Every Nickel Saved...helps!

[North by Northwest]

Northwest Pulls Pretzels to Cut Costs



Friday May 27, 12:45 PM EDT


MINNEAPOLIS, May 27, 2005 (AP Online via COMTEX) -- In the latest cost-cutting move by a struggling airline carrier, Northwest Airlines Corp. is nixing pretzels on its domestic flights, months after it stopped serving free meals.

Beginning June 9, coach passengers who want anything other than soda will have to pay for it. They can get a 3-ounce bag of trail mix for $1. Northwest Airlines Corp. spokesman Kurt Ebenhoch said Friday the airline has no immediate plans to stop offering soda for free.

Ebenhoch said pulling the free pretzels should save $2 million a year. Northwest, the nation's fourth-largest airline, lost $458 million in the last quarter alone. Northwest operates more than 1,500 flights per day worldwide.

Shares of Northwest rose 5 cents to $5.52 in afternoon trading on the Nasdaq Stock Market, where they have traded in a 52-week range of $4.20 to $11.83.

 

[ExAF]

OH NO! No more "Pilot pellets?" How will we survive?

 

[Flying Titan]

This strikes me as one of those "penny wise, pound foolish" moves.

On the surface, I'm sure someone at NWA did the math and said something like, "This costs us $2M, nobody gets that excited about pretzels anyway, lets cut them and save the money."

Beyond that, however, I would ask:
- Will this cost NWA revenue by providing and undesirable "el cheapo" image? If the fares are the same, will some passengers say they don't want to fly an airline that's so cheap, or in so much trouble, that it can't afford pretzels. Contrast this with CO which is still serving meals on many of its flights.
- Will this add cost/responsibility for the cabin crews as people bring on their own snacks? I'm sure that these carry-on snacks won't be in neat little 1oz. or 2oz. bags. I would anticipate more Doritos, potato chips, etc. on the seats, the floors, and more wrappers to be cleaned up. More may also be inclined to bring on hot foods with their accompanying mess and aromas (gotta love the burger/fries, chinese, mexican, and italian food ambiance - all within a couple of rows of each other!) I'm sure this will do wonders for cleaning costs and turnaround times.

NWA's announced it. It will happen, but count me as a skeptic who thinks this will prove to be penny wise, pound foolish in the long run.

 

[Red Tail Bear]

This strikes me as one of those "penny wise, pound foolish" moves.

On the surface, I'm sure someone at NWA did the math and said something like, "This costs us $2M, nobody gets that excited about pretzels anyway, lets cut them and save the money."

Beyond that, however, I would ask:
- Will this cost NWA revenue by providing and undesirable "el cheapo" image? If the fares are the same, will some passengers say they don't want to fly an airline that's so cheap, or in so much trouble, that it can't afford pretzels. Contrast this with CO which is still serving meals on many of its flights.
- Will this add cost/responsibility for the cabin crews as people bring on their own snacks? I'm sure that these carry-on snacks won't be in neat little 1oz. or 2oz. bags. I would anticipate more Doritos, potato chips, etc. on the seats, the floors, and more wrappers to be cleaned up. More may also be inclined to bring on hot foods with their accompanying mess and aromas (gotta love the burger/fries, chinese, mexican, and italian food ambiance - all within a couple of rows of each other!) I'm sure this will do wonders for cleaning costs and turnaround times.

NWA's announced it. It will happen, but count me as a skeptic who thinks this will prove to be penny wise, pound foolish in the long run.

[post="273620"][/post]​

Ahh the power of the pretzel. Imagine that this one little food item could have such a negative effect by removing its presence from an aircraft. Amazing!!

 

[FWAAA]

This ain't nothin.

AA pulled pillows off domestic flights for an announced annual savings of less than $700k.

As if running out into the street for nickels is gonna save airlines plagued by domestic overcapacity.

It ain't the costs; it's the revenues, stupid. Eliminate some of that domestic overcapacity and watch the revenues return.

