Northwest Airlines (NWA)
- Homepage: http://www.nwa.com/
January 2004: "Northwest Airlines is the world's fourth largest airline. Together with our global travel partners, we serve almost 750 destinations in nearly 120 countries on 6 continents." http://www.nwa.com/corpinfo/
November 2011: "American, meanwhile, has lost more than $11 billion since 2001, while falling off its perch as the nation’s largest airline as mergers between first Delta and Northwest, and then United and Continental, created bigger competitors. The airline’s troubles were compounded by high labor costs, including pensions that are the richest in the industry, and surging fuel prices."http://dealbook.nytimes.com/2011/11/29/in-bankruptcy-a-bid-to-cut-costs-at-american-airlines/
September 2007: 'Some CEOs use bankruptcy as a means of getting out from under pesky labor contracts they might have "known they could not afford" when they agreed to them (Northwest Airlines most recently, for example). Others use it as a cushion against bad bets. Donald ("you’re fired!") Trump’s casino empire has gone into bankruptcy twice -- most recently, last November, when it listed $1.3 billion of liabilities and $1.5 million of assets -- with no apparent diminution of the Donald’s passion for risky, if not foolish, endeavor. After all, his personal fortune is protected behind a wall of limited liability, and he collects a nice salary from his casinos regardless. But if you’re an ordinary person who has fallen on hard times, just try declaring bankruptcy to wipe the slate clean. A new law governing personal bankruptcy makes that route harder than ever. Its sponsors argued -- you guessed it -- moral hazard.'http://robertreich.blogspot.com/2007/09/moral-hazard.html
August 2005: They are among the 1,900 replacement workers deployed by Northwest to assume the duties of 4,430 mechanics, cleaners and other members of the Aircraft Mechanics Fraternal Association. The union struck the airline on Saturday over the airline's demand for $176 million in pay and benefit cuts.http://www.nytimes.com/2005/08/24/business/24northwest.html
October 2005: Earlier this month, Miller and Delphi gave in to the pressure and sought protection under the bankruptcy code - the largest such filing ever in the auto industry. It followed by a few weeks the Chapter 11 filings of Delta Air Lines and Northwest Airlines, whose pension promises to workers exceeded the assets in their pension funds by an estimated $16 billion.http://www.nytimes.com/2005/10/30/magazine/30pensions.html
Role Name Type Last Updated Organization Head/Leader (past or present) Richard H. Anderson Person Jul 17, 2006 Organization Executive (past or present) Frederic "Fred" V. Malek MBA Person Aug 19, 2005 Organization Head/Leader (past or present) Douglas M. Steenland Person Nov 9, 2005
Articles and Resources
Date Fairness.com Resource Read it at: Nov 29, 2011 In Chapter 11, a Bid to Cut Costs at American Airlines
QUOTE: After resisting for a decade, the parent company of American Airlines announced Tuesday that it would now follow a strategy that the rest of the industry chose long ago: filing for bankruptcy protection so it can shed debt, cut labor costs and find a way back to profitability.
New York Times Sep 07, 2007 Moral Hazard
QUOTE: When it comes to risky behavior in the market, America has a double standard. We’re told that economic risk-taking as the key to entrepreneurial success, but when big entrepreneurs take big risks that fail it’s amazing how often they get bailed out....Bush’s "ownership society" has proven a cruel farce for poor people who tried to become home owners, and his minuscule response to their plight just another example of how conservatives use moral hazard to push their social-Darwinist morality. The little guys get tough love. The big guys get forgiveness.
Robert Reich personal blog Jul 05, 2007 Ugly Airline Math: Planes Late, Fliers Even Later
QUOTE: The on-time performance of airlines has reached an all-time low, but even the official numbers do not begin to capture the severity of the problem.
New York Times Aug 22, 2006 Officials Seek Broader Access to Airline Data
QUOTE: United States and European authorities, looking for more tools to detect terrorist plots, want to expand the screening of international airline passengers by digging deep into a vast repository of airline itineraries, personal information and payment data.
New York Times Aug 18, 2006 Judge Won't Block Strike by Northwest Attendants
QUOTE: A federal bankruptcy judge said yesterday that he could not block Northwest Airlines flight attendants from going on strike, opening the door for a potentially crippling labor disruption at one of the nation’s largest airlines.
New York Times Aug 18, 2006 Adding Insult to Injury at Northwest: After swallowing huge pay cuts, employees are getting such money-saving tips as "take in boarders" and "comb through trash"
QUOTE: Management has followed up by advising these newly strapped employees on how to make ends meet. Among the company's tips: dumpster-diving.
