Northwest Airlines Completes $454 Million Aircraft Financing

[SEVEN]

http://biz.yahoo.com/bw/071010/20071010006096.html?.v=1

 

[~~~^~~~]

...will pre-fund the financing of 27 new 76-seat Embraer 175LR aircraft. Morgan Stanley, Citigroup and JPMorgan served as joint bookrunners.

This transaction represents the largest single EETC financing for aircraft to be flown by a regional airline. These state-of-the-art aircraft will be operated by Northwest's new subsidiary, Compass Airlines.

does "uuggh" have the required 5 letters?

 

[jegermeister]

Looks like the 9's are finally getting replaced.

 

[GOULET!]

No doubt that this is the -9 replacement.

 

[lookin4better]

seems that maybe a NWA new hire will really end up at Compass for a few years and the Compass people will end up furlouhged....

they will probly staff the 9s for a while until then start getting enough 175s.....then its flush time for Compass....just a guess

 

[atpcliff]

Hi!

No doubt.

They're going to buy these 27 ERJ-175s, seating 74 people, spread out over X number of years to get them online, and phase out the 130? 180? DC-9s, seating 120+ people, next week.

That'll improve their net profits for sure!

cliff
ABQ

 

[Terry Hunter]

This financing is for 27 of the original 36 ordered by Compass.

 

[DashTrash400]

Yeah, no new news here. Financing was already secured for the nine aircraft coming on line in 2007, this is for the 27 previously scheduled deliveries in 2008.

I'm sure the EMBs at Compass and the CRJ9s at Mesaba will replace some DC-9 flying but I show some 12,000 seats in the DC-9 fleet and only 5400 in the new Mesaba/Compass aircraft. That's an awful lot of market share to give up, and NWA's route structure is really built around having a 100-120 seat workhorse. If the EMB175s work well for them I wouldn't be surprised to see them get 195s as well. If that happens, NWA pilots could press to fold Compass back into mainline on the grounds that having a common fleet at one carrier will achieve cost savings for the Co.

 

[DashTrash400]

And actually the Mesaba CR9s are supposed to be Avro replacements (36 RJ85s->36 CR9s). So if we're just talking about EMB175s replacing DC9s, it's 2700 EMB175 seats vs. 12,000 DC9 seats. Under the current scope NWA could actually order another 18 175s before being required to add more flying at mainline, but even 54 EMB175s is only 4100 seats.

 

[Tooslow]

per nwa recruiter, nwa will have some 75 dc9's till 2012............

 

[123]

If the EMB175s work well for them I wouldn't be surprised to see them get 195s as well. .

Agreed. I also believe that the 195's will be flown by mainline.

If that happens, NWA pilots could press to fold Compass back into mainline on the grounds that having a common fleet at one carrier will achieve cost savings for the Co.

I don't see this happening. I have no doubt that Compass (and Mesaba) will grow and have impressive financials in order to spin them off into separate, public, companies (just like Pinnacle).

 

[DashTrash400]

per nwa recruiter, nwa will have some 75 dc9's till 2012............

Interesting. That's about the time the new Bombardier CSeries is going to be rolling out.

 

[DashTrash400]

Agreed. I also believe that the 195's will be flown by mainline.

They certainly would be placed at mainline under the current scope agreement. We can only hope NWA pilots have learned from their mistakes and will hold fast on scope from here on out. I'm in training on the E175 right now and the more I learn about it the more convinced I am that it really belongs at mainline. It shares very little in common with earlier "regional" aircraft. In comfort, size, and capability, it's an entirely different beast than the CRJ200. That ship has sailed, I'm afraid.

 

[atpcliff]

Hi!

And about the same time Boeing is planning for their new 100 seat aircraft to come out.

cliff
ABQ

 

[jegermeister]

Hi!

No doubt.

They're going to buy these 27 ERJ-175s, seating 74 people, spread out over X number of years to get them online, and phase out the 130? 180? DC-9s, seating 120+ people, next week.

That'll improve their net profits for sure!

cliff
ABQ

I hope you are correct. And I think you are if NWA stays in its present form. But my gut tells me that these are DC-9 replacements. So that they can reduce the mainline line capacity. Capacity that needs to be reduce to get a DOT approval for a merger.

Jeger

 

[John Pennekamp]

per nwa recruiter, nwa will have some 75 dc9's till 2012............

I'll see that, plus I'll raise you...

