Great employer...no way

Bostonblue

Newbie
Aug 30, 2002
5
0
www.usaviation.com
Northwest has announced the company is looking for their employees to make concessions (lower salary, cut benefits) to help the company get over the losses they are suffering.
The airline industry is hurting and most airlines have operating losses. Many carriers recently tried to raise the ticket costs by $10 per segment to offset fuel costs. The ticket costs are at a all-time low. The cost of flying from LAX to London is ONLY a few $ more than the cost of paying for parking at LAX...something is wrong with this situation. The public will pay the extra $10 and more to ensure healthy airlines.
Yet. NWAC refused to join the other airlines in trying to off-set fuel costs...NW solution is to take the cost from their employees pay checks. I believe NW has done this several times over the past year or so, this being, refusing to increase ticket prices and allowing the company to lose money and run at a loss.
I have flown NWAC on many occasions in the past however it will be a long time before I fly NWAC again.
Bostonblue
 

ExAF

Member
Aug 20, 2002
90
0
They just can't win. Bostonblue, I am with you on the confusion as to why they would not jump at the chance to raise fairs, but you are the first person I have ever heard say, "I won't fly them any more because they would not raise their prices." You are the exception rather than the rule. I think consumers are elated that NWA did not raise their fares accross the board. I also think their employees are just as confused as you and I are. While I agree with your post, not flying NWA is not going to fix the airline industry or NWA and I think more people will continue to fly than not fly as a result of not going along with the fare increase.
 

NWACSA

Member
Feb 4, 2003
19
0
Let me get this straight: You want the airlines to raise airfares so you can pay more to ensure everyone's survival (supposedly)? Do you book a higher fare than the lowest available as well? Because NW will not raise fares, you will no longer fly them...suit yourself but I find this hard to fathom. And because NW doesn't raise it's fares and is asking (like EVERY MAJOR AIRLINE IN BUSINESS RIGHT NOW) it's employees for sacrafice...it's a bad employer. ?? 1) NW hasn't asked for any amount of money yet (not that I don't expect them to) 2) Contracts for some unions are open in the next couple months and it is reasonable to assume that they will seek some changes in work rules...there are some I will readily vote to change.

The public wants cheap fares and will not pay high fares like they used to...that is one of the biggest problems facing airlines right now. The "Wal-Mart" carriers will likely not follow in a fare hike...making NW, AA, CO, DL and UA more expensive and giving more of the market to Southwest, AirTran and the like.

NW is still sitting on alot of cash (borrowed money though) and is probably in the best position on fuel hedging this year of any of the "big boys". If the $10 fare hike would give UA another month or week of life...I say I'm glad NW didn't follow along...UA operating in bankruptcy for the next year and a half (their plan) will do nothing positive for this industry or the employees involved (although I feel for the UA employees).

That being said...it now appears NW is going to add a fuel surcharge to many fares...something ATA attempted to do over the weekend...this hidden increase isn't exactly a fair way to play IMHO but it seems to be the way of doing business over the last few years.