Northwest Airlines agrees to meeting with NMB and implements management cuts

Airline Industry Information, April 6, 2001

AIRLINE INDUSTRY INFORMATION-(C)1997-2001 M2 COMMUNICATIONS LTD

Northwest Airlines has accepted an invitation from the US National Mediation Board to meet with representatives of the Aircraft Mechanics Fraternal Association on 7 April to assess the status of contract negotiations between the two parties.

The airline and mechanics' union are awaiting the recommendations of a Presidential Emergency Board that was established to increase the period of collective bargaining and avert a strike.

In other news, Northwest Airlines has begun a previously announced plan to lay off management staff.

On 20 March the carrier indicated that it would reduce overall management payroll expenses by 5% and that merit for salary increases for officers and directors would be deferred until February 2002. John Dasburg, the carrier's new CEO, has stated that the salary for the position was not increased when he took the job, and Doug Steenland, who was recently appointed president, has also not received a pay rise for his promotion according to The Associated Press.

Northwest Airlines is hoping to introduce revenue-enhancing and cost-reduction initiatives totalling more than USD200m in order to offset expected first quarter losses.

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