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News
News
Northwest unveils new capacity cuts
06-18-08 06:34
Arguing that the case for its merger with Delta Air Lines
Arguing that the case for its merger with Delta Air Lines is "stronger than ever," Northwest Airlines yesterday unveiled a further round of capacity cuts that will contribute to the removal of 43 aircraft from its fleet this year retroactive to Jan. 1.
"In response to these extraordinary fuel costs, we are taking prudent actions to reduce our capacity and right-size the airline. This will allow us to better match our capacity to customer demand as airfares, by necessity, must increase," President and CEO Doug Steenland said.
In early April, NWA announced a 5% year-over-year capacity cut following the summer peak season and the removal of 15-20 DC-9s, 757s and A319s/A320s from the fleet (ATWOnline, April 4). Yesterday it said it will deepen its fourth-quarter mainline cut to 8.5%-9.5% year-over-year, affecting both domestic and international flights. Domestic consolidated capacity will be down 7%-8% and consolidated system ASMs will fall 3%-4% from year-ago figures.
The new cuts now will result in the removal of 14 757s and A319s/A320s, plus the reduction of the DC-9 fleet to 61 aircraft by year end from 94 at the start of 2008.
"No domestic station closures are planned as a result of these capacity reductions. Instead, we will pare unprofitable flying while maintaining the scope and presence of our network," Steenland promised. NWA said it had "not finalized" the decision's impact on staff and will "first look to voluntary separation programs."
Stumping for the merger, Steenland said the combination first was contemplated when oil was below $100 per barrel. "The merger-related synergies will improve the financial ability of Northwest and Delta to meet the challenge presented by the fuel crisis and better position the combined carrier for long-term strength and profitability," he said
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