We are looking at all of the opportunities that this could present," she said. "We think it would be a good thing for our employees and the customers we serve." Mesaba operates a fleet of 46 Saab 340s as a Northwest (NWA) Airlink partner.
Northwest (NWA) issued a filing to the USA Securities and Exchange Commission saying it expects to report a +$230 to +$270 million pre-tax profit in 2006, excluding reorganization and unusual items. The pool available under its profit-sharing plan will be $23 - $27 million.
Bankrupt Northwest Airlines (NWA) said in a court filing, that it has agreed to sell nine DC-10-30s to ATA Airlines (AAT), a transaction (NWA) said would bring "relief," that will help it to reorganize and eventually emerge from Chapter 11 protection.
The carrier plans to retire all its DC-10s by the end of next month, and said it marketed the nine airplanes to "70 potential purchasers." ATA (AAT)'s offer, which was not revealed, "represents the best available transaction for the sale of the airplanes," it said in the filing.
(NWA) operated 24 DC-10-30s prior to entering bankruptcy, but said it will have just one left after the sale to ATA (AAT) is cleared, and will remove all such airplanes from service no later than January 31. The agreement with ATA (AAT) calls for the DC-10s to be delivered beginning this month and continuing through February. Each of the nine will be sold with three engines, (NWA) said. Two additional spare engines also will be sold to ATA (AAT). Two airplanes will be dismantled.
7 DC-10-30s (46580; 46581; 46582; 46583; 46912; 46915; & 47844), plus (47845; & 48282) dismantled for spares, all to ATA (AAT). 1 A319-114 sold to Rossiya Airlines (SDM). A330-323E (799, N813NW), delivery.
January 2007: Northwest Airlines (NWA) flew 6.38 billion (RPM)s passenger traffic in December, up +1.1% from the year-ago month. Capacity rose +0.1% to 7.9 billion (ASM)s, and load factor went up +0.7 point to 80.7% LF. Domestic (RPM)s rose +1.4% to 3.45 billion against a -1% decline in (ASM)s to 4.34 billion, lifting load factor +1.9 points to 79.6% LF. International traffic grew +4.4% to 2.52 billion (RPM)s, capacity was up +5.8% to 2.99 billion (ASM)s and load factor dropped -1.1 points to 84.1% LF.
AAR (ALC) will perform heavy Maintenance, Repair & Overhaul (MRO) and interior modifications on select Northwest Airlines (NWA) 757s. Work will be completed in August 2007. Maintenance checks will be conducted on five previously stored airplanes, while cabin modifications will prepare 10 airplanes for (NWA)'s expanded international service.
Northwest Airlines (NWA) said that it has reached an agreement to acquire its regional Airlink partner, Mesaba Airlines.
The offer must be approved by the bankruptcy court and Mesaba parent MAIR Holdings. Both Mesaba and Northwest (NWA) have been in bankruptcy for more than a year. Mesaba operates a fleet of 46 Saab 340s as an Airlink partner.
"Northwest (NWA) believes that the proposed transaction would be in the best interest of Mesaba's creditors, its employees and the many customers who depend on Mesaba," (NWA) said in a statement. If the deal goes through, it will be included as part of (NWA)'s reorganization plan due January 16.
"We think it's a good deal," a Northwest (NWA) spokesperson said. "It secures our core business and positions us for growth." The spokesperson added that representatives from Mesaba and its creditors already have agreed to the plan.
The acquisition would not affect (NWA)'s plan to establish a wholly owned regional, "Compass Airlines." "We are still moving forward with Compass," the spokesperson said. (NWA) three months ago announced orders for 36 Embraer EMB-175s to be operated by Compass, along with 36 CRJ-900s. This latest announcement creates the possibility that Mesaba will operate the CRJs along with the Saabs.
Later, MAIR Holdings minority shareholder, Riley Investment Management, which reportedly holds 5.2% of the Mesaba Airlines parent, said that Northwest Airlines (NWA)'s offer to acquire Mesaba is "grossly inadequate" and that it will attempt to block or change the deal. Riley said (NWA) deliberately "destroyed value for MAIR shareholders" and is now trying to buy the bankrupt regional below fair market value.
Later, MAIR Holdings' deal with Northwest Airlines (NWA) was announced that will see bankrupt Mesaba Airlines become a wholly owned subsidiary of (NWA) under a stock purchase and reorganization agreement. Mesaba said it intends to emerge from Chapter 11 this spring, having reduced annual costs by -$68 million. It will have a $145 million unsecured claim in (NWA)'s bankruptcy case in exchange for the entirety of Mesaba's new common stock. The regional said it expects to sell the claim to fund distributions to creditors, with the balance of the proceeds going to MAIR.
Meanwhile, MAIR will continue to own Big Sky Airlines and will pay approximately $35 million for the 5.7 million shares of MAIR owned by (NWA). That transaction is expected to close April 15. (NWA)'s $7.3 million claim against Mesaba will transfer to MAIR, while (NWA) and MAIR will release all claims against each other. MAIR estimated that it could receive $30 - $60 million after all distributions are made in accordance with Mesaba's reorganization plan.
Northwest Airlines (NWA) plans to emerge from Chapter 11 as an independent company in the second quarter, and to eliminate unsecured debt by paying unsecured creditors with common stock in the reorganized carrier, according to its recently filed reorganization plan.
(NWA) was given an extension to February 15 by the USA Bankruptcy Court to file a statement of disclosure, in which the company will detail its reorganization plan publicly. This filing and an accompanying statement, which outlined only the broad parameters of the restructuring, said the plan implements "favorably renegotiated" purchase agreements with airplane and engine manufacturers, as well as new lease agreements with airports and other facilities that will provide "substantial" cost savings.
As expected, common and preferred shareholders will receive nothing, while unsecured creditors will get stock in the new company, although (NWA) did not say how much. In addition, they will have the right to purchase additional stock in a rights offering, terms of which were not disclosed.
"Over the past 16 months, we have achieved the three key objectives we set for our restructuring: We have removed $2.4 billion in annual costs from the business, we have restructured our fleet, and entered into new airplane purchase agreements, and we have significantly strengthened our balance sheet. We remain on track to report a pre-tax profit for the full year 2006," President & CEO, Doug Steenland said.
The plan also implements renegotiated collective bargaining agreements with the carrier's labor groups save the flight attendants (CA), who have not ratified a new labor deal, but still could do so, (NWA) said. The new labor accords are expected to produce -$1.4 billion in annual savings.
"We have moved through the bankruptcy process quickly, because of our success in addressing key cost and revenue issues, including labor costs and pensions, new agreements with key suppliers, restructuring the Northwest (NWA) fleet, and substantially reducing debt," Steenland said.
The plan calls for (NWA) to raise exit financing via an equity rights offering and anticipates it may supplement that offering "by obtaining additional new equity capital from one or more private equity investors."
Starting May 7th, Detroit - Frankfurt, increased to 2/day using 757s/A330s. Starting October 27th, Detroit - Frankfurt, reduced to daily, using 757s/A330s.
757-251 (23202, N514US), removed from storage & returned to service (RTS). A330-323E (806, N814NW), delivery.
February 2007: Northwest Airlines (NWA) flew 5.96 billion (RPM)s passenger traffic in January, a +1.5% increase over the year-ago month. Capacity rose +3.8% to 7.64 billion (ASM)s, dropping load factor -1.8 points to 77.9% LF. Domestic traffic grew +2.7% to 3.14 billion (RPM)s, capacity was up +3.3% to 4.12 billion (ASM)s and load factor dipped -0.5 point to 76.2% LF. International (RPM)s rose +3.9% to 2.46 billion, capacity climbed +9% to 2.96 billion (ASM)s and load factor fell -4.1 points to 83% LF.
Northwest Airlines (NWA) lost -$349 million in January, narrowed slightly from a -$382 million deficit in January 2006. Revenues rose +0.2% to $892 million, and expenses fell -4.3% to $914 million. Operating loss decreased to -$22 million from -$65 million in the year-ago month. (NWA) took $291 million in reorganization charges in January.
Northwest Airlines (NWA) Corp reported a 2006 net loss of -$2.8 billion owing to heavy reorganization costs, widened slightly from a -$2.56 billion loss in 2005, as it continues to work through Chapter 11 restructuring.
(NWA) said it posted a pre-tax profit of +$301 million before reorganization items, a significant turnaround from a 2005 pre-tax loss of -$1.38 billion on a similar basis. "To report an annual pre-tax profit is another major milestone in Northwest (NWA)'s restructuring efforts," President & CEO, Doug Steenland said. "Our efforts have allowed us to implement a new, competitive global network carrier cost structure."
Full-year revenue rose +2.3% to $12.57 billion, while expenses decreased -10.4% to $11.83 billion, producing operating income of +$740 million, reversed from a -$919 million operating loss in 2005.
Mainline traffic declined -4.2% to 72.61 billion (RPM)s on a -6.7% drop in capacity to 85.6 billion (ASK)s, producing a load factor of 84.8% LF, up +2.2 points. Yield grew +8.3% to 12.71 cents, as (RASM) increased +11.1% to 10.78 cents and (CASM) dropped -5% to 10.95 cents. (CASM) excluding fuel, fell -11.9% to 7.52 cents.
For the fourth quarter ended December 31, (NWA) had a pre-tax loss of -$7 million before reorganization items, narrowed from a deficit of -$386 million in the year-ago quarter. Including reorganization items, it lost -$267 million versus a -$1.3 billion net loss last year.
Executive VP & CFO, Neal Cohen said the company is "on target to complete our restructuring in the second quarter." Delta Air Lines (DAL) also plans to emerge from bankruptcy in the second quarter.
Airline merger talk in the USA market is expected to cool, following US Airways (AMW)/(USA)'s withdrawal of its offer for Delta Air Lines (DAL), particularly with many carriers posting their best earnings since the late 1990s.
(AMW)/(USA)'s attempt to acquire (DAL) forced other airlines to survey the landscape and explore merger possibilities themselves; American Airlines (AAL), Northwest Airlines (NWA), Continental Airlines (CAL), and United Airlines (UAL) all reportedly hired merger advisers. But with (DAL) and (NWA) apparently on track to emerge from Chapter 11 later this year, the consolidation window may be closing, at least for the near term.
(AMW)/(USA) Chairman & CEO, Doug Parker said that once (DAL) emerges from bankruptcy, "I don't think you're going to see any consolidation in this business until the next down cycle." Several analysts said that merger talks are unlikely for at least six months to a year.
(NWA) President & CEO, Doug Steenland said that the airline, a subject of merger speculation, plans to submit a plan of reorganization this month that will be "predicated on Northwest (NWA) being a standalone, independent airline."
But (AMW)/(USA) airline executives likely will continue eyeing mergers over the long term, particularly if earnings fall off. "Over the last two years, I have met with almost every major airline CEO and I have heard most of them advocate for consolidation within the industry," Senate aviation subcommittee Chairman, Jay Rockefeller (Democrat-West Virginia) said, noting that cost-cutting "has been brutal . . . I know that our nation needs a financially healthy airline industry."
The USA Senate Commerce and Transportation Committee approved legislation to require the screening of all cargo in the bellies of passenger airplanes within three years. The Transportation Security Administration last May approved a rule that did not include such a strict requirement. "The steps proposed in this bill will both improve our existing security system and give the Transportation Security Administration the flexibility to combat new and emerging threats," committee Chairman, Daniel Inouye (Democrat-Hawaii) said in a statement. It was not clear what types of screening will be acceptable. Passenger airlines have strongly opposed 100% screening of belly cargo on grounds that it is impractical and will slow airfreight flow greatly. While yesterday's legislative action was a first step toward possible passage, the proposed bill still is a long way from becoming law, which requires passage by the full Senate and House as well as President Bush's signature.
Northwest Airlines (NWA) plans to emerge from bankruptcy by the end of the second quarter with an anticipated equity value of $6.5 to $7.7 billion, according to its disclosure statement filed with a USA Bankruptcy Court. (NWA) said the aggregate amount of general unsecured claims against it is estimated to be $8.75 to $9.5 billion, of which 66% to 83% will be repaid via new common stock. It also plans to sell an additional $750 million in stock, with a "substantial portion" raised through a rights offering underwritten by JP Morgan, that will allow unsecured creditors to purchase shares at $27 each. "We are confident that our plan treats our creditors fairly," President & CEO, Doug Steenland said. "Our ability to raise $750 million of new equity demonstrates not only our desire to ensure that our creditors share in the airline's future success, but it also underscores the market's confidence in Northwest (NWA)'s future."
Existing common and preferred stock will be cancelled upon Chapter 11 emergence; those shareholders will receive nothing. The restructuring plan gives employees an approximate 20% stake in the carrier valued at $1.5 billion by 2010, including $563 million in profit-sharing and an estimated $925 million in new common stock.
Steenland projected that unit revenues will grow +1.8% annually on a system basis through 2010, with annual revenue exceeding >$14 billion. (NWA)'s revenue was $12.57 billon last year. He added that capacity growth will be modest, with (ASM)s rising +2% annually through 2010. (NWA) projects a pre-tax profit of +$986 million in 2007, rising to +$1.4 billion by 2010. A hearing to approve the disclosure statement is scheduled for March 26. If the court clears it, (NWA) can begin securing approval from creditors. It did not set a date for emergence, saying only that it remains on track to exit bankruptcy by the end of the second quarter.
Continental Airlines (CAL) became the eighth carrier to have its cargo booking system go live on the Unisys-operated Cargo Portal Services (CPS), a Web-based booking tool used by more than 2,500 freight forwarders. "Our customers want choice and convenience. (CPS) fills this need because of its rapid adoption by forwarders, its multicarrier model and its capability to handle virtually all types of cargo products," (CAL) VP Cargo, Jack Boisen said. (CAL) joins American Airlines (AAL), Air Canada (ACN), Air France (AFA)/(KLM), Austrian Airlines (AUL), Northwest Airlines (NWA), Scandinavian Airlines (SAS), and United Airlines (UAL) on (CPS).
Northwest Airlines (NWA) introduced an A330 on flights from Minneapolis-St Paul to Honolulu, completing the retirement of its DC-10s.
INCDT: DC-9-31 (47315, N1308T), damaged beond economical repair (W/O) in collision with tug.
A330-323E (817, N815NW), delivery.
March 2007: Northwest Airlines (NWA) flew 5.64 billion (RPM)s passenger traffic in February, a +2.8% increase over the year-ago month. Capacity was up +3.9% to 7.06 billion (ASM)s and load factor dipped -0.9 point to 79.9% LF. Domestic (RPM)s rose +3.7% to 3.11 billion against a +3.6% gain in (ASM)s to 3.89 billion, leaving load factor level at 80% LF. International traffic grew +5.3% to 2.19 billion (RPM)s, capacity rose +8.5% to 2.67 billion (ASM)s and load factor slipped -2.5 points to 82.1% LF.
The USA Bankruptcy Court judge approved Northwest Airlines (NWA)'s deal to acquire regional partner Mesaba Airlines under a stock purchase and reorganization plan. The deal still must be approved by a judge overseeing the Mesaba bankruptcy.
Northwest Airlines (NWA)'s disclosure statement was approved by a USA Bankruptcy Court, clearing the way for the company to seek approval from creditors for its plan to emerge from Chapter 11 by the end of the second quarter, with an anticipated equity value of $6.5 to $7.7 billion. The ruling, which follows last month's filing of the disclosure statement, also paves the way for (NWA) to cancel existing common and preferred stock and sell new shares at $27 each. In addition, it announced that it collectively will pay a $77.4 million bonus to 4,000 nonunion employees upon emergence from bankruptcy, with 40% of the total in cash and 60% in new stock. (NWA) hopes to mail out disclosure statements to creditors and receive full approval of its exit plan at a May 16 court hearing, with emergence no later than the end of June.
757-251 (26497, N550NW), and A319-114 (1058, N301NB), returned to service. DC-9-32 (47235, N617NW) stored at Marana.
April 2007: Northwest Airlines (NWA) flew 7.02 billion consolidated (RPM)s passenger traffic in March, a +1.3% rise from the year-ago month, as domestic traffic climbed +3.1% and international rose +1.4%. Regional traffic declined -12.9%. Capacity was up +1.8% to 8.19 billion (ASM)s on a +2.6% domestic increase and a +3.7% rise in international (ASM)s. Load factor fell -0.4 point to 85.7% LF. Domestic loads rose +0.4 point to 84.9% LF and international dropped -2.1 points to 89% LF.
Northwest Airlines (NWA) reported a +$90 million profit for March, reversed from a -$226 million deficit in the year-ago month, according to a filing with the USA Securities and Exchange Commission. Revenue slipped -0.3% to $1.12 billion against a -9.4% fall in expenses to $934 million. Operating profit more than doubled to +$174 million from +$80 million. The company took $54 million in net reorganization charges during the month, nearly all of which came from rejection of airplanes, including a delivery cancellation claim for 13 CRJ-200s.
Northwest Airlines (NWA)'s flight attendants (CA), represented by the Assn of Flight Attendants (AFA)-CWA, suffered what the union called a "shocking and swiping blow" when a USA Bankruptcy Court judge upheld a Circuit Court ruling that the airline had a right to reject its collective bargaining agreement with cabin staff (CA) despite its economic recovery, as well as (NWA)'s effort to deny (AFA)'s two proofs of claim worth $1.2 billion. The former "has no basis in law," Judge Allan Gropper wrote, and the claim is invalid, as (NWA)'s abrogation of the (CBA) was lawful.
Later, Northwest Airlines (NWA) announced a tentative labor deal with cabin staff (CA) represented by the Assn of Flight Attendants-CWA, perhaps ending a protracted dispute that has been in and out of the courts and that featured two rejected deals last year. The new agreement would give flight attendants (CA) a $182 million unsecured claim in (NWA)'s bankruptcy and provides for the -$195 million in savings the carrier says it needs. The deal will be submitted to the union's (MEC), which will decide whether to ask membership to vote.
(NWA) has 520 pilots (FC) on furlough status. Expects to recall additional pilots in April and May.
Northwest Airlines (NWA)'s full reorganization plan, filed with the USA Securities and Exchange Commission (SEC), includes detailed (P&L) projections through 2010. It projects net income of +$794 million this year on $12.77 billion in revenue, a reversal from its -$2.84 billion loss in 2006. Net earnings in 2008 are expected to fall -12.6% to +$694 million on rising expenses and taxes, but 2009 profit will be back up +21.6% to +$844 million on revenues of $13.94 billion. In 2010, (NWA) projects a +$886 million profit on earnings of $14.14 billion. Consolidated unit revenues are expected to lift from 11.44 cents in 2006 to 11.55 cents in 2007, and by an average +1.8% per year to 12.28 cents in 2010.
Northwest Airlines (NWA) announced that Chairman, Gary Wilson will step down from the board when the company emerges from bankruptcy later this spring, ending an 18-year association with the airline that began when Wilson and former Co-Chairman, Al Checchi led an investment group that carried out a leveraged buyout of (NWA) in 1989. Wilson had served as sole Chairman since 1997. He will be succeeded by Roy Bostock, a board member since 2005. Northwest (NWA) said it will continue its corporate governance practice initiated by Wilson of requiring separation of the Chairman & CEO positions and the board is considering instituting a 12-year term limit for directors.
Northwest Airlines (NWA) will remove 17 CRJ-200s from regional partner, Pinnacle Airlines and reassign them to Mesaba Airlines, which (NWA) acquired as part of its restructuring plan. Pinnacle is losing the airplanes, because it failed to reach a new labor agreement with its pilots by March 31, a condition stipulated as part of its service agreement, an (NWA) spokesperson said. "As we renegotiated the Airline Services Agreement with (NWA), one caveat was that we had to have a deal with our pilots (FC) by March 31 or these airplanes would be subject to return," a Pinnacle spokesperson confirmed. "A contract was not completed on March 31, and (NWA) has exercised the right to remove two per month. They informed us this week." Northwest (NWA) also said it is proceeding with plans to launch its new regional subsidiary "Compass Airlines" by the third quarter. Compass will operate 76-seat E-175s. Pinnacle, which recently acquired Colgan Air and placed an order for 15 DHC-Q400s, will continue to operate 124 CRJ-200s for (NWA).
A330-323E (827, N816NW), delivery.
May 2007: Northwest Airlines (NWA) flew 6.52 billion consolidated (RPM)s passenger traffic in April, a -0.1% decline from the year-ago month. Capacity rose +0.5% to 7.8 billion (ASM)s and load factor fell -0.5 point to 83.7% LF. Domestic traffic lifted +0.8%, capacity climbed +0.7% and load factor remained at 84.3% LF. International traffic grew +0.9%, capacity was up +2.8% and load factor was down -1.6 points to 84.3% LF.
Northwest Airlines (NWA) posted a first-quarter net loss of -$292 million, narrowed from -$1.1 billion in the year-ago quarter, with the negative 2007 results owing to $393 million in reorganization costs as the carrier endeavors to exit bankruptcy during the second quarter. Pre-tax profit before reorganization costs for the three months ended March 31 was +$100 million, reversed from a pre-tax loss of -$129 million on a similar basis in the year-ago period. "Our first-quarter results met our expectations," President & CEO, Doug Steenland said. "The year-over-year comparisons clearly indicate that the restructuring actions that have been accomplished over the past 19 months, are positioning Northwest Airlines (NWA) for long-term profitability . . . We expect to complete our restructuring process in June and emerge as a stronger and profitable company." (NWA) creditors are expected to complete voting on the carrier's plan of reorganization by May 7.
First-quarter revenues fell -0.6% to $2.87 billion, while expenses decreased -8% to $2.67 billion, producing operating income of +$201 million, reversed from an operating loss of -$15 million in the year-ago period. Fuel expense dropped -5.4% to $704 million. Traffic increased +1.8% to 18.62 billion (RPM)s on a +3.1% rise in capacity to 22.9 billion (ASM)s, producing a load factor of 81.3% LF, down -1.2 points. Mainline yield lifted +4.1% to 12.59 cents as (RASM) climbed +2.7% to 10.36 cents and (CASM) fell -7.5% to 10.32 cents. (CASM), excluding fuel expense, was down -7.5% to 7.37 cents. "While we are optimistic as we look forward, we are seeing some softening in domestic revenue, and we remain concerned about the impact of fuel price increases," Executive VP & CFO, Neal Cohen warned. The carrier said it has paid out $395 million in profit-sharing to employees this year, and forecasts it will distribute $1.6 billion to workers through 2010.
Later, Northwest Airlines (NWA) labor unions registered strong protest to the carrier's plan of reorganization, after it was revealed that top executives will receive 5% of the carrier's new stock, when it emerges from bankruptcy, including shares and options reportedly valued at $26.5 million earmarked for President & CEO, Doug Steenland. Pilots (FC), represented by the Air Line Pilots Assn, said in a USA Bankruptcy Court filing, that employees believe "the principle of shared sacrifice is dead and buried" and that top executives are making an "incredible grab" for valuable stock, despite the fact that workers agreed to pay reductions and job cuts to allow the airline to exit Chapter 11. But with (NWA)'s unsecured creditors nearly finished with voting for the reorganization plan, and an affirmative result expected to be announced soon, it is unlikely the unions could prevent the carrier's emergence from bankruptcy. The Aircraft Mechanics Fraternal Assn (AMFA), meanwhile, said members will join "up to 100,000 others" at a rally in Washington "to protest excessive executive compensation in the airline industry." (AMFA) represents mechanics (MT) at (NWA), United Airlines (UAL), Alaska Airlines (ASA), and other USA carriers. In a letter to members posted on the union's website, Assistant National Director Steve MacFarlane said executive pay and bonuses have "reached an untenable level," adding, "Airline executives, for the most part, are elitist egomaniacs that have lost sight of [workers]. . . If these executives were so skilled and talented in the first place, they would have been able to avoid bankruptcy." (NWA) announced its application to list its new common stock on the New York Stock Exchange following its June emergence.
Northwest Airlines (NWA) said that preliminary results indicate 96.9% of its creditors, comprising 98.4% of the dollar value of claims, voted to approve its plan of reorganization, clearing the way for the carrier's emergence from bankruptcy next month. Final voting results will be filed this week with the USA Bankruptcy Court, which will hold a confirmation hearing May 16.
Northwest Airlines (NWA) moved closer to emerging from Chapter 11 after a USA Bankruptcy Court judge approved a $5 million settlement between the airline and a shareholder group that opposed the reorganization plan, that is expected to receive court approval soon, clearing the way for next month's exit. According to press reports, shareholders were led by Owl Creek Asset Management and Marathon Asset Management, and collectively own nearly 25% of the carrier's current shares, which will be cancelled upon emergence. (NWA) and the group reached a settlement under which opposition to the plan was dropped. Labor unions still oppose the plan over compensation earmarked for senior management upon emergence, but creditors' overwhelming support is expected to sway the court to approve it.
Later, Northwest Airlines (NWA) received final USA Bankruptcy Court approval of its reorganization plan and said it will exit Chapter 11 on May 31, ending a 20-month restructuring process in which it slashed annual expenses by -$2.5 billion including -$1.4 billion in annual labor costs. "We are pleased to have completed our restructuring successfully," President & CEO, Doug Steenland said. "We are now focused on emerging from Chapter 11 as a strong, publicly traded company, which will provide excellent service to our global customer base." He added that the carrier plans to share $1.6 billion in claims payments and profit-sharing with employees through 2010. Steenland said the company "accomplished those goals" set when it entered bankruptcy in September 2005: "At that time, we pledged to achieve a competitive cost structure, a more efficient business model and a recapitalized balance sheet." Northwest's equity value upon emergence is expected to be $6.5 to $7.7 billion, and it will repay 66% to 83% of unsecured claims via new common stock. The aggregate amount of general unsecured claims against it, is estimated to be $8.75 to $9.5 billion. It said a new common stock has been authorized for listing on the New York Stock Exchange under (NWA). "The company's existing stockholders will no longer have any interest as stockholders in the company," it said.
Northwest Airlines (NWA) reported a +$8 million profit in April, which will turn out to be its second-to-last month in bankruptcy.
The company emerged officially from Chapter 11, when the New York Stock Exchange opened with new shares available for trade, ending a 20-month restructuring process in which it slashed annual expenses by -$2.5 billion. Its equity value upon emergence is expected to be $6.5 to $7.7 billion, and it will repay 66% to 83% of unsecured claims via new common stock trading under (NWA). The net result represents a reversal from a -$295 million loss in the year-ago month. April revenues fell -3.8% year-over-year to $1 billion against a -6.7% decline in costs to $921 million. Operating profit rose +50.9% to $80 million. The company incurred $40 million in net reorganization charges during April.
Meanwhile, the airline's 8,100 flight attendants (CA), represented by the Assn of Flight Attendants (AFA)-CWA, ratified the tentative agreement reached last month, by a narrow 50.89% to 49.11% margin. "By no means is this concessionary agreement acceptable to our members, but considering the difficulties we've encountered with the National Mediation Board, the White House, the courts and the impossible negotiations posture of Northwest Airlines (NWA), the majority of our members have said today that this agreement represents the best we could do," (NWA) AFA-CWA President, Jay Hong said. (NWA) said the $182 million unsecured claim the flight attendants (CA) will receive as part of the agreement will be sold for cash and distributed. The carrier now has reached agreements with each of its unions.
Later, Northwest Airlines (NWA)'s new "(NWA)" common stock began trading on the New York Stock Exchange at $25.10 per share, marking the carrier's emergence from a 20-month bankruptcy restructuring process and ending a period dating back to December 2002, during which at least one USA legacy airline was operating under Chapter 11 protection. The per-share value of (NWA)'s stock translated into an equity value of about $7 billion, which President & CEO, Doug Steenland pointed out is the "highest value that Northwest (NWA) has ever had in its history." He added that (NWA) exits bankruptcy with $3.2 billion in cash, "the largest cash position . . . in its history." The company slashed debt from about $12 billion at the start of the restructuring, to $6 billion currently, factoring in cash on hand, he said. The process yielded $2.5 billion in annual savings including a $1.4 billion reduction in labor costs. "We were frankly facing the risk of liquidation" in September 2005, Steenland said during a news briefing available via teleconference. The airline "was on the road to a bleak and not-very-attractive future . . . [The restructuring] clearly has been difficult, and the magnitude of change has been significant." But he insisted the carrier is "on firm footing" going forward. He said (NWA) is "continuing to spend more than $6 billion to renew our fleet," and touted the introduction of dual-class regional jets to be flown by subsidiaries Compass Airlines and Mesaba Airlines. CRJ-900s, the first of which, will enter service soon, are being equipped with first class (F) seats and will have "the feel of a mainline airplanes."
Regarding the controversy over compensation earmarked for senior management, including 5% of the new stock collectively, and shares and options for Steenland, reportedly valued at $26.5 million, he said the bonuses were approved by the board and "management had no say." Creditors "firmly supported" the plan, he explained, in order to "make sure that the executive management team will be here for the [next] four years to fully implement the business plan."
