NWA Pilots Worried

[a320drivr]

NWA pilots concerned about possible bankruptcy

Judy Tarver
7/12/2005
​

In a memo to Northwest Airlines pilots, ALPA Master Executive Counsel (MEC) Chairman, referenced a Wilson Center poll that indicated most NWA pilots recognize bankruptcy is a possibility at the company. It also indicated the pilots believe the possibility of bankruptcy lies in some distant future.

In an 8-K report filed July 1, 2005, with the Securities and Exchange Commission, NWA management stated it had discussed with the NWA Board of Directors that failure to obtain necessary labor cost savings and pension relief could cause the company to consider seeking protection under Chapter 11 of the bankruptcy code.

The report claimed the spike in fuel prices has accelerated the need for labor cost savings.

The union analysis of NWA's financial condition confirmed that the time for NWA to achieve a solution outside of Chapter 11 is rapidly decreasing and based upon a statement by NWA President and CEO, Doug Steenland, Chapter 11 could come as soon as this fall.

 

[bafanguy]

Gee, that all sounds disturbingly familiar.

 

[ShadowFlight]

Chapter 11 could come as soon as this fall.

Do you think NWA will file prior to mid-October when the BK laws change and become more strict?

Peace

SF

 

[Jetjockey]

I wonder if/when NWA files chapter 11, if another carrier will come into MSP, and DTW and overlap thier profitable routes like NWA did to Midwest in MKE, and ATA in IND. I find it ironic that an airline busy trying to kill off weaker airlines has become weak itself. Just a casual observation.

 

[CapnVegetto]

Do you think NWA will file prior to mid-October when the BK laws change and become more strict?

Peace

SF

Is the pope catholic?

 

[Captain Overs]

Why be concerned if your airline files BK? With the laws the way they are you are only going to take pay cuts. I can't see any airline ceasing operation. It needs to happen to help the industry, but probably won't.

 

[FlyinScotsman]

Why be concerned if your airline files BK? With the laws the way they are you are only going to take pay cuts. I can't see any airline ceasing operation. It needs to happen to help the industry, but probably won't.

Dude, you are going to pi$$ off all of the mainline guys with that statement!

 

[skykid]

Why be concerned if your airline files BK? With the laws the way they are you are only going to take pay cuts. I can't see any airline ceasing operation. It needs to happen to help the industry, but probably won't.

After the BK laws change in October, an extremely complicated case like NW would be difficult or impossible to get done under the new rules.

 

[Captain Overs]

Dude, you are going to pi$$ off all of the mainline guys with that statement!

Do you think I give a sh!t? If you can't handle the reality of things then go bury your head in the sand.

 

[Pilottodd2]

You have to understand. NWA filing bankruptcy in no way insinuates that NWA is 'weak' or 'out of money'. It is simply another tool management uses to complete their agenda. In this case, to bust the unions before they start showing profits. (And believe me, the profits are just around the corner.)

 

[GogglesPisano]

I thought the new bankruptcy laws only affect individuals, not corporations.

 

[Dav8tor]

The new Bankruptcy Law affect both companies and individuals. It has a time period to how long a company can stay in bankruptcy and also give creditors a little bit more leverage.

 

[Paul R. Smith]

You have to understand. NWA filing bankruptcy in no way insinuates that NWA is 'weak' or 'out of money'. It is simply another tool management uses to complete their agenda. In this case, to bust the unions before they start showing profits. (And believe me, the profits are just around the corner.)

I know you are tryin to be funny but...seriously......

 

[320AV8R]

NWA has the same problem as DAL........payments that must be made to underfunded pension plans. Second up is fuel costs, third is Labor costs.

If pension legislation isn't passed this summer, NWA and DAL will be in CH 11 before you can say "Trick or Treat". Period.

The negotiations with the other unions could accelerate the senario for NWA; (DAL got $1.1B from the pilots, then pi$$ed it away....who knows what they're thinking....)

320AV8R

 

[Jetjockey]

You have to understand. NWA filing bankruptcy in no way insinuates that NWA is 'weak' or 'out of money'. It is simply another tool management uses to complete their agenda. In this case, to bust the unions before they start showing profits. (And believe me, the profits are just around the corner.)

Yah, that must be it.....let's pay hundreds of millions in legal fees so we can bust down the union. Have you been paying attention to what UAL has paid in legal fees since December of 2002? I guess AA had it all wrong staying out of Chapter 11.