Dantheman77Northwest Airlines Reports January Traffic
EAGAN, Minn. — (February 3, 2006) — Northwest Airlines (OTC: NWACQ:PK) today announced a systemwide January load factor of 80.9 percent, 4.1 points above January 2005. Northwest flew 5.43 billion revenue passenger miles (RPMs) and 6.71 billion available seat miles (ASMs) in January 2006, a traffic decrease of 6.7 percent and a capacity decrease of 11.5 percent versus January 2005.
Northwest Finance Executive Says Labor Cost Reductions Critical To Survival
NEW YORK – (January 18, 2006) — Northwest Airlines’ (OTC: NWACQ.PK) David M. Davis, senior vice president – finance and controller, said the airline’s financial problems can be overcome only if a competitive cost structure can be implemented that will permit significant labor savings.
Davis’ remarks were prepared for presentation at the U.S. Bankruptcy Court for the Southern District of New York hearing today regarding Northwest’s motions, filed under Sections 1113(c) and 1114 of the Bankruptcy Code, asking the court to reject the company’s collective bargaining agreements with the Air Line Pilots Association (ALPA) and the Professional Flight Attendants Association (PFAA). Yesterday, the hearing began on the company’s motions under Section 1113(c), as well as Section 1114 to modify its retiree employee benefits.
“We cannot continue to lose $4 to $5 million per day on top of the $14 billion debt and declining cash balance that we have. Northwest’s cash and debt position is unacceptable and among the worst in the industry. We have sold $1.6 billion in assets since 2001, yet have added $2.3 billion in debt. At this rate, by the end of 2006, our cash balance will be less than $700 million without labor cost relief,” said Davis.
“Northwest’s pay per employee is the highest in the industry. We must address our payroll of $3.6 billion along with work rule issues to make Northwest competitive. The low-cost carriers (LCCs) represented only 8 percent of the market in 1990, today they represent 28 percent, and are forecast to control at least 37 percent of the domestic market by as soon as 2010.”
“The LCCs have 1,025 aircraft on order or option. With these aircraft they are aggressively moving into Northwest markets and dropping fares, putting pressure on yields that have continued to decline for more than a decade,” Davis commented.
“Our competitors are rapidly deploying 70-100 seat aircraft in more than 100 of our markets. No other legacy carrier has a lower percentage of regional departures in their operation and this too must change if we are going to be viable. Work rules must not bind Northwest’s 34,000 employees from being competitive in the current environment.”
In summarizing his presentation, Davis said, “We believe our business plan is the correct path forward. We need to reduce our fleet by 15 percent, reducing unprofitable flying and exit unprofitable markets which will save Northwest $400 million annually.”
“On our domestic network we must match the narrow-body fleet with demand. Internationally, we must optimize our Atlantic schedule and add new routes in the Pacific as our Boeing 787s are delivered. The introduction of the new technology Boeing 787 aircraft and expansion of the Airbus 330 fleet are estimated to improve profitability in excess of $150 million annually.”
“To buy these new aircraft we must produce sufficient cash to support up to $11 billion in capital requirements needed to achieve fleet renewal over the next 10 years. However, none of this can be achieved without achieving permanent labor cost reductions with ALPA, the International Association of Machinists and Aerospace Workers (IAM) and PFAA unions and retirees,” Davis said.
The IAM, which represents Northwest’s ground employees, has agreed to present the company’s contract settlement proposal to its members for ratification. As a result of this agreement, IAM and Northwest asked the bankruptcy court judge to postpone IAM’s portion of the 1113(c) proceedings.
Achieving competitive labor costs is essential to the success of Northwest’s business plan. The combination of competitive labor costs and completion of the other aspects of Northwest’s restructuring will allow the airline to be a successful long-term competitor and provide the most secure future for the company.
Northwest Airlines is the world’s fifth largest airline with hubs at Detroit, Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and approximately 1,200 daily departures. Northwest is a member of SkyTeam, an airline alliance that offers customers one of the world’s most extensive global networks. Northwest and its travel partners serve more than 900 cities in excess of 160 countries on six continents.
Source: http://www.nwa.com
Dantheman77NORTHWEST AIRLINES
NEW YORK – (January 20, 2006) — John E. Luth, chairman, president and chief executive officer of Seabury Group LLC, which is a leading investment banking and advisory services firm in the aviation field, today testified that reducing Northwest’s debt by $4.2 to $4.4 billion, increasing liquidity by $1.25 billion and obtaining competitive labor costs are three of the most significant changes that Northwest Airlines
FINANCIAL SITUATION
Luth testified that Northwest’s losses, and the actions it was forced to take to cope with those losses during the last several years, have left it in a weak financial position. “Northwest has lost $4 billion since 2001, and during its first four months of Chapter 11, lost $4 to $5 million per day,” Luth said. “Despite raising $2.3 billion in net new, non-aircraft debt and selling $1.6 billion of assets since 2001, the airline’s liquidity has declined significantly in 2005, due to underlying operating losses. Northwest’s liquidity, as a percentage of revenue, at approximately 10 percent, is now the lowest in the industry despite these extensive borrowings and asset sales.”