American Airlines (AAL), Continental Airlines (CAL), and Alaska Airlines (ASA), "along with a few smaller carriers," according to the Associated Press, will be allowed to reduce contributions to their defined benefit pension plans by a combined -$2 billion over the next decade, thanks to a provision in the Iraq War spending bill approved last week by the USA Congress. The Dallas Morning News reported that airlines will be permitted to assume an 8.25% annual discount rate in calculating the value of their pension obligations, up from the current 6%. Delta Air Lines (DAL) and Northwest Airlines (NWA)discount at 8.85%, the paper said.
Starts Detroit - Brussels, using 757-200s. Starting July 1st, Hartford - Amsterdam, using 757-200s.
"Compass Airlines," Northwest Airlines (NWA)'s new regional subsidiary, launched its maiden flight out of Washington Dulles (IAD). For now, Compass will be operating a single CRJ-200 on two daily roundtrips between (IAD) and Minneapolis/St Paul. It expects to put the first of 36 EMB-175s into service by the third quarter.
Pinnacle Airlines, a Northwest Airlines (NWA) regional partner, will launch daily Minneapolis/St Paul - Ottawa service from August 1st aboard 50-seat CRJs. Northwest (NWA) currently operates three daily Detroit - Ottawa flights.
Northwest Airlines (NWA) and China Airlines (CHI) signed a cooperation agreement, to be implemented August 1, that will include reciprocal frequent-flier benefits and lounge access as well as "one-stop check-in" for connecting passengers.
AirTran (CQT) Holdings extended its tender offer to Midwest Air (MWX) Group shareholders to June 8 following the recent expiration, the third time it has pushed back the deadline on a bid, that repeatedly has been rejected by the Milwaukee-based carrier since it first was made public last December. Meanwhile, Midwest (MWX) strengthened its position by entering into a codeshare agreement with longtime rival Northwest Airlines (NWA). AirTran (CQT) said Midwest (MWX)shareholders have agreed to tender more than >13.9 million shares, or 56.6% of outstanding shares, to Galena Acquisition Group, a wholly owned AirTran (CQT) subsidiary established to handle the merger. "Nothing has changed as far as control of Midwest Air (MWX)Group is concerned. No shares have been purchased by AirTran (CQT)," Midwest (MWX) Senior VP, Carol Skornicka said. "The exchange offer is subject to numerous conditions. Regardless of the number of shares tendered, AirTran (CQT) would not purchase shares unless those conditions are waived and satisfied." She also pointed out that Wisconsin state law protects companies from hostile takeovers. AirTran (CQT) CEO, Joe Leonard said the 56.6% level constitutes a "ringing endorsement" for a merger and suggested it represents a "vote of no confidence in Midwest (MWX)'s risky go-it-alone plan." But Midwest (MWX) no longer is going it alone following yesterday's codeshare announcement. Apparently preferring an alliance with its neighbor over a strengthened AirTran (CQT), (NWA) signed a Memo of Understanding (MOU) under which both carriers' networks will be expanded by 250 city-pairs and more than >1,000 new flight options for passengers. The arrangement will take effect this summer pending final agreement.
Midwest (MWX) shareholders will elect three directors to the board at the company's June 14 annual meeting. AirTran (CQT) is promoting a slate of three candidates who support the merger, while Midwest (MWX) is urging shareholders to reelect current board members. Investment group Octavian Advisors, which controls 6.6% of Midwest (MWX), issued a statement urging shareholders to support the merger.
Embraer announced the launch of the Advanced Range (AR) versions of the EMB-170 and EMB-175 and Northwest Airlines (NWA) as the launch customer. The first 10 of the 36 EMB-175s (NWA) ordered last fall will be the Long Range (LR) version, and the remainder will incorporate (AR) structural provisions off the assembly line. The Long Range (LR)s later will be retrofitted to the (AR) version. (NWA) VP Finance & Fleet Planning, Dan McDonald said the (AR) "will allow us to reach additional markets, thus improving operational flexibility and revenue potential." The manufacturer said the (AR) offers additional range of 556 km and a payload increase of more than >700 kg depending on type, operating conditions and configuration. The (AR) is expected to be certified by December 2008. Retrofits will be available to existing operators.
747-251F (21321, N619US) and DC-9-31 (47337, N9335), stored at Marana.
June 2007: Northwest Airlines (NWA) flew 6.71 billion consolidated (RPM)s passenger traffic in May, level with the year-ago month, as domestic traffic rose +1.1% and international remained static. Regional traffic fell -8.1%. Capacity grew +1.9% to 7.96 billion (ASM)s on a +1.4% domestic increase, a +4.5% international gain and a -7.1% fall in regional. Consolidated load factor dipped -1.6 points to 84.3% LF.
Northwest Airlines (NWA) will launch 19-times-weekly Dallas/Fort Worth - New York LaGuardia service September 5, aboard 124-seat A319s. Flights will operate thrice-daily on weekdays, and twice-daily on Saturdays and Sundays. (NWA) will resume its daily Osaka - Saipan service on December 21 aboard a 182-seat 757.
(NWA) is to axe two transatlantic services from October, and suspend a third, after a route review in the face of high fuel costs. (NWA) is to stop its Detroit - Dusseldorf, and Hartford - Amsterdam services from 1 October. Both operations use 757s. On the same date, (NWA) also plans to suspend its Minneapolis - Paris Charles de Gaulle service, although it will resume these flights on 28 March next year.
Northwest Airlines (NWA) announced the following executive changes: Executive VP International, Alliances & Information Technology (IT) and Chairman (NWA) Cargo, Phil Haan resigned effective July 31; Executive VP & CFO, Neal Cohen was named Executive VP Strategy & International, & CEO Regional Airlines; Senior VP Finance & Controller, Dave Davis will succeed Cohen; CIO, Theresa Wise was promoted to Senior VP & CIO.
Alteon Training signed an agreement with Northwest Airlines (NWA) to provide simulator training for carriers on seven airplane types at (NWA)'s training center in Eagan, Minnesota. (NWA) and Alteon will place a 787 full flight simulator and other 787 training equipment in the center by April 2008. Alteon will have exclusive rights to market excess simulator time to all 787 operators, and will provide training at the facility to airlines throughout the world on the 747-400, 747-200, 757, DC-9, A320 and A330.
Northwest Airlines (NWA) confirmed at the Paris Air Show, that it has been in serious discussions with Bombardier for more than two years to become the launch customer for the CSeries airplane. (NWA) VP Finance & Fleet Planning, Dan McDonald said the company is "looking at this formally as an evaluation program at Northwest (NWA)." The airline could order up to 60 of the 110/130-seat CSeries, which would replace DC-9-30/-40/-50 airplanes. "Internally, we want to be in a position at the end of the year, where we have a specific plan for a launch," McDonald said.
While there are advantages to being a launch customer, including working closely with the manufacturer on design, the 2013 service entry date could be a drawback, he said; "We would like to have it sooner." Still, he expressed confidence in the design of the new airplane as well as (NWA)'s long-term relationship with Bombardier. He said the airline also has had discussions with Embraer about the EMB-170/EMB-190 family.
Gary Scott, who heads the CSeries program, said an unidentified flightdeck supplier has been selected, and Bombardier is in discussions with major engine manufacturers. "We want to see a commitment on an engine by the end of the year," he said.
Pratt & Whitney Canada (PWC) President, Alain Bellemare said his company was involved with the CSeries program two years ago, "but there was not much traction in the marketplace at that time." CSeries work since has been shifted over to the larger commercial engine group in the USA office, he said.
SkyTeam (STM) members Air France (AFA), Alitalia (ALI), (CSA) Czech Airlines, Delta Air Lines (DAL), (KLM) and Northwest Airlines (NWA) filed an application with the USA Dept of Transportation seeking antitrust immunity on transatlantic routings. The carriers withdrew their previous application in January 2006 after the Dept of Transportation (DOT) issued a tentative decision denying the request. Delta (DAL) currently has antitrust immunity with Air France (AFA), (ALI) and (CSA), while Northwest (NWA) has antitrust immunity with (KLM).
"Included in the application is a joint venture agreement between Air France (AFA), Delta (DAL), (KLM) and Northwest (NWA), that would create a comprehensive and integrated partnership among the four SkyTeam (STM) members across the Atlantic," Northwest (NWA) said in a statement. "A more integrated SkyTeam (STM) alliance offers significant advantages to consumers, including more choice in flight schedules, travel times, services and fares." The carriers are attempting to take advantage of route opportunities made possible in the (EU) - USA "open skies" accord that goes into effect next year.
Northwest Airlines (NWA) said it is "informally meeting" with its pilots (FC) union in an effort to resolve a "staffing issue" that has led to numerous flight cancellations. The carrier has cancelled an average of 10.7% of its mainline flights in recent days, blaming severe weather and a "higher than normal level of pilot absenteeism." The pilots (FC), represented by the Air Line Pilots Assn (ALPA), have expressed outrage over executive bonuses received by management upon exiting bankruptcy, citing an incongruity with cuts to which workers agreed as part of the (NWA)'s restructuring. Earlier this month, the (ALPA) (NWA) Master Executive Council stated that pilots (FC) "are working more hours for significantly less compensation" and that "all indications are that staffing is below what is required to properly fly the summer schedule." It added: "This staffing shortage will have a noticeable and costly impact on (NWA)'s summer flying, revenue and passenger goodwill . . . [and] will create additional employee fatigue and lower morale." The carrier said it planned to return to its normal schedule "very soon".
DC-9-31 (45840, N8925E), returned to service. DC-9-41 (47114, N750NW), returned to service. 3 A319-114s (1819; 1870; 2028) sold to (GEF) for lease to S7 (SBR). 2 A319-114s (2369; 2474), sold to (GEF). A330-323E (843, N817NW), delivery.
July 2007: Northwest Airlines (NWA) flew 6.96 billion consolidated (RPM)s passenger traffic in June, down -0.7% from the year-ago month, as domestic traffic fell -2.1% and international rose +1.2%. Capacity was up +0.3% on a -2.7% domestic decline and +5.2% international lift. Load factor dropped -1 point to 88% LF, as domestic rose +0.5 point to 87.9% LF, and international declined -3.5 points to 89.6% LF.
One-time noncash gains related to its emergence from bankruptcy in May propelled Northwest Airlines (NWA) to a net profit of +$2.15 billion for the second quarter ended June 30, significantly reversed from a net loss of -$285 million in the year-ago period, when it was operating under Chapter 11 protection. Excluding reorganization items, (NWA) reported a pre-tax profit for the period of +$273 million, up +52.5% compared to earnings of +$179 million on a similar basis in the year-ago period.
President & CEO, Doug Steenland said the carrier is "on very stable footing long-term," but spent most of a recent conference call with analysts and reporters answering questions related to the ongoing operational difficulties, that include hundreds of cancelled flights in recent days and a steady string of cancellations and delays since June. He called (NWA)'s operational performance in the past two months "unacceptable" and said pilots (FC) using sick and family leave have left the carrier with crew shortages. "We're not making a judgment [on the absences' legitimacy]," he said. "The facts speak for themselves."
He noted the airline is slashing mainline domestic capacity by -4%, has plans to hire new pilots, and work schedules will be tweaked to "build enough buffer" so that cancellations can be avoided if "levels of pilot absenteeism we've seen" continue. The goal is to reduce the number of scheduled flying hours per month per pilot to 84 or fewer from 90. Next month, maximum scheduled flying hours for narrowbody pilots will be 86.
Steenland added that management is "in the midst of ongoing discussions" with the Air Line Pilots Assn, but declined to provide details. (NWA) said it has received "several hundred" applications from prospective pilot candidates.
Northwest Airlines (NWA) cancelled hundreds of flights over the past four days as it continues to contend with high levels of pilot absenteeism. The carrier, which emerged from bankruptcy at the end of May, has announced plans to slash domestic mainline capacity by -4% in August and hire new pilots. It will release its second-quarter financial results today. Pilots (FC) have expressed concern over bonuses given to senior executives upon emergence from Chapter 11.
Second-quarter revenue declined -3.3% to $3.18 billion as expenses dropped -5.7% to $2.82 billion, producing operating income of +$357 million, up +21% over $295 million last year.
Mainline traffic rose +0.2% to 18.8 billion (RPM)s on a +1.6% lift in capacity to 21.9 billion (ASM)s, producing a load factor of 85.9% LF, down -1.2 points. Mainline yield dipped -0.2% to 12.90 cents as passenger (RASM) fell -1.5% to 11.08 cents and passenger services (CASM) decreased -4.7% to 10.47 cents. Mainline (CASM) ex-fuel declined -5.2% to 7.05 cents.
Continental Airlines (CAL), Delta Air Lines (DAL), Northwest Airlines (NWA) and US Airways (AMW)/(USA) launched formal bids to operate new services to China, that will become available as the result of the expanded aviation agreement with the USA recently signed. The USA Dept of Transportation (DOT) will award six new routes between 2007 and 2009, and each of the aforementioned carriers just filed official applications. (CAL) applied to operate a daily Newark - Shanghai service aboard a 285-seat 777 starting in the spring of 2009. The flight would originate in Cleveland. (CAL) currently flies to Beijing from Newark and said the new service would "serve the large Asian and Chinese-American population residing in the New York City/Newark area, and the largest population base in the USA in which passengers have been forced to use connecting flights or less-than-daily foreign carrier service . . . between the USA financial capital and the rapidly expanding Chinese financial capital."
Delta (DAL), which in January applied to serve Shanghai from Atlanta next year, expanded its application to include a daily flight to Beijing as well. "Both routes would fill a critical gap in air service for the 65 million residents of the USA Southeast, who currently lack nonstop air service to China," (DAL) said, adding that it is the largest USA international carrier without nonstop service to China. It plans to operate dual-class 777s, including lie-flat seats in business (C), on the routes.
(NWA) intends to serve both Beijing and Shanghai from Detroit (DTW), and said it is "ready to start flying right away." It will use 747-400s if selected to operate to Shanghai this year ((DOT) has said it may award an expedited service in 2007). If selected for the 2009 award, it would use 787s to both Shanghai and Beijing. President & CEO, Doug Steenland said (DTW) offers an "unmatched combination of broad network coverage of the entire eastern half of the USA, convenient direct routings and a new, state-of-the-art terminal facility." (NWA) currently offers connecting service to Beijing, Shanghai and Guangzhou from Tokyo Narita.
US Airways (AMW)/(USA) previously applied to operate a Philadelphia (PHL) - Shanghai service in 2008, and now expanded its application to include daily (PHL) - Beijing service on a 269-seat A340, originating in Charlotte starting in March 2009.
Later, the four USA legacy carriers: Continental Airlines (CAL), Delta Air Lines (DAL), Northwest Airlines (NWA) and US Airways (AMW)/(USA), that announced earlier their intention to compete for the right to operate new routes to China were joined by American Airlines (AAL), United Airlines (UAL) and a surprise entrant - - all-business-class (C) carrier, MAXjet Airways (MXJ).
(AAL) proposed to add a daily Chicago O'Hare (ORD) - Beijing flight to its daily (ORD) - Shanghai service beginning March 25, 2009. It proposed to operate the Beijing service on 245-seat, three-class 777-200ERs and said passengers would benefit from a codeshare arrangement with China Eastern Airlines (CEA).
(UAL), which won the USA Dept of Transportation's 2007 competition, and launched daily Washington Dulles - Beijing service in March, said it will file an application to operate daily San Francisco - Guangzhou flights in 2008 - - the first nonstop service from the USA to that Chinese city - - aboard a 253-seat 777, and a daily Los Angeles - Shanghai service, the following year aboard a 347-seat 747. (UAL) said Los Angeles (LAX) is the largest USA city without nonstop Chinese service by a USA carrier. "Our East meets West proposal is simple. Add capacity to those urban areas with the least service and most pressing demand," Senior VP, Michael Whitaker said.
MAXjet (MXJ) applied to operate Seattle - Shanghai flights aboard a 92-seat 767-200ER beginning March 25, 2009. Service would originate and terminate at (LAX) and would be the airline's first transpacific route. It currently flies to New York (JFK), Washington Dulles (IAD) and Las Vegas from London Stansted, and plans to start serving (LAX) on August 30. MAXjet (MXJ) said the flight would "link two vital commercial centers with the only nonstop service from the Pacific Northwest to China" and the only "same-plane direct service on a USA flag airline from Los Angeles to Shanghai."
The USA General Services Administration awarded one-year contracts worth a combined $2.02 billion to 14 domestic carriers effective October 1. Contracts cover federal travelers on official business and went to United Airlines (UAL) ($661.1 million), American Airlines (AAL) ($389.7 million), Delta Air Lines (DAL) ($370.5 million), US Airways (AMW)/(USA) ($314.7 million), Alaska Airlines (ASA) ($54.5 million), Northwest Airlines (NWA) ($35.8 million), AirTran Airways (CQT) ($36.5 million), Frontier Airlines (FRO) ($17.4 million), ExpressJet Airlines (Continental Airlines (CAL) subsidiary) ($8.8 million), Midwest Airlines (MWX) ($4.1 million), JetBlue Airways (JBL) ($2.9 million), Mesa Air Group ($2.5 million), ATA Airlines (AAT) ($756,486), and North American Airlines (NNA) ($223,205).
The Carlyle Group, a private equity firm, reached a definitive agreement to acquire (ARINC) from its current shareholders, which include more than a dozen major airlines and Boeing (TBC). (ARINC), which generates more than >$900 million in annual revenue, specializes in transportation communications technology, and its Air Traffic Control (ATC) support systems are used by carriers and airports throughout the world. Primary shareholders in the 77-year-old company based in Annapolis, include American Airlines (AAL), United Airlines (UAL), Delta Air Lines (DAL), Continental Airlines (CAL), Northwest Airlines (NWA), US Airways (AMW)/(USA), Air Canada (ACN), Air France (AFA)/(KLM), Lufthansa (DLH), British Airways (BAB), Mexicana (CMA), Swiss International Air Lines (CSR), TACA (TAC), FedEx (FED), Hawaiian Airlines (HWI), and Philippine Airlines (PAL). (AAL) said it would receive $194 million from the sale of its stake and (UAL) expects $125 million. Other carriers did not immediately disclose expected proceeds and (ARINC) did not release financial details. The company said the transaction is expected to close in the third quarter subject to regulatory approval. "This is an important step in the evolution of (ARINC)," Chairman & CEO, John Belcher said. "We have worked very hard to find a partner, who shares our vision and believe that Carlyle's international presence, financial resources, and expertise in the aerospace, defense and communications sectors will be instrumental in the continued expansion of our business." Carlyle Managing Director & Head Global Aerospace & Defense, Peter Clare said, "We believe that (ARINC) is well positioned to capitalize on several favorable macro trends in both its commercial and government market segments." (ARINC) earned net income of +$10.2 million in 2006, a +14.3% decrease from +$11.9 million in 2005. Its annual revenue has risen steadily this decade, increasing +72.7% from $532 million in 2000 to $919 million last year.
Northwest Airlines (NWA) and Expedia reached a full-content distribution agreement. Terms were not disclosed.
Continental Airlines (CAL), Northwest Airlines (NWA), and Delta Air Lines (DAL) jointly launched SkyCorp Direct, an online travel management tool designed to provide companies with a "one-stop solution" for corporate travel needs. "The site allows employees to easily book their own flights, hotels and rental cars while providing corporations with the ability to track and manage employee travel costs," said John Slater, Continental (CAL) Managing Director Distribution Planning & e-Commerce. The site has no user or booking fees, unless a ticket is booked on an airline other than the three sponsor carriers, and can be used by companies of all sizes. It also will allow companies and their employees to book hotels and rental cars when purchasing flight tickets.
Northwest Airlines (NWA)'s interest in the proposed Bombardier C Series airplane line has provided a much-needed boost for the program, Bombardier said. At last month's Paris Air Show, (NWA) confirmed that it seriously is considering the yet-to-be-launched type as a replacement for its aging DC-9s. "I think it's nice that Northwest (NWA) has gone public in their support for the program," Bombardier President, New Commercial Aircraft Program, Gary Scott said. "They're encouraging us to go forward, because they like the CSeries options for the future." (NWA) also said it would prefer to have the airplanes prior to 2013, but Scott said that would not be possible, given the fact that it is being developed with the latest technology as well as a new engine type. The manufacturer claims it will have +20% better fuel burn than similar airplanes, rely heavily on lighter-weight composite materials and feature reduced emissions and noise. The fuselage will be built in China by Shenyang Aircraft Corp, a division of AVIC I. When the CSeries program was unveiled at the 2003 Farnborough Airshow, the target Estimated In Service (EIS) was 2010. After failing to attract a launch customer or an engine supplier, it lagged but never was suspended, Scott explained. He estimates that Bombardier has invested more than >$120 million in developing the airplane to date. He expects that at least one engine manufacturer will be onboard by December 31. Giving customers a choice between two engines is unlikely. "If you add more than >one manufacturer, it becomes more costly," he said. Rolls-Royce (RR), (CFM) International, and Pratt & Whitney (P&W) each have expressed interest, he added. Market forecasts for the next two decades predict a need for nearly 6,000 airplanes in the 100/149-seat range. "We expect to have something on the order of one to two customers with 50 to 100 airplanes," he said. "A lot depends on who the launch customer is."
Northwest Airlines (NWA) said it is selling nine of its 65 A319s as part of an effort to right-size its fleet. The carrier said the deals were negotiated during its Chapter 11 restructuring and now are nearing closing. Buyers and purchase prices were not disclosed. (NWA)'s A319s are configured with 16C business-class and 108Y economy seats. It also has 73 148-seat A320s.
4 A319-114s (2373; 2464; 2618; 2641), sold to (GEF).
August 2007: Northwest Airlines (NWA) flew 7.28 billion consolidated (RPM)s passenger traffic in July, down -0.5% from the year-ago month, as domestic traffic fell -3.9% and international rose +4.2%. Capacity inched up +0.1% to 8.3 billion (ASM)s on a -4.4% domestic decline and a +7.2% international lift. Consolidated load factor fell -0.4 point to 87.7% LF. Domestic rose +0.5 point to 88.1% LF, and international dropped -2.6 points to 88.7% LF.
Northwest Airlines (NWA)'s Air Line Pilots Assn, (MEC) ratified the new work rules agreement reached with management as part of the carrier's effort to reduce high levels of flight cancellations it has attributed in part to "pilot absenteeism." (NWA) said the agreement is "economically neutral," with the premium pay it has agreed to reinstate for pilots (FC) flying more than >80 hours per month "offset by the value of work rule changes and grievance settlement."
Midwest Air (MWX) Group closed the door on an acquisition by eager AirTran (CQT) Holdings, opting instead to pursue an unexpected all-cash deal offered by private equity investment firm Texas Pacific Group (TPG) Capital, which is partnering with Midwest (MWX) neighbor Northwest Airlines (NWA). (TPG) Capital, which has been involved in recent bids for Qantas (QAN), Alitalia (ALI), and Iberia (IBE), could finalize a "definitive" merger agreement with Midwest (MWX) as early as August 15, both (TPG) and Midwest (MWX) said.
On July 31, Midwest (MWX) announced it would open talks with AirTran (CQT), but also said it would hold discussions with other groups that had expressed an interest in the company. AirTran (CQT) had offered $15.75 per Midwest (MWX) share, with a total equity value of cash and stock in excess of >$431 million, the Atlanta-based carrier said.
Recently, Midwest (MWX) board members unanimously approved the pursuit of (TPG)'s offer of $16 cash per share. (NWA) released a statement saying that it would provide some financing, but would not participate in management or control of Midwest (MWX). "The previously announced codeshare agreement between (NWA) and Midwest Airlines (MWX) will remain in place and the two airlines will explore cost reduction activities such as joint fuel purchasing," it said.
"Our acquisition would provide for greater stability and prospects for all of the company's important constituencies," (TPG) Capital Partner Richard Schifter wrote in the proposal letter to Midwest (MWX). "We believe that our experience in this sector, together with our track record for maintaining stable, long-term investments, argue strongly in favor of an acquisition by (TPG)."
In announcing its decision to drop its bid, AirTran (CQT) rebuked Midwest (MWX)'s decision, noting that the board was ignoring the "overwhelming majority" of shareholders' wishes. "Instead, the Midwest (MWX) board has chosen a path that will benefit current senior management by selling to a private equity firm and a so-called 'passive investor' [NWA] whose involvement will surely raise antitrust concerns, causing doubt for shareholders on whether a transaction can, in fact, close," AirTran (CQT) CEO, Joe Leonard said.
This was followed by AirTran (CQT) Holdings raising its bid for Midwest Air (MWX) Group, offering $16.25 per share in cash and stock, exceeding the $16 per share cash offer from (TPG) Capital and Northwest Airlines (NWA), that was endorsed unanimously by the Midwest (MWX) board. AirTran (CQT) estimated the total value of its new offer at $445 million. "Midwest (MWX)'s shareholders are concerned that the acquisition of Midwest (MWX) by a private equity firm, along with Northwest Airlines (NWA), will block competition, raise fares, reduce employment levels and reduce service," AirTran (CQT) Chairman & CEO, Joe Leonard said. He reiterated that antitrust issues could prevent a (TPG)/Midwest deal from closing. The new offer comprises $10 cash per share and 0.6056 share of AirTran (CQT)common stock.
Pequot Capital Management, an investment firm that holds an estimated 8.8% of Midwest (MWX), urged the company to reconsider its decision to support (TPG)'s bid, saying it still believed that AirTran (CQT)would be the better choice, according to press reports. Midwest (MWX) released a statement saying the board "will take AirTran (CQT)'s revised offer under consideration."
Analysts at Raymond James & Assoc said Northwest (NWA)'s involvement was designed to keep a low-cost competitor out of its Midwestern USA stronghold. "Northwest (NWA), in our view, would dismantle Midwest (MWX) over time and integrate its operations into Northwest (NWA)," the report said.
Later still, Midwest Airlines (MWX), which accepted a cash buyout offer of $17 per share from (TPG) Capital and Northwest Airlines (NWA), could end up being owned by Northwest (NWA), a (TPG) partner acknowledged. (NWA) repeatedly has been described as a "passive investor" in the $450 million all-cash deal. "It's not anything that we see happening in the near term," (TPG) partner, Richard Schifter said during a conference call, when asked if (NWA) might acquire Midwest (MWX). "At this stage, we see various exit options as a firm. The public market is one. Another is a sale to Northwest (NWA), but by no means is that the exclusive one." He declined to reveal the size of (NWA)'s investment or stake.
Northwest (NWA) reiterated that it would hold a "nonmanaging and nonvoting" role in the limited liability company, it formed with (TPG) to acquire Midwest (MWX), adding that it will "have no involvement or decision-making authority in the management" of the airline. It maintains "the right, but not the obligation to acquire (TPG)'s interest in the company in certain circumstances" but has "no current plans to exercise that right." "We believe this is a positive for our shareholders, our customers, our employees and the community we serve," Midwest (MWX) Chairman & CEO, Timothy Hoeksema said. "It preserves the hometown service as well as the strong Midwest (MWX) brand."
Schifter said (TPG) developed an interest in Midwest (MWX) last month and described it as "a quality airline with a terrific management team and employee workforce." Midwest (MWX)'s second-quarter profit fell -44.6% year-over-year to +$4.9 million.
The purchase still must be approved by Midwest (MWX) stockholders and antitrust authorities. The company expects to complete the transaction by year end. Hoeksema pointed out that the carrier already codeshares with (NWA), and that the pair could benefit from additional "synergies" such as bulk purchasing of fuel and insurance as well as in distribution.
AirTran (CQT) said it was ending its efforts to purchase Midwest (MWX). "We sought to acquire Midwest (MWX), because a merger made strategic operational sense and we pursued a deal vigorously," CEO, Joe Leonard said. "But AirTran (CQT) doesn't need to merge with any other carrier to achieve our business goals."
Compass Airlines, Northwest Airlines (NWA)'s new regional subsidiary that launched service in early May with a CRJ-200, operated its first revenue flight with one of two new 76-seat EMB-175s from Minneapolis/St Paul (MSP) to Omaha. The pair of dual-class airplanes will be used on routes from (MSP) to Omaha, Dallas/Fort Worth, Missoula and Nashville. It plans to fly 10 EMB-175s by year end, and 36 by the close of 2008.
INCDT: The USA National Transportation Safety Board (NTSB) said it has launched an investigation into last week's high-profile runway incursion at Los Angeles International (LAX). The board (NTSB) provided further details on the incident, reporting that a landing WestJet (WJI) 737NG, and a Northwest Airlines (NWA) A320 taking off "almost collided." The 737 "held between . . . parallel runways [after landing] as directed by the Air Traffic Control [ATC] tower." But "without authorization" the WestJet (WJI) pilots (FC) contacted ground control on a different radio frequency and a ground controller "assumed that they had been cleared to cross Runway 24L, and provided instructions for the WestJet (WJI) flight to taxi to its gate," according to (NTSB). "However, the tower controller expected the WestJet (WJI) flight to hold, and cleared the Northwest (NWA) flight to take off from Runway 24L . . . The WestJet (WJI) airplane crossed the hold short line for Runway 24L and the two airplanes came within 37 feet as the Northwest (NWA) flight crossed directly in front [of the 737] during its takeoff roll."
