CNBC reports 10% capacity cut for NWA

[ACL65PILOT]

Anyone hear any more on this???
Where is it coming from?

 

[JohnDoe]

Sounds about right to me.

Bye-bye DC9's.

 

[ACL65PILOT]

Northwest Airlines announces larger capacity cuts
Tuesday June 17, 5:41 pm ET Northwest Airlines to cut flying, reduce jobs, amid high fuel prices

MINNEAPOLIS (AP) -- Northwest Airlines said it will cut its capacity later this year by 3 percent to 4 percent because of high fuel prices. That's a larger cut than it had announced previously.
The airline says it will try to shrink its staff through voluntary means, but layoffs are possible, too. The airline says it has not yet finalized the number of positions it wants to eliminate.
Northwest Airlines Corp. says it expects to reduce its mainline flying by as much as 9.5 percent compared with its flying a year ago. Most airlines have been announcing capacity reductions because of sharp rises in fuel prices.

 

[ACL65PILOT]

Northwest Airlines Announces Fourth Quarter Capacity Reductions in Response to Continued Fuel Crisis
Tuesday June 17, 5:30 pm ET
EAGAN, Minn.--(BUSINESS WIRE)--Northwest Airlines (NYSE: NWA - News) today announced further capacity reductions for the fourth quarter of 2008 in response to the high cost of fuel.
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if(window.yzq_d==null)window.yzq_d=new Object();window.yzq_d['o64iKUSOxJI-']='&U=13fnkpgk2%2fN%3do64iKUSOxJI-%2fC%3d626899.12331415.12723508.1383221%2fD%3dLREC%2fB%3d5133107%2fV%3d1';At the Merrill Lynch Global Transportation Conference, Northwest CEO Doug Steenland plans to detail how Northwest Airlines is responding to the industry’s oil shock. He will also explain to industry analysts why -- with high fuel prices being the industry’s greatest threat since 9/11 – the planned merger with Delta Air Lines, and resulting synergy benefits, make the case for the merger stronger than ever.
Steenland said, “In response to these extraordinary fuel costs, we are taking prudent actions to reduce our capacity and right-size the airline. This will allow us to better match our capacity to customer demand as airfares, by necessity, must increase.”
4th Quarter ’08 Capacity Reductions
Northwest will reduce its system mainline capacity (domestic and international) in the fourth quarter of 2008 by 8.5% - 9.5% versus the fourth quarter of 2007. This includes the reductions previously announced in April.
Steenland added, “No domestic station closures are planned as a result of these capacity reductions. Instead, we will pare unprofitable flying while maintaining the scope and presence of our network.”
The airline has not yet finalized the specific employee impacts related to the reduced flying. However, for the resulting headcount reductions, NWA will first look to voluntary separation programs such as early-outs.
Q4 Capacity (ASMs)
% change vs. Q4 '07
System mainline capacity (domestic and international) (8.5%) - (9.5%) Domestic consolidated (includes regionals) (7%) - (8%) System consolidated (includes regionals and international) (3%) - (4%)
Fleet reductions
As a result of the reduced capacity, Northwest is removing a combination of 14 B757s and Airbus narrowbody aircraft from the fleet.
In addition, the DC-9 fleet will be reduced from 94 aircraft at the start of 2008 to 61 aircraft (20 DC9-30s and 41 DC9-40s/50s) by year-end.
Northwest also accelerated the retirement of three freighter aircraft from its cargo operation.
Revenue Enhancements
On the revenue side, Steenland said the carrier is also continuing to take actions to improve revenues with added fuel surcharges, fare and fee increases. In May, Northwest began collecting fees for two or more checked bags.
The Case for the Merger is Stronger than Ever
“When we first contemplated a merger with Delta, as oil was approaching $100 a barrel, we knew this was the right deal with the right partner. Now, with oil above $130 a barrel, the case for the merger, with its resulting synergies, is stronger than ever,” said Steenland, as he detailed the unique advantages of the Northwest-Delta merger in the context of record breaking oil prices.