Future fleet needs
Given the recent increase in fuel costs, reducing Northwest’s average fleet age will be instrumental to its future success, Luth said. “At an average age of 18 years, Northwest’s fleet is more than twice as old as the industry average of eight years and older than the fleets of all of its legacy and low-cost carrier competitors. Northwest has approximately $3.7 billion of commitments to acquire modern aircraft, comprised of Airbus A330s and the Boeing 787.”
Source: http://www.nwa.com
Dantheman77ATLANTA, February 14, 2005 – Delta Air Lines (Other OTC: DALRQ) today reported results for the quarter and year ended December 31, 2005. Key points include:
Delta’s fourth quarter net loss was $1.2 billion. Excluding reorganization and special items, the fourth quarter net loss was $782 million.
For 2005, Delta’s net loss was $3.8 billion. Excluding reorganization and special items, the full year 2005 net loss was $2.2 billion.1,2
Despite significant losses, Delta achieved important milestones in its reorganization during the fourth quarter of 2005, including strengthening its route network, making progress in restructuring its aircraft fleet and reducing its employment costs.
As of December 31, 2005, Delta had $2.9 billion in cash and cash equivalents, of which $2.0 billion was unrestricted.
Delta reported a net loss of $1.2 billion in the fourth quarter of 2005, compared to a net loss of $2.2 billion in the fourth quarter of 2004. Excluding the reorganization and special items described below, the net loss was $782 million in the fourth quarter of 2005. Excluding the special items described below, the net loss was $780 million in the fourth quarter of 2004.
For the full year 2005, Delta recorded a net loss of $3.8 billion, compared to 2004’s full year net loss of $5.2 billion. Excluding reorganization and special items, the net loss was $2.2 billion in 2005. Excluding the special items described below, the net loss was $2.3 billion in 2004.
Source: http://www.Delta.com
Dantheman77That will change with the new 777’s on order. Within NA they want to use the 787 from 2008. All the Airbus equipment is being traded in and the 767’s sold off.
Even selling off there A340-500s?
Dantheman77Having previously flown Air Canada 4times (1×747-100-Toronto,1xDC9-Quebec-1xA340-Calagary,1×767-300-Calgary) they are a fantastic airline,In flight service is great with a wide choice from the IFE system,the food is above average with a varied choice, not just chicken or beef.
BUT!!
This was all befor Air Canada had its little financial problem, and now ive read somewhere that you pay $CDN 10 now for the comfort pack which consists of a pillow,light blanket,eye mask and toothbrush/paste, but you get to keep it for all other flights. it depends on how much you want to sleep, or look out of the window and see the wonderful landscapes that Canada has to offer.
From what information you have left Cloud_9 it sounds like your doing a drive/cruise holiday…if u want more info,then im only happy to help!
Dantheman77Couldn’t disagree with that! Stunning shot :).
Looks even better with a couple of Rolls Royce Trents on the wing 😉
Dantheman77Point is valid Sandy. Seems little point in going to the expense of fitting such a device if your aircraft never fly.
Discuss something more concrete? Fair enough. Anyone know what the Blue Circle share price is today?
Seriously though, when is AlphaOne’s next anticipated start date?
Regards,
kev35
Like to tell ya Kev, but the webpage hasnt been updated since November 23rd 2005, and everything is still under construction.
cant find the Blue Circle share price but the FTSE 100 is 5,794.70 thats up 3.20 points :diablo:
Dantheman77Ive just downloaded the Virgin Global Challenger plane..and im planing a round the world trip non stop.
Apart from that, my longest flight has been in a Air New Zealand 744 Auckland-Los Angeles 14hrs 34mins
Dantheman77Your totally correct in your asumption Dantheman Ryanair are now giving away 3 million FREE seats all you need to pay is Taxes, Fees and Charges so you win 10p from everyone and here is mine LOL
Thankyou very much…… 😀
Dantheman77The passengers may be revolting but heh – shut the door, let them die of thirst, take them to Luton (it’s not the end of the world, but you can see it from there!) or have them sitting in stinking vomit – who gives a sh!t.
Safety records are not the same as safety culture. One day somebody will be too tired and too sh!t scared of demotion to £70k per annum to do the safe thing. One day somebody will be sleeping when the cabin fills with smoke or fails to pressurise. One day somebody will be on-board who shouldn’t be. One day the slide won’t inflate when it is needed.
Just so long as the pilot isn’t too tired to fly (or suffered a recent bereavement), the cabin crew aren’t settling down for a nap, the cabin crew aren’t terrorists, mentally ill or criminals with disqualifying convictions and at least some of the safety equipment (which MOL hasn’t been able to persuade Boeing/IAA not to fit – it’ll happen!) is working, everything will be fine. So long as the pilot keeps the bar intact and isn’t being pestered by ‘the great unwashed’, I’ll home safe in the knowledge that everything is OK because MOL says so.
