Northwest has long been known for its aggressive response to rivals who encroach on its turf, and TheStreet.com’s Ted Reed writes that the carrier has kept up its “tough-guy image” even after it has emerged from bankruptcy protection. For example, Reed notes that NWA is set to begin flying next week between Dallas/Fort Worth and New York LaGuardia -– a move that appears to be retaliation against American for adding service to NWA’s Minneapolis/St. Paul hub from LaGuardia. But while Reed points out NWA “has long been known for aggressively protecting its hubs in Detroit, Memphis and Minneapolis," he says airline’s role as a “passive investor” in the Midwest Airlines takeover bid “adds a new dimension to the widespread industry practice of hub protection, which generally includes route and pricing decisions.”
Reed writes that "in the Midwest deal, Northwest helped to block a bid by low-cost carrier AirTran to establish a Milwaukee hub. (An AirTran hub in Milwaukee) might have threatened Northwest's hubs in Minneapolis, 300 miles to the northwest, or Detroit, 250 miles to the southeast. In effect, in exchange for its undisclosed investment, Northwest bought hub-protection insurance," Reed says. Industry observer Terry Trippler of TripplerTravel.com tells Reed: "I've followed this airline for 38 years, and when I think of Northwest, the one word that does not come to mind is 'passive," he says. "The management of Midwest may be giddy right now, but it's only a matter of time until Northwest will be calling the shots."
USATODAY
If I worked for Midwest I would protest the Board...
I love Airtran going right into MKW just as they promised the people in the midwest...
Reed writes that "in the Midwest deal, Northwest helped to block a bid by low-cost carrier AirTran to establish a Milwaukee hub. (An AirTran hub in Milwaukee) might have threatened Northwest's hubs in Minneapolis, 300 miles to the northwest, or Detroit, 250 miles to the southeast. In effect, in exchange for its undisclosed investment, Northwest bought hub-protection insurance," Reed says. Industry observer Terry Trippler of TripplerTravel.com tells Reed: "I've followed this airline for 38 years, and when I think of Northwest, the one word that does not come to mind is 'passive," he says. "The management of Midwest may be giddy right now, but it's only a matter of time until Northwest will be calling the shots."
USATODAY
If I worked for Midwest I would protest the Board...
I love Airtran going right into MKW just as they promised the people in the midwest...
The -200's are a stop-gap until the blue -900's and -1000's show up. Actually, the -900 is an 88 seater...
