TheRustyScupper
Everyone Is Responsible For Everyone.
- Joined
- Aug 8, 2000
- Messages
- 26,630
Thursday, July 10, 2008 - 8:26 AM EDT, Orlando Business Journal
Northwest Airlines Corp. will cut 2,500 employees and increase fees to address high fuel costs, the company announced Wednesday.
"Our fuel costs have more than doubled in the past year," Doug Steenland, president and CEO, said in a press release. "These reductions are a direct result of our extraordinary fuel costs and the necessary actions we must take to right-size our airline and eliminate unprofitable flying."
In June, the Eagan, Minn.-based company announced plans to reduce flights in the fourth quarter by 8.5 percent to 9.5 percent in comparison to the fourth quarter of 2007. As a result, the company is reducing front-line and management personnel in all employee groups through voluntary programs such as voluntary leaves and early-outs. Vin Parker, a Northwest spokesman, said furloughs will be a last resort if voluntary programs don't meet the targeted reductions.
Northwest Airlines Corp. agreed in April to merge with Atlanta-based Delta Air Lines Inc. (NYSE: DAL). Delta is the third largest airline serving Orlando International Airport, according to the Orlando Business Journal's 2008 Book of Lists.
The airline will also add a $15 fee to the first bag, a charge that will go into effect July 10. Northwest charges $25 for a second bag and $100 for a third. Checked bags have been a no-charge service for years, but in recent months other airlines have begun charging for even the first checked bag.
A service fee for WorldPerks Award tickets will be in effect Sept. 15 with a charge of $25 for domestic tickets, $50 for Trans-Atlantic tickets and $100 for Trans-Pacific tickets. And a ticket change fee will increase from $100 to $150 starting Wednesday for domestic flights and international flight ticket changes will increase by an additional $50 to $150 per ticket.
Steenland said the company hopes to generate $250 to $300 million a year from the fee increases.
Northwest (NYSE: NWA) is the ninth largest airline serving Orlando International Airport, according to the Orlando Business Journal's 2008 Book of Lists.
Northwest Airlines Corp. will cut 2,500 employees and increase fees to address high fuel costs, the company announced Wednesday.
"Our fuel costs have more than doubled in the past year," Doug Steenland, president and CEO, said in a press release. "These reductions are a direct result of our extraordinary fuel costs and the necessary actions we must take to right-size our airline and eliminate unprofitable flying."
In June, the Eagan, Minn.-based company announced plans to reduce flights in the fourth quarter by 8.5 percent to 9.5 percent in comparison to the fourth quarter of 2007. As a result, the company is reducing front-line and management personnel in all employee groups through voluntary programs such as voluntary leaves and early-outs. Vin Parker, a Northwest spokesman, said furloughs will be a last resort if voluntary programs don't meet the targeted reductions.
Northwest Airlines Corp. agreed in April to merge with Atlanta-based Delta Air Lines Inc. (NYSE: DAL). Delta is the third largest airline serving Orlando International Airport, according to the Orlando Business Journal's 2008 Book of Lists.
The airline will also add a $15 fee to the first bag, a charge that will go into effect July 10. Northwest charges $25 for a second bag and $100 for a third. Checked bags have been a no-charge service for years, but in recent months other airlines have begun charging for even the first checked bag.
A service fee for WorldPerks Award tickets will be in effect Sept. 15 with a charge of $25 for domestic tickets, $50 for Trans-Atlantic tickets and $100 for Trans-Pacific tickets. And a ticket change fee will increase from $100 to $150 starting Wednesday for domestic flights and international flight ticket changes will increase by an additional $50 to $150 per ticket.
Steenland said the company hopes to generate $250 to $300 million a year from the fee increases.
Northwest (NYSE: NWA) is the ninth largest airline serving Orlando International Airport, according to the Orlando Business Journal's 2008 Book of Lists.
