Northwest puts vendors and suppliers on notice.

NWA has put it''s vendors and suppliers on notice. Northwest informed all vendors that it expects the exact same level of discounts and reduction in costs that will be ,or have been given it''s competitors USAIR, or UAL, in or out of chapter 11. Full messg. on the Company code e phone.
 

Busdrvr

Veteran
Aug 20, 2002
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[blockquote]
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On 10/18/2002 6:00:05 PM Blueskies/400 UpperDeck wrote:

NWA has put it's vendors and suppliers on notice. Northwest informed all vendors that it expects the exact same level of discounts and reduction in costs that will be ,or have been given it's competitors USAIR, or UAL, in or out of chapter 11. Full messg. on the Company code e phone.
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[/blockquote]

That sounds good, but how are you gonna make em? If you can't make your credit card payments, some companies will take 0.50 on the dollar. Do you think they give you that deal if you're making money? If Anderson wants those rates, he can do what Goodwin and Creighton did, bash his own companies stock into oblivion with an overt threat of BK. But as a condition of those lower vendor costs, they usually like to see employee paycuts. Any takers?
 

Busdrvr

Veteran
Aug 20, 2002
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[blockquote]
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On 10/18/2002 8:27:26 PM Blueskies/400 UpperDeck wrote:

Well...where there is one supplier there is usually two or more. The " I can always take my business to the guy who appreciates a good customer" usually works.
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Yeah, true, but don't think the leasors will be in a bargaining mood. It's not the little things that U and UAL will get a deal on, it's those things they signed a long term contract for years ago at a higher rate
 

Flufdriver

Senior
Aug 20, 2002
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Take a 32% pay cut UpperDeck and maybe you can get the same agreements that U got...we payed the price to keep things going. It wasn't and won't be a FREE ride. I bet some of those people in ATL maintenace wish you would take a cut to save some jobs. Moving from ATL to MSP is a culture shock. Can't see many takers!
You have had a sour spot along time now about U filing for BK and getting Deals.
If the economy doesn't turn around soon and we all get some high paying pax, I bet the shoe would be on a different foot if NWA had the hard fortune to get hit hard on the East coast and to be led by poor management. But why should the regular employee not be given a chance to save their job and make a living.
You sound like a typical management person, We got ours, SCREW you guys! I really feel it would be a long trip across the pond with you and your hardcore attitude about COMPETITION trying to survive. Athough it would be interesting to be a fly on the wall listening to you educate you crew members about the industry. I don't hear you popping off how the Tri alliance is unfair to your competitors. Oh, that's OK. Having about 45% of the available traffic available to your system, sounds fair to me.
You worry about your airline UpperDeck and we'll worry about ours.

Declare BK and I'm sure you can work out some better Deals on the property!
 

KCFlyer

Veteran
Aug 20, 2002
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[P]
[BLOCKQUOTE]
[P][BR]----------------[BR]On 10/18/2002 6:13:21 PM Busdrvr wrote[/P]
[P][BR][BR]That sounds good, but how are you gonna make em? If you can't make your credit card payments, some companies will take 0.50 on the dollar. Do you think they give you that deal if you're making money[/P]
[P]----------------[/P]
[P]Which is why the bankruptcy laws are seriously flawed. Accepting .50 cents on the dollar from U and UAL while demanding 100 cents on the dollar from Northwest (or Delta, America, Southwest, etc) when the latest headline I saw was [/P]
[P][FONT size=6][SPAN class=t]Northwest Posts $46 Million Loss[/SPAN] [/FONT][/P]
[P][FONT size=2]is only going to push Northwest, Delta, American, Southwest and others closer to the door of bankruptcy court. BTW... How do you call losing $46 million making money? [/FONT][/P][/BLOCKQUOTE]
 
OP
B
Aug 22, 2002
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You are wrong by saying that I have a sour spot about ANY airline going Chapt.11. I am just over hearing all this talk about how WONDERFUL U or UAL will be AFTER Chapter 11. U, AND UAL both benefited from other carriers going Chapt.11 and eventually Chapt.7. Remember who built the Shuttle? Remember who pioneered those fantastic Pacific, South American, and LHR routes? It is insane to think semi-healthy carriers are going to just sit on the sidelines and allow a competitor to get an upper hand by way of bankruptcy. I feel for all the people at U, UAL ....just like those from Pan Am, Eastern, Braniff.
 

lownslow

Advanced
Aug 19, 2002
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[blockquote]
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On 10/18/2002 6:13:21 PM Busdrvr wrote:
That sounds good, but how are you gonna make em? If you can't make your credit card payments, some companies will take 0.50 on the dollar. Do you think they give you that deal if you're making money? ----------------
[/blockquote]

True - the companies may take 0.50 on the dollar for what is owed them for past services, but they also will have the right to refuse to serve these airlines (U, UAL, etc) in the future, or do so at a new rate (which will not be at a 50% discount, I can guarantee you that). So all NW is demanding is that if they start selling their services to U again at a lower rate than before, that NW gets the same rate. This actually isn't unreasonable, and they shouldn't have that much trouble getting these discounts.
 

nwa400

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Aug 28, 2002
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I can understand you UAL and U guys being sensitive to all comments right now but I dont think B/S U/D was getting on your case. I dont believe that anyone wants bad things to happen to any other airline! We just all want to make a living and feed our families. The guys at NWA want you guys to make it! You are our friends and family! In the tough times we need to stick together and not let any mngmt. split us and cause us to turn on each other. I say GOOD LUCK U & UAL! We all need some of that right now. It is hard to compete with some in BK so is it really bad to want the same deal from all vendors? Good luck to everyone. We will need it!