 

[Flying Titan]

Ahh the power of the pretzel. Imagine that this one little food item could have such a negative effect by removing its presence from an aircraft. Amazing!!

[post="273629"][/post]​

Of course, there's another way to look at it, too. What if NWA substituted their "power" pretzels with a snack that does have some "power?" Something people actually want or would talk about. Blue potato chips come to mind. Still just a bag o' chips really, but somehow seen as "chic!" Go figure.

In the overall scheme of things, these are very small expenditures but this definitely creates a perception (i.e. marketing) problem. Just look at the fun CNN had with this story this morning. It's one thing for the anchors to report the story - but when they start making jokes about you, that's what people remember. Can't wait for Leno tonight.

 

[Bigsky]

The preztels cost more than just their face value cost. On many occaisions, I've gone to the back of the jet after a full plane of passengers has deplaned and found it to be an absolute disaster. Garbage everywhere including the notorious pretzels ground into the floor, stuffed into the seat back pockets, or spit out onto the seat by a toddler. Guess what? Cleaning up the pretzel crap cost money. Alot of money. Eliminating them is not going to save the airline but a good move by NWA.

cheers

bigsky

 

[North by Northwest]

" If the fares are the same, will some passengers say they don't want to fly an airline that's so cheap, or in so much trouble, that it can't afford pretzels. Contrast this with CO which is still serving meals on many of its flights." I feel your pain...I truely do. However, the difference in CO. and NWA , if there is so much as an economic sneeze CO will be facing serious cash issues immediately. NWA is in this for the long haul...yep, JUST like "Cher" and surviving the nuclear blast...cockroaches! These are some tough, hard as nails, schrewed dealing operators at the "Fortress" MSP...and that's a GOOD thing!

 

[Flying Titan]

NxNW -
I'm not certain that this will be a bad move. As BigSky points out, there may be an upside on turn times that could outweigh the potential downside problems that I mentioned.

As for staying power, I think you're right, NW is in a stronger position than CO and would probably weather a further downturn better. I have always admired NW's decision to hang on to their DC-9s over the last decade and re-furbish them rather than running out to spend a fortune on planes that weren't necessarily a whole lot better. No other major made such a decision and I think it has paid off for NW. The "pretzel" decision may pay off, too. However, if CO hangs on, I find it difficult to believe that its commitment to provide more amenities and a higher level of service won't pay off in the long run.

Time will tell.

 

[North by Northwest]

"However, if CO hangs on, I find it difficult to believe that its commitment to provide more amenities and a higher level of service won't pay off in the long run. "
I love'em!

 

[coolflyingfool]

People have bagged on SWA for years for not serving any thing other than snacks for free. Now the SWA free snacks are more than some airlines. For $2 million, I say keep the pretzels and add $.02 to the cost of the tickets. Just my thoughts...........

 

[mrman]

Have the people who make these decisions ever flown WN. WN offers pillows, magazines, free drinks and booze in coach for its FF, snack boxes on longer flights and of course peanuts.

 

[North by Northwest]

I say this....I just got off of a trans-con and the plane was spotless in 10 min. vs. smashed pretezels all over the floor. That alone got my vote. I say pretzels be gone...FOREVER! Free food again when we can afford it would be nice.

 

[Bigsky]

Then again there's still plenty of free food. Just flew the A330 to AMS. Great flight, excellent seat (gotta like the seat massager), fabulous FAs, and very fine cuisine. I was very pleasantly surprised. It will long time before we see the greyhound express (WN) offering that kind of service.

Go Big Red, bring on the dreamliner!!!! Any of those on order LCCs?


cheers

bigsky

 

[North by Northwest]

This was bound to happen. Josie Public demanded cheap rock bottom prices...they got'em, along with the level of service that those prices demand. They think airline companies are going to fly them for free and then feed them along the way. NW made a smart decision...but I question the motive behind making an announcement like this. I am sure there is an alternative motive...concessions and public opion. Yes Bigsky, our World Biz Class is pretty dam off the charts fantastic. Can't wait to see it on a Dreamliner!