In addition to the above, I heard that the 175 will NOT be a DC-9 replacement. It's too small. They've considered the 190/195, but even it doesn't fully meet their needs. They don't see a suitable replacement on the near horizon and are extending the allowable cycles on the DC-9s because of it. They do plan to keep flying the -9s for the foreseeable future. They cost very little since they're paid for lock, stock and barrel. And what do the passengers care? On the routes the -9 operates, they'd probably be getting a CRJ-200 or even a turboprop anyhow.

NWA also does not plan to flush mainline pilots down to Compass because it is having its own staffing issues and can't afford any pilots. Attrition from the middle is very high, and there are a lot of retirements coming up. They expect that most won't stay to 65, even if it is increased.

 

[atpcliff]

Hi!

From another poster/board:

The DC-9's will continue to be flown until they cycle-out. Rumors about parking them early are being spread by people who flunked Econ in college.
NWA plans to whip-saw manufacturers for the 100-110 seat replacement (for the DC-9) aircraft. EMB's and CRJ's are in the mix. The tricky part is figuring out if Boeing will try to get involved, and what the best long-term mix of hulls would be.

cliff
ABQ

 

[pilotdiscretion]

I'm suprised nobody mentioned Paris. If you go back and look thru the trade rags from about the time of the Paris air show you'll see that NWA announced they were lokking for a replacement for the DC-9. It had to have at least 84 seats in coach and 16 in first (100 seats the handicapped) and a bunch of other requirements. They met with Boeing, Airbus, Bombardier and Embraer, looked at products and then left.

 

[CitationLover]

and to think boeing shut down the production line of the perfect dc-9 replacement, another dc-9 (the 717)......

 

[Kharma Police]

and to think boeing shut down the production line of the perfect dc-9 replacement, another dc-9 (the 717)......

True dat! The 717 is da shiznit!!!!

 

[Terry Hunter]

I agree that there will be no flush downs, and that Compass is a very limited replacement of the -9. I think the replacement appears to be the C-series. The E-195 is almost peaked on technology (especially in 5 years), Boeing has it's hands full on the 787 and 737- replacement, and the same for Airbus.

I'm thinking a package deal of C-series in addition to a massive order of Q400's to replace/add the SF340...

 

[DashTrash400]

I'm thinking a package deal of C-series in addition to a massive order of Q400's to replace/add the SF340...

If Bombardier can convince them that they can fix the Q400 so it'll actually run right for more than 10 minutes The DC-9 it ain't.

 

[atpcliff]

Hi!

The -717 is way too old.

Boeing needs something like the wing/engine technology off of the -787 to build a much more efficient aircraft.

cliff
ABQ
PS-I jumpseated in the cockpit of TWA's -717s a bunch. They were awesome-especially with the autothrottles and the VNAV features once they got approved for use.

 

[Diesel-9]

How many -717's does Midwest and Airtran have? And where did AMR/TWA's -717's go? Thanks.

 

[CitationLover]

How many -717's does Midwest and Airtran have? And where did AMR/TWA's -717's go? Thanks.

25 at Midwest
87 at Air Tran (TWA ones were bought by them I believe. great move Carty! i guess that F100 is really working out for you)

i believe all of them are leased at both companies.

http://en.wikipedia.org/wiki/Boeing_717

as far as it being too old, compared to an older dc-9-30 and -50 its just right. we're talking about replacing older airplanes the cheapest way possible here. 717 is a known technology, just its McD's tech and boeing doesn't like that......

 

[IXLR8]

NWA is supposed to be waiting for Boeing to design a 100 seat replacement with 787 technology...but that appears to be waaaaaaaaaay out there as far as availability. The Rj's do not provide the amount of lift required at most stations...unless you run more flights...not very efficient.
on a lighter note - this is my "69th" post...imp:

 

[Terry Hunter]

Ooops, just got reminded that the Q400 will not fit the A/B concourse gates in MSP.

 

[YourPilotFriend]

NWA will scramble to park as many airplanes by May 31st as possible. After that it's rumored that there is a replacement coming, most likely the E195 because it's really the only option right now.

 

[Cobraair75drvr]

For what it is worth, the Feb. Apa due out on/about the 20th will have Nov. 95 hires as msp320 reserve capts. you read it here first

 

[atpcliff]

Hi!

That means that if you're hired right now, then guys who are 6-7 years senior to you are making captain.

Not bad.

cliff
ABQ