Company Watch - Northwest Airlines

AirGuide Business, April 14, 2008

Apr 14, 2008

Compass Airlines, a wholly owned Northwest Airlines subsidiary, said it served nearly 500,000 passengers in its first year of operation flying 17 Embraer E-170s. It also announced that it was approved for daily Detroit-Monterrey service beginning May 2. Compass operates 74 daily flights to 26 cities as Northwest Airlink and expects to fly 36 aircraft and transport more than 2 million passengers by year end. Apr 7, 2008

Delta Air Lines is urging its union leaders to cede parts of a pilots' contract so it can move closer to merging with Northwest Airlines, the Wall Street Journal reported, citing sources who knew about the situation. If talks are fruitful, the airlines seek to announce their long-pending merger as early as next week and gather support from Northwest pilots later, the report said on Thursday. Delta is promising 6,000 pilots pay rises, equity and a seat on the board of the combined airline if the union agrees to its request, the Journal said, quoting those sources. Merger talks between the airlines cooled in March when pilots from both sides failed to agree on how seniority should work for the roughly 12.000 pilots in the combined carrier. But talks were revived, and Delta and its pilots have been discussing a new contract that would be valid if the merger goes through, the Journal reported earlier, citing sources familiar with talks. Apr 10, 2008

Delta Air Lines, Northwest Airlines and their European partners have received tentative antitrust immunity from the DoT to cooperate on pricing and routes. The DoT's decision expands trans-Atlantic immunity to airlines that fly the routes as part of the SkyTeam alliance. Apr 10, 2008

Delta talks with pilots, may announce merger with Northwest soon. If Delta Air Lines succeeds in negotiations with its pilot union, Delta and Northwest Airlines could move forward with a merger as early as next week, according to media reports. The pilot groups for the two airlines have been at odds over how to integrate seniority lists if the carriers merge. Delta declined to comment on any negotiations with the pilots, but reports said the airline wants the union to drop restrictions on their labor agreement to give the carrier more flexibility. Apr 9, 2008

Among the jobs little boys dream of - policeman, fireman, bulldozer driver - airline pilot long held the added virtue of satisfying grown-up dreams: pay that reached $300,000 a year, 20 days a month off work, the prestige of one day commanding a $200 million airplane, and a lush retirement at age 60. But the airline industry's financial collapse this decade did away with much of that, leaving thousands of young men - and increasingly women - chasing a dream toward a disappointing reality. Captain started training last month to fly a 76-seat regional jet for a Northwest Airlines subsidiary and expects to make about $21,000 his first year. Like most airline pilots, Captain had his heart set on flying "ever since I was a little kid," he said. "I can't see myself in an office." In recent years, he and his wife, June, were in the odd position of saving part of his military pay so they and their two sons could afford to have him work in the private sector. It could take him a decade to work his way back up to his former income. Apr 11, 2008

Northwest Airlines flew 7.16 billion consolidated RPMs in March, up 2% over the year-ago month, against a 0.6% lift in capacity to 8.24 billion ASMs. Load factor rose 1.3 points to 87%. Apr 10, 2008

Northwest Airlines, the nation's fifth-largest, also said it was planning to freeze the hiring of pilots and flight attendants as it cut its domestic schedule by about 5% starting after the peak summer travel season. The big airlines are also adding fees and other restrictions that are expected to make flying more expensive for passengers. Northwest, following on the lead of other big carriers, is extending the minimum stay requirements for some cheaper fares from one or two nights to two or three nights. And Continental Airlines last week became the latest carrier to announce that it would begin charging $25 for a second checked baggage for those flying in coach, starting May 5. On top of fuel costs, the airlines are also facing increased regulatory scrutiny and have had to temporarily ground planes to make sure they met safety inspection requirements. Apr 7, 2008

Northwest Airlines, the fifth-largest U.S. carrier, which is buying 18 of the planes, expected to get an updated delivery schedule from Boeing in the next couple of weeks, said spokeswoman Tammy Lee. "We are disappointed by the latest delays, but we still believe the 787-8 will be a game-changing airplane for our fleet," Lee said, adding that Northwest would initially use Boeing's older and larger 747-400 jumbos for international flights where it had planned to introduce its 787s. Apr 10, 2008

Northwest Airlines and Delta Air Lines have returned to merger negotiations, according to media reports. Executives from the two carriers will meet this week, say news reports. Apr 7, 2008