North by Northwest
Veteran
MINNEAPOLIS (AP)--Pilots at Northwest Airlines said a deal on concessions could come ``in the very near future,'' putting the airline within striking distance of a deal...
wings396 said:An once the Pilots give in, the Company will be after everyone else for Concessions.....
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wings396 said:Don't be surprised if they look to Farm out Heavy MTC work as well. To stay in line with the others, it will become a game of "Monkey see, Monkey do"
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That is your opinion. Those accross the board increases didn't serve Northwest's individual stategy. A stategy that has given us the highest yield of any major. Still...it won't be a cake walk for consessions. IMHO, the unions will emulate word for word the "investment stategy" of the pilots. "On another note about NWA, please remember that they have not been subject to any of the major LCC's in their backyard YET. At some point in time the LCC's will start to invade NWA's markets and drive fares and yeilds into the basement."This statement shows that "you know not what you speak." This is a reflection of the bewilderment of "why is NWA in a fairly sound position"....repeated over and over again. Ever hear of Southwest? ATA? Frontier? Perhaps AWA? They all have and still do, fly to DTW, MSP, and MEM...for YEARS. NWA has survived their onslaught by sheer offensive defense. Northwest is a firece competitor, it's as simple as that.kiowa said:how can any employee of nwa offer managment their pay when the company has squashed every rate increase the industry has proposed for the last several years. Incredible!
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Wings, do you understand how damaging BK is to a company? Do you understand that companies usually perish in BK. Furthermore, a company cannot "just file" for BK, they have to become insovent (look it up). It appears that many are under the MISTAKEN immpression that U and UAL will somehow end up better off after BK. That is a clear indication of misunderstanding the destruction of a BK filing. Your understanding of the process and the shake out of the industry is flawed.wings396 said:Anything that is in the contract can be tossed out the window with the BK Judge.
This is why I say that BK has become the Legal way for a Company to go on a
Union Busting Spree. If NWA doesn't get AMFA or any others to come to the table, they will threaten to file BK in a Heartbeat. As much as I hate to say it, todays Unions in the Airline industry are near Powerless. Once you are in BK they threaten you to give or else......Yes, Liquidation or S1113 filings with the Judge.
DL will file along with some others in the Future, and why not? With UA & US obtaining Huge cost savings on wages and leases, the ones who don't will be at a disadvantege with higher costs.
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well look at continental airlines. they went thru two c11 and nearly avoided a third trip before gordon bethune took over and reinvented tat airline and look at where they are now. they are a lot healthier today than say us and ua and even delta to an extent. all bk does is allow a company to reorganize while the crditors are at bay and cant do much if anything. usair is in it now because of our incompetent fearless no brains clowns couldnt figure out how navigate their way around the first timeNorth by Northwest said:Wings, do you understand how damaging BK is to a company? Do you understand that companies usually perish in BK. Furthermore, a company cannot "just file" for BK, they have to become insovent (look it up). It appears that many are under the MISTAKEN immpression that U and UAL will somehow end up better off after BK. That is a clear indication of misunderstanding the destruction of a BK filing. Your understanding of the process and the shake out of the industry is flawed.
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SW has been in DTW/MEM for years. Northwest just responds differently than the other majors. In BK the airline only lasts as long as the judge protects it from the demands of it's creditors. When the creditors deciede they want their planes back... it's over.wings396 said:I will address both replys here. First the LCC's may operate in a few of NWA's markets, but that is nothing in comparison of what JB, SWA and AirTran are doing to US. If SWA were to set up shop in MSP or DTW, do you think NWA would be a fierce competitor with their higher costs? Fighting the LCC's in a few markets is one thing, but when they attack from all sides it is not the same. Let's face the fact that ATA and Frontier are hardly a major threat to NWA, or anyone for that matter.
AWA was a weak competitor until the last year as well. Time will tell what NWA does when things heat up.
As for the BK issue, no it is not an ideal situation for any company to be in. It is funny that after the DL pilots gave in, the BK threat went away. Since they were the only union that had to be dealt with, the rest were just handed a 10% cut afterwards. At US the company threatened BK twice, and only went that route after failed talks with the unions. They even went far enough to threaten to Liquidate, once just before the Holidays. In the pask BK may have been bad for your Image, but today you can screw your Employees and creditors all at once.
Several Airline CEO's have stated that the carriers that went the BK route would have a cost advantage over those that didn't. Over at CO, they even tossed the idea around a bit. How about AA being on the brink, and after they intimidated everyone....WAHLA...No more BK talk. I am not saying that I think NWA will file, but they Will threaten to if everyone doesn't want to give. If nobody blinks, it could happen. Look what NWA was talking before the state of MN handed them a few bucks to stay afloat a couple of years ago! It has become an industry of
" Give or Else we will file, and you will take what the Judge decides" Sad, but Very Very True.
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North by Northwest said:SW has been in DTW/MEM for years.[post="189773"][/post]