Steenland's response to employees today (bold print is my own handiwork):
June 29, 2007
Dear Co-worker:
As everyone knows, we’ve had a painful week as we have had to cancel flights, inconvenience customers, and put an extra burden on all our co-workers. We are working hard to solve this problem and we all need to work as a team to make sure this never happens again. It’s important that we understand the facts and the steps being taken to address the issue.
When we first developed our 2007 business plan, we expected to increase capacity by 3.7 percent year-over-year compared to 2006. We planned this level of growth to secure jobs, take advantage of new opportunities created by our successful restructuring, and increase the profitability of the airline.
In the spring of this year, recognizing that summer weather might be challenging and that this would be the first summer operating in our post restructuring environment, we took steps to ensure that we had adequate pilot staffing. Specifically, we pulled back on some of our planned growth to create additional pilot reserve hours for the summer months. In fact, we entered this summer with the highest level of pilot reserves in Northwest’s recent history.
Since October 2006, we have been retraining our furloughed pilots so that they can resume flying and we can grow our pilot staffing. Our training facilities have been full to capacity and we have offered every furloughed NWA pilot the opportunity to return to Northwest.
In May, Northwest completed 99.1 percent of its scheduled flights which put us near the top of all network carriers in completion factor. This excellent level of operational performance suggested our plan for the summer was a sound one.
Why then has NWA’s completion factor in June been so different from May? Several factors have contributed to the June results. Among the most important are:
Weather: We had two major East Coast storms in early June and one in the Midwest that significantly affected our operations and caused us to use up many pilot hours. This week’s storms on the East Coast and Wednesday’s ground stops in Detroit further impacted our operations and reminded us just how disruptive bad weather can be during peak travel summer months. Our competitors were also affected. For example, yesterday, Delta cancelled 200 flights.
Increasing Congestion: As many of you know, the East Coast is reaching the saturation point for aircraft operations. Even on good weather days, we are incurring delays into the large East Coast cities and this is getting worse by the month. These ATC delays also use up more pilot hours than expected.
Absenteeism: Pilot absenteeism increased by 80 percent in June 2007 versus June 2006 and by 40 percent in June 2007 versus May 2007. These absenteeism increases primarily involved a minority of NWA narrow-body pilots.
The cumulative effect of these factors caused the airline to have a shortage of pilots for the latter part of June. This left us no choice but to pre-cancel flights so that we could get the airline back to normal.
Some have suggested that if NWA had started retraining its furloughed pilots sooner the June problem could have been avoided. Using the perfect vision of 20 – 20 hindsight, that clearly would have helped. If our crystal ball had been perfect, we would have recalled pilots sooner and not expanded the airline as much in 2007. However, we entered the summer with reasonable expectations that the schedule would be operated reliably, for the following reasons:
Pilot reserve hours for the summer months were at an all time high;
The May 2007 operation realized a 99.1 percent completion factor; and
The June 2007 completion factor would have been in line with that of prior months if pilot absenteeism had remained at the same level as June 2006. The June 2007 pilot staffing plan did not anticipate the increase in absenteeism over June 2006.
So what are we doing to address this issue? Here are some of the steps we are taking:
Effective July 18, we will cancel our Detroit – Frankfurt second frequency which is flown with 757 aircraft, thereby creating additional pilot hours.
In August we are further reducing the schedule by 90 flying hours per day (a reduction of about 3 percent of domestic mainline capacity) to create additional reserves and to reduce the monthly maximum hours that our pilots will be asked to fly that month.
We are continuing our efforts to increase the number of NWA pilots. Our training facility will remain full. We will look to get all remaining furloughed pilots back to work and we will initiate new pilot hiring, if necessary.
Recognizing that summer thunderstorms and ATC congestion are inevitable, starting in August, we will also modify the way that some of our pilot trips are scheduled, especially to and from the large East Coast cities, so that when bad weather and ATC delays do occur, the impact on the entire system can be minimized.
We have also instituted some short-term solutions to mitigate cancellations. These include relaxed travel restrictions, efforts to ensure quick re-accommodation of our passengers, and multiple efforts to contact our customers about the cancellations.
The past week has been a very difficult time for NWA, especially for all of you who have been dealing directly with our customers, who are understandably frustrated. I am particularly grateful to our ground personnel, reservations agents, pilots and flight attendants who have been working hard every day during this challenging period. Thank you for your professionalism, hard work and commitment to meeting our customers’ needs.
Please be assured that we are taking every measure to resolve the problem and return Northwest to normal operations. To accomplish this, we all must continue the commitment we have shown during our 20 months of restructuring and remain focused on our shared goal of making Northwest one of the world’s most successful airlines.
Sincerely,
Doug Steenland