NWA: No Arbitration, Period
07-19-2005, 01:58 PM
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NWA: No Arbitration, Period
Faces In The News
Steenland's Northwest: No Arbitration, Period
Gregory Levine, 07.19.05, 2:30 PM ET
Not meeting halfway. Northwest Airlines (nasdaq: NWAC - news - people ) nixed binding arbitration with its mechanics' union late Monday. Led by Chief Executive Douglas M. Steenland, the carrier said the arbitration process would take too long--and wouldn't create the labor cost savings it says it requires from the Airline Mechanics Fraternal Association. What might the rejection mean? For one thing, it could start the machinery for a 30-day strike countdown.
In a statement, Northwest explained its opposition to arbitration, in language that might be seen as precluding negotiations altogether: "The offer of binding arbitration relies on the notion that the best solution often lies somewhere between the positions of the two parties in the arbitration," the statement said. The Eagan, Minn.-based carrier says it has contingency plans that'd enable it to fly its full schedule in the event of a strike. A pair of struggling carriers sounded a little more optimistic: America West Holdings (nyse: AWA - news - people ) declared in a filing Monday that the hybrid firm created by its upcoming merger with bankrupt US Airways (otc: UAIRQ - news - people ) can be competitive--even if fuel prices stay near $60 per barrel. "We believe that, as a combined company, the new US Airways can be a survivor even in a world of $60 fuel," AWA said in a newsletter filed with the U.S. Securities and Exchange Commission.
Perpetually the bearer of glad tidings, Southwest Airlines (nyse: LUV - news - people ) Tuesday added three flights out of Las Vegas' McCarron International Airport, passing the 200-flight mark and rendering it the largest operation in any of Southwest's 60 cities. A swank celebration was planned in Vegas fashion, featuring tuxedo T-shirts, showgirls and Elvis impersonators.
Steenland's Northwest: No Arbitration, Period
Gregory Levine, 07.19.05, 2:30 PM ET
Not meeting halfway. Northwest Airlines (nasdaq: NWAC - news - people ) nixed binding arbitration with its mechanics' union late Monday. Led by Chief Executive Douglas M. Steenland, the carrier said the arbitration process would take too long--and wouldn't create the labor cost savings it says it requires from the Airline Mechanics Fraternal Association. What might the rejection mean? For one thing, it could start the machinery for a 30-day strike countdown.
In a statement, Northwest explained its opposition to arbitration, in language that might be seen as precluding negotiations altogether: "The offer of binding arbitration relies on the notion that the best solution often lies somewhere between the positions of the two parties in the arbitration," the statement said. The Eagan, Minn.-based carrier says it has contingency plans that'd enable it to fly its full schedule in the event of a strike. A pair of struggling carriers sounded a little more optimistic: America West Holdings (nyse: AWA - news - people ) declared in a filing Monday that the hybrid firm created by its upcoming merger with bankrupt US Airways (otc: UAIRQ - news - people ) can be competitive--even if fuel prices stay near $60 per barrel. "We believe that, as a combined company, the new US Airways can be a survivor even in a world of $60 fuel," AWA said in a newsletter filed with the U.S. Securities and Exchange Commission.
Perpetually the bearer of glad tidings, Southwest Airlines (nyse: LUV - news - people ) Tuesday added three flights out of Las Vegas' McCarron International Airport, passing the 200-flight mark and rendering it the largest operation in any of Southwest's 60 cities. A swank celebration was planned in Vegas fashion, featuring tuxedo T-shirts, showgirls and Elvis impersonators.
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