A Different Way Of Doing Things

[BoeingBoy]

The linked article is about Northwest reaching a tentative agreement with it's pilots, but what caught my eye was this:

Airline consultant Michael Boyd said Northwest made a smart move by first making itself more efficient before asking employees to give up pay.

"Unlike some of their competition, Northwest after 9/11 went after non-labor cuts first," Boyd said, "and now when they go to their labor unions they can show them in good faith they tried to cut everything else first."

Article

Jim

 

[Justaramper]

But it seems to be that every $1 U can save in labor costs, is another $2 it can spend elsewhere...

 

[Diversion]

"Unlike some of their competition, Northwest after 9/11 went after non-labor cuts first," Boyd said, "and now when they go to their labor unions they can show them in good faith they tried to cut everything else first."

Everything else? How about trying to raise ticket prices to bring revenues and costs in line? They are historically the ones to cause the defeat of attempted fare increases.