2 747-212Bs (21941; 21942), 2 747-227Bs (21682; 22234), and 3 747-251Bs (21707; 21708; 22389), parted out and sold to Evergreen. DC-9-31s (47142, N8933E; 47246, N9333), & DC-9-32 (47436, N612NW), stored at Marana. A330-323 (857, N818NW), delivery.
September 2007: Northwest Airlines (NWA) flew 7.14 billion consolidated (RPM)s passenger traffic in August, up +1.3% on the year-ago month, on a -3.2% domestic decline, and a +6.9% international increase. Capacity dipped -0.7% to 8.14 billion (ASM)s, as domestic fell -6%, and international climbed +6.7%. Consolidated load factor rose +1.7 points to 87.6% LF. Domestic was up +2.5 points to 87.7% LF, and international lifted +0.1 point to 89.5% LF.
The USA Dept of Transportation (DOT) awarded coveted new China route authorities to all six USA legacy carriers. Two of the route awards, going to Delta Air Lines (DAL) and United Airlines (UAL) for service that can begin on March 30, are "final decisions," (DOT) said. Four additional routes, on which service can begin in 2009, are "proposed" designations, that likely will become final "in the near future." (DAL) won authority to operate direct flights between Atlanta and Shanghai beginning next year; no airline currently flies the route. (UAL) was cleared to start San Francisco - Guangzhou service in 2008. The proposed routes, to be launched in 2009, if final approval is given, went to American Airlines (AAL) (Chicago - Beijing), Continental Airlines (CAL) (Newark - Shanghai), Northwest Airlines (NWA) (Detroit - Shanghai), and US Airways (AMW)/(USA) (Philadelphia - Beijing). All six awards are for daily service. "By bringing China and the USA one step closer, we increase our ability to compete, boost our success in the global marketplace, and make international travel for all passengers easier and more affordable," Transportation Secretary, Mary Peters said. The new routes are possible owing to an expanded aviation agreement signed by the two nations in July, that doubles the number of daily flights allowed between the USA and China over the next five years. (NWA) said it tentatively is scheduled to start Detroit - Shanghai service on March 25, 2009, and plans to use 787s to operate the route.
Northwest Airlines (NWA) announced a reshuffled executive management team, that it said better reflects its post-bankruptcy objectives. Among the most significant changes, which will take effect October 1, were (NWA) Cargo President, Jim Friedel's appointment to the newly created position of Senior VP Strategic Planning, and VP Network Planning & Revenue Management, Tom Bach's promotion to President (NWA) Cargo. VP Fleet Planning, Dan McDonald was named VP Strategy & Fleet Planning and will report to Friedel. Tim Rainey will retain his senior VP Flight Operations title, and will add to it Senior VP System Operations Control, reporting to Steenland. Tim Campbell, currently VP Flight Operations & System Operations Control, was named VP Regional Airline Operations. Julie Showers, currently VP Labor Relations, was named Senior VP Inflight Services.
Midwest Airlines (MWX), which accepted a cash buyout offer of $17 per share from (TPG) Capital and Northwest Airlines (NWA) last month, entered into a codeshare agreement with (NWA) for tickets purchased beginning November 3 for travel starting November 17. (NWA) has been described as a "passive investor" in the $450 million all-cash deal, and said it will be a "nonmanaging and nonvoting partner," but (TPG) partner, Richard Schifter has conceded that (NWA) could end up owning Midwest (MWX). Merrill Lynch analyst Michael Linenberg said that (NWA) will own 47% of the company, a "rather large minority stake." The first phase of the codeshare agreement will include (NWA)'s Hawaii-bound flights from Seattle, San Francisco and Los Angeles, with passengers beginning their journey on Midwest (MWX) flights in Milwaukee, Omaha and Kansas City. "This is just the first step in expanding the networks of both carriers," (NWA) VP Alliances, Nathaniel Pieper said. "Codesharing allows Northwest (NWA) to offer our customers the expanded reach of two airlines, while enjoying the convenience of a single ticket and check-in."
Will hire 13 pilots (FC) this month.
Northwest Airlines (NWA) retired its final passenger 747-200 from scheduled service. Its last flight was Tokyo Narita - Seattle - Minneapolis/St Paul. The airplane joined the fleet in 1979. (NWA) will continue to operate its 747-200s as charter airplanes; it replaced them with A330s. By year end, it will operate 21 A330-300s and 11 A330-200s.
DC-9-31 (47158, N918RW), parted out at Opa-Locka. 2 A330-323Es (858, N819NW; 865, N820NW), deliveries.
October 2007: Northwest Airlines (NWA) flew 6.24 billion consolidated (RPM)s passenger traffic in September, a +1.1% increase from the year-ago month. Capacity declined -1.7% to 7.45 billion (ASM)s, and load factor rose +2.3 points to 83.7% LF.
Midwest Air (MWX) Group (MAG) shareholders approved the company's acquisition by Midwest Air (MWX) Partners, an affiliate of (TPG) Capital. Each outstanding share of Midwest (MWX) common stock will be converted into the right to receive $17 per share in cash, (MAG) said. The transaction is expected to be completed during the current quarter. Northwest Airlines (NWA) also is participating in the acquisition and reportedly will hold 49% of Midwest (MWX).
Northwest Airlines (NWA) will launch daily Portland, Oregon - Amsterdam service on March 29, aboard a 243-seat, two-class A330-200. Portland will become (NWA)'s 20th North American transatlantic gateway.
INCDT: A (NWA) A320 landed at Hector Airport, Fargo, USA, with its nose wheel cocked at 90 degrees. The airplane came to a halt safely with minor damage to the nose gear.
Northwest Airlines (NWA) will pre-fund the financing of 27 76-seat EMB-175LRs with $454 million in secured public airplane financing structured with Enhanced Equipment Trust Certificates. Morgan Stanley, Citigroup and JPMorgan were joint bookrunners. The airplanes will be operated by (NWA) subsidiary, Compass Airlines.
Qantas (QAN), the largest customer for the 787, was among several carriers that offered generally muted responses to Boeing (TBC)'s announcement that it will delay first flight and first delivery by at least six months. (QAN) said the delivery delay will not "materially impact the operations of the Qantas (QAN) Group of airlines." CEO, Geoff Dixon said Boeing (TBC) had assured the carrier that the 15 Dreamliners scheduled for delivery between August 2008 and December 2009 all would arrive by the 2009 date. "Boeing (TBC) said the August 2008 airplanes would slip, but not by six months. Once that airplane arrives, the remaining 14 airplane deliveries will be staggered until December 2009," he said. The group has 65 firm orders for the 787, 20 options and 30 purchase rights, with the first 15 scheduled for Jetstar Airways (IMU)'s long-haul operation. Dixon said Qantas (QAN) had contingency plans for any short-term capacity shortages. "Once Boeing (TBC) confirms a revised deliv
ery schedule, we will assess the need for any other measures, such as delaying the retirement of airplanes." (QAN) has struggled with the A380's two-year delay. The first of those airplanes now is scheduled for delivery in August 2008 - - the same date as the 787 originally was set to arrive. The airline has been forced to keep 747-300s in service longer than expected to make up for the capacity shortfall.
Meanwhile, North American customers were not anticipating a significant impact. A Northwest Airlines (NWA) spokesperson said, "We are disappointed by Boeing (TBC)'s delay, but we can adapt. It will be very important that Boeing (TBC) meet its new deadline, and we expect them to do so. A six-month slide in the test flight does not necessarily mean a six-month slide in all deliveries. Boeing (TBC) has committed to giving us an updated delivery schedule in the next few weeks." (NWA) has 18 787s on firm order.
Air Canada (ACN), which has 37 on order, said it has "not been advised of any impact on our deliveries," and that it still expects its first airplane to arrive in 2010. Continental Airlines (CAL) (25 on order) said it was "too early to tell" if the slip would impact its 2009 scheduled delivery date. Chairman & CEO, Larry Kellner maintained the 787 still "is destined to be a game-changer."
Northwest Airlines (NWA) took delivery of its 32nd A330, which the carrier said made it the world's largest operator of the Airbus (EDS) widebody.
3 DC-9-31s (47182; 47247; 47326), and 3 DC-9-32s (47222; 47232; 47234), parted out at Opa-Locka. A330-323 (821, N865NW), delivery.
November 2007: Northwest Airlines (NWA) flew 6.47 billion consolidated traffic (RPM)s in October, down -0.2% from the year-ago month. Capacity dropped -1.3% to 7.73 billion (ASM)s, and load factor rose +1 point to 83.8% LF.
1st 6 months = 58.45 billion (RPK)s (+1.68%) traffic; +3.08% (ASK)s capacity; 84.1% LF (-1.2); 1.37 billion (FTK)s (-14.01%) freight traffic; 27.01 million passengers (+.39%).
The carrier hired 22 pilots (FC) in October; and expects to hire 28 in November.
DC-10-30 (46969, N227NW), sold to Qwest Air Parts.
December 2007: Northwest Airlines (NWA) flew 6.13 billion consolidated (RPM)s passenger traffic in November, down -0.1% from the year-ago month. Capacity fell -1.1% to 7.43 billion (ASM)s, and load factor rose +0.7 point to 82.4% LF.
Northwest (NWA) is accepting Flight Crew (FC) applications online. The carrier hired 31 pilots (FC) in November; and expects to hire 31 in December. (NWA) predicts it will hire 250 to 350 pilots (FC) by the end of 2008.
Northwest Airlines (NWA) will take advantage of the (USA)-(EU) "open skies" agreement, and launch daily A330 flights to London Heathrow Terminal 4 from Minneapolis/St Paul (beginning March 29), Detroit (May 1) and Seattle (June 1). The airplanes will be outfitted with 34 business class (C) seats and 264 (Y) in economy. Northwest (NWA) will continue its daily Detroit - London Gatwick flight.
Northwest Airlines (NWA) is looking to launch new services to China, India, and possibly Vietnam in 2009 using its first batch of 787s.
The carrier has 18 787s on order for delivery from February 2009, and will be the first USA carrier to place the new airplanes into service. "There are two logical long-haul opportunities for (NWA) - China and India," says (NWA) Vice President of International Alliances, Nat Pieper. (NWA) now serves Beijing, Guangzhou and Shanghai, via Tokyo, and Mumbai, via Amsterdam. The 787 gives it the flexibility to serve these and other markets in China, or India non-stop. "From a route planning perspective, the 787 is a dream," Pieper says. He adds that Vietnam is also "a market we're interested in". (NWA) may serve Vietnam non-stop, or via Tokyo, where it has unlimited fifth-freedom rights and has a small 757 base, used to serve intra-Asia routes.
Regional carrier, Pinnacle Airlines bought out all of Northwest Airlines (NWA)'s common stock holdings in the regional carrier. Pinnacle announced the purchase of 2.5 million shares from (NWA) for $13.22 per share, or $32.9 million. It also agreed to purchase the Class A Preferred Share, retained by (NWA) in January. It has repurchased 4.5 million shares of its common stock since launching a repurchase program in May, leaving 20% of total shares outstanding. "With the restructuring of our airline services agreement earlier this year, we no longer need to retain our ownership interest in Pinnacle to maintain our relationship," (NWA) Executive VP Marketing & Distribution, J Timothy Griffin said.
Midwest Air Group (MWX) said it has complied with requests for additional information from the USA Dept of Justice (DOJ) pertaining to its acquisition by TPG Capital and Northwest Airlines (NWA). It added that the parties have agreed not to complete the sale before January 31 without (DOJ) approval. It said closing will "occur as soon as practicable."
2 DC-9-31s (47143, N8934E; 47215, N8957E), 1 DC-9-32 (47038, N601NW), sold to GA Telesis.
January 2008: Northwest Airlines (NWA) flew 6.27 billion consolidated (RPM)s passenger traffic in December, a -1.7% drop from the year-ago month. Capacity declined -2.2% to 7.72 billion (ASM)s, lifting load factor +0.5 point to 81.2% LF.
2007 statistics: 117.34 billion (RPK)s passenger traffic +.4%; +.6% capacity (ASK)s; -.2 load factor for 84.7% LF. SEE ATTACHED COMPARISON CHART TO SELECTED OPERATORS - "NWA-2007-STATS."
Northwest Airlines (NWA) reported bankruptcy exit aided net income of +$2.32 billion for 2007, a dramatic turnaround from a net loss of -$2.86 billion in 2006, when it was operating under Chapter 11 protection. The carrier's 2007 pre-tax income, excluding reorganization items, was +$764 million, a more-than->150% improvement over +$301 million on similar terms in the prior year. It posted a fourth-quarter net loss of -$8 million, narrowed from a net loss of -$267 million in the 2006 period. President & CEO, Doug Steenland commented that the pre-tax result was "the third highest in company history" and said he was particularly "satisfied" with fourth-quarter earnings, "which were essentially breakeven [in what is] historically a weak quarter for us," noting that most USA airlines had bigger losses in the period. In a conference call with analysts and reporters, he declined to discuss speculation that (NWA) is in merger talks with Delta Air Lines (DAL) and said the company continues to evaluate its assets. The "WorldPerks" frequent-flier program "remains an important potential piece of upside for the carrier" and there is an ongoing process to consider a divesture, Steenland said. He added that the airline's freighter capacity "is going to be down" in 2008, and management will "continue to look at the [cargo] business as a whole, and look at what fleet decision we may have to take." (NWA) is the only USA international passenger carrier operating freighters, with 12 747-200Fs focused mainly on transpacific operations, and executives have acknowledged that the sector has been underperforming.
Full-year 2007 revenue dipped -0.3% to $12.53 billion, while expenses dropped -3.4% to $11.42 billion, producing operating income of +$1.1 billion, up +49.2% from +$740 million in 2006. Mainline traffic rose +0.4% to 72.92 billion (RPM)s on a +0.6% lift in capacity to 86.14 billion (ASM)s, producing a load factor of 84.7% LF, down -0.1 point. Passenger yield increased +1.7% to 12.93 cents as (PRASM) escalated +1.5% to 10.94 cents and passenger (CASM) dropped -1.8% to 10.75 cents. Passenger (CASM) excluding fuel, decreased -2.4% to 7.34 cents.
(NWA) projects that mainline capacity will be flat year-over-year in 2008, with domestic capacity declining -5.5% to -6.5% and international (ASM)s rising +8% to +9%.
Delta Air Lines (DAL) CEO, Richard Anderson is expected to ask the carrier's board of directors for permission to enter into merger talks with both Northwest Airlines (NWA) and United Airlines (UAL).
The "Wall Street Journal" reported that Anderson, a former CEO of Northwest (NWA), plans to negotiate with both rivals with the intention of determining which one would be a better merger match for (DAL), which revealed two months ago that its board had established a "special committee . . . to review and analyze strategic options . . . including potential consolidation transactions." (DAL) did not comment, beyond reiterating its commitment to examining options, but Air Line Pilots Assn Delta (DAL) (MEC) Chairman, Lee Moak wrote in a letter to members, that it is "increasingly difficult to discount" merger talk "as simply more rhetoric." Citing rising fuel costs, low capacity growth and airline stocks' continuing poor performance, Moak said: "Consolidation may indeed be at our door."
Another factor that may be driving consolidation discussions, is the belief among merger-inclined airline executives that the USA Dept of Justice under President George W Bush would look more favorably upon a merger than a potential Democratic administration that could take office next January.
Led by then-CEO, Gerald Grinstein, (DAL) last year successfully fought off a "hostile takeover" bid by US Airways (AMW)/(USA), which wanted to merge with the Atlanta-based airline. But new CEO, Anderson and a declining USA economy appear to be pushing (DAL) to take another look at consolidation. Moak said pilots (FC) will not necessarily move to block a merger. "We do not oppose consolidation, and may even determine that consolidation is desirable," he said. "The kind of consolidation that the Delta (DAL) pilots (FC) might support, is one that will produce an even stronger and growing airline, that will vigorously and successfully compete in the international marketplace for years to come . . . Any attempt at consolidation will fail without the active involvement and support of the pilots (FC) from the earliest formative stages of the effort."
(UAL) parent, (UAL) Corp Chairman, President & CEO, Glenn Tilton repeatedly has called consolidation a "strategic imperative" for the USA industry.
Delta Air Lines (DAL) continued to decline to comment on reports that its board is considering authorizing merger negotiations with Northwest Airlines (NWA) and/or United Airlines (UAL), but (NWA) President & CEO, Doug Steenland said his carrier is giving the issue "serious attention." In a memo to employees, portions of which were revealed by the "Associated Press" and "Bloomberg News," Steenland said (NWA) would not publicly comment on merger speculation and did not confirm reports regarding negotiations with Delta (DAL). He did, however, seek to prepare workers for the possibility of consolidation and (NWA)'s likely involvement. "Doing nothing could be our worst alternative," he wrote. "If we wait to react to what others do, we could be left with options that are undesirable or with no options at all . . . The right transaction could be of benefit to our employees, our shareholders and the communities we serve."
Meanwhile, several members of Congress expressed concern over the reports of merger talks among airlines and indicated that an intensive review by both Congress and the USA Dept of Justice would be likely if carriers attempted to form combinations.
Delta Air Lines (DAL) and Northwest Airlines (NWA) have launched formal merger negotiations, USA Representative & House Committee on Transportation & Infrastructure, Chairman, James Oberstar (Democrat-Minnesota) told the "Star Tribune." "Northwest (NWA) sees a benefit to them of a merger with Delta (DAL)," Oberstar said, adding that (NWA) executives said "there is little route overlap and not a significant effect on competition, which I disagree with." The Congressman confirmed (DAL) is looking at United (UAL) as well, and the "Chicago Tribune" reported that talks between the two are "serious." Oberstar told the Minneapolis paper that if Delta (DAL) chooses (UAL), then Northwest (NWA) "will look for a [new] partner."
United (UAL) pilots (FC) represented by the Air Line Pilots Assn issued a statement saying they have a merger committee in place and that (UAL) executives "must understand that any merger or consolidation involving United Airlines (UAL) will not be consummated without the involvement of its pilots (FC)."
United Airlines (UAL) parent, (UAL) Corp Chairman, President & CEO, Glenn Tilton, who repeatedly has called consolidation a "strategic imperative" for the USA industry, spoke publicly for the first time regarding the latest merger speculation, insisting that UAL has options even if Delta Air Lines (DAL) and Northwest Airlines (NWA) reach a combination agreement. (DAL) is believed to be talking with both (UAL) and (NWA) regarding a merger, but USA House Transportation & Infrastructure Committee Chairman, James Oberstar (Democrat-Minnesota) has indicated that (NWA) is a better fit. "Our position has always been that we control our decisions," Tilton said. "No one makes them for us. The advantage of our situation is that we have the choices that we continue to consider with our board."
Continental Airlines (CAL) Chairman & CEO, Larry Kellner said that his carrier is happy with its current position, but noted that "relative size" is important in a "network" business, and that a change in the structure of the USA industry could alter (CAL)'s view of its position. He promised that (CAL) will monitor consolidation talks among competitors carefully and will be prepared to make a move regarding mergers if necessary.
Northwest Airlines (NWA) pilots (FC) represented by the Air Line Pilots Assn resolved last week to form a merger committee and said they are "prepared to protect Northwest (NWA) pilots (FC)'s careers and seniority, while also taking advantage of any positive operational synergies, to extract contract enhancements and long-term pilot (FC) job security."
Northwest Airlines (NWA) flight attendants (CA) represented by the Assn of Flight Attendants-CWA released a set of conditions under which they would support a merger, including a labor agreement "that provides substantial improvements in compensation and work rules to the current flight attendant (CA) agreement" and continuation of a "strong hub presence" at Minneapolis/St Paul. The union claimed that (NWA) executives confirmed details of their severance packages in the event of a merger, prior to the airline's exit from bankruptcy, citing a 2007 filing with the USA Securities and Exchange Commission. It said President & CEO, Doug Steenland would receive a payment of more than >$7.8 million. "It is obvious that one of management's goals was to position our airline as an ideal merger candidate so they could walk away with millions," Northwest (NWA) AFA-CWA President, Kevin Griffin said.
The (MEC) said in a notice to pilots (FC) that (NWA) will reduce its fleet by 27 airplanes in 2008, comprising 24 DC-9s and three 747-200s. Staffing will be increased, however, as reserve staffing levels, airplane utilization, the airline's international network and the number of military charters will increase.
US Airways (AMW)/(USA) received final approval from the USA Dept of Transportation (DOT) to launch its first service (Philadelphia - Beijing) to China in 2009. The (DOT) granted additional rights to American Airlines (AAL) (Chicago O'Hare - Beijing), Continental Airlines (Newark - Shanghai), and Northwest Airlines (NWA) (Detroit - Shanghai), as well. The agency issued a tentative decision in September. All 2009 flights must be launched by March 25 of that year, the (DOT) said.
The Air Transport Assn (ATA) elected Northwest Airlines (NWA), President & CEO, Doug Steenland as Chairman. He will serve a two-year term.
DC-9-31 (47142, N8933E), removed from storage and returned to service.
DC-9-32 (47566, N949N), sold to Clipper Aviation.
February 2008: Delta Air Lines (DAL) and Northwest Airlines (NWA) have briefed their pilot (FC) groups, both of which are represented by the Air Line Pilots Assn (ALPA), on a proposed merger, according to multiple published reports. Both airlines have refused repeatedly to discuss the merger negotiations, but they apparently are allowing (ALPA) officials to study the potential tie-up, in hopes of securing pilot (FC) support and perhaps an early agreement on merging the two workforces. Northwest (NWA) (ALPA) (MEC) Chairman, Dana Stevens told the "Star Tribune" that (NWA) pilots (FC) "will not be stampeded" and "will not make a deal with any entity unless it is the right deal . . . We have no timeline. Our goal is to fight for our pilots (FC), especially when it comes to our seniority and job protection."
(NWA) has 4,800 pilots (FC), while (DAL) has more than >6,000. Getting the pilot (FC) groups to agree on a merger and then combining the workforces is "not easy," Avitas Senior VP, Adam Pilarski said. "Where do the MD-80 pilots (FC) at Delta (DAL) fit in? What about the DC-9 pilots (FC) at Northwest (NWA)? Do you sacrifice them because you're going to get rid of those planes? There isn't a good solution. These are both very old companies with a lot of history and it's not so easy to forget all that and reach an agreement."
The vast majority of (NWA)'s employees are unionized, while only (DAL)'s pilots (FC) are unionized among major work groups. But the Assn of Flight Attendants (CA) - (CWA) said a majority of (DAL)'s 12,000 flight attendants (CA) have signed cards seeking union representation and will file those cards Thursday with the USA National Mediation Board (NMB). If the (NMB) verifies that at least 35% of (DAL)'s flight attendants (CA) have requested unionization, it can call a vote. More than >50% would have to cast ballots in favor for unionization to occur. Past efforts to unionize (DAL) flight attendants (CA) have been unsuccessful.
Midwest Airlines (MWX) parent, Midwest Air Group (MAG) said that the USA Dept of Justice has completed its investigation of the company's acquisition by (TPG) Capital and Northwest Airlines (NWA), clearing the way for the sale's closing. Trading of Midwest Air (MWX) Group stock on the American Stock Exchange concluded as of the close of trading. "Shareholders of record . . . will be notified of the process to surrender their shares in exchange for the per-share merger consideration of $17 in cash, without interest, following the closing," (MAG) said.
Consolidation speculation is rampant in the world's biggest air transport market, but the widespread talk about possible USA airline tie-ups generally breezes past or altogether ignores the multitude of obstacles faced by carriers attempting to form complicated combinations. In June 2007, US Airways (AMW)/(USA)'s failed $10.2 billion hostile takeover bid for Delta Air Lines (DAL) highlighted the myriad issues associated with attempted airline mergers - - and that proposal didn't even reach the point where the USA Dept of Justice (DOJ) was forced to render a judgment. The current speculation centers on (DAL)'s reported talks with Northwest Airlines (NWA) and, if such a tie-up were to be formed, a subsequent follow-up deal between Continental Airlines (CAL) and United Airlines (UAL). "That scenario seems less likely than popular perception," (AMW)/(USA) Chairman & CEO , Doug Parker recently argued. "Delta (DAL) and Northwest (NWA) getting together makes lots of sense [based on their route networks], but taking Continental (CAL) out of the [SkyTeam] Alliance (STM) doesn't make sense . . . There's more behind all these transactions than just looking at two route maps. It's a lot more complicated than that." (DAL), (NWA), and (CAL) are all SkyTeam (STM) members, and a merged (DAL)-(NWA) obviously would be a SkyTeam carrier (STM). But presumably, (UAL) is not leaving the Star Alliance (SAL), of which it is a founding member, and therefore (CAL)'s Newark and Houston hubs would become part of Star (SAL) under the (DAL)-(NWA)/(CAL)-(UAL) consolidation scenario. "Why would you go through all the trouble [of a merger] to lose [Newark and Houston] from the alliance?" asks Parker, wondering aloud whether non-USA SkyTeam (STM) members would be ready to embrace a merger that could cost them (CAL)'s network.
(NWA) currently holds a "golden share" in (CAL), that allows it to block the latter from entering into a merger. But once (NWA) enters into a merger agreement, (CAL) has the right to buy back the golden share for a mere $100 and would be free to pursue its own merger deal (even if (NWA)'s merger ultimately was rejected). "If the golden share would become redeemable, that would change our circumstances," (CAL) Chairman & CEO, Larry Kellner said. While (CAL) is content with "our position relative to the industry today," Kellner said, it "won't hesitate to act" if the industry landscape changes and rivals combine to form a mega-airline. "We do pay attention to [our] relative size," he said. "Size is important in a network business." In terms of traffic, (CAL) ranked fourth among USA airlines in 2007 at 84.31 billion (RPM)s, trailing American Airlines (AAL) (138.45 billion (RPMs), (DAL) (122.07 billion (RPM)s, including regional operations), and (UAL) (117.4 billion (RPM)s). However, it had the most balanced network in terms of international and domestic services and the best service reputation among network carriers.
USA airline executives continue to argue that the industry is too fragmented and that six legacy carriers will be unable to grow capacity and keep costs down absent consolidation. "I cannot see any logic in [that argument] whatsoever," Avitas Senior VP, Adam Pilarski, a longtime industry observer, said. "If you can't grow capacity with six, I don't see how going from six to three changes it in any way. Six becoming three doesn't create more Americans that want to fly."
And the problems associated with mergers would create operational difficulties, that could push passengers to Low Cost Carrier (LCC)s and new entrants, Pilarski contends: "I don't see any synergies that get translated into cost savings or revenue enhancement. Yes, a few consultants, a few banks, a few executives will make money off of mergers, but the negatives for the industry are obvious. You are trying to merge two different cultures, which never works well. You are talking about airlines that may belong to two different alliances, that have very different fleets, different operating systems . . . How do you integrate the pilot (FC) lists? There are a lot of headaches that could cost you a lot in productivity. I'm fairly confident that [mergers] will be problematic."
While (AAL) Executive VP Finance & Planning & CFO, Tom Horton believes that consolidation could "lead to greater efficiency," he acknowledges that "there are a lot of challenges to consolidation in our industry."
Of course, any merger agreement will face scrutiny from the (DOJ) and members of Congress, several of whom already have vowed to fight consolidation on the grounds that it will result in lost jobs and diminished service. While USA airline officials appear to believe that the (DOJ) is more likely to approve a merger than in 2001, when it blocked (UAL)'s proposed acquisition of then-USAir (USA), the fact that a new President (and a new attorney general) will take office next January may be driving the latest round of talks. "Since there is going to be a change in administration, there will be some delay" in clearing a merger unless an agreement is submitted by the end of this month, Parker says, predicting that any later submission likely would get caught up in the changeover. But he adds that such approval would still come: "It's more of a timing issue. Irrespective of the administration, the arguments for consolidation are so compelling that I'm not overly concerned that the next administration is going to be against mergers." Other factors affecting potential mergers are the ongoing decline of USA airline stock prices and the credit crunch. Airline shareholders are unlikely to be enticed by the prospect of "cashing out" underperforming stocks in a merger, though Parker insists that they would be interested in moving their shares "to a stronger airline." And the state of credit markets means a carrier will have more difficulty raising money to finance an "acquisition" of another carrier. "It doesn't change the likelihood of mergers, just the structure," Parker says. "The structure will move from debt financing to equity financing" and merger agreements will be "equity-equity transactions."
