Northwest To Stop Magazines To Cut Costs

Jan 14, 2004
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Northwest to stop supplying magazines to cut costs

Associated Press

MINNEAPOLIS - In yet another effort to cut its non-labor costs, Northwest Airlines Corp. has stopped stocking Newsweek, Glamour and other magazines on its planes and in its passenger club lounges.

Cutting magazine subscriptions out of the budget will save the airline $565,000 in the coming year, said Northwest spokesman Kurt Ebenhoch.

World Traveler, Northwest's monthly in-house magazine, will still be available.

"Give me a break," said Troy Feldpausch of New Boston, Mich., who often travels on Northwest as a software training consultant. "This is unbelievable (and) ridiculous. I guess I'll just bring my own magazines."

Northwest, the nation's fourth-largest airline, lost $458 million in the last quarter alone and has been struggling with high fuel costs and tough labor negotiations.

Last week, Northwest said that on June 9 it will drop complimentary pretzel snacks on all domestic flights.

Terry Trippler, a Minneapolis-based travel analyst, said Northwest might be making a public relations blunder.

"There is absolutely a point where you can take too much away from the customers," Trippler said.

Northwest is also proposing $2-per-bag fee for skycap service. About 15 percent of Northwest passengers use the skycap baggage-check service where it is available. The skycap service handles about 4 million bags a year.

United Airlines has had success with its recent fee for skycap baggage checks in Seattle, so Northwest is running a trial fee in that city this month to see how passengers react.

Northwest will also try to assess its possible savings and the impact the fee has on baggage checks at self-service terminals and ticket counters.

Historically, skycap baggage checks have been free, but it's customary to tip the baggage handlers.

"I don't think it will work," said Bobby De Pace, president of District 143 of the International Association of Machinists, which represents most Northwest ground workers. "People won't pay."

If it does work, he said, it would cost skycaps their tips.

American Airlines, which ditched all but in-house magazines in the fall of 2001, also has been experimenting in Seattle with charging $2 per bag for curbside bag checks.
 
North by Northwest said:
Cheap tickets pay for TRANSPORTATION...that's what folks are going to get.
[post="275188"][/post]​
Agreed, Im pretty certain Grey Hound does'nt pass out free pretzels, peanuts, or pop. the traveling masses better get used to it.
 
These people want cheap tickets...premium service from employees that are paid walmart wages with NO benefits. Well...reality check folks. Ya get what ya pay for! Don't like it... ride the bus. Time to NEVER EVER work domestic again. NxNW out!
 
Too bad you're not really competing against Greyhound. You're competing against B6 and a host of LCCs that are now offering more amenities than NWA on domestic flights (newer planes, leather seats, snacks and those cute little TVs) - and legacy carriers that offer the same or more on domestic and international routes.

I can see the new ad campaign now...."Fly Northwest, you'll get Greyhound service - and like it!!!!"
 
Flying Titan said:
Too bad you're not really competing against Greyhound. You're competing against B6 and a host of LCCs that are now offering more amenities than NWA on domestic flights (newer planes, leather seats, snacks and those cute little TVs) - and legacy carriers that offer the same or more on domestic and international routes.

I can see the new ad campaign now...."Fly Northwest, you'll get Greyhound service - and like it!!!!"
[post="275765"][/post]​
Northwest has the least competition from LCC's of all the Legacies. Wn has been in DTW for years with very little success and had IND taken right out from under their noses. MSP has very little LCC competition also. As far as amenities go, NWA still offers complimentary (non-alcoholic) beverages in coach and free beverages including alcohol in F/C. They offer snack boxes for a minimal charge which are alot better than those pretzels I might add. People have been bringing their own drinks/snacks/reading material on board long before NWA did away with them and will continue to do so. IIRC Northwest flies the same aircraft as B6 so they're not that much newer. As for that host of LCC's, (Jet-blew) is like the Red Headed step child of WN. They're still in the family (LCC's) but they'll always be 2nd best. :lol: :lol:
 
Red Tail -
You are absolutely right about NWA's limited exposure to LCCs, but I would hardly consider that a permanent situation. Over the long term, NWA will be no more immune to this competition than any other carrier, at least domestically.

As for NWA's aircraft, I have stated on more than one occasion that I thought NWA was smart to keep its planes during the 1990s when everyone else was out there making huge new aircraft orders. In terms of debt and ownership costs, this has probably been a big advantage - at least until the recent fuel spikes. I would have a hard time placing a wager that I would be on a newer aircraft on NWA than I would on JetBlue, AirTran or SWA. Fact is, Northwest's DC-9 fleet is probably as old or older than half of the passengers. IIRC, the Airbus narrowbodies were an early buy for that type, making many of them about 15 years old now. Not that there's anything wrong with that, but hardly a competitive advantage. The 30" seat pitch on those DC-9s doesn't help either.

