NWA to sell it's cargo unit?? Rumor on Yahoo Finance message board

[FBN0223]

Back to the subject...NWA Cargo for years was one of the most profitable operations within NWA. At one time those 12 to 14 whales accounted for 10% of NWA revenue. Unfortunately, under the current leadership, NWA Cargo has been severely neglected and the product, as it stands now, is poor at best. Under Anderson, I would think we would all see a substantial improvement in the entire cargo operation. One item that will be welcome IF this merger were to happen...leadership!!!

 

[JAM-BRO]

General

Stop looking at forums for your info. It reflects bad on you. This article might be a better read...

http://www.aircargoworld.com/regions/northam_0108.htm

 

[jetflier]

Well good for you. Instead of attacking me, why don't you seek the truth via your chain of command? I can't do that. Also, why wouldn't the cargo ops be a part of a 38 page power point presentation made by DL/NWA showing why they should merge? It was never mentioned, at all supposedly.


Bye Bye--General Lee

MMMM......I dunno, but it was a DAL presentation, was it by ALPA or management?

 

[jetflier]

But you lost the DHL contract within the last year. Would you have pulled the plug when DHL was still your customer? Doubt it.

Bye Bye--General Lee

Our cargo operation existed before DHL and was impacted by carrying the DAL igloos, less of the big stuff,....and we do carry a great deal of the big stuff.

So DHL is not as large of an impact on the operation as you think.

 

[jetflier]

Just for info,...another of our previous CEO's is now and has been running the DHL company, Dasburg>

 

[General Lee]

Just for info,...another of our previous CEO's is now and has been running the DHL company, Dasburg>

How is DHL doing these days? Didn't Dasburg also go to Burger King?


Bye Bye--General Lee

 

[General Lee]

General

Stop looking at forums for your info. It reflects bad on you. This article might be a better read...

http://www.aircargoworld.com/regions/northam_0108.htm

That's great, I hope it works out and does well. But, there are two negatives that you cannot refute. You have lost a large contract (DHL), and your airplanes are gas guzzlers and there is no current replacement. If we merge with you, I hope we keep it and I hope it grows with new airplanes.


Bye Bye--General Lee

 

[Cobraair75drvr]

Get over the DHL contract. It was one flt per day out of ILN. The routing is/was ILN/ANC/NRT/TPE and return. The majority of our freight is non DHL. The freight operation is not going away. There will be new aircraft.

 

[jetflier]

How is DHL doing these days? Didn't Dasburg also go to Burger King?


Bye Bye--General Lee

General,

Dasburg went from NWA to Burger King and sold it to friends at TPG (Texas Pacific Group, David Bonderman).

He then mover to the DHL, rumor was he tried to call the Whopper a Dasburger!

 

[NuGuy]

But you lost the DHL contract within the last year. Would you have pulled the plug when DHL was still your customer? Doubt it.

Bye Bye--General Lee

Oooops, guess this wasn't true, either. Big surprise...

Source: American Shipper+ Shippers' NewsWire Date Posted: 3/6/2008
9:33:08 AM

DHL extends transpacific flight agreement with NWA Cargo
Northwest Airlines cargo subsidiary NWA Cargo said Thursday it has
reached an agreement to continue providing block space for DHL’s shipments
between Asia and the United States through 2011.
“Northwest Cargo and DHL have enjoyed a long, prosperous
relationship and this new agreement is a reflection of our ongoing
commitment to them as a key customer,” said Tom Bach, president of NWA
Cargo.
Northwest said it is the largest cargo carrier among U.S. passenger
airlines. In addition to carrying freight and international mail on its
passenger aircraft, NWA Cargo operates a fleet of 12 Boeing 747 freighters
dedicated to Pacific operations, connecting Asian gateways through its cargo
hub in Anchorage to markets throughout the United States.

Nu

 

[~~~^~~~]

Looking at NWA's financial reports NWA cargo revenues are down 16.5% from 06 to 07. Delta's are down 0.8% in the same period.

Overall operating revenue for Delta is up 10% in the period, while NWA is down 0.9%.

However, Delta's costs are holding almost steady at a 0.9% decline, while NWA's costs are down 5.8%.

I wish we had a block hour comparison to see if NWA is flying less to explain their declining performance, but I can't find that data.