Delta Air Lines ((DAL) CEO, Richard Anderson told USA Senator Amy Klobuchar (Democrat-Minnesota) that (DAL) and Northwest Airlines (NWA) have not yet reached a merger agreement, but that negotiations continue, "Reuters" reported. Widespread press reports said various sources close to the talks revealed that the respective carriers' boards would meet today to review progress on negotiations with the pilots (FC) and, if an agreement had been reached with the unions, vote on a merger.
Northwest Airlines (NWA) may face an additional hurdle on its way toward a merger with Delta Air Lines (DAL). While (NWA)'s hometown paper, the "Star Tribune," quoted a source calling the merger agreement "ready to sign" as soon as the respective pilot (FC) unions resolve issues concerning seniority, "Reuters" reported that $445 million in loans and lease concessions provided to (NWA) prior to its exit from bankruptcy, are contingent upon its maintaining a hub and headquarters in Minnesota. "They have a legal commitment to this state, and we expect them to uphold it," a Minneapolis Airports Commission spokesperson told the news service, while Minnesota Governor, Tim Pawlenty reportedly wrote a letter to the CEOs of both carriers saying, "We trust and expect these commitments to be honored." A spokesperson for Pawlenty told "Reuters" that the airlines would discuss the issue "at the appropriate time, after a merger is announced."
Merger talks between Delta Air Lines (DAL) and Northwest Airlines (NWA) apparently have stalled owing to a lack of progress in negotiations between the carriers' pilot (FC) groups. The airlines earlier this month briefed their pilot (FC) groups, both represented by the Air Line Pilots Assn (ALPA), on details of a potential merger, believing that combining the companies would prove difficult absent pilots (FC)'s support. But widespread media reports indicate that the two pilot (FC) groups have not met since February 21 and that merging the two carriers' seniority lists could be problematic. (NWA) is believed to have about 1,000 pilots (FC) over the age of 55. Younger pilots (FC) among the 4,800-strong workforce are in line to move up in seniority when their older colleagues retire, but a merger with (DAL) (which has more than 6,000 pilots (FC)) would create a much larger workforce and make advancement more difficult. Labor leaders of (NWA)'s Seattle-based pilots (FC), in an "update" to pilots (FC) cited by the "Associated Press," said financial incentives that could be included in a merger agreement are less important than seniority. "Seniority is not for sale," the update stated. "It makes no sense to trade seniority, which is long term, for contractual improvements, which can be very short term." Further casting doubt on the notion that a merger agreement could be announced shortly, is a memo sent to (DAL) employees recently by CEO, Richard Anderson. In the widely reported communication to workers, he states that "we have not arrived at a potential [merger] transaction that meets all of our principles." He added that (DAL) would not enter into a tie-up unless those principles, which reportedly include retention of the Delta (DAL) name and protection of (DAL) pilots (FC)'s seniority status, are upheld.
The "Star Tribune" reported that Air France (AFA)/(KLM) will invest $750 million in the combined Delta (DAL)/(NWA). It is a SkyTeam (STM) partner of both USA carriers.
DC-9-32 (47223, N605NW), damaged beyond economical repair (DBER), and scrapped.
March 2008: Northwest Airlines (NWA) and Delta Air Lines (DAL) pilot (FC) groups resumed meetings on a proposed merger after a break of nearly two weeks, "The Detroit News" reported. The airlines last month briefed their pilot (FC) groups on details of a potential merger, but leaders of the two carriers' pilots (FC), all of whom are represented by the Air Line Pilots Assn, reached an impasse over combining seniority lists. (NWA) and (DAL) appear reluctant to move forward with a merger agreement absent the support of pilots (FC).
Later, it was stated that Delta Air Lines (DAL) and Northwest Airlines (NWA) pilots (FC) have been unable to reach an agreement on the merger of their respective seniority lists, perhaps delivering the final blow to a potential combination of the carriers, (DAL) Air Line Pilots Assn MEC Chairman, Lee Moak said in a letter posted on the union's website. "While much was accomplished during a relatively short period of time, we have been unable to reach an agreement on a seniority list integration," he wrote, concluding that while (DAL) management will "decide the direction of the company," the MEC believes "that pilot (FC) involvement before a final decision in any consolidation is absolutely essential."
Delta Air Lines (DAL) pilots (FC), represented by the Air Line Pilots Assn (ALPA), rejected arbitration as a way to break the impasse with Northwest Airlines (NWA) pilots (FC) over the integration of their respective seniority lists, the "Associated Press" reported. Union leaders at (NWA) reportedly suggested the option to members.
The chief executives of Delta Air Lines (DAL) and Northwest Airlines (NWA) both warned that rising oil prices are having a severe impact on carriers and jeopardizing the industry's recent return to profitability. Speaking at the (FAA) Aviation Forecast Conference in Washington, (DAL) CEO, Richard Anderson said high fuel costs are the "first and foremost issue" for the airline industry, with $105-plus per-barrel crude oil prices "really having a debilitating, negative effect." (NWA) President & CEO, Doug Steenland told employees in a hotline message that fuel costs are a "budget breaker" that could add as much as +$1.7 billion to the carrier's 2008 costs. He added, "If fuel remains where it is today, our increased fuel costs will again create a difficult financial challenge for the airline. This rapid increase in fuel costs is another reason why we continue to believe that consolidation in the industry is inevitable." Both CEOs declined to comment on (DAL)-(NWA) merger speculation. But both made it clear that airlines will be in financial peril if oil prices continue rising. Anderson criticized USA officials for not developing a comprehensive energy policy. "Jawboning (OPEC) is not an energy policy," he said. "In the short run, a lot of what's going on in the fuel business is market speculation, and there's not a whole lot you can do about that. But the issue's been around a long time and there are a lot of sources of demand like home heating that have alternatives [to oil-based fuel]. We really don't have any conservation policies . . . We're several years behind time in dealing with this issue. We can't as a country that's so oil dependent just tell (OPEC) to increase production."
Delta Air Lines (DAL) and United Airlines (UAL) announced a domestic downsizing to help negotiate rising fuel costs and a slowing USA economy, with each carrier planning to ground 15 to 20 mainline airplanes this year and (DAL) also aiming to slash its workforce by approximately -2,000. (UAL) plans to reduce domestic capacity by an unspecified amount later this year, as it grounds 15 to 20 737-500s, while (DAL) said it will cut domestic capacity by -10% year-over-year in the second half of 2008. (UAL) already has committed to lowering domestic capacity by -3.5% to -4.5% for the full year, and said it will offer new guidance next month. (DAL), which also plans to ground 20 to 25 regional jets this year, said its full-year domestic capacity will be cut -7%, with most of the reduction coming from point-to-point flying as it seeks to focus domestic operations on feeding its international services, which will see capacity growth of +15% in 2008. "Jet fuel prices are up +85% since the beginning of 2007," (DAL ) President & CFO, Edward Bastian said at the JP Morgan Aviation and Transportation Conference in New York. "What's going on with fuel is certainly unprecedented, if not a crisis for the industry." He explained that 1,300 front-line (DAL) workers will be cut by "voluntary" means and 700 administrative employees will be cut by "involuntary" means if necessary. He added that international demand remains strong, but said decisive action is required domestically. "We're in uncharted territory in terms of fuel prices and the slowness of the domestic market," he said. "We believe the [-10% second-half] domestic capacity reduction is the right tonic, but if we have to go deeper, we will." Northwest Airlines (NWA) Executive VP & CFO, Dave Davis, also speaking at the conference, said the carrier is undertaking "a thorough review of capacity with a particular view on the domestic market" but has not made any decisions. He predicted that cuts could come "beginning with the fall schedule" and noted that (NWA) could decide to increase the number of DC-9s it plans to retire over the 40 already scheduled to be grounded. Its DC-9 fleet is slated to stand at 68 at year end, but "there's an opportunity to get even smaller from a DC-9 perspective later in 2008 if we need to," he revealed.
Northwest Airlines (NWA) will join several USA legacy competitors and begin charging North American economy passengers $25 for a second checked bag on each segment. The policy goes into effect May 5, applies to Northwest (NWA) Airlink customers and includes an increase to $100 from $80 for three or more checked bags, and to $50 from $25 for pieces weighing more than >50 lb.
747-2J9F (21668, N630US), WFU and stored at Marana. DC-9-31s (47046; 47263; 47338), WFU at Tucson.
April 2008: Northwest Airlines (NWA) flew 7.16 billion consolidated (RPM)s passenger traffic in March, up +2% over the year-ago month, against a +0.6% lift in capacity to 8.24 billion (ASM)s. Load factor rose +1.3 points to 87% LF.
Delta (DAL) MEC of the Air Line Pilots Assn met in special session in Atlanta, the union acknowledged, as reports spread that (DAL) was looking to reach an agreement with the pilots (FC) to proceed with a merger with Northwest Airlines (NWA) despite the two groups' inability to come to an agreement concerning the combination of their respective seniority lists.
Later, Delta Air Lines (DAL) and Northwest Airlines (NWA) announced a merger agreement to create a mega-airline, that would be the world's largest, absent divestitures with aggregate annual revenue of more than >$35 billion, a fleet of more than >800 airplanes and 75,000 employees worldwide. Delta Air Lines (DAL) and Northwest Airlines (NWA) announced a merger agreement to create a mega-airline, that would be the world's largest, absent divestitures with aggregate annual revenue of more than >$35 billion, a fleet of more than >800 airplanes and 75,000 employees worldwide. The merger agreement is likely to spark negotiations between Continental Airlines (CAL) and United Airlines (UAL) regarding a potential tie-up. (NWA)'s "golden share" in (CAL), which allows it to block its rival from entering into a merger, now can be bought back by (CAL) for $100. (UAL) repeatedly has voiced its support for industry consolidation.
The announcement of the merger agreement between Delta Air Lines (DAL) and Northwest Airlines (NWA) rippled across the USA commercial aviation landscape as the respective pilot (FC) groups took opposing sides and the identity of future consolidation candidates was scrutinized. Initially the principal roadblock to a (DAL)/(NWA) combination, the respective pilot (FC) groups represented by the Air Line Pilots Assn (ALPA) remained at odds, with the Northwest (NWA) Master Executive Council (MEC) announcing that it "strongly opposes the merger . . . as it stands." With Delta (DAL)'s approximately 6,000 pilots (FC) agreeing to new contract terms independently, the (NWA) (MEC) said its roughly 5,000 pilots (FC) "will be disadvantaged in obtaining a joint contract, and potentially in the seniority list integration process" and that without parity, they potentially could be "on a B-Scale for years." (MEC) Chairman, Dave Stevens said he met with (DAL) executives and unsuccessfully "suggested" they delay the merger announcement "and spend a short period negotiating a joint contract with a focus on their harmonization issues." Having previously rejected arbitration as a means to settle the seniority dispute, (DAL) pilots (FC) now favor the process, he said, and "may choose not to cooperate on a joint contract for the benefit of the Northwest (NWA) pilots (FC), while they seek an agreement on seniority that favors the Delta (DAL) pilots." He warned that "no pilot (FC) group is going to put up with this" and that "no amount of money can sustain a carrier which creates this level of discord . . . We will be turning our efforts to stopping this merger." Delta (DAL) pilots (FC) approved of the deal, saying that their new contract includes "improvements and financial returns for the value the pilots (FC)'s participation provides to the merger" and is a "far super solution" to the "traditional merger scenario."
The International Assn of Machinists (MT) and Aerospace Workers, which represents (NWA)'s 12,500 ground employees, said it opposed the merger on the grounds that failure would result in the liability for each airline's frozen, underfunded pension plans falling on the government's Pension Benefit Guaranty Corp. (NWA) cabin staff (CA) represented by the Assn of Flight Attendants-CWA will "demand an end to concessions and a stake in the merged [airline] equal to equity granted other labor groups." It did not oppose the combination but promised it would look to recover concessions granted during (NWA)'s bankruptcy and "immediately begin to seek to negotiate improvements to our collective bargaining agreement."
Meanwhile, the consolidation spotlight shifted toward United Airlines (UAL) and Continental Airlines (CAL), considered by many to be the candidates most likely to merge in the wake of this merger announcement. Merrill Lynch said that "all fingers are pointing to a Continental (CAL)-United (UAL) tie-up." (CAL) Chairman & CEO, Larry Kellner acknowledged that the (DAL)/(NWA) merger "will change the competitive landscape for Continental (CAL) and the entire airline industry" and that (CAL)'s "preference" to remain independent will be reviewed. (DAL)'s agreement with (NWA) will allow (CAL) to recover the latter's "golden share" and pursue its own combination. (UAL) Chairman, President & CEO, Glenn Tilton said "the old paradigms no longer apply" and echoed his support for industry consolidation.
While press reports and analysts said a (CAL)/(UAL) merger could come soon, the pilots (FC) from both carriers issued a joint statement warning that they will "not allow any merger unless management meets or exceeds our demands to be treated fairly and equitably."
Executives from Delta Air Lines (DAL) and Northwest Airlines (NWA) moved quickly to persuade investors, employees, consumers and regulators, that the proposed blockbuster merger of the two carriers will be positive for all, while insisting they will avoid many of the pitfalls of past mergers. "Not all mergers are created equal," (DAL) CEO, Richard Anderson, who would run the combined airline, told analysts. Even though the new Delta (DAL) would be the world's largest, with more than >800 mainline airplanes and more than >$35 billion in annual revenue, he asserted that the tie-up will not be unwieldy, because both airlines are doing relatively well, and the two companies already codeshare and are SkyTeam (STM) partners. "Mergers since deregulation and even before involved carriers one or the other of which were in distress," he said. "In this case, you have two carriers who just came off strong performances in 2007." In addition, the two already cooperate. "We are well ahead of the game by having this merger take place within an existing alliance relationship," (NWA ) President & CEO, Doug Steenland said. "As alliance partners, we already have pretty integrated Information Technology (IT) systems."
Anderson and Steenland insisted there would be little trouble gaining antitrust clearance. While the new Delta (DAL) would have a "compelling package of worldwide destinations that no other USA carrier could match," Steenland noted that it still would hold only a 20% share in the USA domestic market, while Southwest Airlines (SWA) "will remain the largest domestic carrier." Since domestic overlap of routes is "minimal," with only 12 nonstop city-pairs operated by both, and their hubs located in different parts of the country, "the impact of the merger on competition will be little if any," he said.
The USA Dept of Justice said that it "will look at the competitive effects of the transaction and how it would affect consumers." The carriers are hoping to finish the regulatory review process before a new President takes office next January.
Anderson and Steenland likely will appear at several Congressional hearings in coming weeks and could face tough questions. Lawmakers from (NWA)'s home state of Minnesota are particularly unhappy with a deal that will see the state lose its status as headquarters of a major international airline. The most vocal critic was Representative James Oberstar (Democrat-Minnesota), Chairman of the House Transportation & Infrastructure Committee. If the merger is approved, it would be "probably the worst development in aviation history" and lead to a "cascade" of other mergers that will leave the USA with just two or three mega-airlines that could drive the Low Cost Carrier (LCC)s out of business, he said. "We will marshal all the forces we can" to fight the merger, he vowed.
Analysts agree that the proposed merger between Delta Air Lines (DAL) and Northwest Airlines (NWA) could lead to a consolidation of hubs and elimination of overlapping routes, but it is uncertain how this would affect regional airline partners that operate under contract with the carriers. "We continue to believe that longer-term consolidation poses a threat to regional airlines," JP Morgan's, Jamie Baker wrote. "Regionals exist to feed hubs . . . As a means of reducing industry capacity, consolidation is a process by which hubs are likely to be shuttered. It is difficult to imagine a consolidated Delta (DAL)/Northwest (NWA) operating hubs in Detroit and Cincinnati."
While the airlines have promised that the combination will not result in hub closures, (DAL) has made no secret that it would like to sell its wholly owned subsidiary Comair (COI). Northwest (NWA) is likely to continue to rely on its new subsidiary Compass Airlines, which began last spring. Regional partners Republic Airways, Pinnacle Airlines, Mesa Air Group, SkyWest Airlines, and ExpressJet all have contract agreements with one or both carriers. The most likely scenario would be fleet rationalization, analyst Mike Boyd said, with regional carriers taking the first hit. "These leasing companies - - small jet providers - - are clearly in the crosshairs," Boyd said. "Delta (DAL) and Northwest (NWA), regardless of any merger, have about 125 too many 50-seaters that have to go quick. They are losing money on every flight, with or without a merger."
Prior to the merger negotiations, (DAL) said it would terminate its agreement as of May 3 with Mesa subsidiary Freedom Airlines, which operates 34 ERJ-145s on behalf of Delta Connection. The decision to drop Freedom's ERJ service, which resulted in a lawsuit, came a little more than a month after (DAL) announced it would reduce capacity by -10% in the second half of 2008 and ground 20 to 25 regional jets, presumably the less-fuel-efficient 50-seaters. The decision does not affect Freedom's CRJ-900 flying for Delta Connection. "We are confident that Delta's actions are not supported by the terms of the Connection Agreement, that we have complied with all of our obligations under that agreement and that Delta (DAL)'s effort to terminate the agreement will not be upheld in a court of law," Mesa Chairman & CEO, Jonathan Ornstein said. Boyd said both SkyWest and Republic have a "good future," because they have invested heavily in larger regional jets. But many of the 50-seaters will have to go, he contended. "They are fast becoming litters of kittens - - cute, but nobody wants them."
Air France (AFA)-(KLM) said it was "pleased" by the Delta Air Lines (DAL)/Northwest Airlines (NWA) merger announcement and that it looked forward to combining with the new carrier "in the form of a joint venture offering a network with extremely attractive multiple hubs." (AFA)-(KLM) said it had offered short-term financial aid to the airlines as part of the transatlantic alliance granted antitrust immunity last week, but said that "considering the strong liquidity position of the combined airlines," it is "totally satisfied with the new framework which strengthens our North Atlantic partnership without the need for financial aid on our part."
Although not part of the SkyTeam (STM) tie-up, Continental Airlines (CAL) "will always be welcome to remain in SkyTeam (STM) and enjoy all of the benefits of the alliance" if it chooses to remain independent, (NWA) CEO, Doug Steenland said. A merger with United Airlines (UAL) likely would send (CAL) to the Star Alliance (SAL).
Delta Air Lines (DAL) CEO, Richard Anderson and Northwest Airlines (NWA) President & CEO, Doug Steenland promoted the carriers' merger before Congress, insisting that the combination wouldn't affect competition and is necessary to allow the USA industry to compete against large European and Asian airlines. The CEOs testified before both the House of Representatives and the Senate. The merger "really creates the first USA global airline," Anderson told the House Judiciary Committee. "This gives us the ability to compete and win against foreign flag carriers." He and Steenland reiterated that the merger would result in no hub closures and that only executive, nonfrontline workers would be subject to involuntary layoffs. "Ticket prices will still be set by the market," Anderson said, noting that the combined airline would carry only 20% of domestic passengers and that there is minimal route overlap. The merger would make the combined airline "more financially resilient and stable" and able to withstand "volatile fuel costs and cyclical downturns," Steenland said.
House Judiciary Chairman, John Conyers (Democrat-Michigan) expressed mixed feelings, saying he was concerned a resulting "cascade of other mergers" could lead to job losses and degraded service. "If the merger is rejected, however, we could wind up with more carriers in bankruptcy," he said. He added that consideration of the (DAL)-(NWA) tie-up is "a momentous matter" and that "adequate time" should be taken for its review. He questioned whether the airlines were in "a rush" to get it approved before a new President takes office in January, noting that the Bush Administration during its second term has issued 75% fewer merger challenges compared to the Clinton Administration's second term.
The International Assn of Machinists and Aerospace Workers President, Tom Buffenbarger told lawmakers that the USA airline industry is "in disarray" and mergers will make matters worse. "Airline executives are using a crisis of their own making to create what can only be called a monopoly," he said, warning that job losses, degraded service and "more senseless mergers" would result if the (DAL)-(NWA) tie-up is approved.
While lawmakers are asking tough questions, Congress does not appear to have the power to stop the transaction. "Our sense is that this is essentially a regulatory process with the Department of Justice (DOJ)," Anderson said. "While we'll cooperate with Congress fully, this process runs through the Dept of Transportation and the (DOJ)."
The USA Dept of Transportation (DOT) tentatively approved transatlantic antitrust immunity for six SkyTeam (STM) members - - Air France (AFA), Delta Air Lines (DAL), (KLM), Northwest Airlines (NWA), Alitalia (ALI), and (CSA) Czech Airlines - - nearly four years after Delta (DAL) and Northwest (NWA) first petitioned the (DOT) to allow the alliance. After an initial denial, they reapplied last June with a substantially revised agreement. Currently, (DAL) has antitrust immunity with (AFA), Alitalia (ALI), and (CSA), while (NWA) enjoys immunity with (KLM). The (DOT) said it "concluded that the proposed alliance is in the public interest, because it features a proposed new and highly integrated joint venture, that will likely produce efficiencies and provide consumers with additional price and service options, such as lower fares and more nonstop and connecting flights." In response, (DAL) Executive VP Network Planning & Revenue Management, Glen Hauenstein said he was "pleased" that the (DOT) "recognizes once again that antitrust immunity offers significant advantages to customers" and that the grant will "significantly strengthen the SkyTeam (STM) alliance." (AFA) and (KLM) said the preliminary decision "seems to be a logical response to both the Air France (AFA)-(KLM) merger and the new European Union (EU)-USA "Open Skies" agreement," and that they would "welcome a quick and final decision from the USA Authorities." The immunity will enable (AFA), (KLM), (DAL), and (NWA) to establish a joint venture agreement among the four and ultimately integrate their transatlantic operations. (AFA) and (DAL) last year initiated their own partnership modeled after the (NWA)/(KLM) tie-up launched a decade ago. The (DOT) proposed that as a condition of obtaining immunity, the carriers must launch their alliance within 18 months.
Northwest Airlines (NWA) reported a -$4.14 billion first-quarter net loss owing to a noncash, goodwill impairment charge of $3.93 billion, necessitated after it "compared the carrying value of its equity and the fair value" and similar to the one incurred by merger partner Delta Air Lines (DAL). (NWA) lost -$292 million in the year-ago quarter. "We considered the impact of current high fuel prices, Northwest (NWA)'s recent stock price, other industry trends and the equity value of Northwest (NWA) implied by the recent merger announcement, and have determined that an impairment to goodwill is required," the company said. Excluding the charge as well as losses associated with marking-to-market out-of-period fuel hedges, (NWA) suffered a -$191 million net loss in the quarter against a similarly measured +$73 million profit in the first three months of 2007.
"Northwest (NWA)'s first-quarter performance was negatively impacted by the dramatic increases in the price of oil," President & CEO, Doug Steenland said. "Year-over-year, our first-quarter total fuel expense increased by +$445 million, or +57.3 percent. The sustained high fuel prices represent an extraordinary challenge to Northwest (NWA) and the entire airline industry. In response to fuel, we have taken a series of actions and will continue to monitor the impacts of fuel prices on our operation and are prepared to take additional actions as necessary." Among the measures will be an additional -5% reduction in domestic capacity beyond its 2008 business plan, following the peak summer season and the removal of -15 to -20 airplanes from service. Nonairplane capital expenditure will be reduced by -$100 million.
First-quarter revenue rose +8.8% to $3.13 billion against a +21.5% jump in operating expenses to $3.25 billion, excluding the impairment charge. The operating result, which included the impairment charge, swung to a -$4.05 billion loss from a +$201 million profit in the year-ago period. The company flew +19.21 billion consolidated (RPM)s passenger traffic during the three months, up +3.2% year-over-year. Capacity rose +2% to 23.36 billion (ASM)s, lifting load factor +1 point to 82.3% LF. Yield was ahead +2.9% to 13.78 cents and passenger (RASM) rose +4.1% to 11.34 cents. (NWA) operated 348 airplanes at the close of the period, down from 375 a year prior.
Northwest Airlines (NWA) announced a series of measures "in response to the high cost of fuel and current economic uncertainties," including a -5% reduction from its 2008 business plan in domestic capacity, following the peak summer schedule, that will result in the removal of an additional -15 to -20 airplanes from service. The airplanes removed will comprise 10 DC-9s and a mix of 757s and A319s/A320s. It said the increased luggage charges will result in approximately $25 million in revenue this year and $40 to $70 million annually, thereafter. In addition, it will cut non-airplane capital expenses by around $100 million this year to approximately $150 million.
V Australia (VAZ), the long-haul international arm of Virgin Blue (VOZ), announced that it will launch daily, Sydney - Los Angeles (LAX) on December 15. It also announced an interlining agreement with Northwest Airlines (NWA) that will take effect with (VAZ)'s first flight. (NWA) VP Alliances, Nat Pieper called it "the first phase" of the airlines' cooperation.
USA major airlines will need to spend an estimated $110 billion to update their fleets, but even if they had the money, which they don't, the order backlog at Airbus (EDS) and Boeing (TBC) "means any replacements are years from delivery," according to a report from UK-based, "Ascend." The consultancy figures that USA carriers operate 1,420 airplanes that will be coming to the end of their service lives over the next 15 years. It said problems "are particularly acute" for American Airlines (AAL), Northwest Airlines (NWA), and United Airlines (UAL). (AAL), for example, operates 300 MD-80s with an average age of 16 years, while its 34 A300-600Rs have an average age of 18 years, its 15 767-200s are legal to drink at 21 years, and its 58 767-300ERs average 14 years. Northwest (NWA)'s 69 DC-9s average 30 to 39 years while its 55 757s are 15 years old on average. (UAL)'s oldest fleet is its 64 737-300s at 19 years, followed by its 97 757s and 30 737-500s at 16. "It is far from exaggerating to say we really are at crisis point for these airlines," Ascend Managing Director, Gehan Talwatte concluded.
DC-9-31 (47164, N921RW), WFU and stored at Marana.
May 2008: Northwest Airlines (NWA) flew 6.59 consolidated (RPM)s passenger traffic in April, up +1% from the year-ago month, against a +2.1% increase in capacity to 7.96 billion (ASM)s. Load factor dipped -0.9 point to 82.8% LF.
Northwest Airlines (NWA) announced that Executive VP Strategy, International, & CEO Regional Airlines, Neal Cohen will leave the company effective June 16. Cohen spent nine years with Northwest (NWA) from 1991 to 2000 in a number of senior positions including Senior VP & Treasurer. He was Executive VP Finance, and (CFO) for US Airways (USA) from April 2002 to April 2004, a period that overlapped that carrier's first bankruptcy reorganization. He returned to (NWA) in May 2005 as Executive VP & CFO, positions he held during the company's Chapter 11 reorganization. Prior to joining (NWA), he spent seven years at General Motors' treasurer's office in New York. Cohen is the highest-level (NWA) official to announce his departure since the merger with Delta Air Lines (DAL)was unveiled.
Northwest Airlines (NWA) will launch daily, Tokyo Narita - Taipei service August 31 aboard a two-class 757-200.
Opposition from some quarters to potential moves by USA airlines in response to the recent Delta Air Lines (DAL)/Northwest Airlines (NWA) merger announcement, is fierce, with Virgin Atlantic Airways (VAA) vowing to fight a British Airways (BAB)/American Airlines (AAL)/Continental Airlines (CAL) transatlantic alliance and United Airlines (UAL)'s pilots (FC) expressing strong disapproval of management's reported merger negotiations with US Airways (AMW)/(USA).
(CAL) said that it has ruled out a merger, but the current SkyTeam (STM) member is on the outside looking in at a (DAL)-(NWA)-Air France (AFA)-(KLM) transatlantic alliance and, according to (BAB), is exploring the possibility of leaving SkyTeam (STM) and joining with (BAB) and (AAL) in those carriers' long-proposed transatlantic partnership.
Virgin (VAA) Group, Chairman, Richard Branson said that he would "fight tooth and nail" against such an alliance. "When (BAB) and (AAL) first tried to get together nearly 10 years ago, the regulators ruled it was against the consumer interest," he said. "A link-up between (BAB) and (AAL) is still anticompetitive, and now they have the cheek of trying to add Continental (CAL) to the mix too. This triple whammy would reduce effective competition across the Atlantic and the regulators should make it absolutely clear that it would have no chance of getting off the starting grid."
Meanwhile, a possible (UAL)-(AMW)/(USA) combination, apparently being explored in the aftermath of the (DAL)-(NWA) announcement, would have to overcome considerable misgivings by pilot (FC) groups. (USA) still is struggling to integrate former America West Airlines (AMW) and former US Airways (USA) pilots (FC) into one group, creating a problematic East-West split among its flight deck (FC) crews. Air Line Pilots Assn (ALPA) (UAL) (MEC) Chairman, Steve Wallach said in a statement that a merger with (AMW)/(USA_ "would be extremely negative," adding: "Continued difficulties [after more than two-and-a-half years] associated with [(AMW)-(USA)] pilot (FC) seniority integration are well chronicled. Even those reports grossly underestimate the complexity of seniority integration, which likely will not be solved without years of litigation. US Airways (AMW)/(USA)'s pilot (FC) integration problems have created a toxic stew, as any carrier that seeks to merge with it will quickly discover." (AMW)/(USA) pilots recently rejected (ALPA) representation over frustration with the union's lack of progress in negotiations with management.
