United Eyeing Nwa Stronghold

[North by Northwest]

And the competition to Nippon heats up! AMR announces DFW, ORD-Osaka, Nagoya. Will be interesting to see NWA's response. I give it about 2 weeks MAX before we hear what it is. I have heard that NWA intends to be the US launch customer for the 7e7, we will hear how many in the next 6 months.

 

[WorldTraveler]

Did I at all say that the present problems in the industry are why NW and CO are doing well today? NO!

NW and CO learned to run airlines as a result of their flirts with death. CO took the strategy of buying airplanes like they are going out of style and is a profitable airline, has a very stretched balance sheet, and is well regarded by passengers and critics. NW, on the other hand, hardly wants to spend the money on airplanes but has alot more cash to show for it and is still profitable. There's a lesson in each approach.

 

[North by Northwest]

Guess that "United Pacific yield premium" turned out to be fantasy. NWA Revenue rose 13 percent to $3.05 billion from $2.69 billion, boosted by the strength of its international business to the Asian-Pacific region and wider yields. Northwest said passenger revenue per available seat mile -- a key industry metric -- rose 6.8 percent to 9.64 cents.

The results were better than Wall Street expected. Analysts surveyed by Thomson First Call had been expecting a loss of 81 cents a share and revenue of $2.89 billion.

 

[North by Northwest]

NW and CO learned to run airlines as a result of their flirts with death" World, that simply is NOT TRUE in NWA's case. As previously stated, NWA had over 40 straight years of profits. Unpresidented in the airline industry prior to SWA. The "flirt with death came from a Leverage Buyout". This occurred BECAUSE the airline was so well managed, along with high vauled assets. NWA has ALWAYS been one of the best managed (financially) airlines in the world. Not everyone may like the fact that NWA did not run out and buy BILLONS of dollars worth of new aircraft when it was the fad, but they can appreciate the sound, steady operation that it has demonstated for 77 years.

 

[JetClipper]

I read a Continental press release today urging the DOT to approve their application for daily Newark-Beijing and –Shanghai nonstop services. The release states that the New York area is “the largest origin-and-destination point in the United States for China travelâ€, and that, if approved, the Beijing services would begin in March 2005, followed by Shanghai in March 2006.

I agree with other posts underlining the value of Northwest’s NRT hub. However, if even half of the new route applications are approved, they represent a fairly significant challenge to that operation, with CO’s routes possibly being the biggest threat. If approved, they would no doubt take passengers away from both airlines’ New York-NRT nonstops, as well as NWA’s connecting flights to China. In addition, Continental has consistently refused to allow Northwest to put their code on CO’s U.S.-Asia nonstops; if this continues, there would be no upside to NWA whatsoever if Continental were awarded these routes.

This is not the only danger on the horizon, either. With the opening of it’s fifth runway later in the decade, Haneda, Tokyo’s “downtown,†domestic-only airport (for now), will begin offering international flights to other Asian countries. Once that happens, how many Tokyo residents will want to endure the hour-and-a-half drive to Narita to catch a flight on a U.S.-owned carrier when they can take ANA or JAL from Haneda?

The bottom line is that the competitive landscape is changing, perhaps sooner and more dramatically than NWA realizes. While NRT will no doubt be an asset for the foreseeable future, I think it would behoove Northwest to begin reviewing their network and supporting fleet plans sooner rather than later.

 

[North by Northwest]

As stated PREVIOUSLY....Northwest will RE -instate it's non-stops when appropriate for Northwest. That includes it's previous non-stops to Beijing, HK, Seoul. Our path has proven right where others have failed, it's as simple as that. That path is to maximize Tokyo along with non-stops. Tokyo is by far the most profitable business center in ALL of Asia. The premium traffic into and out of Tokyo dwrafs the rest of Asia...that includes ALL of the tourist traffic from China and the rest of Asia combined. Japan is the gold mine and will be for sometime to come. China still has a very long way to go before they can even remotely generate the level of premium traffic that Japan offers. It's all about the dollars NOT how many non-stops one can fly. "Doug Steenland, president and chief executive officer of the Minnesota-based company, spoke at a breakfast gathering at the Oregon Convention Center. Steenland reiterated the company's commitment to its new Portland-Asia service, begun in June, and explained why he thinks Northwest can weather changes that are pressing some of the biggest air carriers into bankruptcy protection.

