Northwest's Addition by Subtraction

Posted Jul 3rd 2007 3:30PM by Kevin Shult
Filed under: Bad News, Management, Consumer Experience, Competitive Strategy, Employees

Northwest Airlines (NYSE: NWA) believes that a reduction in flights may restore orderly service after a week of massive cancellations last month. The airline blamed those cancellations on severe weather, air traffic control problems and pilot absenteeism, which was an astonishing 80% higher last month than in 2006. The Air Line Pilots Association's Monty Montgomery told Reuters that it would be more accurate to attribute the cancellations to inadequate staffing during the peak summer travel season.

The number five U.S. airline said last Friday that it would cancel one of its Detroit-to-Frankfurt flights starting July 18th to free up pilots, and would cut its domestic mainland capacity by 3%. "I think this is better than last-minute cancellations, but we would prefer that we have enough pilots to fly all the revenue flights," says Montgomery.

The cancellations come shortly after Northwest's exit from Chapter 11 during which relations between management and workers had been far from stellar – mainly due to the forced pay cuts for many workers. Instead of looking ahead, workers have focused on the millions in stock awards given to CEO Doug Steenland, while rank-and-file sacrificed to keep the company afloat.

At a time when pilot salaries are seemingly continuously cut, executives decided to give themselves a hefty raise. One day, executives will figure out that it was the workers who helped to pull the company out of bankruptcy, and that maybe they should get a raise, too.

Tags: air, airline, bancruptcy, cancellations, chapter 11, Chapter11, flight, fly, northwest, nwa, pilot, union

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Reader Comments (Page 1 of 1)

7-03-2007 @ 8:23PM

zeropoint said...

What a scam....have the courts force employees to reduce wages by 40% and then "reward" the CEO's with the 40% coerced from the workers. This was not a true bankruptcy, but more of a government enforced redistribution of wealth....called ROBBERY!
I cannot in any way blame NWA flight crews with for the mess the airline is in, and as a passenger, I will no longer fly an airline like NWA who treats their most essential employees like crap. Steenland is a cancer on the business and the Board of Directors who actively rewards the spread of his arrogant and selfish demeanor. This is the same company that advised it's employees to search dumpsters for things they need. I hope their mechanics and flight attendants do not follow the company advice when it comes to parts....or food. I'll give NWA only about 3-4 months more of viability unless Steenland leaves and the Board radically resets it's priorities. This airline is NOT cleared for takeoff !

7-03-2007 @ 9:24PM

mr chivo said...

well after having contacted nwa several times this week for various items, the staff is probally the rudest in the industry. just because they dont like there jobs, they should get out and not keep working. i cant imagine why anyone would fly on them, unless if was free. because the staff all has an attitude. and they should have just tanked out. with the managers leading the way....

7-04-2007 @ 7:14PM

tim said...

Northwest employees should demand that the board of directors and CEO step down and a new board with the unions getting a seat on the board

7-04-2007 @ 11:45AM

Brett Holtz said...

I've flown NWA the past few years and I have to agree with some of the negative commentary regarding the service personnel. The flight attendants all seem to have frowns on their faces. The 30-40 percent pay cuts probably have something to do with the situation. Now all you get are sad faces and $2 chips. Flying for me just isn't fun anymore with the screaming kids, flight delays and rude people.

7-05-2007 @ 7:14PM

Jane said...

I really have to agree with the prior comments. I personally know 3 employees of NWA most of them front line employees and the stories I hear about how they treat them is horrific! I live in Minneapolis and constantly hear about problems with this company and jokes about wanting to work for them. It's sad that they don't value customer service who truly can make or break a company as we can clearly see.