• <LI class=bwlistitemmarginbottom>The merger-related synergies will improve the financial ability of Northwest and Delta to meet the challenge presented by the fuel crisis and better position the combined carrier for long-term strength and profitability. <LI class=bwlistitemmarginbottom>This is a transaction that is facilitated by best-in-class cost structures; one that will create an industry-leading balance sheet in any operating environment. <LI class=bwlistitemmarginbottom>The transaction will create a worldwide, geographically balanced network – which will enhance customer preference and make the combined carrier more competitive.
• This is a merger of choice by the two strongest network carriers. The two carriers have already begun planning for a smooth and rapid integration in order to promptly capture and potentially exceed the synergies projected when the two carriers announced the deal.

Northwest Airlines is one of the world’s largest airlines with hubs at Detroit, Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and approximately 1,400 daily departures. Northwest is a member of SkyTeam, an airline alliance that offers customers one of the world’s most extensive global networks. Northwest and its travel partners serve more than 1,000 cities in excess of 160 countries on six continents.

 

[General Lee]

Fleet reductions
As a result of the reduced capacity, Northwest is removing a combination of 14 B757s and Airbus narrowbody aircraft from the fleet.
In addition, the DC-9 fleet will be reduced from 94 aircraft at the start of 2008 to 61 aircraft (20 DC9-30s and 41 DC9-40s/50s) by year-end. Northwest also accelerated the retirement of three freighter aircraft from its cargo operation.




Was that more than originally announced?

14 757/A320/19s
61 DC9 (30s and 40/50s---I thought it was 30 -30s?)
3 742s



Bye Bye--General Lee

 

[ACL65PILOT]

It appears to be a smal cut. Only about 4% more.
Now the question is where will those 757's go. DAL or Fedex?

 

[avrodriver]

It appears to be a smal cut. Only about 4% more.
Now the question is where will those 757's go. DAL or Fedex?

That would be bull-@#$ if they went to DAL.

 

[ACL65PILOT]

I agree

 

[~~~^~~~]

Small Cut? Isn't this double the previous cut?

 

[~~~^~~~]

That would be bull-@#$ if they went to DAL.

Looking at LOA 19. I think there are restrictions on this sort of a transfer. Lets not get excited when there might be a very clear, easy, answer.

 

[Hutchman]

It appears to be a smal cut. Only about 4% more.
Now the question is where will those 757's go. DAL or Fedex?

Huh?

50 aircraft parked by the end of the year. That sounds like more than 3-4%. Maybe they arrive at that # by factoring in all the small mainline jets that will be flown by regional partners.

No jobs will be lost as a result of the merger, my aZZ.

 

[General Lee]

I am trying to figure out if WE at DL will do any more cutting? I guess we could get rid of some MD88s, but a lot of them are doing the longer stuff from the NE to FLA. They aren't doing as much of the ATL--MEM or TYS stuff anymore. We are also getting 10 737-700s in the next 2 years (including 6 this year) and those much advertised 6 777LRs by March 31st of 2009. I just don't know. Also, if we have to have cuts at NWA, I would like to know about them BEFORE the SLI is determined by an arbitrator. Who knows if we will have any here?


Bye Bye--General Lee

 

[General Lee]

It appears to be a smal cut. Only about 4% more.
Now the question is where will those 757's go. DAL or Fedex?

I think it is a combination of 757s and A320/19s. Not all 757s (the 14 mentioned). Also, did they plan on the 3 742s leaving too?

Bye Bye--General Lee

 

[ACL65PILOT]

If you read the article, it looks like most of the airframes include the previously announced DC-9's. The one was just kind of floated out of there late this afternoon. I guess we will see what the true implications are.
To me it sounds like they are setting it up to offer early outs to a lot of people. I wonder if the pilots will be included in that.

 

[ACL65PILOT]

There are protections in LOA 19, the question is are those a/c owned by NWA or by a leasing company. That is where the bread and butter is.
I am sorry I brought this up. I know that DAL is looking for more 757's. I just do not think they need to come from our sister company.