Northwest, the world's fifth-largest airline, announced earlier this week that it lost $46 million in the third quarter. The loss was larger than that posted by Continental Airlines, but substantially less than the parent of American Airlines, which lost $214 million in the quarter, and Delta, which lost $651 million.

Steenland said Northwest relies less on domestic passenger revenue than other carriers, sparing it from some of the head-to-head battles with cut-rate carriers such as Southwest Airlines and JetBlue. In 2003, Northwest received 56 percent of revenue from domestic travel, and 44 percent from cargo operations and international routes.

The company just negotiated $300 million in wage concessions from employees -- mostly from pilots -- and is expanding service into the high-demand market of China. Northwest's 13 weekly flights to China are planned to grow to 20 by the month's end.

 

[JFK777]

I doubt the US government would let ANA & JAL fly across the Pacific to the USA if We didn't get some reciprical landing rights at Haneda. Also, JAL & ANA connecting traffic to other Asian points would be severly limited since all those flights are at NRT. Even if Haneda did get some international Pacific flights this would supplement Narita. To an airline like AA, those flights end in Japan, Haneda brings an interesting twist; it could offer flights to a more convenient airport.

This reminds me of the 1970's in the UK when the British tried transfering some flights to Gatwick with limited results. That established the Heathrow duopoloy of Pan Am & TWA, now UA & AA. All new airlines serving London( from all over the world) had to fly to Gatwick from 1977 until 1991. The british did away with the law for everyone, except the yanks, so all kinds of airlines from Virgin to Cathay Pacific to Air New Zealand moved to LHR. The LHR saga continues to this day for the yanks. I hope the Japanesse study the history of this twisted policy from a british Labor Government and leave things alone. The policy in the UK stinks and doesn't need to be followed. Narita isn't perfect but its better then many other airports in industrialized countries.

 

[North by Northwest]

We should have RE nounced Bermuda II a LONG time ago! They need access to the U.S FAR more than we need it to England. However, you can thank the family relationship between the two for this loser bi lateral. Dear GOD, when will we wake up and put our own house in order before trying to run the world?

 

[Just Plane Crazy]

Or Northwest can start a massive ad campaign in overseas markets explaining how Northwest will honor all United tickets in case of United's possible operating difficulties due to upcoming bankruptcy proceedings.

After all, NWA is not known for playing well with the other kids in the playground.

I'd wouldn't be suprised to see NWA poach the UAL pacific employees. "Wanna future?"

[post="189254"][/post]​

Don’t forget that the Members of the STAR Alliance would take care of UA’s passengers. They don’t need NW to help out. In addition with their alliance UA is a much stronger airline on the Pacific routes than NW.

Nonstop's to

Japan (ANA),
New Zealand (Air New Zealand),
Singapore (Singapore Airlines)
Korea (Asiana)

And with Connections:
Thailand (Thai Airways)

 

[WorldTraveler]

N by NW,
Sounds like you almost enjoyed the LBO years. Does it occur to you that you might be making alot more money and flying to alot more places if NW had not nad to be servicing the LBO?

I know NW has long been a well-run company but the company's resources were clearly strained as a result of the LBO. If it was so successful, you would have seen it repeated elsewhere in the airline industry - and it hasn't been. And NW's profitability has not been that much better than other airlines - legacy and LCC.

You are really uptight, man. I've told you I have a respect for NW. Being able to critically examine even our most loyal relationships is something every mature person should be able to do. Try it some day.

 

[North by Northwest]

N by NW,
Sounds like you almost enjoyed the LBO years. Does it occur to you that you might be making alot more money and flying to alot more places if NW had not nad to be servicing the LBO?

I know NW has long been a well-run company but the company's resources were clearly strained as a result of the LBO. If it was so successful, you would have seen it repeated elsewhere in the airline industry - and it hasn't been. And NW's profitability has not been that much better than other airlines - legacy and LCC.

You are really uptight, man. I've told you I have a respect for NW. Being able to critically examine even our most loyal relationships is something every mature person should be able to do. Try it some day.

