Northwest airlines Reports $2.15 billion profit.

[YourPilotFriend]

Hot off the press.

http://biz.yahoo.com/bw/070731/20070731005714.html?.v=1

 

[taylor01]

You obviously never took any business classes in college, excluding restructuring charges NWA posted a pre-tax operating profit of $273 million up from 179 million in the second quarter of 2006. Pre-tax or EBIT are the only measure of profitability people care about as those measures measure the true profitablility of continuing operations (eg. flight operations)

A pre-tax income of 273 million versus total sales of approx. $3.08 billion is awful for any business.

I bet now you want "management" to give you some of the profit.

 

[YourPilotFriend]

I bet now you want "management" to give you some of the profit.

No, that would be asking too much. Also, we couldn't compete effectively against you working for pennies if we did ask for more.

 

[blzr]

I bet now you want "management" to give you some of the profit.

No way, that will go to the Execs that are patting themselves on the back for running such an efficient airline.

 

[taylor01]

No way, that will go to the Execs that are patting themselves on the back for running such an efficient airline.

This is no comment on whether or not airline execs get paid enough, because you can make an argument either way, but do you think you the x number of thousand of NWA pilots would still have a job if it wasn’t for your management getting you through bankruptcy. And why do you automaticly assume that any of the "profit" if you can call it that will go to any management personnel?

 

[800Dog]

This is no comment on whether or not airline execs get paid enough, because you can make an argument either way, but do you think you the x number of thousand of NWA pilots would still have a job if it wasn’t for your management getting you through bankruptcy. And why do you automaticly assume that any of the "profit" if you can call it that will go to any management personnel?

Someone is truly out of touch with reality!

 

[Lucky Strike]

This is no comment on whether or not airline execs get paid enough, because you can make an argument either way, but do you think you the x number of thousand of NWA pilots would still have a job if it wasn’t for your management getting you through bankruptcy. And why do you automaticly assume that any of the "profit" if you can call it that will go to any management personnel?

"Getting us through bankruptcy!!!"...more like taking us INTO bankruptcy.
Are you stupid or something?
Stupid is as stupid does, sir.
Run Forrest, run!!!

 

[taylor01]

let me ask you business moguls this, what do you think they should do with any positive cash flow from operations?

 

[YourPilotFriend]

let me ask you business moguls this, what do you think they should do with any positive cash flow from operations?

Invest in product.........aircraft upgrades, employee training, customer service. Most of these problems revolve around or are the direct result of the constant mistreatment of employees.

 

[Newjetjockey]

And why do you automaticly assume that any of the "profit" if you can call it that will go to any management personnel?

Jeeze, I wonder how those silly pilots could possibly think any of the profit will go to management.

Northwest's disclosure on Friday afternoon stated that Chief Executive Doug Steenland would get $26.6 million in restricted shares and options after the carrier exits bankruptcy protection. The company had previously disclosed that its top 400 executives would get almost 5 percent of the company, but Friday was the first time it said how much Steenland would get.

 

[taylor01]

Invest in product.........aircraft upgrades, employee training, customer service. Most of these problems revolve around or are the direct result of the constant mistreatment of employees.

I totaly agree with every thing you said. Investing in product is the most important aspect to your operation that you can do right now, as free cash flow has been negitive for so long and the require funds for capex haven't been avialible in recent years.

I noticed you didnt mention pay rate increases. My original point to begin with.

Increase QOL for employees and increasing customer satisfaction should be the number 1 priority of management.

 

[B737Dvr]

This is no comment on whether or not airline execs get paid enough, because you can make an argument either way, but do you think you the x number of thousand of NWA pilots would still have a job if it wasn’t for your management getting you through bankruptcy. And why do you automaticly assume that any of the "profit" if you can call it that will go to any management personnel?

Jeeze! what is it with these RJ guys, its like sour grapes or something! Getting the airline through bankruptcy!!! hahahahahahahaahahahhahahahahha

That really was funny! aww....how cute some of these guys are...they really still don't 'know'!

