NWA April numbers

[FDJ2]

Northwest Airlines Reports April Traffic
Wednesday May 5, 12:00 pm ET


EAGAN, Minn., May 5 /PRNewswire-FirstCall/ -- Northwest Airlines (Nasdaq: NWAC - News) today announced a systemwide April load factor of 80.2 percent, 8.3 points above April 2003. Northwest flew 5.85 billion revenue passenger miles (RPMs) and 7.30 billion available seat miles (ASMs) in April 2004, a traffic increase of 16.1 percent and a capacity increase of 4.1 percent versus April 2003.

 

[SMMustang]

that is the first time I've seen a capacity increase since 911.

 

[FLB717]

What is the cash/debt/loss position?

 

[furloughed dude]

Their cash position is stong, I believe roughly near 3 billion. Most of it is borrowed though.

Nwa is recalling pilots now, which is good. But not good news for mainline pilots is that Pinnacle (an express carrier) is growing very fast. NWA management worked a loophole in NWA's scope policy allowing them to receive unlimited jets certified under 45 seats. NWA took 6 seats out of the 50 seat CRJ and recertified the aircraft as a CRJ 440. Not really cost effective, but they love the idea of lowering labor costs. They pay these guys at Pinnacle like dogs and don't even pay them until they complete training.

That said, NWA is one of the carriers with a great chance to thrive. They are negotiating with the pilots to lower wage costs. FAs and mechs contract is up for negotiating next year and they will force cuts with them as well. They failed to hedge fuel and this will hurt them in the short term. Their fleet is old, but mainly paid for. The DC9 and DC10 are real gas burners for sure...

 

[canyonblue]

FAs and mechs contract is up for negotiating next year and they will force cuts with them as well.

You're not going to see a penny come out of those groups. They still remember '93-'96, and the concessions they took. Only the pilots will share any pain, the other groups could care less about NWA's problems.

 

[furloughed dude]

Who ever said they would agree to take cuts.

 

[TurboAWD]

I hope NWA and PCL don't think they can keep paying the CRJ pilots the way they are now (particularly the FO's).

I think the MEC is smart enough to really push for major improvements, and they are in a pretty good position to deal with the company. Unfortunately, I'm pretty sure you won't see anything as good as Comair, which really should be what every 50 seat jet pilot gets (but I still hope).

Now the question is if all the FO's at PCL (particularly the 500 hour GA wonders) can see past the next five minutes and not fall for the "if you take this contract we can get more jets and you'll upgrade for sure!" line.

As far as the pilot group at NWA, I am pleased to see that they are sticking to the "investment in the company" type deal. As far as scope, I hope they allow PCL to convert the 44 seaters to 50 seaters (it isn't helping PCL or NWA to loose 6 seats a flight), but stands on making anything over 50 seats a mainline AC (except the current Avro's, of course).

I would love to see NWA replace the 9's with EMB-170/190's (or 717's?) flown by MAINLINE pilots with a quality MAINLINE ALPA contract.

Signed,
A "regional" pilot who doesn't want to stay one

 

[320AV8R]

You're not going to see a penny come out of those groups. They still remember '93-'96, and the concessions they took. Only the pilots will share any pain, the other groups could care less about NWA's problems.

They may care less, but their contracts will be open. Their negotiations will be dictated by the Railway Labor Act. They will get a new contract, through a negotiated settlement or mediation. And yes, it will be concessionary.

 

[canyonblue]

Their negotiations will be dictated by the Railway Labor Act. They will get a new contract, through a negotiated settlement or mediation. And yes, it will be concessionary.

I missed that part of the RLA that says you have to take a paycut. I don't know if you were at NWA during '93-'96 but the company played the BK card to get the unions to buckle. This time around it won't happen. Next trip ask your FA's, Mechs and Ramp workers if they will ever give concessions again. I already know the answer.

 

[justmeinmsp]

Unfortunately, I'm pretty sure you won't see anything as good as Comair, which really should be what every 50 seat jet pilot gets (but I still hope).

Now the question is if all the FO's at PCL (particularly the 500 hour GA wonders) can see past the next five minutes and not fall for the "if you take this contract we can get more jets and you'll upgrade for sure!" line.

As far as scope, I hope they allow PCL to convert the 44 seaters to 50 seaters (it isn't helping PCL or NWA to loose 6 seats a flight), but stands on making anything over 50 seats a mainline AC (except the current Avro's, of course).

1) I don't think we will see anything near Comair.
2) I have talked with several of these new guys and most say they just want more growth. I have tried to point out how dangerous that is, but they can't think long term.
3) I don't think the 44 seat A/C can have the seats put back in. My understanding is if it is received as a 44 seat A/C, it must remain with 44 seats. We still get an occational 50 seat A/C though. I personally hope that the mainline guys hold on to scope for dear life, it is their best interest.

 

[festus]

I would agree wtih canyonblue that the mechanics and flight attendant leadership will not be interested in taking ANY cuts to help the company out. i.e. Highest pay till the last day mentality.

 

[TurboAWD]

hey justmeinmsp:

1) You're right.

2) Right again, but I hope the MEC/Neg Commitee really, really trys to come up with an effective way to educate these guys. Reality is, by the time our contract is settled, the next batch of CRJ deliveries will have already been assigned (although mabey not announced)

3) I'm pretty sure NWA could send a check to Canada and get all the 44 seaters instantly upgraded to the 50 seat specs. And I certainly don't ever want to fly anything bigger than 50 seats at PCL.

 

[320AV8R]

I missed that part of the RLA that says you have to take a paycut. I don't know if you were at NWA during '93-'96 but the company played the BK card to get the unions to buckle. This time around it won't happen. Next trip ask your FA's, Mechs and Ramp workers if they will ever give concessions again. I already know the answer.

The RLA does not state that you have to take a paycut. It states that you must "bargain in good faith" until a new contract or impasse is reached. I predict an impasse.

Next step....Mediation. The majority of the current National Mediation Board was appointed by Bush; who's one of the most anti-labor Presidents. Both groups are paid above the "industry average" when it comes to pay & benefits. What do you think will be the outcome of mediation?

A key figure at the Department of Labor used to be on the NWA Board of Directors, and has direct influence with the NMB.

The IAM ranks, (mechanics), have already been reduced by......was it 10....or.....22.....no....44 percent.

The new FA union has had their Board member ousted, and the Company won't deduct Union dues from FA paychecks. (They had to find an alternate source.)

So the "leverage" these two groups have is minimal, at best. Sorry to confuse you with the facts, since you "already know the answer".

 

[SMMustang]

The RLA does not state that you have to take a paycut. It states that you must "bargain in good faith" until a new contract or impasse is reached. I predict an impasse.

Next step....Mediation. The majority of the current National Mediation Board was appointed by Bush; who's one of the most anti-labor Presidents. Both groups are paid above the "industry average" when it comes to pay & benefits. What do you think will be the outcome of mediation?

A key figure at the Department of Labor used to be on the NWA Board of Directors, and has direct influence with the NMB.

The IAM ranks, (mechanics), have already been reduced by......was it 10....or.....22.....no....44 percent.

The new FA union has had their Board member ousted, and the Company won't deduct Union dues from FA paychecks. (They had to find an alternate source.)

So the "leverage" these two groups have is minimal, at best. Sorry to confuse you with the facts, since you "already know the answer". [/B]

Survey Says?

Ding Ding Ding Ding Ding

We have a winner!