[post="194479"][/post]​

I'm uptight because I don't agree with your point of view? I don't know why you would think that I enjoyed the LBO when it almost descimated the airline. Cosmo presented phony numbers to make it appear that United had a higher yield than NWA and I took issue with it. Moreover, you stated that NWA should follow the path of United via the non-stop route. I simply pointed out that United should be emulating NWA accross the Pacific ...perhaps to avoid extiction. Northwest is a ruthless survivor... it has had to be. Pan Am was a far more ruthless competitior than Ual has ever been. When you have had to survive from competing with the best, from the beginning of aviation, it teaches you some good skills. It appears that those struggling to survive would do will to learn a few things from an old pro. This... simply is a matter of history.

 

[Busdrvr]

N by NW, I think you need to get a grip and a clue. Cosmo has access to the real numbers. It's his JOB. to somehow think that heating meals and mixing drinks would give one more insight into the real revenue picture in the pacific is delusional

 

[NWA/AMT]

N by NW, I think you need to get a grip and a clue. Cosmo has access to the real numbers. It's his JOB. to somehow think that heating meals and mixing drinks would give one more insight into the real revenue picture in the pacific is delusional

[post="194512"][/post]​

Yet he declined to provide those numbers to back up his statements.

As for NWA's numbers in the Pacific, they are available to all employees daily, even those who heat meals or mix drinks, fix airplanes, load bags or take tickets. So are airline history books, and NWA figured out long ago that the race isn't a sprint but a marathon and runs accordingly.

 

[Busdrvr]

Yet he declined to provide those numbers to back up his statements.

As for NWA's numbers in the Pacific, they are available to all employees daily, even those who heat meals or mix drinks, fix airplanes, load bags or take tickets. So are airline history books, and NWA figured out long ago that the race isn't a sprint but a marathon and runs accordingly.

[post="194515"][/post]​

Does NWA give you UAL's numbers? I'll say it again, Cos HAS THE NUMBERS. IT'S HIS JOB. And NWA actually figured out long ago that if they could get AMFA on property, they could man the airline with significantly less mechanics. They also figured out (rightly) that serving minot would be more lucrative than serving L.A.

But just between us, I'd think after the bailout from minnesota with the lawyers on the steps of the courthouse to file the BK papers, you'd realize that timing is the factor that has had the most influence of all.

 

[North by Northwest]

"But just between us, I'd think after the bailout from minnesota with the lawyers on the steps of the courthouse to file the BK papers, you'd realize that timing is the factor that has had the most influence of all." Obviously you (ual) weren't worth the time or effort for the state of Ill to save. More importantly, has Ual re-paid the money to the state of Indiana yet? Terrible loss to build such a huge hangar with state funds. then abondon it. Pay your bills @ Denver/ SFO airports then worry about NWA and Minn. Just post the link for Cosmo's #s and be done with it. PUBLISHED information disputes the "cooked" numbers.
It clearly disturbs you Bus ...greatly, to see Northwest survive where your Ual has failed ? Am I supposed to be insulted by your "heat a meal and serve a drink" comment? Is that code for Flight Attendants are dumb? What does your comment about AMFA mean? Do you want to challenge my intellect? Think twice before you embarass yourself again for the 20th time on these boards. Let's face it. Most people's like yourself, hve lives that do not work well for them. Their personal relationships, careers and inner most feelings reflect frustrations and disappointments . The tensions and unhappiness from conflicts, depression and feelings of low self esteem last for lifetimes and inhibit people from reaching their full potential. The lack of confidence and feelings of inadquacy (be it physical or mental) trap people in "lives of quiet desperation". They become bitter and condecending. It doesn't have to be this way.

Please remember one other thing...Norhtwest was flying LA-Toyko before United was even heard of outside of minot. That reminds me, isn't Ual headquartered in the Mid-West? Or have they been reduced to second tier status there as well? The Mid-west has been a strong. reliable source of revenue for Northwest for decades. Mid-Westerners prefer reliable companies with a good business sense. So yes. we love Minot and all the cities and towns near it. Thank you for the compliment. Just between us. think twice before mentioning that nasty word "BANKRUPTCY" in ANY context. It will open an embarrassing can of worms for ya.