What Lack of Scope will Do
#1
Northwest Chief Executive Doug Steenland said Northwest is aiming to match its capacity to customer demand as airfares increase.
"We don't anticipate doing anything in addition, but if fuel continues to be challenging we clearly have the wherewithal to take additional action," he told analysts at a conference on Tuesday.
Still, Steenland acknowledged that even the cuts announced Tuesday would not get Northwest to its profit goals. When one analyst asked why Northwest didn't cut enough to meet its profit goal, Steenland said cutting more flights would run the risk that another carrier would simply move in and take that business.
"You have to do it always with an eye on the competitive ball," he said.
Northwest Airlines Corp. said it expects to reduce mainline flying by as much as 9.5 percent compared with a year ago. Domestic flying, including regional carriers, is now slated to go down by 7 percent to 8 percent. The cuts are expected to take effect in the fourth quarter, which begins in October.
But it said regional flying would rise by as much as 55 percent as it adds new 76-seat jets. Chief Financial Officer Dave Davis said the smaller jets cost about 30 percent less to operate because of lower labor and fuel expenses, even after making the debt payments
"We don't anticipate doing anything in addition, but if fuel continues to be challenging we clearly have the wherewithal to take additional action," he told analysts at a conference on Tuesday.
Still, Steenland acknowledged that even the cuts announced Tuesday would not get Northwest to its profit goals. When one analyst asked why Northwest didn't cut enough to meet its profit goal, Steenland said cutting more flights would run the risk that another carrier would simply move in and take that business.
"You have to do it always with an eye on the competitive ball," he said.
Northwest Airlines Corp. said it expects to reduce mainline flying by as much as 9.5 percent compared with a year ago. Domestic flying, including regional carriers, is now slated to go down by 7 percent to 8 percent. The cuts are expected to take effect in the fourth quarter, which begins in October.
But it said regional flying would rise by as much as 55 percent as it adds new 76-seat jets. Chief Financial Officer Dave Davis said the smaller jets cost about 30 percent less to operate because of lower labor and fuel expenses, even after making the debt payments
#2
Northwest Chief Executive Doug Steenland said Northwest is aiming to match its capacity to customer demand as airfares increase.
"We don't anticipate doing anything in addition, but if fuel continues to be challenging we clearly have the wherewithal to take additional action," he told analysts at a conference on Tuesday.
Still, Steenland acknowledged that even the cuts announced Tuesday would not get Northwest to its profit goals. When one analyst asked why Northwest didn't cut enough to meet its profit goal, Steenland said cutting more flights would run the risk that another carrier would simply move in and take that business.
"You have to do it always with an eye on the competitive ball," he said.
Northwest Airlines Corp. said it expects to reduce mainline flying by as much as 9.5 percent compared with a year ago. Domestic flying, including regional carriers, is now slated to go down by 7 percent to 8 percent. The cuts are expected to take effect in the fourth quarter, which begins in October.
But it said regional flying would rise by as much as 55 percent as it adds new 76-seat jets. Chief Financial Officer Dave Davis said the smaller jets cost about 30 percent less to operate because of lower labor and fuel expenses, even after making the debt payments
"We don't anticipate doing anything in addition, but if fuel continues to be challenging we clearly have the wherewithal to take additional action," he told analysts at a conference on Tuesday.
Still, Steenland acknowledged that even the cuts announced Tuesday would not get Northwest to its profit goals. When one analyst asked why Northwest didn't cut enough to meet its profit goal, Steenland said cutting more flights would run the risk that another carrier would simply move in and take that business.
"You have to do it always with an eye on the competitive ball," he said.
Northwest Airlines Corp. said it expects to reduce mainline flying by as much as 9.5 percent compared with a year ago. Domestic flying, including regional carriers, is now slated to go down by 7 percent to 8 percent. The cuts are expected to take effect in the fourth quarter, which begins in October.
But it said regional flying would rise by as much as 55 percent as it adds new 76-seat jets. Chief Financial Officer Dave Davis said the smaller jets cost about 30 percent less to operate because of lower labor and fuel expenses, even after making the debt payments
#4
Gets Weekends Off
Joined: Jul 2007
Posts: 4,772
Likes: 1
From: 744 CA
some will some wont, Mainline gets bigger, Regional aircraft get bigger.........its what has been happening in this industry for 20 years........ I may not like it but its what has been happening.
the companies and pilot groups that adapt the best will survive, those that dont and pine away for the way things USE to be..... might just be part of History.
the companies and pilot groups that adapt the best will survive, those that dont and pine away for the way things USE to be..... might just be part of History.
#6
Gets Weekends Off
Joined: Mar 2007
Posts: 376
Likes: 0
From: XJT furloughed due to non-ALPA undercutting
#7
hahahaaha hahahaha unity in ALPA....all I have seen good about ALPA is the sticking up for individual pilots at individual airlines....we are all battling against each other trying to survive and grow our own airlines...It is MEC vs MEC when ALPA shows true unity across the spectrum of pilots and airlines then maybe places like skywest will hop on board....
sorry I am having a bad day rant over
sorry I am having a bad day rant over
#8
That "growth" at the NWA regionals is not additional growth. Nothing has changed at these companies, they have not ordered anymore planes. They are still getting the deliveries that were originally planned thus the "increase". Scope still applies.
#9
Gets Weekends Off
Joined: Sep 2007
Posts: 1,518
Likes: 0
From: B737 CA
...such as it is. It's not anything like pre-BK scope, that's for damn sure.
#10
Gets Weekends Off
Joined: Sep 2007
Posts: 1,518
Likes: 0
From: B737 CA
hahahaaha hahahaha unity in ALPA....all I have seen good about ALPA is the sticking up for individual pilots at individual airlines....we are all battling against each other trying to survive and grow our own airlines...It is MEC vs MEC when ALPA shows true unity across the spectrum of pilots and airlines then maybe places like skywest will hop on board....
sorry I am having a bad day rant over
sorry I am having a bad day rant over
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