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Northwest's Addition by Subtraction

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.

Northwest cancels flights - just in time for summer

Northwest Airlines Corp (NYSE: NWA) disclosed yesterday that it canceled 10.7% of its flights from Friday to Monday. One of the main reasons for the debacle? The higher-than normal-rate of pilot "sick calls." Northwest said in a statement it was "working to remedy the situation and expects shortly to operate a normal summertime schedule."

I'm sure that made all the delayed travelers so forgiving.

It's a problem that Northwest pilots warned management of in the past. In the concessionary labor contract that was signed last year, the limit on monthly flight hours for pilots jumped from 80 to 90. Wade Blaufuss, a spokesman for the Air Line Pilots Association, told the AP many Northwest pilots are finding themselves flying maximum hours and don't get adequate rest. The Muskegon Chronicle said the airline pilots' union expects this problem to continue throughout the summer.

Northwest emerged from bankruptcy in May with less enthusiasm than when Delta Air Lines (NYSE: DAL) came out earlier last month. Instead, workers have been focused on the $26.6 million in stock awards given to CEO Doug Steenland – while rank-and-file took pay cut after pay cut to keep the company afloat.

Does this mean that pilots are staging a sick-out? Probably, but don't expect them to admit it. It's the summer-time - kids are graduating, people go on vacation and some just need to rest.

Sadly, that's exactly what people who paid for a Northwest flight have been trying to do as well.

Kevin Shult is a writer for TheFlyOnTheWall.com (subscription required).

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Last updated: November 26, 2009: 03:24 PM

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