As we look ahead to 2008, I’d like to provide you an overview of the flying plan as it relates to fleet utilization and pilot hiring.
Fleet
The level of flight operations is set based on the scheduled marketing plan for 2008. According to that plan, by the end of ’08, Northwest will operate a total mainline fleet of 329 aircraft - 269 narrow body and 60 wide bodies. The following are some specifics with regard to each fleet.
747-400 – Northwest will operate an additional daily frequency between Detroit and Amsterdam utilizing the 747-400 between June and October.
747 Freighters - In 2008, we will reduce 747 freighter flying. Following the recent retirement of an additional J freighter, we will utilize a core fleet of ten aircraft. Eight aircraft will be actively flying (down two from 2007) but at significantly higher utilization. One will remain available as a spare and one will be cycled through a scheduled maintenance rotation. In certain periods of 2008 we will have more than one spare aircraft due to availability of the maintenance allocation and utilizing remaining green time on the J-powered aircraft.
747-200 - The Charter group currently has one 747-200 passenger configured aircraft dedicated to charter flying (primarily military charters). A second passenger configured aircraft and a freighter will be added to the military charter program effective in October.
A330 – Expanded utilization of the A330 in trans-Atlantic markets continues with the introduction of new flights between Portland, OR and Amsterdam starting in March; new flights between Minneapolis/St. Paul and Paris Charles de Gaulle starting in April and new flights between Seattle and London Heathrow starting in June.
757s - In 2008, Northwest will expand use of the 757 in trans-Atlantic markets. We will be flying double daily from EWR-AMS starting March 29 and will add DTW-LGW starting May 1, in addition to the routes we currently serve.
Flying Plan for 2008
January 17, 2008
A319s - Northwest will continue to operate 57 Airbus A319s by year’s end (ten more than called for in the plan of reorganization). Northwest is in final discussions with the NBA and has an agreement in principle to re-establish a VIP charter program using seven specially configured aircraft. NBA-designated aircraft will be going through interior modifications starting in late summer for targeted completion by the start of the ‘08 NBA season.
DC-9s - The number of DC-9s will be reduced to 68 aircraft over the course of the year, with the largest reduction coming after the summer. We plan to operate a year-end fleet consisting of 34 - 50s, 12 - 40s and 22 - 30s (10 fewer than projected in the plan of reorganization).
Pilot Hiring
The impact of the Fair Treatment for Experienced Pilots Act, which was recently signed into law, raises the retirement age from 60 years to 65 years for pilots serving on commercial flights operated by U.S. air carriers. The Crew Resources group is evaluating the effect on Northwest’s staffing projections. In the meantime, there is little impact expected on Northwest’s current hiring plans. Those plans call for between 200 to 250 new hire pilots by the end of 2008. As we see how many pilots over age 60 elect to stay we will adjust our new hire numbers accordingly. Beginning in January ‘08 we have started the flow up process with Mesaba and will see Mesaba pilots starting initial training in the upcoming months.
787
We are planning to take our first delivery in April/May of ’09, with the first revenue flying to begin in the summer of ’09. We are waiting for Boeing to accomplish two important milestones. First, to get power on the aircraft. Second, to accomplish the first test flight. The accomplishment of these two milestones will help us determine when we will commence training for instructors and line pilots.
Flying Plan for 2008
January 17, 2008
As you can see, our overall staffing levels are increasing in 2008, although our overall fleet count is currently planned to decrease in 2008 by 27 aircraft (24 DC9 and 3 747-200). This may appear counter-intuitive, but a number of factors contribute to this result:
• The monthly maxes used for planning staffing levels have been reduced when compared to 2007, which increases staffing requirements.
• Reserve staffing levels have increased to improve operational reliability in 2008.
• Our aircraft utilization increases in 2008, so although we have fewer total aircraft, we are flying the remaining aircraft slightly more, thus requiring more staffing per aircraft.
• We will launch a number of new international routes in 2008, which not only effect aircraft utilization, but also drive an increased amount of flying that requires augmented flight crews. You see this particularly on the A330 and B757 fleets.
• Additional focus has been placed on flying military charter missions in 2008. To maximize the number of missions flown, additional staffing is necessary. This is most noticeable on the 747-200 fleet.
As a result of these drivers, all fleets are projected to experience staffing increases in 2008, with the exception of the DC-9 fleet. The overall growth amongst the other fleets is projected to more than offset the reduction in required DC-9 staffing. As a result, Northwest’s goal is to allow DC-9 positions to reduce naturally through bid outs to other positions and retirements, although I cannot definitively rule out a small number of displacements from the CA position should the bid outs or retirements not reach forecasted levels.
Some of this information is subject to change as we move through 2008. I will continue to update you on significant fleet and staffing level changes, and I also encourage you to review the monthly Flying Bulletins published by Crew Resources for details on projected staffing level changes across all fleets.
