Northwest Matches United, CO Rate Hike | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Recent Daily Episodes

Episode Date

Monday

Tuesday

Wednesday

Thursday

Friday

Airborne On ANN

Airborne 08.24.15

Airborne 08.25.15

Airborne 08.26.15

Airborne 08.27.15

Airborne 08.28.15

Airborne Hi-Def On YouTube

Airborne 08.24.15

Airborne 08.25.15

Airborne 08.26.15

Airborne 08.27.15

Airborne 08.28.15

EAA/ANN AirVenture Innovation Preview

AIP-#1 Vimeo

AIP-#2 Vimeo

AIP-Part 1 YouTube

AIP-Part 2 YouTube

Wed, Mar 19, 2008

Northwest Matches United, CO Rate Hike

CEO Hints At Job Cuts, Other Measures

Last week's $50 hike in airfares looks like it's going to stick. Following in the steps of United and Continental, this week Northwest Airlines also increased fares across the board.

As ANN reported, United and Continental announced their fare increases March 14. Trips under 500 miles will cost fliers about $10 more round-trip, with journeys longer than 1,500 miles costing as much as $50 more, especially on less-competitive routes.

Like those carriers before it, Northwest pointed the finger at record high prices for fuel, and a slumping economy.

"Airfares have to go up, and our passengers will need to pay more. Airlines simply cannot absorb these cost increases," Northwest CEO Doug Steenland told employees, reports The Associated Press.

Furthermore, the worst may be yet to come... for travelers, and airline employees. Like other carriers, Northwest has seen its fortunates plummet in recent weeks due to the above economic travails; on Monday, Northwest stock prices dropped 82 cents, closing at $8.69... less than half their value one month ago.

Airlines are becoming increasingly desperate to stop the bleeding... and in his message, Steenland strongly hinted his airline may have to take drastic measures, though he stopped short of mentioning job cuts.

"First we have to tighten our belt. We need to find ways to preserve cash by reducing capital expenditures and operating costs," he said. "Fortunately, we have over $3 billion of cash on hand."

A Northwest spokeswoman declined to comment further... but it's likely the CEO's underlying message was lost on no one.

FMI: www.nwa.com

Advertisement

More News

RFP: ANN Considering Future Options For HQ Relocation

A Very Bright Future For ANN, Aero-TV, and Airborne May Require Some New Digs ANN may be looking for a new home... hopefully, a permanent one. We're currently inviting proposals fo>[...]

Airborne 08.28.15: 'Big' Bezos Announcement?, MA Aero-Taxes, Harrison Ford

Also: Barnstorming: The FAA v Hoover Fight Ain’t Over, Hail-Damaged Dreamliner, UAV Shooter Charged, NASA Global Hawk, MiG-21 Lancers, ICAO Manual Blue Origin founder and Ama>[...]

Airshow Pilot Lost In In-Flight Breakup

Andrew Wright Lost As Giles G-202 Suffers Fuselage Seperation/Failure It's been a tough few weeks for the airshow industry... and now this -- a practice flight, Friday, August 28th>[...]

Aero-News: Quote Of The Day (08.30.15)

“This contract extension is significant for the TSA pilots. Our last round of negotiations that resulted in our current contract took more than five years, so we are pleased >[...]

ANN's Daily Aero-Term (08.30.15): Permanent Echo

Permanent Echo Radar signals reflected from fixed objects on the earth’s surface; e.g., buildings, towers, terrain. Permanent echoes are distinguished from “ground clut>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2015 Web Development & Design by Pauli Systems, LC