Delta Air Lines (DAL) and Northwest Airlines (NWA) executives continued to push the merits of their proposed merger, assuring both federal and state legislators that no "frontline" workers will be cut, while the two carriers' pilot (FC) groups plan to meet.
The airlines reiterated that about 1,000 jobs in management offices in Minneapolis and Atlanta will be eliminated as the new (DAL)'s headquarters are consolidated in Atlanta. But further job losses will be avoided barring a catastrophic, unforeseen event, (NWA) President & CEO, Doug Steenland told the USA Senate. "We have to recognize that there are variables out there that are completely outside our control [that could lead to job cuts in the future]," he explained. "It doesn't mean that we were misleading . . . It means there's been a sea change, a change in the external world that changes how this business needs to be run if it's going to stay in business."
(DAL) President & CFO, Edward Bastian testified this week before the Minnesota state legislature, assuring lawmakers angry that the state no longer will be the site of a major international airline's headquarters, that (MSP) will remain a key hub, and that frontline workers in the state will retain their jobs. He did not say how many of the 1,000 management office jobs to be cut will come from Minneapolis, but emphasized that the decision to headquarter the new (DAL) in Atlanta is final.
Meanwhile, pilots (FC) from both carriers will meet for two days to discuss issues such as seniority list integration. The groups were unable to reach an accord in several rounds of talks prior to the merger agreement announcement.
SEE ATTACHED MERGER ARTICLE - - "NWA-DAL-MERGER-STATUS-MAY08."
Northwest (NWA) hired 11 pilots (FC) in April. The carrier closed its application window on March 31st. Northwest (NWA) has reduced its projected pilot (FC) hiring from 250 to 350 for 2008 to 225. Northwest (NWA) has stopped recruiting pilots (FC) for now, but will be attending and launching the FLTops.com "Pilot Career" Conference, by producing a joint presentation with Delta Air Lines (DAL).
The USA Dept of Transportation (DOT) announced a grant of transatlantic antitrust immunity to SkyTeam (STM) partners Delta Air Lines (DAL), Northwest Airlines (NWA), Air France (AFA), (CSA) Czech Airlines, Alitalia (ALI), and (KLM), upholding a tentative approval issued last month. The six now will be able to "coordinate their transatlantic fares, services and capacity as if they were a single carrier in these markets, subject to certain conditions," the (DOT) said, adding that the approval is unrelated to (DAL)'s and (NWA)'s merger plans. Those are subject to a separate review. The (DOT) said the alliance "is in the public interest, because it features a proposed new and highly integrated joint venture, that will likely produce efficiencies and provide consumers with additional price and service options," but that the alliance must be implemented within 18 months as a condition of immunity. (NWA) President & CEO, Doug Steenland said, "This enhanced ability to coordinate among the carriers will provide a more positive, seamless experience for our customers with single-ticketing, seamless baggage handling and greater customer ease and convenience. It is also good news in light of skyrocketing fuel costs."
DC-9-41 (47180), stored at Marana.
June 2008: Northwest Airlines (NWA) staff saw the most dramatic drop in maintenance workers (MT) among USA network airlines since 2000, from 5,852 (MT) (13.9 per airplane) down to 255 (0.8 per airplane). Other carriers now have 8.3 per airplane, against 13 in 2000. Total (NWA) staff numbers fell -42.5% in 2000 - 2007, to 29,619 - - the biggest fall for a carrier reporting to the Bureau of Transportation Statistics. "Airlines report differently. Our internal (maintenance) number is 2.9 per airplane," says (NWA).
Arguing that the case for its merger with Delta Air Lines (DAL) is "stronger than ever," Northwest Airlines (NWA) unveiled a further round of capacity cuts that will contribute to the removal of -43 airplanes from its fleet this year retroactive to January 1. "In response to these extraordinary fuel costs, we are taking prudent actions to reduce our capacity and right-size the airline. This will allow us to better match our capacity to customer demand as airfares, by necessity, must increase," President & CEO, Doug Steenland said.
In early April, (NWA) announced a -5% year-over-year capacity cut following the summer peak season and the removal of -15 to -20 DC-9s, 757s and A319s/A320s from the fleet. It said it will deepen its fourth-quarter mainline cut to -8.5% TO -9.5% year-over-year, affecting both domestic and international flights. Domestic consolidated capacity will be down -7% to -8% and consolidated system capacity (ASM)s will fall -3% to -4% from year-ago figures.
Northwest Airlines (NWA) will cancel its Detroit - Dusseldorf and Hartford - Amsterdam flights on October 2, and suspend Minneapolis/St Paul - Charles de Gaulle from October 2 to March 28, 2009. It cited "high fuel costs and decreased demand" for the decision and warned that "selective frequency reductions and airplane type changes may also be implemented on additional transatlantic flights, depending on oil prices and ongoing customer demand."
The new cuts now will result in the removal of -14 757s and A319s/A320s, plus the reduction of the DC-9 fleet to 61 airplanes by year end from 94 at the start of 2008.
"No domestic station closures are planned as a result of these capacity reductions. Instead, we will pare unprofitable flying while maintaining the scope and presence of our network," Steenland promised. (NWA) said it had "not finalized" the decision's impact on staff and will "first look to voluntary separation programs."
Stumping for the merger, Steenland said the combination first was contemplated when oil was below $100 per barrel. "The merger-related synergies will improve the financial ability of Northwest (NWA) and Delta (DAL) to meet the challenge presented by the fuel crisis and better position the combined carrier for long-term strength and profitability," he said.
Delta Air Lines (DAL) and Northwest Airlines (NWA) pilots (FC), whose leaders reached a tentative agreement on a joint contract with (DAL) management, will enter into a period of "good faith" negotiations over details of seniority list integration and agreed to enter into binding arbitration by year end if differences still remain. Minneapolis's "Star Tribune" reported that the tentative joint contract would give (DAL) pilots (FC) a +5% pay raise next year and annual increases of +4% through 2012, with (NWA) pilots (FC) receiving larger raises to bring their pay to parity with their better-compensated (DAL) counterparts. The (DAL) Air Line Pilots Association (ALPA) (MEC) has approved the tentative contract, and the (NWA) (ALPA) MEC reportedly will vote on it imminently. Pilots (FC) from both carriers then would be required to ratify it.
DC-9-31 (47346), and DC-9-32 (47225), WFU and stored at Tucson. 747-251F (21121, N617US), WFU and stored at Marana.
July 2008: Northwest Airlines (NWA) flew 7.26 billion consolidated (RPM)s traffic in June, up +4.4% year-over-year. Capacity climbed +5.9% to 8.37 billion (ASM)s, and load factor dropped -1.2 points to 86.8% LF.
(NWA) reported a second-quarter net loss of -$377 million owing mainly to a noncash goodwill impairment charge of $547 million, reversed from a +$2.15 billion profit in the year-ago period, that benefited heavily from one-time bankruptcy exit gains. Absent the goodwill impairment charge, (NWA) said it would have posted +$170 million in net income for the quarter, down -17% from +$205 million earned excluding Chapter 11 restructuring gains in the same period last year. The carrier said it benefited in the 2008 second quarter from a +$250 million gain related to fuel hedging.
It already had announced that it will remove more than >40 airplanes from its fleet by year end, and cut -2,500 frontline and management employees. President & CEO, Doug Steenland said that owing to the "unprecedented run-up in oil prices . . . [NWA] acted swiftly to reduce capacity, preserve liquidity, aggressively manage our costs and grow revenue through fare actions and additional fees and charges." He added that "given the current fuel environment, the merger [with Delta Air Lines (DAL)] makes even more sense as the resulting synergies and cost savings will better allow the combined carrier to manage through these challenges." He said it is possible the merger will close in the 2008 fourth quarter.
Second-quarter revenue increased +5.4% to $2.56 billion, while expenses including the goodwill impairment charge rose +37.3% to $3.88 billion, producing an operating loss of -$300 million, reversed from an operating profit of +$357 million in the year-ago quarter. Mainline traffic was flat at 18.84 billion (RPM)s on flat capacity of 21.91 billion (ASM)s, producing a load factor of 86% LF, unchanged from last year.
Passenger yield rose +5.3% to 13.58 cents, as (PRASM) increased +5.3% to 11.67 cents and (CASM) heightened +15% to 12.04 cents. (CASM) excluding fuel, lifted +4.2% to 7.38 cents.
Northwest Airlines (NWA) will launch daily, Milwaukee - Los Angeles on September 6 aboard an A320.
Northwest Airlines (NWA) said that its previously announced capacity cuts, which will include the removal of more than >40 airplanes from its fleet in 2008, will result in a reduction of -2,500 frontline and management employees. (NWA) also unveiled a range of new fees designed to combat "record fuel costs." "Our fuel costs have more than doubled in the past year," President & CEO, Doug Steenland said. "In order to manage through this unprecedented fuel challenge, we have to take action to both control costs and increase our revenue."
In June, (NWA) announced plans to reduce fourth-quarter mainline capacity by -8.5% to -9.5% year-over-year and remove -14 757s and A319s/A320s, and -33 DC-9s from the fleet this year. It said that "all employee groups" will be affected by the cuts and that as many reductions as possible will be achieved through "a variety of voluntary programs." Furloughs will be used "only if voluntary means fail to achieve the targeted reductions." Meantime, the new fees are expected to generate +$250 to +$300 million in added revenue per year, Steenland claimed. Like several domestic competitors, (NWA) will charge $15 for most customers' first checked bag beginning August 28 on flights in the USA and to Canada. It already charges $25 for the second piece. Tickets issued through its WorldPerks loyalty program will cost $25 to $100, beginning September 25 - - a move it called "a temporary service fee" - - and ticket change fees will increase to $150 effective immediately. "In addition to helping offset our extraordinary fuel prices, these fee increases also better align our costs with providing these services," Steenland concluded.
Delta Air Lines (DAL) CEO, Richard Anderson will run the merged (DAL)/Northwest Airlines (NWA) out of Atlanta, the carriers announced as they unveiled the senior management team for what would be the world's largest airline, saying the team will "ensure the seamless transition of Northwest (NWA)'s operations into Delta (DAL) over the next 12 to 24 months." Upon closing of the merger, (NWA) will be an operating subsidiary of (DAL) run by current (DAL) President, Ed Bastian, who will assume the titles of CEO & President of Northwest (NWA). Current President & CEO, Doug Steenland will vacate the post and sit on the (DAL) board.
(NWA) Senior VP Human Resources & Labor Relations, Mike Becker will become the new Executive VP & COO of (NWA). Other officers will be Mike Campbell, (Executive VP Human Resources, Labor & Communications), Steve Gorman (Executive VP Operations), Glen Hauenstein (Executive VP-Revenue & Network), Ben Hirst (Senior VP General Counsel), Laura Liu (Senior VP International), and Theresa Wise (Senior VP CIO).
"By naming its entire officer team in advance of the closing of the merger, Delta (DAL) has laid a strong foundation for the combined airline to immediately begin capturing and exceeding the merger synergies expected following the close of the transaction," (DAL) said.
"The final organizational structure will evolve over time, as the transition to a single air operating certificate (AOC) is achieved," Bastian said. "We will not sacrifice revenue or cost synergies by moving too quickly to integrate. Combining these two great airlines will be a well-planned, deliberate process.''
Anderson said, "We are already making great progress on our integration planning and are well ahead of previously attempted airline mergers in anticipation of gaining approval by the Department of Justice (DOJ) later this year."
(DAL) announced that its stockholders will vote on the merger on September 25 at an Atlanta meeting, specifically the issuance of (DAL) common stock to (NWA) stockholders.
The six largest USA network carriers announced a partnership with Sojern Inc, an Omaha company funded by Norwest Venture Partners and Trident Capital, that will offer advertising on boarding passes. Delta Air Lines (DAL) launched the service for passengers flying to Las Vegas and "shortly" will roll it out to its remaining domestic gateways. "With millions of our passengers checking in online . . . the boarding pass becomes an increasingly valuable tool for sharing relevant, timely offers and destination-specific content with our customers before they travel," (DAL) General Manager Global Partnerships, Marc Ferguson said. American Airlines (AAL), Continental Airlines (CAL), Northwest Airlines (NWA), United Airlines (UAL) and US Airways (AMW)/(USA) will roll out the service before year end. Sojern Founder Gordon Whitten said passengers have indicated that they "love the concept" and that "advertisers are also clamoring to get involved." It confirmed that individual airlines will continue to operate and develop their respective websites, while Sojern will provide the advertising and other "content" directly on the boarding passes. Content will include items such as destination-specific weather forecasts, restaurants "that fit [passengers'] budget and lifestyle," event schedules and targeted advertising. The carriers will hold an equity stake in Sojern. (AMW)/(USA) VP Sales & Marketing, Travis Christ said Sojern "has found the right formula" for the project.
August 2008: Northwest Airlines (NWA) flew 7.56 billion consolidated (RPM)s traffic in July, up +3.9% year-over-year. Capacity increased +5.2% to 8.73 billion (ASM)s, and load factor fell -1.1 points to 86.6% LF.
1st 6 months = 58.66 billion (RPK)s traffic - - see "NWA-08TOPWLD6MTHSRPK."
While still likely months away from gaining USA Department of Justice (DOJ) antitrust clearance for their planned merger, Delta Air Lines (DAL) and Northwest Airlines (NWA) received approval for the combination from the European Commission (EC). The (EC) said the transaction would be "mainly complementary" as the carriers hub in different USA cities and therefore operate largely separate transatlantic routes from each other. Most of the overlapping activities relate to routes where one offers direct and the other indirect services, it noted, pointing to only three routes where both carriers offer a direct service: Amsterdam - Atlanta, Amsterdam - New York, and Paris - Detroit. "The results of the market investigation . . . did not identify any concerns on the overlap routes," it said. (DAL) CEO, Richard Anderson, who will head the combined airline, described the (EC) approval as "another important step toward completing our pro-competitive" merger with (NWA), adding, "We continue to work closely with the USA (DOJ) and remain confident that we will be able to finalize the merger by the end of the year." (DAL) announced in April that it would acquire (NWA) in an all-stock transaction to create the world's largest airline.
Northwest Airlines (NWA) said that it has gained relevant government approvals to add the Delta Air Lines (DAL) code to all of its transpacific flights, another step toward the planned merger of the two carriers. (NWA) also will add the (DAL) code to its flights between Tokyo Narita and three Asian destinations. Expanded codesharing will take effect August 30.
The (EC) said its assessment took into account the fact that (DAL) and (NWA) are both SkyTeam (STM) members, and already cooperate extensively on transatlantic routes with the European member airlines of that alliance. It stressed that its decision on the transaction is "without prejudice to its ongoing investigation of the SkyTeam (STM) alliance." It launched an investigation into possible antitrust abuse by SkyTeam (STM) members in 2006.
September 2008: Northwest Airlines (NWA) flew 7.27 billion consolidated (RPM)s traffic in August, up +1.9% from the year-ago month. Capacity climbed +3.1% to 8.4 billion (ASM)s and load factor dropped -1 point to 86.6% LF.
The USA (FAA) approved the merger transition plan submitted by Delta Air Lines (DAL) and Northwest Airlines (NWA) that envisions the carriers moving to a single air operating certificate (AOC) within 15 to 18 months. "The plan outlines the methodology, processes, tools, and timing to maintain the safety of the day-to-day operations and to achieve a single operating certificate," the airlines said in a statement. (DAL) Senior VP Maintenance Operations, John Laughter added that the (FAA)'s acceptance of the plan is "a significant milestone in our efforts to bring together our two airlines." Both carriers' shareholders are scheduled to vote on the merger, with approval widely expected. The combination already has gained clearance from the European Commission (EC), and (DAL) and (NWA) say they expect the USA Dept of Justice approval by year end.
The merged airline, to be called Delta (DAL), will operate a mainline fleet of nearly 800 airplanes and employ approximately 75,000 workers worldwide.
Northwest Airlines (NWA) and Delta Air Lines (DAL) shareholders voted overwhelmingly in favor the carriers' planned merger, leaving USA Dept of Justice (DOJ) approval as the only remaining significant potential obstacle to the combination. The shareholder votes came on the heels of the USA (FAA)'s acceptance of the airlines' merger plan. (NWA) President & CEO, Doug Steenland said shareholder clearance was "a resounding vote of confidence" and reiterated the merger's supposed benefits: "The $2 billion in annual synergies achievable through this merger are something neither carrier could have achieved as a standalone carrier. The combined carrier will have a stronger balance sheet and best-in-class liquidity, which will put the airline in a position of financial stability." He said (DOJ) approval is anticipated by year end and the carriers "are already well down the path of integration planning." (DAL) CEO, Richard Anderson, who will be CEO of the merged airline, added, "This is another milestone toward completing a merger, that brings together two unique airlines with complementary strengths that will offer unmatched global service."
When the merger is completed, each (NWA) share will be exchanged for 1.25 (DAL) shares in the all-stock transaction.
Midwest Airlines may be able to avoid filing for Chapter 11 bankruptcy, thanks to a $60 million investment package. As part of the deal, Republic Airways will loan $15 million to Midwest (MWX) for one year, with another $10 million to follow if financial goals are met. In exchange, Midwest (MWX) will lease a dozen Embraer EMB-170 jets from Republic and allow Republic to operate and service the airplanes, resulting in about -270 layoffs at Midwest (MWX). TPG Capital and Northwest Airlines (NWA) Corp, which purchased Midwest (MWX) in January, also have agreed to provide $35 million in financing.
(NWA) Cargo said it upgraded engines on five of its 12 747-200Fs as part of its "EarthCares" program. It switched out a mix of (JT9D-7J)s and (JT9D-7Q)s for a mix of (JT9D-7Q)s and (JT9D-7R)s from former passenger airplanes, according to spokeswoman Kristin Baur. (NWA) expects to achieve a +5% improvement in fuel efficiency, saving -2.4 million gallons of fuel and 26,000 tons of carbon emissions per year. The freighter fleet currently consists of seven (JT9D-7R)-powered airplanes, three (JT9D-7Q)s and two (JT9D-7J)s. (NWA) Cargo also purchased 4,200 lightweight (LD3)s that should save up to -1.3 million gallons of fuel per year. Its current aluminum (LD3)s weigh just over 205 lbs each, whereas the new composite (LD3)s weigh only 150 lbs per unit. The new units also are more reliable and have reduced repair expenses, the airline said.
Northwest (NWA) is not accepting Flight Crew (FC) resumes or hiring pilots.
October 2008: Northwest Airlines (NWA) reported a third-quarter net loss of -$317 million, reversed from a +$244 million profit in the year-ago period, citing a $410 million noncash charge related to fuel hedging as the reason. Excluding the hedging loss resulting from the recent drop in oil prices, (NWA) would have posted a +$93 million profit. The company's executives expressed satisfaction with the result and optimism going forward, despite weak economic conditions. "Bookings have surprised us a bit on the upside," Executive VP Marketing & Distribution, Tim Griffin told analysts and reporters. "Relative to the broad economic news, I think we're pleased with our bookings and (RASM) outlook."
(NWA) explained that based on historical data showing revenue decline of no more than 1.2% during even severe downturns, it would expect not more than $150 million in annual lost revenue in a recession. But this would be more than offset if 2009 crude prices average $78 per barrel, providing more than >-$1 billion in year-over-year fuel cost savings. "If fuel continues to decline, we will be benefited even further," CFO, Dave Davis said.
Third-quarter revenue rose +12.4% to $3.8 billion, while expenses increased +37.5% to $4.01 billion, producing an operating loss of -$216 million, reversed from an operating profit of +$459 million in the year-ago period. Mainline traffic fell -1.7% to 18.88 billion (RPM)s on a -1.3% decline in capacity to 21.75 billion (ASM)s, producing a -0.4 point dip in load factor to 86.8% LF. Mainline yield improved +7.9% to 14.47 cents as (PRASM) grew +7.4% to 12.56 cents, and (CASM) jumped +37.2% to 14.76 cents. (CASM) excluding fuel, lowered -1.1% to 7.21 cents.
Griffin noted that (NWA)'s decision earlier this year to charge for a second checked bag has led to a -40% reduction in the number of second bags checked, reducing handling and manpower costs.
Regarding the merger with Delta Air Lines (DAL), President & CEO, Doug Steenland declined to comment on communications with the USA Departmeny of Justice but said the carriers "remain confident that the conditions that have to be satisfied . . . will be satisfied and it will close by the end of the fourth quarter."
Later, Delta Air Lines (DAL) said it completed its acquisition of Northwest Airlines (NWA), hours after the USA Department of Justice (DOJ) said it would not challenge the merger, that creates the world's largest airline operating more than >800 mainline airplanes and generating more than >$35 billion in annual revenue. In a statement, Delta (DAL) CEO, Richard Anderson said, "The airline industry faces a very difficult economic environment around the world, and this merger gives Delta (DAL) increased flexibility to adapt to the economic challenges ahead." He added that the carrier "will be at the front of the pack in achieving the benefits of consolidation and is well positioned to navigate the tough waters ahead."
The (DOJ) said its antitrust division conducted "a thorough, six-month investigation" and concluded that the merger "is likely to produce substantial and credible efficiencies, that will benefit USA consumers and is not likely to substantially lessen competition."
The airlines had touted the tie-up as a combination of two carriers with complementary networks that would generate at least $1 billion in annual cost savings/synergies, a line of reasoning endorsed by the (DOJ). "The two airlines currently compete with a number of other legacy and low-cost airlines . . . on the vast majority of nonstop and connecting routes, where they compete with each other," the (DOJ) statement said.
The decision was far different from the department's block of the last major merger it reviewed, United Airlines (UAL)'s proposed acquisition of then-USAir (USA) in 2001. It also rejected Northwest (NWA)'s earlier effort to take control of Continental Airlines (CAL). The (DOJ)'s primary contention in 2001 was that "a vigorously competitive airline industry is vital to our economy" and that consumers benefited from a wider variety of flying choices. It appears that the growth of Low Cost Carriers (LCC)s in the USA market, among other factors, has convinced it that the creation of a mega-airline no longer is anticompetitive and hurtful to consumers.
Delta Air Lines (DAL) began the 12- to 24-month process of integrating Northwest Airlines (NWA), now a wholly owned subsidiary of (DAL), with the flying public likely to begin noticing changes in the first half of 2009.
(NWA) stockholders each will receive 1.25 (DAL) shares, based on the latter's closing price on October 29, an exchange rate that is the equivalent of $9.99 per (NWA) common share. (DAL) said its code will be added to "nearly all of the Northwest (NWA) system" by year end and "a fully consolidated worldwide flight schedule" will be launched in advance of summer 2009.
(DAL)'s livery, staff uniforms and onboard amenities will be introduced on (NWA) airplanes beginning in spring 2009, and the carriers' websites and frequent-flyer programs will be integrated next year. It will take 14 to 16 months for (DAL) and (NWA) to be granted a single (FAA) operating certificate. The agency already has approved their integration plan, and the Department of Justice signed off on the combination.
The two companies' pilots (FC) began working under a joint Air Line Pilots Association contract following a rigorous pre-merger negotiating process, but other labor groups have voiced concern. The International Association of Machinists (IAM) and Aerospace Workers, which represents 12,500 (NWA) ground employees (MT), criticized the merger as "another opportunity for executives to stuff their pockets at the expense of working-class Americans . . . [IAM] will fight to ensure that workers at the combined airline will be protected . . . The days when Delta (DAL) could ride roughshod over their employees is coming to an end."
Ed Bastian, the Delta Air Lines (DAL) CFO, and new CEO of Northwest Airlines (NWA) was in Minneapolis to oversee the beginning of a long integration process for the two carriers. "It's probably going to take us two years before we can really operate as a single carrier," he predicted. Though pilots (FC) for both companies began working under a joint contract, it could take up to 16 months for the two airlines to win a single (FAA) air operating certificate (AOC).
(DAL) says it has no intention of closing any hubs following its merger with Northwest Airlines (NWA). "This hub is secure," Ed Bastian said upon arriving in Minneapolis to take over his duties as CEO at (NWA). "We made that commitment right from the outset." (DAL) says additional hubs in Detroit and Memphis also will remain, giving the company seven hub airports.
November 2008: 1st 6 months = 58.98 billion (RPK)s traffic (+.91%); +.32% (ASK)s; 84.6% LF (+.5); 1.31 billion (FTK)s freight traffic (-4.95%); 25.6 million passengers (-5.2%).
Delta Air Lines (DAL), fresh from completing its acquisition of Northwest Airlines (NWA), revealed its new officer lineup serving under (CEO), Richard Anderson; and President, Ed Bastian; headed by (COO), Steve Gorman, previously Executive VP Operations; and Senior VP & CFO, Hank Halter, a 10-year (DAL) veteran, who previously was senior VP Finance & Controller. Tim Mapes was named Senior VP Marketing, Ray Winborne was promoted to Senior VP Finance & Controller, and Jim Cron, (NWA) Senior VP Revenue management, was named Senior VP Global Sales & Distribution, in addition to his (NWA) responsibilities. Other appointments included Gail Grimmett to Senior VP New York; Tom Bach to Senior VP Revenue Management; Vinay Dube to VP Alliances; Tammy Lee Stanoch to VP Corporate Affairs, Minneapolis; Jim Graham to VP Flying Operations; James Sarvis to VP International Airport Customer Service; David Watson to VP Inflight Service Business Operations; and Andy Zarras to VP Airport Customer Service Detroit.
Working directly on the integration process will be (NWA) Executive VP & (COO), Mike Becker; (DAL) Executive VP, Human Resources & Labor Relations, Mike Campbell; (DAL) Executive VP Network Planning, Glen Hauenstein; (DAL) Senior VP & General Counsel, Ben Hirst (who will serve as Chief Legal Advisor); (DAL) Senior VP & Chief Communications Officer (CCO), Ned Walker; and (DAL) Senior VP & Chief Information Officer (CIO), Theresa Wise, who will lead the effort to integrate systems.
Delta Air Lines (DAL) and Northwest Airlines (NWA), which closed their merger last month, said they are aiming to integrate their flight schedule by next summer as (DAL) unveiled new flights intended to increase connectivity between the two networks and expand its global reach. (DAL) plans to launch 15 new international routes in June to coincide with the network integration. It will start daily 777-200ER flights between New York (JFK) and Tokyo Narita (NRT), as well as five-times-weekly, A330-200 Salt Lake City - (NRT) and daily, 757-200 (NRT) - Ho Chi Min services. It will add a second-daily, Atlanta (ATL) - (NRT) flight on May 4.
"We want to plug in Delta (DAL)'s massive access on the East Coast to Northwest (NWA)'s transpacific strength," Executive VP Network Planning & Revenue Management, Glen Hauenstein said. He told reporters in a conference call that the new (DAL) intends to keep all current (DAL) and (NWA) hubs operating as hubs, creating "a stronger platform to take customers from all over the United States to destinations around the globe."
New (DAL) flights to Africa from (ATL) will go to Johannesburg (daily on a 777-200LR), Nairobi (four-times-weekly on a 767-300ER), Monrovia (weekly on a 757-200ER), Abuja (twice-weekly on a 757-200ER), Luanda (twice-weekly on a 757-200ER), Malabo (weekly on a 757-200ER), and Cape Town (thrice-weekly on a 767-300ER). It also will launch five-times-weekly, (JFK) - Lagos 767-300ER flights.
New (DAL) flights from (JFK) to Europe will comprise Gothenburg Landvetter (four-times-weekly on a 757-200ER), Prague (thrice-weekly on a 767-300), Valencia (four-times-weekly on a 757-200ER), and Zurich (daily for the summer season aboard 757-200ERs). It will add a second four-times-weekly flight between (JFK) and Tel Aviv on June 30.
Additionally, (NWA) revealed that it will drop Detroit (DTW) - Paris Charles de Gaulle (CDG) flights in January and (DTW) - Osaka Kansai on February 28. Hauenstein noted that SkyTeam (STM) partner, Air France (AFA) operates (DTW) - (CDG) and that (DAL) will launch (NRT) - Osaka flights next year.
It said starting in January, it will boost "hub-to-hub" capacity by +14.5% by operating both additional flights and larger airplanes between Atlanta, Detroit, Minneapolis/St Paul (MSP), Cincinnati (CVG), Salt Lake City (SLC), New York (JFK), and Memphis (MEM). It plans to replace "select regional jet flights with mainline equipment" on flights from (ATL) to (MEM), (MSP), (CVG), and (DTW). It also will add a third-daily, (SLC) - (DTW) flight, and launch daily, (SLC) - (MEM), and (JFK) - (MEM) services.
