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NWA Group

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In my view, the current bankruptcy laws have created an unfair environment for the legacy airlines whose managements have shown the financial stewardship to avoid bankruptcy. Airlines such as Northwest have had to compete with airlines like United which has been operating with the reduced costs and protections offerred by Chapter 11 for three years. It is a bizzarre situation when the airlines with the most inept management, as evidenced by leading their airlines into bankruptcy, are allowed to set pricing for the industry.

Thankfully, this situation will be improved on October 13th.



GV
 
Deregulations final consolidation will be triggered soon. Will be a painful shakeup but will have the legacy carriers that are left very powerful in the aftermath. The pressure will be on the LCC's to increase revenues in the post-CH-11 world and that will be harder for them to accomplish. In a few years there will be more LCC's out of business that you can add to the list of 50+ that have come and gone in the last 20+ years. Interesting times ahead.
 
So why dont the fare's get raised? Glorified bus service? Student pilots? Wow... What do those pinnacle fellas make in the right seat? Are you DC-9 Cappies Ok with the subsidiary making cut rate wage ?

I'm sure that Flint thing really caused the erosion of NWA. Spirit and AirTran are driving down fares ?? How many RJ's operate in your system? I dont think there is 180 tails total between Spirit and AirTran. ?? Just an observation.... I think the huge hub thing is a little pricey to operate fellas.?? ever think of that... A quick change in the economy, SARS, and fuel, is pretty tough to absorb over an extended time.

Be careful what you believe. Respectfully, Our LCC structure is less expensive. But, it certainly does not have the ability to generate the kind of dough that Red Rudder can. Its not the same product !! Why are they charging bus fare for limo service.. ?? Market share ? The pax are back... It seems marketing should charge accordingly for there product. Macys...Walmart.... both have clients... Shampoo at Macy's is a bit more than Taget and Walmart ! Is it better shampoo..?? How bout them Krispy Cremes.. Heck you can buy doughnuts at the 7 Eleven for pennies. Are they better doughnuts??
Maybe... Thats why they charge a bit more... People will pay more cause it is a better product or at least percieved to be better? Pretty simple concept... How bout a BMW vs Chevy... Which one cost more..... Both producers make money... just in different ways.

Sorry for the rant...But it is hard to understand the anger directed at the rival Competition LCC's. Dont let your management use the low fare model to influence labor give backs.

It is tough...no... it sucks .... I understand ... my buddies are on the street walking the line...Uncertain of there families future..


Dont let your managemnet sell you garbage. Givebacks may be necessary. But it not because of Student Pilots and Greyhound air travel. With great respect.... MNBOY
 
mnboyev said:
Sorry for the rant...But it is hard to understand the anger directed at the rival Competition LCC's. Dont let your management use the low fare model to influence labor give backs. MNBOY

Well said MNBOY. The problem is more with their "Limo" service, it is about as bad as a bus, and the product won't sell. I understand the need to want your market share, but if you have a product that you are selling for less than it takes to produce, than why keep selling it at that price? Just to piss off the competition? If the plan involves selling tickets for a loss, and you still can't produce results, then the plan is a loss. It is clear that this is not working at numerous airlines, so just raise your fares to cover the cost, or continue to give out of your own paycheck to support a failing business plan. I do believe that there are some pilots out there that believe their management has failed, but why do they keep giving them money? The LCC's did not put anyone in this predicament, the employees and management at said legacies did that themselves. If riding on Southwest is so bad, as some on this forum have claimed, then why is our product priced the same, or higher than a legacy airline. I think it has come to fruition that the only way anyone would fly on a legacy airline now is if you only charge them $99. Pretty sad state.
 
bizjournals.com
FAA confirms Northwest probe
Tuesday September 6, 11:35 pm ET

The Federal Aviation Administration confirms it is investigating maintenance of aircraft at Northwest Airlines while it is being struck by its union mechanics.

An FAA inspector, reassigned after raising alarms about the performance of strikebreaker mechanics, told his own bosses and Sen. Mark Dayton, D-Minn., that hundreds of unfiled inspection reports mentioned maintenance defects.

After the Wall Street Journal reported this, the FAA confirmed that it was probing Northwest performance and that the inspector's report had triggered it. Northwest itself maintained the planes are professionally maintained.

"NWA has employed experienced, licensed mechanics who are trained and prepared to safely and professionally maintain aircraft, according to Federal Aviation Administration regulations," Northwest said Tuesday on its Web site.

Elsewhere, the Standard & Poor's credit rating service has downgraded Northwest Airlines debt deeper into junk bondage, from CCC+ to CCC-. The lower the rating, the higher the interest rate cost of borrowing.

S&P analyst Philip Baggaley told clients Northwest was dealing with its mechanics strike but noted that the focus on managing that was keeping the airline from pursuing concessions from other employees.

But the Air Line Pilots Association said Tuesday it had quietly opened negotiations with Northwest.

For fall airline schedules, Northwest has 279 flights per month, or 76,136 seats, equal to 9.8 percent of total scheduled passenger capacity to Hawaii by all airlines. Published September 6, 2005 by Pacific Business News.

http://biz.yahoo.com/bizj/050906/1160501.html?.v=2
 
The problem with givebacks specifically to save pensions is what happens when you negotiate give backs and the company still goes into bankruptcy and the 1st think that goes is the pensions ?, with this management group its possible that it is part of the plan.I also agree that LCC's are not the problem because it is an entirely different product, they were supposed to serve that segment of the traveling public that just wanted to get from A to B cheaply without all of the so called extras on fullservice airlines. The problem is that we found out that most people really just wanted a cheap ticket and not a blanket, magazine and a bad meal. Couple that with the business traveler using the fax machine, e-mail, conference calls and microsoft net meeting along with FedEx overnight shipping to do business and make his kids T-ball game because he didn't have to get on an airplane and get raped at the ticket counter because it was a last minute trip and this is what we get. Also dont forget the true 1st class passengers are now fractional owners.
 

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