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Company Website Northwest Airlines, the world's fourth largest airline, began operations in 1926 and is America's oldest carrier with continuous name identification. In 1986, Northwest acquired Republic Airlines which expanded its work force overnight from less than 17,000 to more than 33,000. Northwest is now over 40,000 employees strong and is the dominant hub airline at Detroit, Minneapolis/St. Paul and Memphis.
Northwest continues to battle its way through the terrible financial times that have plagued the passenger airline industry the past four years.
Before Sept. 11, Northwest had some good and not-so-good years, financially speaking. The airline lost money in 1998, a year which saw the pilots strike the carrier, then rebounded the next two years before the decline in business travel, the terrorist attacks and, most recently, military action in Iraq have kept the airline in the red. In the early 1990s, the carrier narrowly escaped bankruptcy, as employees offered concessions to help the airline restructure. It quickly regained its form, enjoying several years of profitability and expansion.
The carrier's financial condition appears relatively stable compared to its competition. While several major passenger airlines reported full-year 2003 net loss margins in excess of 20 percent, Northwest actually reported a profit. However, 2004 saw another downturn, with a reported net loss of $878 million for the year. FLTops.com members can view a five-year financial performance chart by visiting the financial page.
However, Northwest consistently let the industry in load factors in 2004 with an average of 77.7 percent for the first nine months. FLTops.com members can view more airline traffic information by visiting the major airline traffic page.
The carrier has 532 pilots, or nearly nine percent of its pilot workforce, on furlough as of March 2005, but has been slowly recalling pilots.
Northwest, following the lead of other network carriers, has asked its employee groups for wage and benefit concessions to help reduce costs. In November 2004, Northwest pilots approved a new two-year agreement, which provides for a 15-percent reduction in pay rates and other forms of compensation and requires pilots to pay 20 percent of their medical insurance premiums. More than 90 percent of Northwest pilots casting a vote did so in favor of the agreement. Limitations on sick leave accrual and other provisions will save Northwest Airlines $265 million annually. Pilots will receive stock options which, if exercised, would total approximately 4 percent of the company's outstanding shares.
Northwest is hoping to grow its revenue with the help of two of its competitors: Delta and Continental. Earlier in 2003, the U.S. Department of Transportation--following a series of discussions and a compromise deal after a near-standoff--approved a code-share agreement between the three large major airlines. Northwest hopes to use the agreement to increase ticket sales to customers of the other two carriers on routes served exclusively by Northwest. Northwest previously owned stock in Continental; Northwest sold the stock back to Continental in late 2000. The two carriers have a long-term agreement on a code-share alliance that lasts through 2025.
In November 2004, Northwest pilots approved a new two-year agreement with Northwest Airlines, which provided for a 15-percent reduction in pay rates and other forms of compensation and requires pilots to pay 20 percent of their medical insurance premiums. More than 90 percent of Northwest pilots casting a vote did so in favor of the agreement.
In August, the mechanics and cleaners represented by Aircraft Mechanics Fraternal Association (AMFA) struck the airline over the airline’s demands for wage cuts and layoffs. Northwest hired replacement workers and has begun making some of those replacement workers permanent.
Northwest Airlines filed for federal bankruptcy court protection on September 14, 2005 and is currently in negotiations with ALPA for new pay and work rule concessions from its pilots.
Company Highlights:
| Douglas M. Steenland |
President and CEO |
| Timothy J. Rainey |
Sr. Vice President, Flight Operations and Systems Operations Control |
| Headquarters: |
Minneapolis/St. Paul, Minn. |
| Gateways: |
Amsterdam, The Netherlands
Detroit, Mich.
Memphis, Tenn.
Minneapolis/St. Paul, Minn.
Tokyo, Japan |
| Primary Route Structure: |
Northwest flies to 750 destinations in 120 countries on six continents, including 49 states in the U.S. |
| Number of employees: |
Approximately 40,000 |
| Number of pilots: |
Approximately 6,000 |
| Crew bases: |
Anchorage, Alaska
Detroit, Mich.
Memphis, Tenn.
Minneapolis/St. Paul, Minn. |
| Union representation: |
Air Line Pilots Association, Int'l. (ALPA) |
| Pay and benefits: |
Ranks second best out of nine in base pay for 12 year captain flying the Boeing 757 equivalent aircraft.
Fltops.com members can view comprehensive pay information by visiting the pilot pay rates pages. |
| Minimum qualifications: |
During its last expansion, Northwest required an FAA Commercial certificate with Instrument rating, current ATP written or ATP certificate, FE Certificate with turbojet rating or successful completion of FE written exams currently valid under FAR 63.35, a four-year degree was preferred but not mandatory, valid First Class Medical Certificate within past six months. |
| Aircraft: |
Airbus A-319, A-320, A-330
Boeing B-747-200, B747-400, B747F
Boeing B-757
DC-9
DC-10
FLTops.com members can view a breakdown of aircraft by airline by visiting the airline fleet page. |
| Regional Airline: |
Northwest Airlink includes:
Mesaba Airlines
Pinnacle Airlines |
| Regional aircraft: |
Saab 340
AVRO RJ-85
Canadair CRJ-50 |
| Alliances: |
Northwest is part of the SkyTeam alliance which includes 33 domestic and international airlines. |
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