As for JetBlue's competitive position, well, the red-headed step-child is running an 86%+ load factor for the year and is still managing to turn a profit - hardly what I would consider a weak competitor. In fact, JetBlue is commanding fare premiums over legacy carriers in some markets, particularly NYC to Florida. Clearly, it's a pretty good looking red-head to some folks.

Which brings me back to the original point, that the attitude exhibited by NxNW and others will only make the problem worse. Pay Greyhound fares, expect Greyhound service. If the LCCs are offering better service/product - and the perception of a better fare - it's ballgame over. LCCs win, legacies lose. This is not a winning strategy.
 
:up:
Flying Titan said:
Red Tail -
You are absolutely right about NWA's limited exposure to LCCs, but I would hardly consider that a permanent situation. Over the long term, NWA will be no more immune to this competition than any other carrier, at least domestically.

As for NWA's aircraft, I have stated on more than one occasion that I thought NWA was smart to keep its planes during the 1990s when everyone else was out there making huge new aircraft orders. In terms of debt and ownership costs, this has probably been a big advantage - at least until the recent fuel spikes. I would have a hard time placing a wager that I would be on a newer aircraft on NWA than I would on JetBlue, AirTran or SWA. Fact is, Northwest's DC-9 fleet is probably as old or older than half of the passengers. IIRC, the Airbus narrowbodies were an early buy for that type, making many of them about 15 years old now. Not that there's anything wrong with that, but hardly a competitive advantage. The 30" seat pitch on those DC-9s doesn't help either.

As for JetBlue's competitive position, well, the red-headed step-child is running an 86%+ load factor for the year and is still managing to turn a profit - hardly what I would consider a weak competitor. In fact, JetBlue is commanding fare premiums over legacy carriers in some markets, particularly NYC to Florida. Clearly, it's a pretty good looking red-head to some folks.

Which brings me back to the original point, that the attitude exhibited by NxNW and others will only make the problem worse. Pay Greyhound fares, expect Greyhound service. If the LCCs are offering better service/product - and the perception of a better fare - it's ballgame over. LCCs win, legacies lose. This is not a winning strategy.
[post="276009"][/post]​
Titan,
I did'nt say that NWA's limited exposure was going to be permanent, my point was/is that the LCC's have been around for quite a few years now and have'nt
had much success getting into NW's Hubs. NWA will defend its turf with a vengeance, which I believe is the reason why they (LCC's) have had little success.

I don't believe NW has newer aircraft than B6. What I said was that they "also" fly
the same types of aircraft as B6. Sure we have older models but we also have new ones A319's, A320's, 757-300's,A330's. And 787's on order. You can't expect an Airline the size of NW to change overnight. NW is well aware of the need for more fuel efficient aircraft and are moving forward to meet those needs.

While you were checking load factors, did you happen to check NW's load factors? Because I'd be willing to wager that they're right up there with B6's particularly on the DTW-FLA routes. Clearly its a pretty good looking RED TAIL to some folks.

As for the LCC,s offering better service/product ballgame. Would'nt you agree that they (LCC,s) need to be in the ballpark (DTW,MSP) in order to play ball in the first place. If B6 decides to go head to head with NW then its like the old saying goes " For its ONE, TWO, THREE strikes your (B6) OUT at the old BALL GAME. :up: :up: :up:
 
Red Tail -

Again, my points are relative to advantages in attracting domestic traffic.

Aircraft - Last time I checked, NWA had a few more DC-9s in the fleet than narrowbody airbus aircraft, meaning passengers are more likely to end up on a 30 year old plane with this airline than a new(er) one. JetBlue, Southwest, and AirTran all have newer aircraft. Advantage: LCCs.

On-board amenities - NWA announces cancellation of free snacks and magazines. In and of themselves, these are not huge things, but they create the Greyhound perception that used to belong squarely to the LCCs (ValuJet, anyone?) JetBlue gets pax to rave about the cute little TVs, leather seats, extra legroom, blue potato chips, yada, yada, yada. In some markets, pax are so taken with this stuff that they're willing to pay higher average fares than on legacy carriers. Even SWA is going to all leather seating! LCCs are adding "stuff" while NWA is taking "stuff" away. Advantage: LCCs.

Loads: While all of the airlines are running nice load factors right now, JetBlue's 86.6% YTD is still noticeably better than NWA's impressive 80.3% YTD. AirTran and SWA are also running with load factors that are ahead of the industry average. Advantage: LCCs.

Playing Field: The playing field encompasses much more than MSP and DTW. Those two markets are fine for O&D comparisons, but someone traveling from BUF to MSY doesn't care if he/she changes planes in DTW or JFK. Northwest needs that traffic because BUF-DTW O&D doesn't justify five or six flights a day. The one big, big advantage that NWA has is here with it's service to smaller domestic markets and its global presence. But as we both recognize, that advantage will shrink over time (though probably not disappear). Advantage: NWA and other legacy carriers.

