DGFlyer03

Anyone heard of the possibility of furloughs at Northwest, especially after Northwest released its 3rd Quarter earnings?

acl65pilot

Isn't this a loaded question....

rickkane

i did hear from a nw non-rev the other day on the way to seattle that he thought they were going to, but it was just his thoughts.

whaledriver1

sorry, no nwa furloughs...

PinnacleFO

Anyone else sick of seeing a topic like this and then clicking on the link only to see someone's question instead of facts, especially in a tense time like this with a merger approaching and a bad year for fuel prices?

Pitts S2B

Exactly. Just another wannabe trying to be internet famous! "Look what I did..."

nicholasblonde

Doesn't NWA have unlimited flowbacks to Compass anyways?

nicholasblonde

PS> they posted 3rd quarter loss, but they are forecasting a 4th quarter PROFIT

flyerfly

I think NWA has a no furlough clause for 2 years as part of the merger deal. From what I heard from JSing to MSP a few weeks back. Once the merger is complete they will be hiring.

C5Guy

Actually NWA made 93 million dollars in PROFIT! Its getting tiresome when people without doing any research just post a headline and then flame an airline. GAAP accounting forces airlines to show losses when it didn't actually occur.


Think of it this way... let's say that you own a Rembrandt painting. It's worth $1M. (I have no idea what his paintings sell for, this is just for illustration.) That painting shows up on your accounting as an asset, part of your net worth. Now suppose that next month (November), the art world goes crazy for Rembrandt paintings, and the going rate for a painting like yours is $2M. Wow, your net worth just increased by $1M. You didn't actually make any money since you haven't sold your painting, but on a "Generally Accepted Accounting Principles" basis, since your net worth went up, you would declare a profit of $1M, in addition to whatever else you had going on.

Now suppose that in December, the market in Rembrandts cooled off, and your painting is valued at $1.2M Your net worth went from [everything else] + $1M (in October) up to [everything else] + $2M (in November), and in December back down to [everything else] + $1.2M. Just as your net worth on paper went up by the $1M in November, it went down in December by $800k. By GAAP accounting, you just suffered an $800,000 loss in December, even though you actually suffered no real, or "economic" loss, whatsoever.

Its the same with fuel hedges. NWA showed a loss of 347 million because of fuel hedges according to "GAAP" rules.