Nw Loses $400mil This Qtr, Bk Near...

[whatkindoffreshhell]

Northwest: Time short to avoid bankruptcy

Updated 10:01 a.m. ET, Fri Sep 2, 2005


The JOURNAL of COMMERCE ONLINE

Northwest Airlines Corp. warned on Thursday that it is running out of time to avoid bankruptcy because of spiking fuel prices, and that it will lose as much as $400 million this quarter. Company pilots said they would negotiate a new round of pay cuts.


The carrier said in a filing with the Securities and Exchange Commission that its cash had fallen to $1.7 billion as of Wednesday, down from $2.1 billion on June 30. Some of the decrease was due to holdbacks required by the company that processes its credit card transactions, a situation that has also squeezed rival Delta Air Lines Inc. in recent weeks.


Northwest said its third-quarter loss would be $350 million to $400 million, but possibly worse depending on the financial impact of Hurricane Katrina.


Northwest has been seeking $1.1 billion in annual labor cost savings. It said it will probably increase that target, partially because of rising fuel prices, though the company didn't offer a new dollar figure.


Northwest said it has run out of collateral for additional loans.

Convert everything to freighters and this airline will be the darling of investors

 

[MCI transplant]

Northwest: Time short to avoid bankruptcy

Mod note- DO NOT quote an entire post directly above your reply. It wastes space and is unnecessary.

[post="295842"][/post]​

<_< How much are the scabs costing NorthWest??? Maybe that cost should come out of the Boards Bonuses!!!! Or is NW looking for an excuss to get into Bankrupcy before the new laws go into effect Oct.17th!!???

 

[eolesen]

Whoever wrote the title on this... there won't be any repo'd DC9's.

NWA owns the entire DC9-30 fleet, and I'd be surprised if they really were being used to secure an outstanding loan since they have no real market value.

One advantage of that -- they can ground the fleet immediately and it won't cost them a dime. Same thing with any remaining rope-start 747-200s (although I believe most of those are freighters).

Now, if you'd said repo'd A320's or A330's, you'd have a point....

 

[Thomas Paine]

Whoever wrote the title on this... there won't be any repo'd DC9's.

NWA owns the entire DC9-30 fleet, and I'd be surprised if they really were being used to secure an outstanding loan since they have no real market value.

One advantage of that -- they can ground the fleet immediately and it won't cost them a dime. Same thing with any remaining rope-start 747-200s (although I believe most of those are freighters).

Now, if you'd said repo'd A320's or A330's, you'd have a point....

[post="295948"][/post]​

Not a dime?

The fact is if they expect them to be airworthy they will have to spend money maintaining them even if they dont use them, they have to seal them up at least . These are not cars that you can park, let them sit for a week and just drive away. At the very least they have to be moved so they dont get flat spots on the tires.

 

[pitguy]

Look for Northwest and Delta to file chapter 11 reorganization bankruptcy between now and some time in October. The bankruptcy laws change in October and it is more beneficial for these airlines to be covered under the old bankruptcy laws. These bankruptcy announcements are most likely to come on a Sunday.

 

[chasbatl]

Look for Northwest and Delta to file chapter 11 reorganization bankruptcy between now and some time in October. The bankruptcy laws change in October and it is more beneficial for these airlines to be covered under the old bankruptcy laws. These bankruptcy announcements are most likely to come on a Sunday.

[post="296029"][/post]​

Just what amfa has been saying for the last 4 months, they knew NWA would come back for more cuts in bankruptcy court but I guess the pilots thought they would give their cuts and management wouldnt file BK.

 

[TWU informer]

My bet is NWA and DELTA both file BK, and then they gain DOJ approval to merge in their exit plans.

 

[eolesen]

The fact is if they expect them to be airworthy they will have to spend money maintaining them even if they dont use them, they have to seal them up at least.

[post="296020"][/post]​

You assume that they'd want to keep them airworthy... Honestly, I'd expect them to be permanently grounded if they were to go.

Yes, there's a cost for keeping them airworthy, but it's a pittance compared to the lease payments that would otherwise be paid for an aircraft which wasn't owned or otherwise encumbered. Plus, the cost of maintaining a stored aircraft is also a fraction of what it costs for an active aircraft.

 

[MCI transplant]

You assume that they'd want to keep them airworthy... Honestly, I'd expect them to be permanently grounded if they were to go.

Yes, there's a cost for keeping them airworthy, but it's a pittance compared to the lease payments that would otherwise be paid for an aircraft which wasn't owned or otherwise encumbered.  Plus, the cost of maintaining a stored aircraft is also a fraction of what it costs for an active aircraft.

[post="296062"][/post]​

<_< That's right! Maybe they can find some scabs to maintain them! May I suguest KTO!!!!!

 

[PlayTheOdds]

<_< How much are the scabs costing NorthWest??? Maybe that cost should come out of the Boards Bonuses!!!! Or is NW looking for an excuss to get into Bankrupcy before the new laws go into effect Oct.17th!!???

[post="295907"][/post]​

The cost of the replacement workers is extremely cheaper than using unionized mechanics. There is no workers comp to worry about, no 401k or pensions to pay out, no medical benefits to pay out, no life insurance to pay out, no employment taxes or social security to pay out. Plus they are on average $5.00 cheaper per hour. They get more production per man-hour and they don't have to deal with the union telling them what they can and cant do. Its all peaches and roses here. How is it on the other side of the fence?

 

[coolflyingfool]

I say that NWA will file for BK as an attempt to really put the screws to their employees paychecks. Just my thoughts.......

 

[PlayTheOdds]

I'm certain that Northwest will file bankruptcy. They really have no choice in the matter if they expect to survive in the industry. This strike was planned and has been executed beautifully. I'm sure the filing of bankruptcy is indeed part of their strategy. I guess I can probably write off my bonus when all this is over.

 

[local 12 proud]

I'm certain that Northwest will file bankruptcy. They really have no choice in the matter if they expect to survive in the industry. This strike was planned and has been executed beautifully. I'm sure the filing of bankruptcy is indeed part of their strategy. I guess I can probably write off my bonus when all this is over.

[post="296245"][/post]​

This is by far the most intelligent post you have made. the game plan from the beginning was to break the UNION'S back by making an offer they knew would never be accepted then offering the last best offer which is worse than the first. The AMFA membership has said fine, outsource our jobs but we will not assist you in our demise on the contrary you will reap as much pain as you sow. BTW I think your lost bonus will be the least of your worries!

 

[PlayTheOdds]

When did you realize that? Everyone knew that before the strike. If Northwest’s strategy depended on you guys striking why did you. Had AMFA not struck Northwest would have to go back to the drawing board. As far as losing the custodians and cleaners who cares except for the guys receiving the union dues? When you are getting paid 22 an hour to run a broom something is really wrong somewhere. I call union.

 

[local 12 proud]

when did I realize what SCAB? of course AMFA knew 18 months in advance that NWA's game plan was to break the union and send all maintenance to third party so they said FU you will not have our services to expidite our demise. HOW LAME CAN YOU BE PTO/KTO? the jobs were/are going away period no matter what AMFA did, so the membership said UP YOURS NWA if your going to slash our throats and bleed us to death, then by GOD we will take you down with us........why is this concept so hard for you to grasp? oh I forgot a coward begs for mercy and the table scraps aportioned to him by his master. SO KTO/PTO enjoy your short stint with NWA because soon all maitenance will be farmed out to some third party hack/sweat shop!