Northwest to create a new regional airline

[BLUE BAYOU]

Bankrupt Northwest Airlines intends to create a new regional feeder airline that will fly 70- to 100-seat jets in medium-sized markets that Northwest says are key to its growth, according to a company newsletter published on Thursday.
Northwest detailed plans for the new airline, although Chief Executive Doug Steenland first told creditors of the plan in October.
Northwest said it is restricted by a contract with its pilots to fly aircraft of this size, and therefore the carrier's fleet consists of planes that are the wrong size for its core markets.
"We have an immediate need for aircraft of this size," Steenland said in the newsletter. "Northwest has more of these small-to-medium sized markets than any other."
The new airline, which for now is known by the generic name "Newco," will be operational by 2007. The carrier is expected to operate an estimated 105 aircraft by 2010.
The carrier's fleet would consist of regional jets built by Embraer and Bombardier, flying in markets now served by planes that are too small or too large.
Northwest said that about 100 of its domestic markets are well-suited to 70- to 100-seat aircraft.
The carrier, which filed for bankruptcy in September, has been battered along with other major carriers by soaring fuel costs, weak revenue and low-fare competition.
Some legacy airlines such as United Airlines have attempted to take on low-cost competitors by creating a low-cost carrier of their own as a subsidiary.
Northwest, however, aims to start a regional carrier separate from itself, saying it does not "make economic sense" to bring 70-seat planes into its mainline fleet.
Airline consultant Robert Mann said Northwest could save money by starting the new carrier and outsourcing jobs to it as a way of ducking its own work rules. "The work rules and economics in Newco would be different than those in the mainline fleet," he said.
Other major carriers rely on third parties to fly those planes in small- and medium-sized markets.
Details of the new airline met with scorn from Northwest's pilots' union, the Air Line Pilots Association.
ALPA said in a bankruptcy court filing that while the new airline would initially be controlled by Northwest "it could eventually be sold or come under the control of other entities, taking with it up to one fifth of all pilot positions at the company."
ALPA called on Northwest to establish a new division within itself for 60-100 seat operations with pilot pay rates competitive with similar operations.

(Reuters)

Can they really do this???

 

[YourPilotFriend]

Only if we let them.

 

[dashtrash]

Only if we let them.

This is the big mother. I hope ALPA is ready for this fight.

 

[PeanuckleCRJ]

It's time to take a stand, NWALPA. This cannot go through or all of our collective careers and prospects are screwed.

 

[labbats]

It's time to take a stand, NWALPA. This cannot go through or all of our collective careers and prospects are screwed.

It wasn't time to take a stand when your pensions got gutted, your pay slashed, and your mechanics all booted?

 

[AA717driver]

It wasn't time to take a stand when your pensions got gutted, your pay slashed, and your mechanics all booted?

Exactly. Only the NW pilots can decide if it's NOW time to take a stand. The line in the sand got crossed by UAL and USAir right after 9/11 when they caved and took their pay and benefit cuts lying down.

After that, the rest of the industry was at management's mercy.TC

 

[pilotyip]

Just a question, no intent to bait, It sounds like Newco is a done deal with or without the NWA pilots involved. If the NWA pilot elect not to fly for Newco, which I understand is a new certificate, what is to prevent a g0jet type of situation. They from what I have seen are not having trouble finding unemployed high pilots who want to work.

 

[DTW320]

It wasn't time to take a stand when your pensions got gutted, your pay slashed, and your mechanics all booted?

Newsflash: NWA's pilot pension plan has not been touched.

Just to understand your point: NW pilots should have refused to budge on $280/hr 747-400CA rates and $150/hr 757 FO rates as the corporation declared CH11 with no DIP financing in place? Is that correct?

The AMFA thing has been beat to death here.

 

[DTW320]

Just a question, no intent to bait, It sounds like Newco is a done deal with or without the NWA pilots involved. If the NWA pilot elect not to fly for Newco, which I understand is a new certificate, what is to prevent a g0jet type of situation. They from what I have seen are not having trouble finding unemployed high pilots who want to work.

Newco is only a done deal in either of 2 scenarios:

1. NWAALPA agrees to it as part of a negotiated deal prior to the 1113c hearing(aint gonna happen).

2. The BK judge rules in favor of allowing NWA to toss the contract and NWA imposes conditions including Newco (Strike will follow resulting in a quick backing off by management at the insistance of the creditors committee/BK judge OR liquidation takes place....the former is preferable, but the latter is OK too versus allowing newco)

Absent one of those things happening newco will not happen because our current contract, which is still in full force until we agree to change it or the judge allows it to be voided, prohibits a Newco style operation via the scope clause.

 

[SWA/FO]

Newsflash: NWA's pilot pension plan has not been touched.

Has it been funded? How long will it last?

 

[DTW320]

Has it been funded? How long will it last?

Oh, I didn't say that it would not undergo changes. I responded to a post that said we should have taken a stand when our "pensions got gutted".