Delta Air Lines (DAL) and Alaska Air (ASA) Group, expanded their marketing services agreement to give (ASA) passengers more access to (DAL)'s international flights, and (DAL) passengers more access to (ASA)'s western USA network. The new pact, to be implemented next year, builds on an (ASA)-(DAL) agreement launched in 2004, and a code sharing relationship between (ASA) and (DAL) subsidiary, Northwest Airlines (NWA) that goes back more than >20 years. (DAL)/(NWA) will add (ASA)'s code to new (NWA) Seattle (SEA) - Beijing flights launching March 1, and (DAL) Los Angeles (LAX) - Sao Paulo Guarulhos service, scheduled to begin next spring.
By the end of 2009, (DAL) and (NWA) frequent-fliers will have access to (ASA) lounges in Anchorage, (SEA), (LAX), Portland, San Francisco, and Vancouver, and (ASA) frequent fliers will have access to (DAL) and (NWA) lounges worldwide. Elite frequent fliers will have reciprocal access to priority boarding, check-in, seat assignments and upgrades.
Compass Airlines, launched by Northwest Airlines (NWA) last year and now a subsidiary of Delta Air Lines (DAL), named NWA VP Regional Airline Operations, Tim Campbell as President. He succeeds John Bendoraitis, who will become President of Comair (COI).
December 2008: Northwest Airlines (NWA) flew 5.67 billion system (RPM)s traffic in November, down -7.4% year-over-year. Capacity dropped -4.7% to 7.08 billion (ASM)s, and load factor fell -2.3 points to 80.1% LF.
Delta Air Lines (DAL) said that systemwide capacity for both it and new subsidiary (NWA) will be down -6% to -8% in 2009, comprising a -3% to -5% international cut and an -8% to -10% domestic reduction. The capacity down-gauging from 2007 to 2009 collectively will total around -20%, equaling the capacity slashed by United Airlines (UAL) over the two-year period. It likely will necessitate further job cuts, (DAL) CEO, Richard Anderson and President, Ed Bastian told employees in a memo. "We are analyzing the impact on staffing as it pertains to these capacity reductions and, as in the past, we will offer voluntary programs to adjust staffing needs," they wrote. "We will continue to make decisions that are in the long-term interest." (DAL)'s 2008 voluntary severance offer was accepted by 4,000 employees. The executives explained that the cuts are necessary to meet an anticipated fall in demand owing to the recession. "These economic hurdles are difficult," they said, adding that it is important to "be decisive and not delay."
Bastian told an investors conference in New York that (DAL) has "seen a fairly significant dropoff in demand," "Bloomberg News" reported. "The revenue environment is as cloudy as it's ever been," he added. "We've never seen the level of demand destruction that some are forecasting for our business."
(NWA) will launch daily, Detroit - Rome Fiumicino service on June 4 aboard an A330-300, parent (DAL) announced.
(DAL) plans to temporarily scale back its aggressive overseas expansion, delaying new flights to Paris and Tel Aviv and to Gothenberg, Sweden. The company said its pullbacks were "based on efforts to continue to demonstrate capacity discipline in light of tough worldwide economic conditions," and that it would "reassess the timing" of some routes. Following an almost -30% drop in advance bookings to China, (DAL) subsidiary (NWA) also is asking the Department of Transportation to allow a delayed start for its new Detroit - Shanghai and Seattle - Beijing routes.
The USA Air Transport Association (ATA) announced the election of United Airlines (UAL) Chairman, President & CEO, Glenn Tilton as Chairman, effective immediately. He will serve two years and succeeds former Northwest Airlines (NWA) Chairman & CEO, Doug Steenland.
(DAL) and the Metropolitan Airports Commission (MAC), which manages Minneapolis-St Paul International airport (MSP), reached a tentative agreement that will allow (DAL) to largely retain financial benefits that subsidiary (NWA) received for maintaining its headquarters and primary hub there. In exchange, the combined carrier will base its "Delta North" headquarters in Minneapolis, keep 10,000 (NWA)/(DAL) employees based there - - -1,500 fewer than were based at the (NWA) HQ prior to the merger - - and operate at least 400 daily flights at (MSP). Under terms of long-time (NWA)/(MAC) pacts, if (NWA) moved its headquarters the airport authority could demand immediate payback of a $245 million loan given to the carrier in the form of bonds in 1992, as well as withdraw from rent-reduction and concessions/parking revenue-sharing agreements at (MSP) that saved (NWA) about -$12 million annually.
(DAL) decided to transfer all main headquarters operations to its Atlanta base post-merger, which angered Minnesota officials and caused (MAC) to assert that (NWA) had "a legal commitment to this state."
Under an agreement outlined to the "Associated Press" and Minnesota media, (DAL) said it would pay off the bonds, originally due in 2022, by 2016, and also pay an extra $500,000 - $1 million in annual rent.
(DAL) will move Compass Airlines, a wholly owned (NWA) subsidiary currently based in Chantilly, Virginia, near Washington Dulles, to Minneapolis (MSP). (DAL)'s regional airline operations will be managed from the Delta North offices. (MAC) is expected to approve the deal officially next month.
(DAL) said it will offer in January a voluntary severance program in line with its recent decision to cut capacity -6% to -8% next year. "These capacity reductions will reduce the number of people needed to operate the airline," CEO, Richard Anderson and President, Ed Bastian told employees in a memo. "Consistent with how we have managed headcount reductions in the past, we again will offer voluntary programs to (DAL) employees, including those who have joined from (NWA)." (DAL) did not say how many of its 75,000 workers it is seeking to cut. Its 2008 voluntary severance offer was accepted by 4,000 employees. (DAL) said the program, for which a majority of workers will be eligible, would be similar to the one offered last year, and that it hoped involuntary layoffs would not be necessary.
(DAL) rolled out the first (NWA) 747-451 (N665US) repainted in white (DAL) livery.
With more planes at its disposal and fewer international flights in the works, (DAL) appears ambivalent about the 18 787 orders it inherited in its merger with (NWA). "I'd really be reluctant to make any comment as far as our future on that airplane until we know what we're dealing with," said Ed Bastian, (DAL)'s President & (NWA)'s CEO. Bastian said a stand-alone (NWA) had a more pressing need for the new airplanes, while (DAL)'s combined fleet offered numerous options, including the 747, 777 and A-330.
2 A320-211s (031, N301US; 040, N304US), sold to AeroTurbine (AUB) and scrapped.
January 2009: Northwest Airlines (NWA) flew 6.04 billion system (RPM)s traffic in December, down -3.6% year-over-year, against a -4.5% decline in capacity to 7.38 billion (ASM)s. Load factor rose +0.7 point to 81.9% LF.
(DAL) reported a full-year 2008 net loss of -$8.9 billion, a result that represented a major reversal from net income of +$1.61 billion in 2007, attributing the huge deficit mostly to non cash charges related to goodwill impairment ($7.3 billion) and its acquisition of Northwest Airlines (NWA) ($970 million). CEO, Richard Anderson told analysts and reporters that the result was positive considering the global financial crisis and the carrier's completion of the (NWA) merger in October. He predicted (DAL) would be "solidly profitable" in 2009 owing to "lower fuel costs, capacity discipline and merger synergies." Though (DAL) projects that USA industry revenue is likely to drop -8% to -12% for the year, Anderson insisted it would have to plunge -20% for (DAL) to fall into the red in 2009. President & CFO, Ed Bastian, who also is serving as (NWA) President & CEO during the merger transition, added that he expects "lower fuel expenses to offset revenue declines by almost two to one."
(DAL) posted a +18.5% rise in revenue to $22.7 billion while expenses increased +71.7% to $31.01 billion, producing an operating loss of -$8.3 billion, reversed from an operating profit of +$1.1 billion in the prior year. (DAL) said its 2008 results include (NWA) for October 30 to December 31, which along with goodwill impairment charges in 2008 and one-time bankruptcy exit gains in 2007 skew year-over-year comparisons. Consolidated combined traffic (including (DAL), (NWA) and regional affiliates) for full-year 2008 increased +2.7% to 202.7 billion (RPM)s on a +0.4% lift in capacity to 246.2 billion (ASM)s, producing a load factor of 82.4% LF, up +0.6 point.
(DAL) did not provide full-year unit revenue and cost figures, but (NWA)'s (PRASM) rose +14.4% to 12.52 cents, while (DAL)'s increased +6% to 11.82 cents. For the fourth quarter, combined mainline (CASM) jumped +35% to 15.94 cents, with combined mainline (CASM) excluding fuel and special items lifting +3% to 7.29 cents.
For full-year 2009, (DAL) plans to lower combined mainline capacity -6% to -8%, representing a -10% to -12% domestic cut and a -3% to -5% international decrease. "We're seeing softness throughout the domestic economy," Bastian explained. (DAL) forecasted combined 2009 mainline (CASM) of 11.62 to 11.76 cents.
(DAL) has completed the sale of 18.2 million shares of common stock to cover the cost of withholding taxes assessed on stock options for employees. (DAL) had agreed to give some 15% of its stock to employees following its October 29 merger with (NWA) Corporation. The sale grossed $196 million.
The Metropolitan Airports Commission (MAC), which manages Minneapolis-St Paul International (MSP), voted to approve an agreement with (DAL) under which (MSP) will become the "Delta North" headquarters and the airline will retain many of the financial benefits that subsidiary (NWA) enjoyed by basing its headquarters there. (DAL) and (MAC) reached a tentative deal in December, but (MAC)'s board declined to approve it this month. (DAL) held firm to the deal, demanding an up-or-down vote at the (MAC) board meeting. Board members voted 9-to-1 to approve, with several members abstaining. "This agreement solidifies our commitment to Minnesota," (DAL) CEO, Richard Anderson said, adding that it "protects jobs and air service" at (MSP). (DAL) will keep 10,000 workers at its North headquarters, operate at least 400 daily flights at (MSP) and pay off loans from (MAC) to (NWA) by 2016 instead of 2022. (DAL) also will base its regional airline management in the Minneapolis area.
747-222F (23736) & 747-251F (22388), WFU at Marana. 10 757-251s (23193; 23194; 23195; 23197; 23198; 23199; 23200; 23201; 23202; 23203), sold to Citicorp.
February 2009: Northwest Airlines (NWA) flew 5.65 billion system (RPM)s traffic in January, down 08.2% year-over-year, against a -6.4% fall in capacity to 7.27 billion (ASM)s. Load factor dropped -1.5 points to 77.8% LF.
Delta Air Lines (DAL) said that it and subsidiary (NWA) will stop using about 170 gates at airports throughout the USA as the merged carriers consolidate operations. CEO, Richard Anderson told employees in a recorded message that (DAL) and (NWA) facilities at USA airports all will bear the (DAL) name by year end. Branding will become uniform at airports internationally by the middle of next year, he said. He claimed the consolidation of airport facilities "translates into multimillions of dollars of rental savings."
The USA National Mediation Board terminated the Aircraft Mechanics Fraternal Association (AMFA)'s representation of former Northwest Airlines (NWA) technical employees, Delta (DAL) TechOps President, Tony Charaf announced. TechOps will continue to integrate former (NWA) employees and will bring them up to (DAL) pay scales and premiums at the next pay period. They will be eligible for profit-sharing and rewards programs this year and will shift to (DAL)'s benefits programs in January 2010. A TechOps committee reached a seniority list agreement with (AMFA) last month. This relates to the more than >6,700 airplane maintenance technicians (MT) of the "new" (DAL).
(DAL) indicated it is having second thoughts about committing fully to (NWA)'s 2005 order for 18 787-8s, eliminating the airplanes from its list of firm orders in its annual report just released this month. "The Boeing Company (TBC) has informed us that (TBC) will be unable to meet the contractual delivery schedule for these airplanes. We are in discussions with (TBC) regarding this situation," (DAL) said in the report filed with the USA Securities & Exchange Commission. (DAL) has not canceled the order. (NWA)'s order followed Continental Airlines (CAL)'s by some four months, but it was (NWA) that was scheduled to take the first delivery. (DAL)'s current firm order book comprises 63 other airplanes, including eight 777-200LRs. The remaining airplanes are single-aisle planes or regional jets. (DAL) listed 18 787 options in its "Airplanes on Option" table along with six 767-300ERs, 12 767-400s and 27 777-200LRs that have scheduled delivery slots. (DAL) said those 787 options, if exercised, are scheduled to begin delivery in 2013. (TBC) has had orders for 32 787s canceled this year: 16 by Dubai lessor (LCAL), 15 by S7 Airlines (SBR) and one VIP order.
747-251F (21321, N619US, 104,791 total time (flt hrs), 24,661 total cycles), WFU at Victorville.
March 2009: Northwest Airlines (NWA) flew 5.14 billion (RPM)s traffic in February, a -13.6% decline year-over-year, against a -10.2% fall in capacity (ASM)s to 6.66 billion. Load factor dropped -3 points to 77.2% LF.
The combined (DAL)/(NWA) mechanic (MT) staff, though unionized by (AMFA) at (NWA), will not be unionized.
(DAL) and Midwest Airlines (MWX) forged an alliance that will include code share flights, linked loyalty programs, joint marketing efforts and expanded access to airport lounges across North America. The agreement is an extension of an existing deal between (MWX) and (DAL) subsidiary, Northwest Airlines (NWA). The code share arrangement between (MWX) and (DAL) takes effect in June, with the loyalty program link to follow.
(DAL) and V Australia (VAZ) signed an interline agreement covering each carrier's transpacific flights and remaining networks. (DAL)'s Los Angeles - Sydney service begins July 1. (VAZ) signed an interline agreement with (NWA) last year.
Who really acquired whom? That’s the question asked by Ted Reed of
TheStreet.com, who examines the power structure at the new (DAL), which technically acquired (NWA) last year. But ex-(NWA) personnel
now dominate the executive ranks, perhaps not surprising considering
CEO, Richard Anderson was (NWA)’s former CEO. One observer
said, “(NWA) took over (DAL) using (DAL)’s money and (DAL)’s
name.” Reed notes that the new (DAL) seems to be culturally more similar to the old (NWA), known for its feistiness, than the old (DAL), known for being cordial and genteel. Evidence of this are recent fights that (DAL)’s picked with its hometown hub, three of its regional partners and the American Society of Travel Agents. But one aspect of the new carrier’s business remains more like it was at the old (DAL): labor relations are rather benign.
(DAL) Executive VP Human Resources & Labor Relations, Mike Campbell said in a merger update sent to employees that "seniority integration has already been resolved for pilots (FC), dispatchers, Maintenance Technicians (MT)s and meteorologists" and that progress is being made on "a fair and equitable integration for cabin attendants (CA)." If (NWA) (CA) agree to recommendations made by their (DAL) counterparts, "we would have seniority integration issues resolved for the vast majority of our combined employee groups," he said.
(DAL) is now the world's largest airline. From its hubs in Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St Paul, New York (JFK), Salt Lake City and Tokyo-Narita, (DAL), its (NWA) subsidiary and Delta Connection carriers offer service to 379 destinations in 66 countries and serve more than >170 million passengers each year. (DAL)'s marketing alliances allow customers to earn and redeem either SkyMiles or WorldPerks on more than >16,000 daily flights offered by the SkyTeam (STM) alliance and other partners. (DAL)'s more than >70,000 employees worldwide are reshaping the aviation industry as the only USA airline to offer a full global network. Customers can check in for flights, print boarding passes, check bags and flight status at http://www.delta.com.
DC-9-32 (47458, 92,742 TT; 70,834 TC); (WFU) at Marana
April 2009: Delta Air Lines (DAL), including its Northwest Airlines (NWA) subsidiary, flew 15.6 billion system (RPM)s traffic in March, a -12.6% decrease from the year-ago month. Capacity was down -7.9% to 19.39 billion (ASM)s and load factor fell -4.4 points to 80.5% LF.
(DAL) announced the imposition of a $50 fee for a second checked bag on international flights and the grounding of its 14 747-200F (NWA) freighters, as well as 36 additional airplanes by year end, in response to a -$794 million first-quarter loss, narrowed from a -$6.39 billion deficit in the year-ago period when heavy goodwill impairment charges dragged on the bottom line. (DAL) said the 2009 deficit mostly was attributable to -$684 million "in realized fuel hedge losses" as the carrier still had 77% of its fuel consumption hedged in the first quarter at well above current prices. "We essentially broke even for the quarter excluding fuel hedges and special items," CEO, Richard Anderson said. (DAL) has 75% of its fuel consumption hedged in the current quarter but will wind down to 36% in the fourth quarter.
(DAL) became the first USA major to extend domestic bag check fees to long-haul international flying. The new fees are effective for tickets purchased beginning immediately for travel from July 1. (DAL) predicts they will generate more than >$100 million annually.
It also believes costs will be reduced by retiring the entire (NWA) 747-200F fleet. It additionally is aiming to ground another 36 airplanes by year end and Anderson said it is "looking at" CRJs, MD-88s and 757s for potential retirement but insisted it still will operate each type. "We are not exiting out any whole categories of [passenger] airplanes," he said.
The decision to ground the freighter fleet - - the only one operated by a USA passenger airline - - was made after the transpacific all-cargo operation lost -$150 million in 2008, (DAL) executives said, adding that the "inefficient" freighters no longer are worth operating (the airline revealed it already has grounded seven), particularly since it plans to reallocate Tokyo Narita slots used for cargo to passenger flights.
(DAL) also confirmed that 2,500 employees have accepted the voluntary leave program offered in January.
First-quarter revenue rose +40% to $6.68 billion, although year-over-year comparisons of revenue and cost results are not meaningful because (DAL)'s 2008 results are standalone and this year's incorporate (NWA). Costs, which last year were hit hard by goodwill impairment charges, lowered -35% to $7.17 billion. Operating loss was -$483 million, significantly narrowed from a -$6.26 billion operating loss last year.
Consolidated traffic (which includes regional operations and (NWA) for both years) lowered -9.6% to 42.96 billion (RPM)s traffic on a -6.4% cut in capacity to 55.74 billion (ASM)s, leading to a load factor of 77.1% LF, down -2.6 points. Passenger yield dropped -9% to 13.04 cents as (PRASM) fell -12.1% to 10.05 cents and (CASM) declined -58.3% to 12.52 cents. (CASM) ex-fuel dipped -1% to 8.98 cents.
(DAL) said new signage will be appearing this week at former Northwest Airlines (NWA) hubs in Detroit, Memphis and Minneapolis-St Paul as part of its $500 million integration effort. It expects to have all domestic airports re-branded by year end, with international facilities finished next year. Former (NWA) employees began wearing (DAL) uniforms this week as well. The carrier said 33 (NWA) airplanes already have been repainted, with some 250 left to complete before the end of 2010.
(DAL) CEO, Richard Anderson and President, Ed Bastian told employees in a memo that "it is prudent for us to restructure and reduce the size of our executive team" and announced that five management officials will leave the company June 1, the "Associated Press" reported. The departing executives are Senior VP International, Laura Liu; Northwest Airlines (NWA) Senior VP Customer Service, Crystal Knotek; (NWA) VP Chief Accounting Officer, Anna Schafer; Minneapolis/St Paul (MSP) VP Corporate Affairs, Tammy Lee Stanoch. and (MSP) Senior VP Customer Service, Todd Anderson. As a result, (NWA) COO, Mike Becker will assume responsibility for International Operations, and (DAL) Senior VP Customer Service, Gil West also will oversee Customer Service for (NWA). (NWA) Senior VP Flight Operations, Bill Lentsch was named Senior VP Minnesota Operations.
USA airlines' customer service improved for the first time in five years in 2008, researchers from St Louis University and Wichita State University said in releasing their annual "Airline Quality Rating (AQR)" report. Improvement was across the board, with carriers scoring better on baggage handling, on time performance, denied boarding and customer complaints, researchers said. The airline with the best overall (AQR) among the 17 graded was Hawaiian Airlines (HWI), followed by AirTran Airways (CQT), JetBlue Airways (JBL), Northwest Airlines (NWA) and Alaska Airlines (ASA).
Baggage handling improved at all 17 airlines, the report said. "Baggage handling probably needed to improve given the fact that people are now paying for it," Wichita State Associate Professor Dean Headley said. "The airlines would have had a real problem had they lost the same number of bags." AirTran (CQT) had the best baggage handling rate with only 2.87 mishandled bags per 1,000 passengers.
Hawaiian (HWI) had the best on-time performance at 90% while American Airlines (AAL) was worst at 69.8%. (JBL) had the lowest involuntary denied boarding rate at 0.01 per 10,000 passengers while (ASA) was last at 3.89 per 10,000 passengers. Southwest Airlines (SWA) had the lowest consumer complaint rate at 0.25 per 100,000 passengers, while US Airways (AMW)/(USA) had the highest rate of 2.01. Headley said the positive performance for airlines in 2008 should be taken "with a grain of salt," explaining, "We know the system performs better when it's less stressed by higher passenger volume. The economy scared away both business and leisure travelers in 2008."
May 2009: CEOs of the Air France (AFA)/(KLM) Group and Delta Air Lines (DAL) signed a profit/loss-sharing joint venture (JV) agreement in Paris covering a wide network around 10 hubs representing more than >200 flights and approximately 50,000 seats per day. The airlines said their (JV), which will concentrate on service to/from Amsterdam, Atlanta, Detroit, Minneapolis, New York (JFK) and Paris Charles de Gaulle as well as Cincinnati, Lyon, Memphis and Salt Lake City, represents about 25% of the industry's total transatlantic capacity.
"This strategic partnership puts us in a good position compared with other major alliances, which are extremely active on the world's leading long-haul market, "(AFA)/(KLM) President & CEO, Pierre-Henri Gourgeon said at the Paris news conference, stressing that by "optimizing the use of our pooled resources, this joint venture will help us weather the current economic situation and protect our product offering." The (JV) is expected to generate annual revenue of more than >$12 billion based on 2008 - 2009 data and $150 million in synergies for each of the two groups by the second year.
It covers routes between North America and Europe as well as between Europe and South America and between the USA and Africa and the Middle East. On all routes between North America and Europe, between Amsterdam and India, and between North America and Tahiti, (AFA), (KLM) and (DAL) will "consensually" share capacity, revenue, costs and profits/losses. The deal can be cancelled only with a three-year notice after an initial 10-year term.
The (JV) effectively replaces two existing agreements, the one between (AFA) and (DAL) signed in 2007, and the one between (KLM) and Northwest Airlines (NWA), now part of Delta (DAL), signed in 1997. The (KLM)-(NWA) deal was the first transatlantic (JV) between two carriers. "We know from experience that the success of a (JV) calls for shared vision and long-term commitment, the simplest of operating rules and fair sharing of revenues and costs," (KLM) President & CEO, Peter Hartman emphasized. The (JV) will not lead to the creation of a subsidiary, he said.
The (USA) Department of Transportation granted the SkyTeam (STM) partners expanded antitrust immunity last year and "other competition authorities have received the same information" as USA regulators, Gourgeon said, adding that he is not worried the deal will be blocked by the European Commission (EC). Alitalia (ALI) is interested in joining but first must receive anti-trust immunity (ATI), he said. (ALI) was included in the (STM) (ATI) but went bankrupt soon after. (ATI) cannot be transferred from a bankrupt company to a new company.
Gourgeon insisted the agreement is not a virtual merger or a prelude to an equity swap and noted that in the current environment, he prefers to preserve the group's cash position. (DAL) CEO and former Northwest (NWA) CEO, Richard Anderson added, "What we discovered over the years is that there is no need to make an equity investment because we can obtain all the benefits without doing so."
June 2009: Delta Air Lines (DAL) flew 15.85 billion system (RPM)s traffic in May, a -9.7% decline from the year-ago month. Capacity dropped -7.9% to 19.27 billion (ASM)s and load factor was down -1.6 points to 82.3% LF.
Delta Air Lines (DAL) launched four-times-weekly, Detroit - Shanghai flights on June 1. The service is operated by Northwest Airlines (NWA).
FltOps.com, an assistance service for professional pilots (FC), recently released a report of what each major USA carrier pays its captains and first officers. For the eleven largest USA airlines, including freight carriers FedEx (FED) and (UPS), the average annual pay for a first-year first officer flying the smallest mainline airplane is about $36,000. But the range between the best and worst paying airlines is large, with (FED) paying $51,000 and US Airways (AMW)/(USA) just $22,000. Southwest Airlines (SWA) is the second highest paying at the entry level ($50,000), while Continental Airlines (CAL) and United Airlines (UAL) are tied for second last at $27,000. At the other end of the scale are long tenured captains flying the largest airplanes, who earn an average of $165,000 per year. Again, the cargo carriers are tops with (UPS) and (FED) paying $231,000 and $211,000, respectively. The best paying passenger airline is (SWA) ($181,000), quite remarkable considering its pilots (FC) only fly narrow body 737s. The worst is JetBlue (JBL) ($123,000). Flt.Ops.com notes that pilots (FC) can earn considerably more than their base pay through international overrides, overtime work, per diems and other items.
Recently released federal government employment figures for airline pilots (FC) and mechanics (MT) run counter to data compiled by private organizations and the personal stories of highly-trained pilots (FC) standing in unemployment lines. FltOps.com recently held a pilot (FC) recruiting conference in Dallas-Fort Worth in which only a handful of airlines were on hand to interview pilots (FC). Last year’s event drew 35 airlines, spelling out how drastic the drop in pilot (FC) hiring has been, as air carriers quit hiring and in many case furlough pilots (FC). FltOps.com says the 15 largest USA airlines it tracks hired 2,300 pilots (FC) in 2006 and 2,440 in 2007. But last year, only 1,300 pilots (FC) found jobs. Through the first four months of 2009, only 28 new pilots (FC) joined the 15 air carriers. FltOps.com’s figures jive with that of AIR Inc, the aviation career information service, that for two decades served as a reservoir of data on pilot (FC) hirings. But if anyone needed more evidence of the worsening condition of the airline industry, Air Inc in February this year, shuttered its operation as a result of the sorry state of the economy worldwide, which has produced a dearth of new commercial pilot (FC) jobs as legacy airlines shed capacity, implementing pilot (FC) furloughs and layoffs while also putting off new flight deck crew (FC) hiring.
By the end of 2008, as the recession deepened, it became clear that the future would be bleak for newly minted flight school graduates. Air Inc said airline pilot (FC) hiring totals for 2008 were less than half of what they were the previous year, 6,479 compared to 13,157 in 2007.
However, the federal government says USA scheduled passenger airlines employed +2.3% more pilots (FC) and +5.9% more maintenance (MT) workers in 2008 than in 2007, while total industry jobs declined by -3.0%. According to the USA Department of Transportation (DOT)’s Bureau of Transportation Statistics (BTS), the seven large network carriers employed +1.1% more pilots (FC) and +8.6% more maintenance (MT) workers in 2008 than in 2007. The seven largest low-cost carriers (LCC)s employed +5.2% more pilots (FC) and -6.8% fewer maintenance (MT) workers from 2007 to 2008.
Delta Air Lines (DAL) had the largest increase in pilots (FC) of any network airline from 2007 to 2008,K while Alaska Airlines (ASA) had the greatest percentage decrease in pilot (FC) employment of the network airlines. United Airlines (UAL) had the largest increase in maintenance workers of any network airline from 2007 to 2008, while Northwest Airlines (NWA) had the smallest increase.
All of the low-cost carriers (LCC)s except Frontier Airlines (FRO) added pilots (FC) from 2007 to 2008. Spirit Airlines (SPR) had the largest increase in pilot (FC) employment followed by Allegiant Airlines (WJE). (WJE) had the largest increase in maintenance (MT) workers of any low-cost airline from 2007 to 2008, while (SPR) had the largest reduction. The seven network carriers employed 13.2 pilots per airplane in 2008, down from 13.5 pilots (FC) per airplane in 2007. The (LCC)s employed 11.2 pilots (FC) per airplane in 2008, down -1.8% from 11.4 pilots (FC) per airplane in 2007.
Alaska Airlines (ASA) had 12.0 pilots (FC) per airplane in 2008, down from 12.9 (FC) per airplane in 2007, the fewest of any network airline. Delta (DAL), with 14.9 per airplane, up from 14.3 per airplane in 2008, had the largest increase in the number of pilots (FC) per airplane from 2007 to 2008 and had the most pilots (FC) per airplane of any network carrier.
Allegiant (WJE) had 9.3 pilots (FC) per airplane in 2008, the fewest of any (LCC), compared to 9.6 pilots (FC) per airplane in 2007. Spirit (SPR), with 15.5 (FC) per airplane, up from 12.6 (FC) per airplane in 2007 had the most pilots (FC) per airplane in the (LCC)s group.
As regards airline mechanics (MT), the (BTS) said the passenger airlines had 8.9 maintenance (MT) workers per airplane in 2008, up from 8.3 per airplane in 2007. The network airlines had 12.9 maintenance (MT) workers per airplane in 2008, up from 12.3 (MT) per airplane in 2007. Spending by network airlines for outsourced maintenance increased from 42.5% of total maintenance spending in 2007 to 42.8% in 2008. The (LCC)s had 3.2 maintenance (MT) workers per airplane in 2008, down from 3.7 (MT) per airplane in 2007. Spending by (LCC)s for outsourced maintenance increased from 52.1% of total maintenance spending in 2007 to 54.6% in 2007.