 

[taylor01]

Jeeze! what is it with these RJ guys, its like sour grapes or something! Getting the airline through bankruptcy!!! hahahahahahahaahahahhahahahahha

That really was funny! aww....how cute some of these guys are...they really still don't 'know'!

I dont fly for a regional or an rj, and havent for a long time

 

[B737Dvr]

I totaly agree with every thing you said. Investing in product is the most important aspect to your operation that you can do right now, as free cash flow has been negitive for so long and the require funds for capex haven't been avialible in recent years.

I noticed you didnt mention pay rate increases. My original point to begin with.

Increase QOL for employees and increasing customer satisfaction should be the number 1 priority of management.

Well I was going off your profile which alluded to being an RJ guy, my mistake.....
I miss Gordon Bethune, I hope he really comes back into the airline biz in some fashion! If anyone is interested in a good read, look into (from worst to first), it is the story of how he turned around continental and that is actually applicable and has concrete facts along with actions on what to do vs. what not to do in this biz....it won't be a boring read....i promise you that!

He is totally right when he says that the business is run by a bunch of idiots!!!

ebita, capex, pre-tax profits, free cash flow, p/e, casm, rasm....all these cutesies...are mngm. speak for distorting the truth of the matter. the Biz model is broken. You cant expect to be cheaper than greyhound (run coast to coast flight for peanuts)
while doing so with hundred million dollar aircraft for example and expect to report positive numbers! investing in your product, increasing employee morale (by not taking such stupid bonuses) are all steps in the right direction....but the core problem still exists.....the industry models are broken, and the LCC are still bleeding the majors to death.

Raise prices, stop charging absurd peanut fares,and nickel and diming your pax to death with charges for pillows or sodas, stop with the songs, ted's, shuttles, and other stupid rebrandings.....the original product and its business model still sucks!

oh and the original point of paying more???? c'mon......they could pay 30% tomorrow and give back to the employees all productivity gains and that still wont fix the problem.

how about thiis for the simplest of gaap's......spend more $$ than you bring in and you lose $$$.
ebita, casm, rasm, e/p, eps, pre tax rev, before one time charges etc etc etc... are all ways to measure the same crap.

 

[taylor01]

Well I was going off your profile which alluded to being an RJ guy, my mistake.....
I miss Gordon Bethune, I hope he really comes back into the airline biz in some fashion! If anyone is interested in a good read, look into (from worst to first), it is the story of how he turned around continental and that is actually applicable and has concrete facts along with actions on what to do vs. what not to do in this biz....it won't be a boring read....i promise you that!

He is totally right when he says that the business is run by a bunch of idiots!!!

ebita, capex, pre-tax profits, free cash flow, p/e, casm, rasm....all these cutesies...are mngm. speak for distorting the truth of the matter. the Biz model is broken. You cant expect to be cheaper than greyhound (run coast to coast flight for peanuts)
while doing so with hundred million dollar aircraft for example and expect to report positive numbers! investing in your product, increasing employee morale (by not taking such stupid bonuses) are all steps in the right direction....but the core problem still exists.....the industry models are broken, and the LCC are still bleeding the majors to death.

Raise prices, stop charging absurd peanut fares,and nickel and diming your pax to death with charges for pillows or sodas, stop with the songs, ted's, shuttles, and other stupid rebrandings.....the original product and its business model still sucks!

oh and the original point of paying more???? c'mon......they could pay 30% tomorrow and give back to the employees all productivity gains and that still wont fix the problem.

how about thiis for the simplest of gaap's......spend more $$ than you bring in and you lose $$$.
ebita, casm, rasm, e/p, eps, pre tax rev, before one time charges etc etc etc... are all ways to measure the same crap.

Good post, only comment being that all the productivity gains first go to shareholders and then the left overs go to employees. I am not sure many shareholders will take kindly to a 30% pay raise when they lost hundreds of millions over the past few years.

 

[PCL_128]

but do you think you the x number of thousand of NWA pilots would still have a job if it wasn’t for your management getting you through bankruptcy. And why do you automaticly assume that any of the "profit" if you can call it that will go to any management personnel?