We have negotiated a TA to freeze the defined benefit so that it accrues no additional liabilities, and create a defined contribution plan. Without legislative relief even the frozen DB plan will face an uphill battle against termination. With legislative relief there is a very good chance that the frozen benefits will be easily taken care of by the plan. That would result in many senior pilots still getting the 60% FAE they have always expected and the junior guys would get their frozen benefit at retirement plus they would have the balance of the DC plan that had built up between now and retirement, just like your 401k match at SWA.

 

[COpilot]

DTW,

I disagree with you. I don't belive you are getting the true vision of your pilot group or any others.

By rule most of us on this website are the "rebels" of the profession, and will talk the big talk. (Picket, strike, blah, blah, blah) So alot of us are on the same page. The other 80% of the pilots groups think another way.

Truth is when it comes down to it, the majority of your pilot group and every other group, see example (UA, US, DL, CO, etc.) is looking out for just one person. Especially the top half of any given seniority list. And that top half of the seniority list will push, squeal, brun, and push the young (junior) pilot off the bridge to save his/her self.

If I'm NW management. I throw a bone to that demographic, and watch the blood letting to begin. Next thing you know (NEWCO) is a done deal, you've got ERJ190's all around DTW, MSP; half of your pilot group is still flying their A330's to Europe saying "Is'nt it sad that Bob lost his job flying the DC9, wonder what he'll do next, I'm going on break."

Look at the history, I bet you this is how it will unfold?

 

[Cardinal]

Hopefully the Cobras are willing to Strike. That is all.

 

[9rj9]

so true

 

[pilotyip]

copilot, nice dose of reality, matches what I hear from my over 50 friends. An over $100K/yr airline job may be a let down, but it beats almost anything you can do when you find yourself unemployed in your mid 50's. I bet more than 50% of the pilots at NWA are in their late 40's

 

[Jetjockey]

COpilot is probably right,.......I hope he is wrong but recent history is on his side. This is a major watershed event /fight for not just the NW pilots, but the entire piloting profession. NW has one of strongest remaining scope clauses, and thier managment group is pubicly saying "screw you and your contract". If management can shove this down the throats of NW ALPA, you can bet the rest of the industry clowns will follow suit.

Labor has nearly lost all levergage. The outsourcing of good jobs continues, not just in this industry but all over the US. Wait until GW and his adminstration sells out the industry to highest foreign bidder. That will be fun. I wonder what an Air China pilot makes?

 

[DTW320]

DTW,

I disagree with you. I don't belive you are getting the true vision of your pilot group or any others.

By rule most of us on this website are the "rebels" of the profession, and will talk the big talk. (Picket, strike, blah, blah, blah) So alot of us are on the same page. The other 80% of the pilots groups think another way.

Truth is when it comes down to it, the majority of your pilot group and every other group, see example (UA, US, DL, CO, etc.) is looking out for just one person. Especially the top half of any given seniority list. And that top half of the seniority list will push, squeal, brun, and push the young (junior) pilot off the bridge to save his/her self.

If I'm NW management. I throw a bone to that demographic, and watch the blood letting to begin. Next thing you know (NEWCO) is a done deal, you've got ERJ190's all around DTW, MSP; half of your pilot group is still flying their A330's to Europe saying "Is'nt it sad that Bob lost his job flying the DC9, wonder what he'll do next, I'm going on break."

Look at the history, I bet you this is how it will unfold?

I disagree. What you are saying is almost verbatum what I heard before the 1998 strike. "The wide body Capt's are NOT going to go on strike to get rid of the B-scale" etc,etc. What happened? 98% strike vote, 2 weeks walking circles, no more Bscale, NW management loses 1 Billion $ in an effort to avoid getting rid of bscale and giving the rest of the group a 3% raise. I think they were reminiscing about that when they gave us a 10.5% raise in 2002. There has never been a truer example of a management that will try to take a mile if you give them an inch. Like I've said before, most of the senior widebody CA's I know, ones that don't participate on webboards, feel very strongly that if Newco flies then outsourcing the widebody flying will be next.

Time will tell/a strike vote has not been taken yet/I could be wrong!

 

[DTW320]

copilot, nice dose of reality, matches what I hear from my over 50 friends.

Are your over 50 friends NWA Captains?

 

[320AV8R]

Hopefully the Cobras are willing to Strike. That is all.

The major consensus is that Cohen can shove NEWCO up his A$$.

 

[ExAF]

Newco is a Nogo

What you are forgetting is that after the bottom 1200 pilots are furloughed to make room for Newco, there will be another 1000 or so captains that will now be FOs again. "Senior Pilots" takes on a whole new meaning. The remaining senior captains have already given 40% and will have to give up some more or retire early at a reduced benefit. The middle of the list on the captain/FO bubble won't be going anywhere for a long time as the list stagnates with the cutbacks. I'm willing to bet a strike vote would come in around 66% in favor of the strike (that's allowing for a lot of big talk right now). If newco did go, would the Airbus flying be next, then all domestic flying, then all cargo flying, then all that is left on mainline is the international widebody pax flying? I think this is the real deal when it comes to a line in the sand.