 

[RJAA]

Back to the subject...NWA Cargo for years was one of the most profitable operations within NWA. At one time those 12 to 14 whales accounted for 10% of NWA revenue. Unfortunately, under the current leadership, NWA Cargo has been severely neglected and the product, as it stands now, is poor at best. Under Anderson, I would think we would all see a substantial improvement in the entire cargo operation. One item that will be welcome IF this merger were to happen...leadership!!!

That is exactly correct. There was a time NWA cargo ruled in US-Japan market but since then, the cargo market has become way competive and saturated with Japanese carriers such as JAL, ANA, NCA leading the market now, they all have bought new B744F airplanes or have converted their B744 passenger airplanes to freighters in recent years. These airplanes skip ANC to the west coast, fly non-stop to Europe. They know there is a trenmendous cargo growth opportunity especially Intra Asia, for example, where ANA could not keep up with it, so they had to contract out Airborne (affiliated to DHL now I guess) to do it for them in NRT. NW pretty much sat on its a$$ and allowed all of this to happen. Completely different envornment now. How much is NW's cargo division worth now with junky-200Fs?? NW even has rights to fly cargo beyond Japan.

 

[erichartmann]

...so they had to contract out Airborne (affiliated to DHL now I guess) to do it for them in NRT.

Not exactly. ABX Air is a seperate publicly traded company. It has an ACMI to haul freight for DHL, ANA, and others.

ABX was the former Airborne's wholly owned subsidiary airline. It was spun off when DHL bought Airborne.

 

[erichartmann]

Oooops, guess this wasn't true, either. Big surprise...

Source: American Shipper+ Shippers' NewsWire Date Posted: 3/6/2008
9:33:08 AM

DHL extends transpacific flight agreement with NWA Cargo
Northwest Airlines cargo subsidiary NWA Cargo said Thursday it has
reached an agreement to continue providing block space for DHL’s shipments
between Asia and the United States through 2011.
“Northwest Cargo and DHL have enjoyed a long, prosperous
relationship and this new agreement is a reflection of our ongoing
commitment to them as a key customer,” said Tom Bach, president of NWA
Cargo.
Northwest said it is the largest cargo carrier among U.S. passenger
airlines. In addition to carrying freight and international mail on its
passenger aircraft, NWA Cargo operates a fleet of 12 Boeing 747 freighters
dedicated to Pacific operations, connecting Asian gateways through its cargo
hub in Anchorage to markets throughout the United States.

Nu

Interesting. I thought I saw some info that suggested DHL had intended to not renew the contract with NW. NW was to be replaced by Polar. Polar was also to replace Transmile (a relatively new developement) flying from RIV to ANC then on to the Pacific rim. I guess the plan right now is to keep NW in place flying out of ILN to ANC and onward, put a Polar whale on the run ILN -ANC that ABX was flying with a 767 and have Polar continue on as a replacement for Transmile out of ANC while ABX replaces Transmile in RIV flying RIV - ANC and feeds one or both. Looks like the RIV nimby's have had an effect.

 

[General Lee]

Oooops, guess this wasn't true, either. Big surprise...

Source: American Shipper+ Shippers' NewsWire Date Posted: 3/6/2008
9:33:08 AM

DHL extends transpacific flight agreement with NWA Cargo
Northwest Airlines cargo subsidiary NWA Cargo said Thursday it has
reached an agreement to continue providing block space for DHL’s shipments
between Asia and the United States through 2011.
“Northwest Cargo and DHL have enjoyed a long, prosperous
relationship and this new agreement is a reflection of our ongoing
commitment to them as a key customer,” said Tom Bach, president of NWA
Cargo.
Northwest said it is the largest cargo carrier among U.S. passenger
airlines. In addition to carrying freight and international mail on its
passenger aircraft, NWA Cargo operates a fleet of 12 Boeing 747 freighters
dedicated to Pacific operations, connecting Asian gateways through its cargo
hub in Anchorage to markets throughout the United States.

Nu

FANTASTIC. You can hardly blame me when I read the article stating DHL dumped you. That is FANTASTIC you have renegotiated the deal with DHL. That is simply FANTASTIC. I think Occam said a rumor was floating out there that if we did merge, some of our 767-300ERs could get a STC for a side cargo door and could be deployed out to ANC to take over the 742 stuff eventually. I wouldn't bid that, but it might be a FANTASTIC opportunity for you.

Bye Bye--General Lee