(NWA) had 0.8 maintenance (MT) workers per airplane in 2008, the fewest of any network airline and unchanged from the 0.8 employees per airplane in 2007. (NWA)’s spending for outsourcing maintenance declined from 71.0% of total spending in 2007 to 65.9% in 2008. American Airlines (AAL) had 22.4 maintenance (MT) workers per airplane in 2008, the most of any network airline. (AAL)’s spending for outsourcing was 23.6% of total maintenance spending in 2008, the lowest percentage spending share of the network carriers.
Virgin America (VUS) had 1.7 maintenance (MT) workers per airplane in 2008 the fewest of any (LCC). Of the (LCC)s, Spirit (SPR) spent the smallest portion of its maintenance expense on outsourcing at 22.6%. Southwest (SWA) had the highest percentage share for outsourcing at 61.3%. Frontier (FRO) had 3.9 maintenance (MT) workers per airplane in 2008, the most of any (LCC) but down from 7.7 (MT) employees per airplane in 2007. (FRO)’s spending for outsourcing increased from 20.5% of total maintenance spending in 2007 to 24.9% in 2008.
In the news, Alaska Airlines (ASA) and its mechanics (MT) union produced a tentative agreement on a two-year contract extension, through October 17, 2011. The Aircraft Mechanics Fraternal Association (AMFA) represents 655 airline technicians (MT). (ASA) and the union announced that they expect the results of the ratification vote by late July. (AMFA) is the largest craft union representing airplane maintenance technicians (MT) and related employees and serves members at (ASA), Mesaba Airlines and (SWA).
But (SWA) pilots (FC) rejected a tentative five-year contract that would have increased their salaries and retirement benefits. Work to reopen contract talks with (SWA) will begin immediately, said Carl Kuwitzky, President of the (SWA) Pilots’ Association. Almost 51% of pilots (FC) voted against the agreement, which was reached in January after >2 years of talks. In the interim, the existing contract remains in effect. >95% of pilots (FC) voted. "We are naturally disappointed and acknowledge it was a very close vote," said Chuck Magill, VP Flight Operations for (SWA). "We reached a tentative agreement in good faith, and both sides put a lot of effort into getting to this point. We have an outstanding and highly productive group of Pilots (FC), and we appreciate their active involvement in the voting process. We welcome the opportunity for our negotiating teams to re-engage and work toward an agreement that best meets the needs of our company and our outstanding pilots during these challenging economic times."
Meanwhile, it is reported that the skies aren’t so friendly for Steffan Schmidt and Chris Campbell. They were recently found on a street in Seattle, at rush hour, holding signs more often used by panhandlers. “Two laid-off pilots (FC)” read Schmidt's sign. “Will Fly for Food” Campbell’s sign said. It’s a small industry, and there aren’t a lot of pilot (FC) gigs on Craigslist or Monster, said Campbell, who lost his job flying a corporate airplane. Schmidt was laid off from his job flying a corporate plane three months ago, and figured they would get some “exposure” by standing at a busy freeway ramp. “The normal way to find employment didn’t cut it,” he said. Schmidt said he wanted to get off unemployment, and not “waste any more tax dollars.” They're seeking pilot (FC) jobs, not handouts, but passersby offered them money and books, which they politely declined.
(DAL) said its international product will be standardized this month as it continues to integrate Northwest Airlines (NWA). All long-haul airplanes will feature (DAL)'s BusinessElite cabin, complimentary alcoholic beverages in economy (Y) and other offerings. In the coming months, (DAL) will introduce a new business (C) class amenity kit. It said it "continues its progress to achieve a single operating certificate by the end of the year."
(DAL) President, Ed Bastian said that the company is "using the downturn to accelerate" the integration of (DAL) and (NWA). With the carrier cutting capacity, it is able to eliminate overlapping services more quickly, he explained. "Our expectation is that by spring 2010, we will be a single company," he said. He added that (DAL) will "turn on [an integrated] technology platform" in the 2010 first quarter. "By 2011, we expect to start driving hard on that $2 billion in synergies we've been talking about," he said.
Neel Shah, VP Cargo (DAL) stated that all (DAL)/(NWA) freighter activities will be terminated by the end of 2009 (in effect all (NWA) 747-200Fs will be retired).
747-222F (23737, TT 74,123; TC 9,755) WFU at Marana. DC-9-31 (47141) returned to service.
July 2009: Delta Air Lines (DAL)/(NWA) posted a second-quarter net loss of -$257 million, narrowed from a -$1.04 billion deficit in the year-ago period, with results for both quarters heavily affected by special charges. For the current period, $58 million in expenses related to (DAL)'s acquisition of Northwest Airlines (NWA) and fuel hedge losses of $390 million pushed it into red. Absent these charges, it would have reported a net profit of +$191 million. In the year-ago period, it would have earned +$137 million excluding $1.3 billion in special charges largely related to goodwill impairment.
Notwithstanding the year-over-year improvement, executives expressed concern over "unprecedented" revenue declines that are requiring a "top-to-bottom" review of (DAL)/(NWA)'s "whole business" that may lead to "some difficult decisions." CEO, Richard Anderson was not specific on possible cuts or changes, though he noted that the merger gives the company "flexibility" to ground airplanes. He said (DAL)/(NWA) did not see "any meaningful [economic] recovery in 2009."
(DAL)/(NWA) already has announced capacity reductions that will see its (ASM)s -10% lower for the full year compared to 2008 including a -15% year-over-year international cut for the last four months of 2009. The combined (DAL)/(NWA) workforce has been reduced by -11%.
Second-quarter operating revenue decreased -27% to $7 billion, though year-to-year comparisons are difficult because 2008 results did not include (NWA). Executives said in a conference call with analysts and reporters that combined revenue was down -23%. Expenses rose +6% (excluding (NWA) results for 2008) to $6.99 billion and operating profit was +$1 million, reversed from an operating loss of -$1.09 billion last year.
Combined (DAL)/(NWA) consolidated traffic lowered -7.9% to 49.05 billion (RPM)s on a -6.9% decline in capacity to 59.03 billion (ASM)s, producing a load factor of 83.1% LF, down -0.9 point. Yield dipped -19% to 12.04 cents as (PRASM) sank -19.9% to 10 cents and (CASM) fell -27.8% to 11.55 cents. (CASM) excluding special items lowered -14.7% to 11.45 cents and (CASM) excluding fuel and special items rose +2.2% to 8.06 cents.
(DAL) and Virgin Blue (VOZ) announced, subject to regulatory approval, a joint venture (JV) that will expand both carriers' reach in the USA, Australia and the South Pacific through an alliance involving route and product planning, code sharing and loyalty program linkage. According to (DAL) Executive VP Network & Revenue Management, Glen Hauenstein, the airlines will be stronger and more effective competitors as a result. "For (DAL), this agreement is a significant milestone in the expansion of our global network in the Australia and South Pacific region," he said. (VOZ) CEO, Brett Godfrey said the carriers "make a tremendously exciting fit."
In advance of the (JV), the two are moving to implement code shares, frequent-flyer program reciprocity and lounge exchange privileges. They are filing antitrust immunity applications with the USA Department of Transportation and the Australian Competition and Consumer Commission (ACCC). That application will face stiff opposition in Australia. In January, Air Canada (ACN)'s and Air New Zealand (ANZ)'s application to code share on Vancouver - Sydney (SYD) and Vancouver - Auckland services was rejected by the (ACCC) following protests from Qantas (QAN).
(DAL) launched a daily, Los Angeles (LAX) - (SYD) service on July 1 with a 777-200LR while V Australia (VAZ), a Virgin Blue (VOZ)subsidiary, began daily (LAX) - (SYD) flights aboard a 777-300ER in February. (VAZ) since has launched a Brisbane - (LAX) service and plans to operate Melbourne - (LAX) from September 1.
The partnership builds on the relationship between (VOZ) and Northwest Airlines (NWA) prior to (NWA)'s acquisition by (DAL).
Navtech expanded its contract with (DAL) for its Preferential Bidding System crew rostering tool to include more than >4,500 pilots (FC) from Northwest Airlines (NWA).
The Association of Flight Attendants-CWA, which represents Northwest Airlines (NWA) flight attendants (CA), asked the USA National Mediation Board to declare that (NWA)'s merger with (DAL) requires a representation election for all the new airline's cabin staff (CA). (DAL) flight attendants (CA) are not unionized.
DC-9-32 (47450), sold to Evergreen Trade.
September 2009: The (FAA) will give USA airlines until early January to replace the Thales (THL) speed probes on A330s and A340s with Goodrich (BFG) probes, according to "Bloomberg News," which cited a Federal Register notice it said is scheduled for publication today. (EASA) already has mandated the replacements be made on A330s/A340s operated by European airlines in the wake of June's Air France (AFA) A330-200 accident. Among USA carriers, Delta Air Lines (DAL) (inherited from Northwest Airlines (NWA)) and US Airways (AMW)/(USA) operate the A330.
4 757-251s (23616; 23629; 24263; 24264), WFU at Marana. DC-9-31 (47382, N9339), scrapped.
October 2009: Northwest Airlines (NWA) is not accepting Flight Crew (FC) applications nor hiring pilots (FC) but expects no pilot (FC) furloughs. (NWA) had 165 pilots (FC) on bypass prior to the merger.
(NWA) is now a wholly-owned subsidiary of Delta Air Lines (DAL) and operations will be integrated over the next two years.
Tokyo Narita's newly extended runway entered service, five months ahead of the original schedule, according to Narita International Airport Corporation. Runway B was lengthened to 2,500 m from 2,180 m. Runway A measures 4,000 m. The airport will have 20,000 additional slots available per year starting March 28.
INCDT: The USA (FAA) revoked the licenses of the two Northwest Airlines (NWA) pilots (FC) who flew 150 miles past their destination on an October 21 flight from San Diego to Minneapolis - St Paul. Air Traffic Control (ATC) and airline officials were unable to make contact with the pilots (FC) for more than >1 hour and the crew (FC) later told the National Transportation Safety Board (NTSB) that they had been using their laptop computers and were distracted. The (FAA) cited them with a number of violations, including "failing to comply with air traffic control (ATC) instructions and clearances and operating carelessly and recklessly." The revocations are effective immediately but the pilots (FC) have 10 days to appeal to the (NTSB).
"It was effective immediately because of the issues involved," an (FAA) spokesperson said. "We thought the emergency revocation was appropriate. This obviously raises the question of the pilots's (FC)'s professionalism, which is one of the issues the Administrator has talked about over the past few months. We can require pilots (FC) to adhere to rules and standards but it's difficult to enforce professionalism."
The (NTSB) said both pilots (FC) from the (NWA) A320 that "overflew" (MSP) claimed in interviews with board investigators over the weekend that they "lost track of time," while having an extended discussion regarding "the new monthly crew flight scheduling system" implemented as part of the carrier's merger with Delta Air Lines (DAL). Flight 188 en route to (MSP) from San Diego failed to contact (ATC) for 78 minutes as it went well beyond its intended destination. While the airplane eventually landed safely, the incident sparked widespread media speculation about what the pilots (FC) were doing in the cockpit. "Both pilots (FC) stated that they were not fatigued," the (NTSB) said in a statement. "Both said they did not fall asleep or doze during the flight. Both said there was no heated argument."
According to the (NTSB), the pilots (FC) said they become so involved in their discussion regarding the scheduling system that "they did not monitor the airplane or calls from (ATC) even though both stated they heard conversation on the radio. Also, neither pilot (FC) noticed messages that were sent by company dispatchers."
The pilots (FC) revealed that their discussion led both of them to access and use their personal laptop computers. "The use of personal computers on the flight deck is prohibited by company policy," the (NTSB) stated.
The (NTSB) said that "neither pilot (FC) was aware of the airplane's position until a flight attendant (CA) called about 5 minutes before they were scheduled to land" asking for an Estimated Time of Arrival (ETA). The (CA)'s query caused the captain (FC) to look at his primary flight display and he "realized that they had passed (MSP)," the (NTSB) said.
The pilots (FC) then contacted (ATC) and were given a flight track to (MSP). "When asked by (ATC) what the problem was, they replied 'just cockpit distraction' and 'dealing with company issues,'" according to the (NTSB).
Later, Delta Air Lines (DAL)'s pilots (FC) union slammed the (NTSB) for its handling of this Northwest Airlines (NWA) A320 "overflew" incident, saying the (NTSB) overstepped its bounds as a safety investigation organization. (DAL)(ALPA) (MEC) Chairman, Lee Moak said the pilots (FC) thought they were "voluntarily coming forward with information" and did not expect their "cooperation" to be "exploited" in an (NTSB) press release. "The (NTSB)'s . . . rush to judgment . . . is both irresponsible and in conflict with its own mission statement," he said.
SEE THE (NTSB) FINAL REPORT ON THIS INCIDENT IN MARCH 2010.
747-251F (23888, N640US), and A330-323 (552, N805NW) WFU at Marana.
December 2009: American Airlines (AAL) is partnering with Texas Pacific Group (TPG) Capital to offer to invest $1.1 billion in Japan Airlines (JAL)/(JAS) to assist with (JAL)/(JAS)'s restructuring and ensure it remains in the Oneworld (ONW) alliance fold.
(AAL) CFO & Executive VP Finance & Planning Tom Horton insisted that the (AAL)/(TPG) proposal is "far superior" to the $1 billion package Delta Air Lines (DAL) offered (JAL)/(JAS) to induce it to switch to the SkyTeam (STM) alliance. He added that the value of the (AAL)/(TPG) deal could increase by as much as $700 million over 10 years "if (JAL)/(JAS) builds its links" with (AAL). He stated, "The total incremental financial support from the (AAL), (ONW) and (TPG) proposal is in excess of >$1.8 billion and far exceeds any other available proposition."
He further claimed that (ONW) "provides (JAL)/(JAS) with roughly $500 million in annual revenue" and claimed that (JAL)/(JAS) would lose $500 million in the first two years following a switch to the (STM).
However, Horton declined to detail the financial structure of the proposed offer or the share each of the partners would contribute, though he did say (AAL)'s contribution would be substantial. He also reiterated (AAL)'s claim that a (DAL)/(JAL)/(JAS) tie-up would pose antitrust concerns owing to (DAL) subsidiary, Northwest Airlines (NWA)'s strong position at Tokyo Narita. Horton said that currently, the three major alliances each have about a third of the USA - Japan market. However, with (JAL)/(JAS) in (STM) "that balance is shattered. (STM)'s share will jump to 62% and (SKT) and the Star (SAL) alliance will have a duopoly with 93% of the market, an anti-competitive result that the USA government simply will not allow."
Former USA Transportation Secretary, Norman Mineta is acting as a consultant to (AAL) on its (JAL)/(JAS) bid and joined Horton for the briefing in Tokyo. "There is no precedent for the Department of Transportation (DOT) to immunize two airlines that operate connecting hubs in the same market, which is the case with Delta (DAL) - (NWA) and (JAL)/(JAS)," Mineta said. (DAL) President, Ed Bastian told reporters he is confident that a (DAL)/(STM) investment in (JAL)/(JAS) would be cleared by antitrust regulators.
Horton stated that (AAL) would apply to form an antitrust-immunized transpacific joint venture with (JAL)/(JAS), which he said will be permissible under the USA - Japan "open skies" accord expected to be finalized imminently. Additionally, (ONW) members, British Airways (BAB) and Finnair (FIN) said they would code share "far more widely" with (JAL)/(JAS), while (LAN) Airlines and Mexicana (CMA) also pledged greater cooperation to increase (JAL)/(JAS)'s access to Latin America.
(JAL)/(JAS) President, Haruka Nishimatsu has said he would like to choose between the (AAL) and (DAL) offers by year end. (JAL)/(JAS) is attempting to enter into a government-backed restructuring and last week secured an emergency loan from the Development Bank of Japan.
The USA and Japan announced that they reached agreement on an "open skies" accord that will liberalize access, largely removing restrictions on the number of airlines allowed to serve each market as well as the number of flights. The long-elusive pact, agreed to after an intensive fifth round of negotiations this year took place in Washington, is contingent upon approval of antitrust immunity (ATI) for transpacific joint ventures (JV)s between Japanese and USA carriers. (ANA) is seeking to form a (JV) with Star Alliance (SAL) partners United Airlines (UAL) and Continental Airlines (CAL), while Japan Airlines (JAL) intends to form a (JV) with either American Airlines (AAL) or Delta Air Lines (DAL), both of which are negotiating with (JAL) about taking a stake. The pact would replace a bilateral air services agreement that dates back to 1952, though it was expanded in 1998.
No time frame was given for when the new agreement will go into effect, but the sides are eyeing October 2010, when Tokyo Haneda (HND)'s fourth runway will open. A key to the USA side agreeing to an accord was gaining access to (HND), Tokyo's close-in airport that has been closed to USA airlines for more than >30 years. Under terms of the pact, USA carriers will secure four daily round trip slots at (HND) from October.
The USA Department of Transportation said the agreement "would provide opportunities for growth of USA carrier operations at Tokyo's Narita airport and ensure fair competition regarding the new opportunities at [HND]."
Japanese Transport Minister, Seiji Maehara said that reaching the accord "is extremely meaningful" because "the Japan - USA route is the biggest aviation market for Japan." (JAL) said it "intends to apply for (ATI) with a strategic USA partner as soon as possible, so as to seize this opportunity to strengthen our network." It previously has said it hopes to choose between (AAL) and (DAL) by the end of this month.
(AAL) Senior VP Government Affairs, Will Ris said the agreement "will effectively reset the playing field and enable new working relationships, particularly pro-competitive joint ventures granted antitrust immunity (ATI) by the USA and Japanese governments." (DAL) said it "opens the door to antitrust immunity, which would enable Delta (DAL) and (JAL) to engage in deeper and more effective cooperation." (UAL) Chairman, President & CEO, Glenn Tilton said (UAL) looks "forward to forming a joint venture (JV) across the Pacific with our longtime partner [ANA] and Continental (CAL)."
Delta Air Lines (DAL) and subsidiary, Northwest Airlines (NWA) were granted a single air operating certificate (AOC) by the USA (FAA) on December 31, an expected move that clears the way for full integration to be completed by late first quarter/early second quarter.
747-212F (24177, N644NW); 3 747-251Fs (23111, N631NW; 23112, N632NW; 23887, N639US) and DC-9-31 (47161, N8938E), WFU at Marana. 747-249F (22245, N643NW - TT 97,392, TC 22,176), scrapped at Walnut Ridge. A330-323 (552, N805NW), removed from storage and into a heavy maintenance check before return to service.
January 2010: A Different Perspective from Narita:
As we got out of our black taxi the day after Christmas, we knew that we were flying the last Northwest (NWA) Cargo flight out of Narita. What we did not know but would soon find out from the Manager of Maintenance is that we were also flying the last scheduled 747-200 of any air carrier out of Narita. As we completed the paperwork in the crew lounge, F/O Shannon Pastewicz, S/O Kathy Obrien and myself could not help but reflect upon the significance of this final departure. For decades this proud bird had defined Narita. It was not uncommon to see a flock of twenty 747-200 red tails nosed up to the terminal at one time. In fact, it was uncommon to see anything but a 747-200 at any gate in Narita back then. It was the international airplane of choice and for good reason. It was impressive . . . reliable, safe, fun to fly, comfortable, solid, efficient, massive and just a beautiful airplane. Everyone knew of the 747. The adjectives go on and on . . . It was the mother of all airplanes. But today, it was headed for retirement to the warm desert sun like so many of the retirees who used to fly them. The difference though is that these birds can still do the job just as well as the they always have. It is just that the younger generations require less food . . . and that is all.
As the crew bus approached 6732 parked on the cargo ramp, we could not help but scan the other newer airplanes on the ramp for signs of any other 747-200's to confirm what the Manager had told us. That is when it really hit us that good ole 6732 and its sisters were sadly being muscled out by a more youthful generation and now oddly enough, seemed out of place in its own home. When we turned the corner and pulled up to the stairs, there was a larger than normal group of service folks lingering. We soon learned that we as pilots were not the only ones taken by the significance of this final departure. Cameras were flashing on the ramp, in the cargo compartment and in the cockpit as all of these handlers wanted to record a memory. We joined them in pictures and in sharing fond memories of the proud bird. There was a certain somberness to the procession of "spectators." However, these were not ordinary spectators. These were the behind the scenes load planners, weight and balance people, the cargo loaders, the DG handlers, the mechanics, the dispatchers, the caterers, the fuelers and even the ramp security people . . . anyone who had had a part in the decade after decade of servicing the grand old lady. As the word had gotten out, many more had come from all over the airport and perhaps even from home. As we all said our good-byes and thanked these fine people that had as much a connection to this airplane and its history as any of us, we prepared for departure. The impromptu crowd had grown quite large as we began our push back. As the plane retreated from the crowd on the push back the crowd waved continuously. There was no cheering, just a melancholy wave. You could feel the deep admiration. We flashed the landing lights on and off repeatedly. One could sense the sadness and at the same time the proudness of these behind the scenes folks who were as touched by the significance of this departure as anyone and had come to pay their last respects. Some had spent their entire career on the 747 as it had been flying here for over thirty years! There was no ceremony or parting speech, just the sadness of a bygone era which everyone dealt with privately. As we disconnected and started our taxi, the waves from the crowd never let up. It had been a magnificent era. But it had come to an end. As we climbed out of Narita, it was the clearest night I have ever seen over Tokyo. The lights sparkled in a way which seemed to symbolically bid the 747-200 a fond adieu from the people it served so proudly for decades.
747-200 (NWA) Captain, Anchorage
USA President, Barack Obama announced increased airline security measures following a meeting with top national security aides to discuss a response to the attempted Christmas Day terrorist attack on Northwest Airlines (NWA) A330-200 Flight 253. Speaking at a White House press briefing, Obama said that in order to face "a challenge of the utmost urgency," he will mandate "deepening cooperation" with international partners, increased explosive screening, enhanced and "smarter" passenger screening, as well as "investing in the kind of technologies" that may have detected the explosives used in the failed terrorist plot. "When a suspected terrorist is able to board a plane with explosives on Christmas Day, the system has failed in a potentially disastrous way," he said, commenting that more individuals have been added to the USA government's "no-fly list." He reiterated (TSA)'s recently announced directive under which screening will be increased for those flying to the USA "from anywhere in the world traveling from or through nations that are state sponsors of terrorism or other countries of interest."
Obama admitted that the USA "had sufficient information to have uncovered this plot," adding that it was "not a failure to collect the intelligence . . . it was a failure to understand the intelligence we already had." The list of officials scheduled to meet with Obama included Secretary of Defense, Robert Gates; Secretary of State, Hillary Clinton; Secretary of Homeland Security, Janet Napolitano; Director of the CIA, Leon Panetta; Attorney General, Eric Holder; Director of the FBI, Robert Mueller; Director of the National Counterterrorism Center, Michael Leiter; and Deputy National Security Adviser for Homeland Security and Counterterrorism, John Brennan.
Napolitano presented a review on "screening policies, technologies and procedures related to air travel" at Obama's request, while a review of the watch list system was presented by Brennan.
Delta Airlines (DAL)/(NWA) intends to invest $1 billion over the next three years on a wide range of measures designed "to improve the customer experience in the air and on the ground," including new business class (C) seats on 90 Boeing wide body airplanes. (DAL) did not directly address plans for the order for 18 787s inherited in its acquisition of Northwest Airlines (NWA), but President, Ed Bastian said, "Rather than invest in new airplanes, (DAL)/(NWA) will be spending its capital to improve the quality and consistency of the on board product and efficiency of the airplanes we already own."
Called "the most significant investment we have made in our customers in more than a decade" by CEO, Richard Anderson, the upgrade will be anchored by installation of new lie-flat seats in the BusinessElite cabins on 14 767-400ERs, 52 767-300ERs, 16 747-400s and eight 777-200ERs. In addition, the economy (Y) cabins on 16 747-400s and 52 767-300ERs will be outfitted with individual audio video on-demand (AVOD) In-Flight Entertainment (IFE) units, extending the service to all seats on all (DAL) wide bodies. A first class (F) cabin will be added to 66 CRJ-700s operated by Delta Connection affiliates SkyWest Airlines, Atlantic Southeast Airlines and Comair (COI), bringing to 219 the number of regional airplanes offering the product. Finally, (DAL)/(NWA) will retrofit 269 Northwest Airlines (NWA) airplanes with (DAL)'s blue leather seats, new lighting and increased overhead storage space (on 757-200s).
Outside the cabin, winglets will be added to more than >170 767-300ER, 757-200 and 737-800 airplanes, while Sky Club lounges will be added in Seattle, Philadelphia, and Indianapolis, plus being renovated in Los Angeles. "This investment will be made while staying well within the level of our historical capital expenditures," Bastian said.
(DAL)/(NWA) said it now operates more than >100 domestic airplanes with in-seat (AVOD) (IFE) and more than >340 with in-flight Wi-Fi service. It plans to have more than >530 airplanes with wireless Internet by mid-year.
2 DC-9-31s (45869, N8960E; 47167, N8944E), DC-9-32 (47376, N9346), WFU at Marana. A330-323 (552, N805NW), returned to service.
February 2010: Delta Air Lines (DAL) completed the integration of Northwest Airlines (NWA)'s reservation system and transitioned all (NWA) flights and passenger reservations to the (DAL) system, allowing for the retirement of (NWA) flight numbers and its website: http://www.nwa.com. (NWA) customers will be able to use their original reservation and confirmation numbers, (DAL) said. "Throughout the integration of (DAL) and (NWA), we've taken a phased, deliberate approach to make the transition simple and seamless for our customers," Senior VP & CIO, Theresa Wise said. (DAL) rebranding now has replaced (NWA) branding at all airports following the conversion of Philadelphia International on January 18. The final (NWA) flight, NW2470, was from Los Angeles to Las Vegas last month.
March 2010: The USA National Transportation Safety Board (NTSB) determined that last October's Northwest Airlines (NWA) overflight incident occurred "because the pilots (FC) became distracted by a conversation unrelated to the operation of the airplane."
The incident, in which (NWA) Flight 188 overflew its destination airport of Minneapolis-St Paul (MSP) by more than >100 miles and had no contact with controllers for approximately 77 minutes, achieved worldwide notoriety, although the airplane returned to the airport and landed safely. The (NTSB) also said that air traffic controllers "did not follow procedures to ensure (NWA) 188 was on the correct frequency, which delayed the identification of the airplane as (NORDO) [no radio communications]."
The (NTSB) investigation confirmed what generally was believed to be the case at the time - - that the pilots (FC) were discussing a new flight crew (FC) scheduling system and "each was using his personal laptop computer contrary to company policy," the (NTSB) stated.
It appears that earlier in the flight, the first officer (FC) mistakenly dialed in an incorrect frequency while the captain (FC) was absent from the cockpit. Upon the captain (FC)'s return, the pilots (FC) began discussing the bidding process and opened their laptops, which the (NTSB) said may have blocked their primary flight and navigation displays (PFD)s but not the "upper screen of the electronic centralized airplane monitor . . . where the (ACARS) (MSG) blinks." The pilots (FC) missed numerous (ACARS) messages "and at least nine messages" regarding their position on the multifunction control and display unit and the (PFD)s as they neared (MSP).
The (NTSB) found "that a lack of national requirements for recording Air Traffic Control (ATC) instructions when using automated flight tracking systems, such as directing an airplane to switch frequencies or to indicate that an airplane has checked in on an assigned frequency, was a factor in the controllers' delay in performing necessary actions and notifications required by lost communications procedures."
The (FAA) announced a proposed $1.5 million penalty against the former Northwest Airlines (NWA) for operating 32 757s without required windshield wiring inspections. (NWA) was acquired by Delta Air Lines (DAL) in late 2008 and (DAL)/(NWA) began flying on a single Air Operators Certificate (AOC) in December, but the flights in question took place between December 1, 2005, and May 27, 2008. The (FAA) said that a 1990 Airworthiness Directive (AD) "required inspections for the presence of undersized wires in the heating system for both the captain (FC)'s and first officer (FC)'s windows, and replacement if needed," but (NWA) omitted the inspection of the copilot (FC)'s window from maintenance instructions written to mechanics (MT) in April 1990. As a result, there were more than >90,000 flights in violation of the (AD). In May 2008, (NWA) revised the instructions but delayed the work further until the next overnight layover. "When an air carrier realizes that an Airworthiness Directive (AD) is not being followed, the problem must be corrected immediately. Safety cannot wait for the next scheduled maintenance," (FAA) Administrator, Randy Babbitt said.
April 2010: Delta Air Lines (DAL) reported a first-quarter net loss of -$256 million, narrowed from a -$794 million deficit in the year-ago period, and CEO, Richard Anderson said continuing evidence of "the right trends in the revenue environment" have (DAL) "optimistic about the rest of the year" and anticipating a "solidly profitable" second quarter.
