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Coral Gables, FL

Mar 25, 2008

Northwest Airlines Must Cut Costs.

“We're in the process of aggressively responding”

In recent weeks, the carrier's stock price has tumbled as a highly anticipated merger with Delta Air Lines looks increasingly uncertain. via Planenews Aviation News Portal

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Walk the Talk
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#1
Mar 25, 2008
 

Judged:

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I dispute the relevance that a merger and cutting to much more in the way of costs will benefit NWA. Don't get me wrong here folks, I think every company has a responsibility to have a solid game plan for the unexpected. NWA however has planned for many of these so called unforseeable circumstances. The company has planned for fleet replacement,found controls to costs thru bankruptcy, initiated outsourcing to unprecedented levels, cut back flights and staff on seasonal rotations and is working to marginalize fuel costs as many other companies are.
Face it, EVERY comapany has fixed costs and to blame an employee group or fuel cost as an expense is true but you must pass along these costs in your product offering no matter what it is. I wonder how many people are aware what a ticket cost 20 years ago? A few exceptions but they remain almost the same. Employee wages are at 1991 levels and still to high? NWA has nearly reached the saturation limit with it's staff reductions before serious safety and training considerations will need to be addressed. They reduced their payroll by 50% thru bankruptcy.
With that said, remaining the same size as it is currently may be the best formula to reduce exposure to higher fuel costs, an uncertain economy and the ability to remove aircraft from service and to bring them back quickly if situations arise that change the marketplace. IE a liqudation of a competitor. Merging with Delta is a farce in my opinion except to protect stock speculators from an unwise investment. Tough luck. The markets are tough enough and if we truly have an open "deregulated" environment then let the dust settle and see who is left.
"WHY" the oversight on an industry that has multiple competitors already? The airlines will remain to be a shadowed industry for the Feds as the tax gains will be too large to lose. Better then 25% taxes per ticket and you wonder who gains. Not the airlines when they traditionally make 1-3% return on investment.
Merger?- Let them with not one restriction or reregulate the industry.
Good luck America, I feel we have become truly conflicted with what we want, how we get there and who is expected to pay the free ride. Maybe we should do it the old fashioned way and work for what we get and the rewards of a well run company are put back into your product with a dividend paid on performance and not stripped away by a speculator who demands divesture at a determined point.
NWALEAD 11
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#2
Mar 25, 2008
 

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Cut Costs? Get rid of those good-for-nothing SCABS and their manager friends in tech ops! Tha would be a good start and raise moral as well as make the airline safer while also cutting costs.
T Hohenberg
AOL
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#3
Mar 27, 2008
 
cut the excutives Pay they the ones living high of the Hoag !!
that would be the right thing to do !
pndog
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#4
Mar 28, 2008
 

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Force them to auction block now!
NWALEAD 11
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#5
Mar 28, 2008
 

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Chapter 7!
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