Overall, the advantages are tilting more and more in favor of the LCCs in the domestic market. My point from the beginning of this thread has been that the legacy carriers need to distinguish themselves with better service in addition to price (something that Wal-Mart figured out long ago, though I don't think they're living up to that heritage so much today). The attitude of, "You'll get Greyhound in the sky -- and like it!!!" is just a prescription for failure.
 
Red Tail Bear said:
Northwest has the least competition from LCC's of all the Legacies. Wn has been in DTW for years with very little success and had IND taken right out from under their noses. MSP has very little LCC competition also. As far as amenities go, NWA still offers complimentary (non-alcoholic) beverages in coach and free beverages including alcohol in F/C. They offer snack boxes for a minimal charge which are alot better than those pretzels I might add. People have been bringing their own drinks/snacks/reading material on board long before NWA did away with them and will continue to do so. IIRC Northwest flies the same aircraft as B6 so they're not that much newer. As for that host of LCC's, (Jet-blew) is like the Red Headed step child of WN. They're still in the family (LCC's) but they'll always be 2nd best. :lol: :lol:
[post="275820"][/post]​

+++++++++++++++++++++++++++++++++++++++++++++++++++

Flying Titan,

B6 still has that "new car smell", meaning once the warrenty comes off of it's fleet, and they have to start PAYING for a/c repairs, coupled with the fact that their employees are going to want raises, I'd say after the "new car smell" wears off, that expenses like opining up in an area's ewhere the INCUMBENT will defend it's turf AT ALL COSTS, that b6 will look for other ways to make "new" $$$$$$$$ "scratch"

(IMHO), not even AMERICAN has defended it's turf more fiercely than BIG RED, especially in MSP.

When in doubt, just ask yourself why WN S NOT in MSP ?

NH/BB's
 
So funny how both NH/BB and Red Tail Bear both trying debating you to give the impression they are two seperate people when, in fact, they are the SAME PERSON!!! :up: :up: :up:
 
Flying Titan said:
Red Tail -

Again, my points are relative to advantages in attracting domestic traffic.

Aircraft - Last time I checked, NWA had a few more DC-9s in the fleet than narrowbody airbus aircraft, meaning passengers are more likely to end up on a 30 year old plane with this airline than a new(er) one. JetBlue, Southwest, and AirTran all have newer aircraft. Advantage: LCCs.

On-board amenities - NWA announces cancellation of free snacks and magazines. In and of themselves, these are not huge things, but they create the Greyhound perception that used to belong squarely to the LCCs (ValuJet, anyone?) JetBlue gets pax to rave about the cute little TVs, leather seats, extra legroom, blue potato chips, yada, yada, yada. In some markets, pax are so taken with this stuff that they're willing to pay higher average fares than on legacy carriers. Even SWA is going to all leather seating! LCCs are adding "stuff" while NWA is taking "stuff" away. Advantage: LCCs.

Loads: While all of the airlines are running nice load factors right now, JetBlue's 86.6% YTD is still noticeably better than NWA's impressive 80.3% YTD. AirTran and SWA are also running with load factors that are ahead of the industry average. Advantage: LCCs.

Playing Field: The playing field encompasses much more than MSP and DTW. Those two markets are fine for O&D comparisons, but someone traveling from BUF to MSY doesn't care if he/she changes planes in DTW or JFK. Northwest needs that traffic because BUF-DTW O&D doesn't justify five or six flights a day. The one big, big advantage that NWA has is here with it's service to smaller domestic markets and its global presence. But as we both recognize, that advantage will shrink over time (though probably not disappear). Advantage: NWA and other legacy carriers.

Overall, the advantages are tilting more and more in favor of the LCCs in the domestic market. My point from the beginning of this thread has been that the legacy carriers need to distinguish themselves with better service in addition to price (something that Wal-Mart figured out long ago, though I don't think they're living up to that heritage so much today). The attitude of, "You'll get Greyhound in the sky -- and like it!!!" is just a prescription for failure.
[post="276029"][/post]​
Titan,
Again you fail to acknowledge that NW flies more than just Airbus aircraft. They also fly Boeing aircraft as well. My point is that not every passenger that steps onto a Northwest aircraft is stepping onto a DC-9. Again NW is well aware of the need to obtain newer/more fuel efficient aircraft and is working towards that goal. It just is'nt going to happen overnight. There are other Airlines still flying older aircaft as well and like NW are in the process of replacing them with newer/more fuel effficient aircraft.

NW has plenty of connecting traffic through its hubs from stations like FAR, BIS,FSD,RAP,PDX,GEG,HLN,DEN, just to name a few or more that don,t have a whole lot of competition for now.

We all know the LCC's are going to be around for a long time but the challenge they face is to keep their costs low while competing with the legacy's for revenue. If they are unable to do this they'll no longer be a threat.
 
Fly said:
So funny how both NH/BB and Red Tail Bear both trying debating you to give the impression they are two seperate people when, in fact, they are the SAME PERSON!!! :up: :up: :up:
[post="276033"][/post]​
shooo fly don't bother me. Should'nt you be running along to your 2nd job at the strip club. :shock: :shock: :shock:
 

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