Ahh, I see that someone is rivaling HelloNewWoman for dumbest flightinfo member!

 

[fxbat]

What do you want. Cancel more flights or give your front line people the equipment, pay and motivation, too do there job? I would think most share holders are in it for a long term investment, not a quick buck.

 

[Dizel8]

Good post, only comment being that all the productivity gains first go to shareholders and then the left overs go to employees. I am not sure many shareholders will take kindly to a 30% pay raise when they lost hundreds of millions over the past few years.

That is the tail wagging the dog!

The $hareholders have become the ones to please and most only care about a quick buck, they couldn't give a rodents behind about the long term prospect of the company, hence management have no ideas beyond next quarter.

While I won't say screw the shareholders, I am not far from it, unless they invest for the long haul, they are more of drag on a company than a help!

 

[Heavy Set]

let me ask you business moguls this, what do you think they should do with any positive cash flow from operations?

It's easy, buy E175s for Compass--and transfer jobs from mainline. It sounds like that is what will unfortunately happen.

 

[The Victors]

How's that debt load going for ya? What exactly does nwa own? Pilots are working there asses off for pennies only to get furloughed again to compass in da future and the boss is collecting $26 million.
Priceless

 

[Publishers]

For you non-business types, the shareholders are exactly who is the one to be pleased. Without their investment, no company, no need for employees, and certainly no need for equipment.
Companies do not exist to employ, the exist to generate profit for shareholders. It is hte purpose, the single reason for existance. Airlines need to give them some reason to be excited about a company whose return compared to other companies is pathetic. End of rant

 

[PCL_128]

Publishers, the point of a company is to provide long-term value to shareholders. Executives forgot that a long time ago, and now they cater to the morons who jump in and out of the stock within a matter of weeks or months. The result is a constant chasing of higher and higher share prices, justified or not, and the long-term success of the company is compromised as a result. Smart executives and Boards ignore the wishes of the short-term stockholder and work to create a viable long-term business that will reward the investors that stick with the company.

 

[727C47]

"Getting us through bankruptcy!!!"...more like taking us INTO bankruptcy.
Are you stupid or something?
Stupid is as stupid does, sir.
Run Forrest, run!!!

Amen,brother

 

[Heavy Set]

For you non-business types, the shareholders are exactly who is the one to be pleased. Without their investment, no company, no need for employees, and certainly no need for equipment.
Companies do not exist to employ, the exist to generate profit for shareholders. It is hte purpose, the single reason for existance. Airlines need to give them some reason to be excited about a company whose return compared to other companies is pathetic. End of rant

Really, this view is very one sided and idiotic. Companies do better long term with happy employees. If your company doesn't interact with customers, then it would be no big deal, but airlines need good interface with cusotmers or they don't come back. Look at Southwest Airlines, they have fun and do well. You need to think before you type.

 

[tomgoodman]

Results NOW, or else!!

Publishers, the point of a company is to provide long-term value to shareholders. Executives forgot that a long time ago, and now they cater to the morons who jump in and out of the stock within a matter of weeks or months. The result is a constant chasing of higher and higher share prices, justified or not, and the long-term success of the company is compromised as a result. Smart executives and Boards ignore the wishes of the short-term stockholder and work to create a viable long-term business that will reward the investors that stick with the company.

I agree. Most of the real "shareholders" today aren't even aware that they "own" the stock. It's bought and sold by the managers of their mutual funds, insurance companies, banks, and pension funds, all of whom depend on this year's numbers for their bonuses and promotions. Airline executives are starting to behave the same way. Contrast this with the statement of a Delta CEO many years ago when asked why there would be no layoffs during the Arab oil embargo: "The time has come for the stockholders to pay a small price in order to keep the team together." Can you imagine any current CEO or beancounter saying something like that?

 

[Thedude]

It took NWA how long to engineer their sham BK? Now that shows long term planning.

 

[canyonblue]

I dont fly for a regional or an rj, and havent for a long time

And you post on flightinfo.com as part of your therapy? Hooked on Phonics man, it would be good for you.