On the tape---NWA reaches agreement with pilots

[vc10]

Savings of $300 MM, no details yet.

 

[kntrdr]

EAGAN, Minn., Oct. 14 /PRNewswire-FirstCall/ -- Northwest Airlines
Corporation (Nasdaq: NWAC), the parent of Northwest Airlines, today announced
that it has reached a tentative agreement with its pilots, represented by the
NWA unit of the Air Line Pilots Association International (ALPA).
The agreement is subject to approval by the ALPA Master Executive Council
(MEC) and ratification by Northwest Airlines pilots. The agreement also calls
for a satisfactory restructuring of Northwest's $975 million revolving credit
facility, prior to contract implementation.
The tentative agreement includes $300 million in annual labor cost savings
from the company's pilots and its salaried workers with pilots contributing
$265 million in annual wage, benefit and other contract changes, and salaried
and management employees taking $35 million in annual salary and benefit
reductions.
If all of the terms of the tentative agreement are satisfied, pilot and
salaried employee labor cost reductions could be effective as early as
December 1, 2004.
Northwest currently is in contract discussions with representatives of the
International Association of Machinists and Aerospace Workers (IAM), and the
Transport Workers of America (TWU). Preliminary contract discussions will
commence in the coming weeks with the Aircraft Mechanics Fraternal Association
(AMFA), the Professional Flight Attendants Association (PFAA), Northwest
Airlines Meteorology Association (NAMA), and Aircraft Technical Support
Association (ATSA).
Northwest Airlines is the world's fifth largest airline with hubs at
Detroit, Minneapolis/St. Paul, Memphis, Tokyo, and Amsterdam, and
approximately 1,500 daily departures. Northwest is a member of SkyTeam, a
global airline alliance partnership with Aeromexico, Air France, Alitalia,
Continental Airlines, CSA Czech Airlines, Delta Air Lines, KLM Royal Dutch
Airlines, and Korean Air. SkyTeam offers customers one of the world's most
extensive global networks. Northwest and its travel partners serve more than
900 cities in more than 160 countries on six continents.

 

[MadDogMike]

Any idea what percentage of a pay cut that equates to? Any work-rule concessions?

 

[Workin'Stiff]

Sounds like the pilots will be voting on this TA online inorder to facilitate some financing that NWA is trying to secure. But the FA's and mechanics are still playin' hardball...

 

[skippy767]

Any 70 seat deal????

 

[~~~^~~~]

Any 70 seat deal????

Yes, how did they work that out?

 

[skippy767]

Thats why I was asking???
I really do not know

 

[320AV8R]

Any idea what percentage of a pay cut that equates to? Any work-rule concessions?

Fifteen percent W2 plus some minor non- staffing related work rule changes.

The 70 seater wasn't even on the table.

The Company will take the Mechanics & F/As to Mediation & get what they want.

 

[ExAF]

More Recalls Too

Don't know if it is related or not, but NWA added 15 more PNRs for Dec training yesterday. Guess if the pilots won't be making as much, they can afford to add a few more to the roster. Either way, the recalls and the TA are good news in this day and age. Cheers.