"We continue to see solid advance bookings . . . across all geographic regions," President, Ed Bastian told reporters and analysts. "Clearly the improved strength we're seeing comes from improved corporate travel. We're seeing corporate travel improve across all geographic regions, certainly in New York and across the Atlantic . . . We're not quite at 2008 levels [of business (C) passengers]. We're close to 2007 levels and we expect to be up to 2008" later this year.
"It appears that the economy has pretty good legs under it," Anderson said. But he cautioned that "the issue we have ahead of us" is not generating revenue but keeping costs under control with fuel prices "volatile."
Regarding the merger with Northwest Airlines (NWA), Bastian said (DAL)/(NWA) are "now operating on a single technology platform" and the "heavy lifting of integration is behind us." He claimed (DAL) achieved $200 million in merger synergies in the first quarter and is "now at $1 billion in annual run rate synergies." It did incur $46 million in merger-related expenses in the quarter and expects another $70 million in merger costs for the remainder of the year.
The decision to ground (NWA)'s fleet of 14 747-200F freighters last year produced -$60 million in expense savings in the first quarter, Bastian said. Meanwhile, (DAL) continues to be noncommittal on (NWA)'s order for 18 787s placed in 2005. When asked if (DAL) is still a 787 customer, Anderson responded, "Technically yes." But he added that he's happy with the airline's current long-haul fleet: "We're in good shape in terms of transoceanic airplanes."
First-quarter revenue rose +2% to $6.85 billion, while expenses decreased -5% to $6.78 billion, producing operating income of +$68 million, turned around from an operating loss of -$483 million last year. Net income was heavily affected by $326 million in interest expenses.
Consolidated traffic dipped -1.4% to 42.37 billion (RPM)s, while capacity dropped -4.4% to 53.3 billion (ASM)s, producing a load factor of 79.5% LF, up +2.4 points. Yield lifted +5.1% to 13.7 cents as (PRASM) jumped +8.4% to 10.89 cents and (CASM) dipped -0.5% to 12.46 cents. (CASM) ex-fuel, increased +1% to 8.72 cents.
(DAL) said it had cancelled around 400 flights and lost an estimated -$20 million through April 19, or around -$5 million per day, owing to the closure of European airspace because of the harmful ash in the atmosphere from the eruption of the Iceland volcano.
The figure seems to be in line with estimates by J P Morgan that aggregate losses for USA airlines will be "kept to within -$100 million" based on a seven-day disruption. In a report, the investment firm noted that "transatlantic operations account for no more than 8% of operations for USA legacy carriers" and "are among the most costly for USA airlines."
With the largest transatlantic operation in terms of revenue, (DAL) has the greatest exposure, according to J P Morgan, which estimated that 1.6% of (DAL)'s second-quarter revenue or $133.8 million was at risk from a week-long disruption. Partly offsetting this lost revenue was -$46.8 million in expected cost savings from not operating the flights, with a further $53.5 million in foregone revenue expected to be recaptured at a later date.
American Airlines (AAL) has an estimated 1.4% of quarterly revenue at risk, according to the firm, or $79.9 million, with a net estimated impact after offsetting savings and recaptured revenue of $20 million. Continental (CAL) has $77.3 million in revenue at risk, with an estimated impact after savings and recaptured revenue of $19.3 million. United Airlines (UAL) has $69.2 million in revenue at risk with an estimated impact of $17.3 million. US Airways (AMW)/(USA) has $35.7 million in revenue at risk with an estimated impact of $8.9 million.
(DAL) said it expected to operate 50% of its Tuesday westbound transatlantic schedule and 100% of its eastbound nighttime schedule, although airline executives noted that London Heathrow, which was expected to reopen overnight, and Frankfurt are its most challenging destinations.
May 2010: Allegiant Air (WJE) named Northwest (NWA)/Delta Air Lines (DAL) Senior VP Technical Operations, Kris Bauer to the post of Senior VP Operations.
August 2010: Northwest Airlines (NWA) has agreed to plead guilty to fixing prices on air cargo shipments and pay a $38 million criminal fine, the USA Department of Justice (DOJ) announced. According to charges filed, Northwest Airlines Cargo, which is now part of Delta Air Lines (DAL), “engaged in a conspiracy to fix the cargo rates for international air cargo shipments from at least July 2004 until at least February 2006.” Under the plea agreement, (NWA) will cooperate with the department’s ongoing antitrust investigation into other airlines.
(DAL) said: “The agreement between (NWA) and the DOJ) relates to actions which occurred before the Delta (DAL) - Northwest (NWA) merger by certain employees of (NWA) Cargo Inc, the former cargo division of Northwest Airlines (NWA). The agreement doesn't assert any misconduct by any current or former officer or member of the Board of Directors of Northwest LLC, Northwest Corp, Northwest Airlines or Delta (DAL)."
It added that (NWA) "terminated the employment of the individual who it believed had primary responsibility for the conduct in question."
A total of 16 airlines have pleaded guilty or have agreed to plead guilty in the (DOJ)’s ongoing investigation into price fixing in the air transportation industry. To date, more than >$1.6 billion in criminal fines have been imposed and four executives have been sentenced to serve prison time. Charges are pending against a fifth executive.
October 2011: The criminal trial of Umar Farouk Abdulmutallab in a USA federal court in Detroit ended on just its second day when the defendant abruptly declared his guilt on all counts, explaining in a detailed statement how he tried to bring down a Northwest Airlines (NWA) A330 en route from Amsterdam to Detroit on December 25, 2009.
"I traveled to Yemen and eventually to the United States, and I agreed with at least one person to carry an explosive device onto an airplane and attempt to kill those on board and wreck the airplane as an act of jihad against the United States for the USA killing of my Muslim brothers and sisters around the world," the Nigerian man told the court, later adding, "I carried with me an explosive device onto Northwest 253. I attempted to use an explosive device which in the USA law is a weapon of mass destruction, which I call a blessed weapon. I intended to wreck a civil airplane."
The so-called "underwear bomber" was subdued aboard the flight after unsuccessfully attempting to detonate explosives hidden under his clothing. "Northwest Airlines (NWA) flight 253 carried 281 passengers and 11 crew members, all of whom could have been killed or injured had this plot been successful," USA Attorney General, Eric Holder said. "Today, Umar Farouk Abdulmutallab is being held accountable for the attempted murder of 291 innocent people and he will face a potential sentence of life in prison."
Sentencing is scheduled for January 12. The charges to which Abdulmutallab pleaded guilty include conspiracy to commit an act of terrorism and the attempted use of weapons of mass destruction. Though unsuccessful, the attempted Christmas Day bombing has had a significant impact on aviation security worldwide. The USA Transportation Security Administration responded in early 2010 by adopting a "post-12/25" strategy that included the massive rollout of body-scanning machines at USA airports.
FOR FUTURE (NWA) DETAILS, GO TO TAKEOVER MERGER AIRLINE - - DELTA AIRLINES (DAL).
Click below for photos:
NWA-757-300 1ST DLVRY
NWA-A319-113 1ST DLVRY
0 727-251 (JT8D-15 HK), 22490; 22491; 22492; WFU. 21324 WFU 2002-07; 21325; 2002-08 AT ROSWELL. 22543 ST ANTONOV 2002-11. ALL WFU 2003-01. 6 LEFT FOR SPORTS TEAM CHARTERS. 22553; 22554; 22555; 22557; LST (GRD) 2004-01. 21323; 21324; 21325; 21375; 21377; 21506; 21788; 22154; PARTED OUT AT ROSWELL 2004-07.
0 747-100 (JT9D-7Q), 27-19778, RETIRED 2000-09, TO SMITHSONIAN, PARTED OUT.
0 747-2J9F (JT9D-7F) (400-21668, /83 N630US), WFU AT MARANA 2008-03. FREIGHTER.
0 747-200 (JT9D-7Q) (20356 PARTED OUT 2001-03); 20359 PARTED OUT 2002-12. 3 GROUNDED. 20358 WFU AT MARANA 2003-08. 20357 ST CUDA RAY 2003-06. 21682; 21991; 23547; WFU AT MARANA 2003-09. 21707; 21708; 23549 2003-10. 22234 & 22389, 2003-11. 23549 WFU AT MARANA 2004-05. 20360 SCRAPPED AT ROSWELL 2004-03. 23549 RTND SVC 2004-07. 23112 WFU AT MARANA 2004-11. 23548 WFU IN STORAGE 2005-01. 20358 PARTED OUT 2005-02. 23111 STORED AT MARANA PENDING CONV TO F 2005-05. 23548; WFU AT MARANA 2006-06. 21682; 21707; 21708; 21941; 21942; 22234; PARTED OUT ST EVERGREEN 2007-08. 67C, 282Y.
0 747-212B (JT9D-7Q) (470-21941, /80 N641NW; 471-21942, /90 N642NW), EX-(SIA). 21941 WFU AT MARANA 2003-10. 21942; 2004-08. 24177; 2009-12. 67C, 282Y.
0 747-222B (JT9D-7R4G2) (673-23736, /87 N645NW; 675-23737, /87 N646NW), EX-(UAL), (BAS) CONV TO F (2001-03). 23736; WFU AT MARANA 2009-01. 23737 WFU AT MARANA 2009-06; TT 74,123; TC 9,755. ALL TO BE RETIRED BY THE END OF 2009. FREIGHTER.
0 747-200F (JT9D-7Q) (458-22245, /80 N643NW, EX-(STT), 1999-09; 710-24177, /88, N644NW, EX-(SAA), (STT), & (SIA)) (GRB) LSD 1999-10) (710-24177, N644NW "SELECT 3-SPEED SERVICE"). 24177; BF (GRB) 2006-07. 22388; WFU AT MARANA 2009-01. 21321; WFU AT VICTORVILLE 2009-02. 23888; WFU AT MARANA 2009-10. ALL RETIRED BY THE END OF 2009. FREIGHTER.
0 747-251SF (JT9D-7R4G2) (594-23111, /84 N631NW; 595-23112, /84 N632NW), 21121; WFU AT MARANA 2008-06. ALL TO BE RETIRED BY THE END OF 2009. 23111 HAD TT 92,247, TC 14,118; 23112 HAD TT 93,928, TC 14,625, FREIGHTER.
0 747-357 (JT9D-7R4G2) (570-22704, /82 N270BC; 576-22705, /83 N705BC), EX-(SWS)/(FLL), TO BE CONV TO SF. 22704; 22705; PARTED OUT ST EVERGREEN 2007-08. FREIGHTER.
12 747-451 (PW4056) (LAUNCH CUSTOMER) (721-23819, /89 N664US "THE SPIRIT OF BEIJING;" 804-24225, /90 N670US "THE ALLIANSE SPIRIT;" 1206-26477, /99 N671NW "CITY OF DETROIT," 1223-30267, /99 N672NW "SPIRIT OF ASIA;" (1226-30268, /99 N673US "SPIRIT OF TOKYO;" 1232-30269, /99 N674US "CITY OF SHANGHAI"), 23720; 23818; WFU AT MARANA 2005-10. 23818; 30267; 30268; WFU AT MARANA 2006-01. 23819; RTS 2006-01. 30267; 30268; RTS 2006-05. 65C, 338Y.
2 747-451 (PW4056) (1297-33001, /02 N675NW "SPIRIT OF THE NORTHWEST PEOPLE;" 1303-33002, /02 N676NW). 65C, 338Y.
30 757-251 (PW2037) (23204; 23207; STORED AT MARANA 2003-04. 23202; 2003-05 & 23616 STORED AT MARANA 2003-08. 23201; 23618; 2003-10. 23619; 2004-01. 26483; 26484; 26486; 26487; 26488; 24489; WFU AT MARANA 2005-10. 23207; 26485; WFU AT MARANA 2006-01. 23846; WFU AT MARANA 2006-02. 26484, N527US; RTND TO SVC 2006-02. 23207, N519US; RTS 2006-04. 26501 WFU AT MARANA 2006-04. 23204; & 33391; WFU AT MARANA 2006-05. 23846; RTS 2006-05. 26499; WFU AT MARANA 2006-06. 26483; 26484; RTS 2006-07. 28486; RTS 2006-11. 26487; & 26489; RTS 2006-12. 23202; RTS (2007-01). 23193; 23194; 23195; 23197; 23198; 23199; 23200; 23201; 23202; 23203; ST CITICORP 2009-01. 23616; 23629; 24263; & 24264; WFU AT MARANA 2009-09. NO (ETOPS). 22F (37 INS PITCH); 158 TO 162Y (30/33 INS).
00 ORDERS 757-251. 20 CANCELED. (33391, N555NW; 33392, N556NW). 22F, 158Y.
16 757-351 (PW2043) (1001-32982, /02 N581NW; 1014-32981, /02 N582NW "THE BERNIE EPPLE"), 24F, 200Y.
18/50 ORDERS 787-851 DREAMLINER (TRENT 1000), 36C, 185Y:
0 DC-9-14 (JT8D-7B HK) (45748 PARTED OUT 1999-02), 5 GROUNDED AT HONDO, TX 1999-03. 45749 WFU MARANA 2004-07. 45825 WFU 2004-08. 45770 WFU 2004-09. 45829; 45831; 45832; WFU 2004-12. 14F, 64Y.
44 DC-9-31 (JT8D-9A HK), 47149 PARTED OUT 1999-09. 47471 PARTED OUT 2002-10. 47171 PARTED OUT 2003-01. 47138 WFU AT MARANA 2003-05. 47175; 47369; WFU AT MARANA 2003-07. 47472 WFU AT MARANA 2003-08. 47370 2003-09, 49362 2003-10. 47517 2003-12. 47370 REMOVED FROM STORAGE 2004-05. 47255 WFU AT MARANA 2006-06. 47252; 47253; WFU 2005-01. 47073; PARTED OUT 2005-03. 47390; 47440; WFU AT MARANA 2005-10. (47097; 47163; 47282; 47389; 47406; 47416; 47450; 47469; 47473; 47479), WFU 2005-11. 47128; 47129; 47229; 47417; 47518; 47544; 47591; WFU AT MARANA 2006-01. 47246; 47436; 47573; 47664; WFU AT MARANA 2006-02. 45840; WFU AT MARANA 2006-03. 47436; 47664; RTS 2006-06. 47573; RTS 2006-07. 47083; ST (EVR) 2006-07. 47186; W/O 2006-11; 47315; W/O 2007-02; 47235; WFU AT MARANA 2007-03. 47142; 47233; 47246; 47436; 47439; WFU AT MARANA 2007-08. 47158; 47222; 47232; 47234; 47242; 47247; 47326; PARTED OUT AT OPA-LOCKA 2007-10. 47038; 47143; 47215; 47459; PARTED OUT 2007-11. 47246 REMOVED FROM STORAGE 2007-11. 47142; RTS. 47566; ST CLIPPER AVIATION 2008-01. 47046; 47263; 47338; WFU AT TUCSON 2008-03. 47223; SCRAPPED 2008-03. 47164; WFU AT MARANA 2008-04. 47225; & 47346; WFU AT TUCSON 2008-06. 47233; SOLD 2009-03. 47458; WFU AT MARANA 2009-03. 47376; RTS 2009-04. 47141; RTS 6/09. 47382; 47450; ST EVERGREEN TRADE 7/09 FOR SCRAP. 47161; WFU AT MARANA 2009-12. 45835; 45869; 47167; 47316; 47376; WFU AT MARANA 2010-01. 16F, 84Y.
9 DC-9-41 (JT8D-11 HK) 218-47114, /67 N750NW; 557-47396, /69 N763NW), 47286 WFU AT MARANA 2005-10. 47288 WFU AT MARANA 2006-01. 47128; 47235; REMOVED FROM STORAGE FOR SALE 2007-11. 47180; WFU AT MARANA 2008-05. 16F, 94Y.
27 DC-9-51 (JT8D-17 HK) (888-27775, /78 N773NC RTD 2002-01). 47716 W/O 2005-05. 48110 WFU AT MARANA 2005-07. 48121; WFU AT MARANA 2005-10. 47718; 47774; 47786; WFU 2005-11. 16F, 109Y.
0 MD-82 (996-48054 RETIRED 9/99), (48055; 48057; 48086; 48088; 48089; 48091; 48110; RETIRED 1999-10 AT MARANA).
1 DC-10-30 (CF6-50C) (171-46868, /74 N211NW "CITY OF AMSTERDAM"). 46577 ST CHARLOTTE ACFT 2002-11. 47844 WFU AT MARANA 2004-10. 46579; 46961; 46640; WFU AT MARANA 2005-10. 46949 WFU AT MARANA 2004-11. 47844 RTS 2004-12. 46868 RTND (ING) 2005-01. 46551; 46552; RTND (TCI) 2005-11. 47844 ST (AAT) 2006-12. 46969; PARTED OUT 2007-11. 26C, 247Y.
0 DC-10-30 (CF6-50C) (188-46912, /74 N234NW; 199-46915, /75 N235NW; 160-46934, /74 N236NW), EX-(KAL). 46934; ST (OAE) 2006-07. 46912; 46915; ST (AAT) 2006-12. 26C, 247Y.
0 DC-10-30ER (CF6-50C2B) (434-48267, /87 N238NW; 435-48290, /87 N239NW; 438-48319, /88 N240NW), EX-(TII). 48267; ST (OAE) 2006-09. 48319; ST (OAE) 2006-12. 48290; ST (OAE) 2007-04. 26C, 247Y.
0 DC-10-30 (CF6-50C2) (355-48282, /81 N241NW, 356-47845, /81 N242NW), EX-(VAR). 48282 STORED AT MARANA 2005-06. 47845; & 48282; ST (AAT) 2006-12 & PARTED OUT. 26C, 247Y.
1 DC-10-30ER (CF6-50C2) (436-48315, /88 N243NW; 437-48316, /88 N244NW), EX-(JAS) 2000-04. 48316; ST (OAE) 2006-09. 26C, 247Y.
00 DC-10-40 (JT9D-20) (46752, N133JC; 46753, N134JC). 108-46757 PARTED OUT. 46764; 46767; WFU & 46768 ST (FAA) 2002-07. LAST APL WFU 2002-09. 46762 PARTED OUT. ALL RETIRED BY 2003-09. 53-46752 WFU AT ROSWELL 2003-01. 42F, 256Y.
56 A319-114 (CFM56-5A5) (1058, /99 N301NB, "CITY OF DULUTH;" 1149, N310NB; 1164, N311NB; 1186, N313NB; 1191, N314NB; 1167, N312NB; 1324, /00 N317NB; 1325, /00 N318NB; 2464, N374NB, 2005-05; 2474, N375NB, 2005-05). 1186 W/O 2003-01. 2039 DAMAGED 2005-05. 2641, N377NB. 1071; 1090; 1091; 1126; 1129; 1131; WFU AT MARANA 2005-10. 2618, N376NB, 2005-12; 2641, N377NB, 2005-12). 10 ST (SBR) 2006-07. 1071; 1090; 1126; 1129; & 1131; RTND 2006-05. 1078; 1164; 1167; RTND 2006-06. 1819; 1870; 2028; ST (GEF), LST (SBR) 2007-06. 2369; 2474; ST (GEF) 2007-06. 2373; 2464; 2618; 2641; ST (GEF) 2007-07. 16F, 108Y.
19 A320-211 (CFM56-5A1) (281 STORED MARANA 2003-04; 306 2003-09). 060; 106; 107; 118; 121; 318; 319; 329; WFU AT MARANA 2005-10. 106; 107; WFU AT MARANA 2006-02. 032; 060; 106; & 107; SCRAPPED 2006-08. 031; 034; 040; 041; SCRAPPED BY (AUB) 2008-12. 16F, 132Y.
42 +3 ORDERS A320-212 (CFM56-5A3) (339 STORED AT MARANA 2003-04), 400; RTND (DEA), LST (NOU) 2006-04. 400; RTND 2006-03. 16F, 132Y.
12 +81 ORDERS A330-223 (PW4168A) (609, N851NW, 2004-07; 614, N852NW, 2004-08; 618; 620, N854NW 2004-09; 621, N855NW 2004-10; 623; 631, N856NW 2004-10; 633, N857NW 2004-11; 641; 662; 663, N809NW; 669; 718, N858NW, 2006-01; 722, N859NW, 2006-02; 778, N860NW, 2006-09; 784, N812NW, 2006-10; 796, N861NW, 2006-11), 32C; 211Y.
29 A330-323X (PW4168A) (524, /03 N801NW; 533, /03 N802NW, 2003-07; 542, /03 N803NW; 549, /03 N804NW; 552, N805NW; 578, /03 N806NW; 588, 2004-06 N807NW; 591, 2004-04 N808NW; 663, N809NW, 2005-05; 674, N810NW, 2005-06; 690, N811NW, 2005-12; 778; 784, N812NW, 2006-10; 796; 799, N813NW, 2006-12; 806, N814NW, 2007-01; 817, N815NW, 2007-02; 821, N865NW, 2007-10; 827, N816NW, 2007-04; 843, N817NW, 2007-06; 857, N818NW, 2007-08; 858, N819NW, 2007-09; 865, N820NW, 2007-09). 4 CANCELED. 549 INTO HEAVY CHECK 2010-01. 552; RTS 2010-01. 34C, 264Y.
15 +21 ORDERS AVRO RJ85 (LF507-1F), SUB-LSD TO MESABA, TO REPLACE DC-9-10'S. 16F, 53Y.
20 +34/70 ORDERS BOMBARDIER CRJ-200LR (CL-600-2B19), 50Y:
75/175 ORDERS BOMBARDIER CRJ440 (CF34-3B1), 44Y PAX:
36 BOMBARDIER CRJ-900 (CF34), 12F, 64Y.
36 EMBRAER EMB-175 (CF34), FOR COMPASS AIRLINES OPS. 12F, 64Y.
Click below for photos:
ROY BOSTOK, CHAIRMAN (NWA) (2007-05).
RICHARD ANDERSON, CHIEF EXECUTIVE OFFICER (CEO) (DAL)/(NWA).
ED BASTIAN, (CEO) (NWA), & PRESIDENT (DAL) (2008-10).
DOUG STEENLAND, PRESIDENT (2001-02), & CHAIRMAN/(CEO) (NWA) CARGO (2002-10).
JOHN BENDORAITIS, PRESIDENT COMAIR (COI).
TIM CAMPBELL, COMPASS AIRLINES (2008-11).
JUN MOKUDAI, CHAIRMAN (NWA) JAPAN (2004-09).
TONY CHARAF, PRESIDENT, DELTA (DAL) TECHOPS.
TOM BACH, PRESIDENT (NWA) CARGO (2007-09).
RICHARD SCHROETER, PRESIDENT NORTHWEST AIRCRAFT INC.
MIKE BECKER, EXECUTIVE VP INTERNATIONAL OPERATIONS & CHIEF OPERATIONS OFFICER (COO) (NWA).
RAY VECCI, EXECUTIVE VP CUSTOMER SERVICE & PRESIDENT MICHIGAN OPERATIONS (DETROIT).
J TIMOTHY GRIFFIN, EXECUTIVE VP MARKETING & DISTRIBUTION.
MIKE CAMPBELL, EXECUTIVE VP HUMAN RESOURCES (HR) & LABOR RELATIONS (DAL).
WILLIAM LENTSCH, SENIOR VP MINNESOTA OPERATIONS.
TIMOTHY RAINEY, SENIOR VP FLIGHT OPERATIONS & SYSTEM OPERATIONS CONTROL (SOC) (2007-09).
HANK HALTER, SENIOR VP & C HIEF FINANCIAL OFFICER (CFO) (DAL) (2008-11).
KRIS BAUER, SENIOR VP TECHNICAL OPERATIONS (email@example.com) (2004-10), RESIGNED TO BECOME SENIOR VP OPERATIONS FOR ALLEGIANT AIR (WJE) (2010-05).
DIRK MCMAHON, SENIOR VP GROUND OPERATIONS (2000-04).
DANIEL MATTHEWS, SENIOR VP & TREASURER.
JIM FRIEDEL, SENIOR VP STRATEGIC PLANNING (2007-09).
THERESA WISE, SENIOR VP & CHIEF INFORMATION OFFICER (CIO) (DAL) (2008-11).
DOUGLAS BIRDSALL, SENIOR VP ALLIANCES.
MARY CARROLL LINDER, SENIOR VP CORPORATE & BRAND COMMUNICATIONS.
ANDREA FISCHER NEWMAN, SENIOR VP GOVERNMENTAL AFFAIRS.
JULIE HAGEN SHOWERS, SENIOR VP IN-FLIGHT SERVICES (2007-09).
THOMAS KENNEDY, SENIOR VP & CONTROLLER.
KEN HYLANDER, SENIOR VP SAFETY & ENGINEERING (MSPEZNW), EX-(UAL),
(firstname.lastname@example.org) CHIEF SAFETY OFFICER.
RICHARD HIRST, SENIOR VP CORPORATE AFFAIRS & ADMINISTRATION (2007-10).
JIM CRON, SENIOR VP REVENUE MANAGEMENT, PLANNING & LOYALTY MARKETING & (CEO) MLT VACATIONS (2007-09) & SENIOR VP GLOBAL SALES & DISTRIBUTION (DAL) (2008-11).
BOB BRODIN, SENIOR VP LABOR RELATIONS (2007-09).
BEN HIRST, SENIOR VP & GENERAL COUNSEL & CHIEF LEGAL ADVISOR (DAL) (2008-11).
GIL WEST, SENIOR VP CUSTOMER SERVICE.
NEEL SHAH, VP CARGO (DAL).
JIM GRAHAM, VP FLYING OPERATIONS (2008-11).
VINAY DUBE, VP ALLIANCES (DAL) (2008-11).
JAMES SARVIS, VP INTERNATIONAL AIRPORT CUSTOMER SERVICE (DAL) (2008-11).
DAVID WATSON, VP INFLIGHT SERVICE BUSINESS OPERATIONS (DAL) (2008-11).
ANDY ZARRAS, VP AIRPORT CUSTOMER SERVICE DETROIT (DAL) (2008-11).
PAUL WROBLE, VP LINE MAINTENANCE OPERATIONS (2002-10).
JOHN BENDORAITIS, VP BASE MAINTENANCE OPERATIONS (MSPEZNW) (2004-10).
DAVID FIELDING, VP SPECIAL PROJECTS (1997-05).
GENE PETERSON, VP REGULATORY COMPLIANCE (2000-06).
NOEL DUNCAN, VP & CHIEF SAFETY OFFICER (2000-11).
GARY MAY, VP AIRCRAFT TRANSACTIONS (2000-08).
BOB MUHS, VP SYSTEMS OPERATIONS CONTROL (SOC) (2007-10).
GLENN WOYTHALER, VP ADMINISTRATION & CUSTOMER SERVICE (2004-05).
FRED DESCHAMPS, VP INTERNATIONAL MARKETING & SALES (2007-09).
NAT PIEPER, VP INTERNATIONAL ALLIANCES (2005-08).
AL LENZA, VP DISTRIBUTION & E-COMMERCE.
PERRY CANTARUTTI, VP RESERVATIONS (2006-07).
DAN MCDONALD, VP STRATEGY & FLEET PLANNING (2007-09).
TIM CAMPBELL, VP REGIONAL AIRLINE OPERATIONS (2007-09).
DENNIS NEWMAN, VP DOMESTIC PLANNING & SCHEDULING (2007-09).
NAT PIEPER, VP ALLIANCES.
PETE MOORE, MANAGING DIRECTOR FLIGHT OPERATIONS (MSPDZNW) (email@example.com).
BARRY LARSON, MANAGING DIRECTOR AIRCRAFT PROGRAM MANAGEMENT (1997-05).
CLIFF JOHNSON, MANAGING DIRECTOR ATLANTA MAINTENANCE BASE (1998-06).
STEPHEN USERY, MANAGING DIRECTOR PRODUCT DEVELOPMENT & MARKETING ALLIANCES (1999-03)
TODD SPAUDE, MANAGING DIRECTOR INFORMATION SERVICES (2002-01).
CHRIS COLLETTE, MANAGING DIRECTOR FINANCE & PLANNING (2002-10).
EDWARD DAVIDSON, DIRECTOR FLIGHT SAFETY & QUALITY ASSURANCE (MSPDZNW) (firstname.lastname@example.org).
LARRY CHESTLER, DIRECTOR GROUND OPERATIONS (1996-12).
CHAN PHILLIPS, DIRECTOR ONBOARD COMMUNICATIONS & VISUAL SERVICES (1999-03).
DANIEL CLIFFORD, DIRECTOR, INFORMATION SYSTEMS TECHNICAL OPERATIONS.
DOUG HILL, DIRECTOR ENGINEERING MAINTENANCE PROGRAMS & RELIABILITY
GREG BUDINGER, MANAGER 747 ENGINEERING (email@example.com)
CASEY JONES, MANAGER QUALITY ASSURANCE (QA).
TIM LARSON, MANAGER PLANNING.