There are two basic laws of the universe that have yet to be defied;
1. You cannot compromise on safety – your customers will not forgive you.
2. You cannot treat your customers like sh!t – your customers will not forgive you
Dantheman77I must say it will be interesting to see what safety related things ryanair are reported not carrying out. I am sure every airline has tired pilots and cabin crew nearly maxed out at some point!
BTW How did she get the camera equip. past airport metal dectectors! Wonder where she was based! Suppose have to wait to 13th to see this!
You just have to read on Pprune, i know somethings cant be taken literally on there, but there’s enough ryanair pilots b-tching about maxing out on allowed hrs (900 per year), Holidays which have been cancelled,being called in on restdays when not on standby etc etc..
Wonder in M O’Leary has seen a pre-screening of the programme,so he can comment, or got his team of vipers…sorry lawyers ready to get an injuction against C4 to stop the programme?
If not, im willing to bet the sum of 10pence that Ryanair introduces a new sales drive the following day offering more cheapseats than you can throw a hamster at.
Dantheman77Ahh…I dont think the sale will go through for a number of reasons. 1, The British Govt is still a major shareholder in BAA, owning something like 20% of the company,so there on to a winner with Airport taxes and dividend payments.
2, The deal would be subject to the European mergers and monopolies comission, and even possibly an investigation by the DTI in the uk.
3, i have also heard on some financial programmes and read in the financial pages that BAA shares could possibly be undervalued,this is the kinda thing that would be needed to kick start the share price to reach its proper value
4. It could a fishing exercise from the spanish company. I.E. to boost its own share price, or even to test the market waters and see what happens.
But Answering Flying-Forever’s question….BAA will have to spend alot of money in preparing for a defence for a possible take-over.
Im not sure who the company was…but they spent close to or over £100million in fighting a take-over,which was in lawyers and Stockbrokers fee’s
Dantheman77i would call my airline “Dan-Air”
Dantheman77Oh, a classical joke…
A woman calls her husband: “I just won a lottery! Start packing!”
Husband: “Excellent! What shall I pack, skis or beach clothes?”
Wife: “Everything! Be gone from my home by evening!”What do wives cost in England? And what do babes cost? I mean, if you won £100 millions and walked out on your wife, how much would she get, and how much would you be left with? Or if you get a babe, and the next morning or next month or next year she walks away with someone in her belly, yours as she alleges, how much would she get if you happen to have £100 millions?
Are wives and babes prohibitely expensive no matter how much money you have, or do they have a fixed price in England so if you are rich, you can afford many of them?
Anyway, as for ladies aboard… that would suggest a plane wide enough for a real bed, at a minimum something like Falcon 900/2000/7X, or Bombardier Global Express or a big Gulfstream… (what are their costs like? Quite high…) But I suppose that joining the Mile High Club while at controls is dangerous both for male and for female pilots, not only because of distractions, but due to obstacles like pilot seats and harnesses… so it would be better to have pilots flying the plane safely while spending time with a lady back in the cabin.
Of course, if the lady in question is untrustworthy, she might get out of bed when you fall asleep, and slink to visit the pilots in forward lavatory or back of cockpit, so choosing lady pilots would make sure you are the only male aboard… Quite apart from distrusting her, generally there would be the question of proper attire in airplane cabin, it could be simply awkward to have professional men pilots visiting the cabin to get to lavatory or have their meals having to deal with passengers in states of undress.
But anyway… you might prefer keep your existing wife… even then, it would be a question of dealing with profesionals. If you can get domestic servants and relieve your wife of her household chores, who would you prefer walking around cleaning your bedroom, serving morning coffee to your marital bed and bathtub, walking in on you and your wife/babe in various states of undress – male butlers and valets, or female maids?
Simple answer is…Dont tell the wife you’ve won..Put the money in a nice anonymous swiss bank account,then divorce the wife..and then you wont have to give away half…
if i won the £100million, then i wouldnt buy a private jet..just fly everywhere first class,buy a house in Tasmania and another in the French Alps, so i can get some good ski-ing in. probably a decent car (not a ferrari or Lambo) and do my PPL (H) for fun
Dantheman77Its def not on a par with LH or VS or BA or BD. At least with LH,VS,BD,BD you can sleep on the flight!!! Several people on this forum say UA pilots always sound the most depressed on ATC and compared to all other traffic at JFK our pilot (F/O) sounded as if he wished his life was over and it was hassle to repeat atc instructions!
I admit not all the problems with the flight were UA’s fault, Boeing has a hand in this too – Noisey Cabin from Air Con whine, Overhead Bins not having ceilings to them so stuff is able to fall our in turblance and they dont fit International Standard Size Carry On Luggage!!! My recent Dash 8 Q400 flight had more Overhead Bin Space!
United pilots probably sound suicidal because there pension scheme is now worth nothing, after years of contributions, and probably all the concessions they have been asked to make,so they will have a job.
Just a theory
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