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Northwest Airlines Announces Fourth Quarter Capacity Reductions in Response to Contin

Old 06-17-2008, 01:38 PM
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Default Northwest Airlines Announces Fourth Quarter Capacity Reductions in Response to Contin

Northwest Airlines NWA today announced further capacity reductions for the fourth quarter of 2008 in response to the high cost of fuel.
At the Merrill Lynch Global Transportation Conference, Northwest CEO Doug Steenland plans to detail how Northwest Airlines is responding to the industry’s oil shock. He will also explain to industry analysts why -- with high fuel prices being the industry’s greatest threat since 9/11 – the planned merger with Delta Air Lines, and resulting synergy benefits, make the case for the merger stronger than ever.
Steenland said, “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.”
4th Quarter ’08 Capacity Reductions
Northwest will reduce its system mainline capacity (domestic and international) in the fourth quarter of 2008 by 8.5% - 9.5% versus the fourth quarter of 2007. This includes the reductions previously announced in April.
Steenland added, “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.”
The airline has not yet finalized the specific employee impacts related to the reduced flying. However, for the resulting headcount reductions, NWA will first look to voluntary separation programs such as early-outs.
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Old 06-17-2008, 01:54 PM
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However, for the resulting headcount reductions, NWA will first look to voluntary separation programs such as early-outs.
Isn't Delta doing something similar to this, or am I thinking of another carrier?
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Old 06-17-2008, 02:07 PM
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Yes, DAL did a voluntary out program and about 3,000 folks took the opportunity. I think the company was only looking for around 1,500 or so to take it.
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Old 06-17-2008, 02:18 PM
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Originally Posted by LOBO View Post
Yes, DAL did a voluntary out program and about 3,000 folks took the opportunity. I think the company was only looking for around 1,500 or so to take it.
It's up to 4000 at last count
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Old 06-17-2008, 02:21 PM
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I was kind of surprised at the reduction being restricted to 14 757s and Airbus'. No new DC9 reductions are planned. Apparently, the naysayers about the DC9s role at the merged Delta could be wrong. I have heard that many of the 9s could be coming to ATL as they need the 100 seat aircraft here pretty bad.
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Old 06-17-2008, 02:33 PM
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Is NWA's management gonna offer the severance packages to DAL pilots also...
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Old 06-17-2008, 02:44 PM
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Originally Posted by DeadHead View Post
Is NWA's management gonna offer the severance packages to DAL pilots also...
No. Not so lucky for anyone that wanted it.
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Old 06-17-2008, 03:25 PM
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Any replacement coming for the DC-9 reduction or will they just roll the whole thing into Delta and keep the capacity reduction off the hull losses?
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Old 06-17-2008, 03:34 PM
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Lot's of E175 and CRJ900 orders... 36 of each to be exact.
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Old 06-17-2008, 03:49 PM
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Originally Posted by DAL4EVER View Post
I was kind of surprised at the reduction being restricted to 14 757s and Airbus'. No new DC9 reductions are planned. Apparently, the naysayers about the DC9s role at the merged Delta could be wrong. I have heard that many of the 9s could be coming to ATL as they need the 100 seat aircraft here pretty bad.
I've heard the same thing.
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