BusinessWeek Aug 15, 2006 Maybe the Toughest Job Aloft
QUOTE: Flight attendants, whose profession was once considered glamorous, may have one of the toughest jobs in the airline industry these days...planes are packed fuller than they have been in decades, there are fewer perks to provide comfort and distraction for passengers, and flight attendants have seen their pay and benefits cut at many airlines.
New York Times Aug 13, 2006 Editorial: The Pension Piñata
QUOTE: The (Pension)bill is an almost perfect example of Congress’s inability to do anything good without tacking on some bad accommodation for special interests.
New York Times Aug 13, 2006 Hey, Partner, Where Are My Miles?
QUOTE: hough many travelers aren't aware of airline partnerships, dozens of carriers around the globe have joined forces to offer mileage credit for flying with their partners....In theory, it's a great way to bolster your frequent-flier balances and gain elite status; in practice, according to travelers and frequent-flier experts, it's sometimes difficult to get the miles.
Washington Post May 31, 2006 Frequent fliers turn a skeptical eye to the skies
QUOTE: Often, when a free trip or upgrade is available, members have to pony up double the miles they expected to spend to secure it. In some cases, getting free travel may involve a fee. Several carriers now charge to book award travel over the phone rather than on the Web, and some have introduced fees for booking award travel fewer than 14 days in advance.
USA TODAY Apr 05, 2006 Travelers brace for turbulence on bankrupt airlines
QUOTE: If your summer travel plans involve plane tickets, you might want to listen up. There may be no one to fly the plane -- or an airline to fly on -- by the time your departure date rolls around.
Bankrate.com Oct 30, 2005 The End of Pensions
QUOTE: For the U.A.W., Miller noted forlornly, "30 and Out" - 30 years to retirement - became a rallying cry. Eventually, the union got what it wanted, and workers who started on the assembly line after high school found they could retire by their early 50's. "These pensions were created when we all used to work until age 70 and then poop out at 72," Miller told me. "Now if you live past 80, a not-uncommon demographic, you're going to be taking benefits for longer than you are working. That social contract is under severe pressure."
New York Times Aug 24, 2005 The Replacement Mechanics
QUOTE: Not since a strike in 1989 by mechanics at Eastern Airlines, which eventually contributed to the airline's demise, has an airline tried to rely so heavily on replacements to keep its planes aloft. But with airlines cutting more than 130,000 jobs this decade, in a bid to overcome $30 billion in losses, the mechanics' union "has picked the worst possible time" to strike over Northwest's demands...
New York Times Aug 18, 2005 Circling a Decision
QUOTE: The expected showdown is the culmination of three years of unsuccessful efforts by Northwest to persuade employees to accept wage and benefit cuts to get its costs in line with competitors that have already reduced their labor rates.
New York Times Aug 14, 2005 Don't Let Travel Miles Burn a Hole in Your Pocket
QUOTE: Some frequent fliers' ears are perking up at talk of possible bankruptcy filings at both Northwest Airlines and Delta Air Lines. And the looming merger of US Airways and America West has other travelers wondering what the fate of their banked miles on those airlines will be.
New York Times Aug 02, 2005 First-Class Fast Lane: Quick, Dedicated Checkpoints Create a Visible Distinction at Airports
QUOTE: Across the country, "elite" lines are making a comeback at U.S. airports. The lines, which deliver high-paying travelers right to the checkpoint without waiting, were common before the Sept. 11, 2001, terrorist attacks, but the federal government eliminated them when it took over security from the airlines. In allowing the lines to return, the Transportation Security Administration has irked travelers who say that the airlines' class system should not extend to airport security, which is paid for by all taxpayers.
Washington Post May 15, 2005 The Retirement You Weren't Banking On
QUOTE: ...permitting United Airlines to default on its pension plans, which cover more than 130,000 people -- should send shivers up your spine....Many of us, heeding the advice of financial planners, have done some planning for our retirement. But such planning is worthless if a key source of income, such as a pension benefit, cannot be relied upon.
Washington Post Jan 18, 2004 Northwest Gave U.S. Data on Passengers
Washington Post Dec 14, 2001 American Airlines Requests Antitrust Immunity in Deal
QUOTE: American Airlines Inc. is seeking antitrust immunity for a marketing alliance with British Airways PLC, provoking a pitched battle with three competitors who see the Dallas-based airline capitalizing on strong fundraising ties to the Bush administration...
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