Looks like northwest is starting a regional which will be flown by furloughed NW Pilots, called Compass. They will use Independence's old certificate and be based in IAD.
Heres the article:
Northwest details plan to start regional carrier
Thu Mar 30, 2006 12:11 PM ET
By Kyle Peterson
CHICAGO, March 30 (Reuters) - Bankrupt Northwest Airlines (NWACQ.PK: Quote, Profile, Research), which aims to launch a regional carrier called Compass Airlines in June, has asked the government to approve its purchase of Independence Air's operating certificate, the No. 5 U.S. carrier said on Thursday.
In a filing with the U.S. Transportation Department this week, Northwest detailed its plans to start Compass, which is expected to have a fleet of at least 36 76-seat planes within five years.
Northwest bought the operating certificate of the defunct low-fare airline Independence Air this month. Independence, a unit of FLYi Inc. (FLYIQ.PK: Quote, Profile, Research), ceased operations in January.
"The expansion of Northwest's regional flying through the proposed Compass Airlines operation is an essential part of Northwest's restructuring plan," Northwest said in a statement.
"Compass is expected to enhance Northwest's service in a variety of small and medium-sized markets by providing convenient connections at Northwest's domestic hubs at Minneapolis/St. Paul, Detroit and Memphis," Northwest said.
The transfer of the Independence operating certificate requires approval from the Transportation Department as well as the court overseeing the bankruptcy of FLYi. Northwest is in bankruptcy, too, cutting costs to compete in an industry plagued by soaring fuel prices and low-fare competition.
As part of its restructuring, Northwest intends for Compass to provide passengers with access to its domestic and international systems. The carrier currently relies on partners Pinnacle Airlines Corp. (PNCL.O: Quote, Profile, Research) and Mesaba Aviation, a unit of MAIR Holdings Inc. (MAIR.O: Quote, Profile, Research), to provide this access.
Airline consultant Michael Boyd said the purchase of Independence's operating certificate will mean little to the flying public, but it would streamline the process by which Northwest brings more regional flying in-house.
"They're moving in a measured way to move more flying within Northwest," Boyd said. "It gets their system costs down. It allows the them to be far more efficient, and it gives a seamless Northwest product."
Initially, Compass would fly the same type of 50-seat jet as Independence and would continue to be based at Washington Dulles International Airport, Northwest said in the filing. The first Compass route would provide daily nonstop service between Dulles and Minneapolis/St. Paul.
Additional service with larger 76-seat jets is anticipated during the first full year of operations under a growth plan that forecasts a fleet of at least 36 such aircraft within five years, Northwest said.
The Compass plan is consistent with a tentative labor agreement Northwest reached with its pilots union this month. Those contract negotiations were stalled by Northwest's intention to start a regional carrier using smaller jets.
The Air Line Pilots Association had argued that the subsidiary would encroach on Northwest pilots' right to fly aircraft with more than 70 seats. The airline cleared that hurdle, however, by promising its furloughed pilots preferential hiring opportunities at Compass.
Northwest, which aims to cut labor costs by $1.4 billion annually, reached a tentative deal with its pilots this month on a contract that saves the airline $358 million a year. That deal is subject to ratification by Northwest's 5,000 pilots.
The carrier also has tentative agreements with its flight attendants and most of its ground workers. Northwest still lacks deals with two work groups represented by the International Association of Machinists.
The airline has asked for court permission to terminate the existing contracts it has with workers that have not made the concessions Northwest says it needs to survive.
The IAM said a trial on that request was set to resume on May 15 and that the union was prepared to resume negotiations.
Here's the link:
http://yahoo.reuters.com/stocks/QuoteCompanyNewsArticle.aspx?storyID=urn:newsml:reuters.com:20060330:MTFH44315_2006-03-30_17-12-06_N30280154&symbol=NWACQ.PK&rpc=44
Heres the article:
Northwest details plan to start regional carrier
Thu Mar 30, 2006 12:11 PM ET
By Kyle Peterson
CHICAGO, March 30 (Reuters) - Bankrupt Northwest Airlines (NWACQ.PK: Quote, Profile, Research), which aims to launch a regional carrier called Compass Airlines in June, has asked the government to approve its purchase of Independence Air's operating certificate, the No. 5 U.S. carrier said on Thursday.
In a filing with the U.S. Transportation Department this week, Northwest detailed its plans to start Compass, which is expected to have a fleet of at least 36 76-seat planes within five years.
Northwest bought the operating certificate of the defunct low-fare airline Independence Air this month. Independence, a unit of FLYi Inc. (FLYIQ.PK: Quote, Profile, Research), ceased operations in January.
"The expansion of Northwest's regional flying through the proposed Compass Airlines operation is an essential part of Northwest's restructuring plan," Northwest said in a statement.
"Compass is expected to enhance Northwest's service in a variety of small and medium-sized markets by providing convenient connections at Northwest's domestic hubs at Minneapolis/St. Paul, Detroit and Memphis," Northwest said.
The transfer of the Independence operating certificate requires approval from the Transportation Department as well as the court overseeing the bankruptcy of FLYi. Northwest is in bankruptcy, too, cutting costs to compete in an industry plagued by soaring fuel prices and low-fare competition.
As part of its restructuring, Northwest intends for Compass to provide passengers with access to its domestic and international systems. The carrier currently relies on partners Pinnacle Airlines Corp. (PNCL.O: Quote, Profile, Research) and Mesaba Aviation, a unit of MAIR Holdings Inc. (MAIR.O: Quote, Profile, Research), to provide this access.
Airline consultant Michael Boyd said the purchase of Independence's operating certificate will mean little to the flying public, but it would streamline the process by which Northwest brings more regional flying in-house.
"They're moving in a measured way to move more flying within Northwest," Boyd said. "It gets their system costs down. It allows the them to be far more efficient, and it gives a seamless Northwest product."
Initially, Compass would fly the same type of 50-seat jet as Independence and would continue to be based at Washington Dulles International Airport, Northwest said in the filing. The first Compass route would provide daily nonstop service between Dulles and Minneapolis/St. Paul.
Additional service with larger 76-seat jets is anticipated during the first full year of operations under a growth plan that forecasts a fleet of at least 36 such aircraft within five years, Northwest said.
The Compass plan is consistent with a tentative labor agreement Northwest reached with its pilots union this month. Those contract negotiations were stalled by Northwest's intention to start a regional carrier using smaller jets.
The Air Line Pilots Association had argued that the subsidiary would encroach on Northwest pilots' right to fly aircraft with more than 70 seats. The airline cleared that hurdle, however, by promising its furloughed pilots preferential hiring opportunities at Compass.
Northwest, which aims to cut labor costs by $1.4 billion annually, reached a tentative deal with its pilots this month on a contract that saves the airline $358 million a year. That deal is subject to ratification by Northwest's 5,000 pilots.
The carrier also has tentative agreements with its flight attendants and most of its ground workers. Northwest still lacks deals with two work groups represented by the International Association of Machinists.
The airline has asked for court permission to terminate the existing contracts it has with workers that have not made the concessions Northwest says it needs to survive.
The IAM said a trial on that request was set to resume on May 15 and that the union was prepared to resume negotiations.
Here's the link:
http://yahoo.reuters.com/stocks/QuoteCompanyNewsArticle.aspx?storyID=urn:newsml:reuters.com:20060330:MTFH44315_2006-03-30_17-12-06_N30280154&symbol=NWACQ.PK&rpc=44
