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Liz Fedor, Star Tribune
July 28, 2004 NWA0728
Pilot leaders at Northwest Airlines say they are willing to negotiate a lower pay scale that would allow the carrier to add 70-seat jets to its fleet.
The pilots union said its proposal would preserve jobs while at the same time help Northwest to capitalize on one of the fastest-growing segments in the airline industry.
Northwest declined to comment on the pilot proposal Tuesday. The Eagan-based airline does not have any 70-seat jets in its fleet. Its smaller jets have fewer than 70 seats and are flown by lower-paid pilots at its regional affiliates, Mesaba Airlines and Pinnacle Airlines. Northwest wants regional pilots to also be able to fly 70-seat jets, which the current Northwest contract prohibits, the union said.
Instead of allowing Northwest to assign the flying to Mesaba or Pinnacle or another regional airline, pilot leaders are offering to negotiate labor costs that are competitive with other 70-seat operators.
"What they want is 70-seaters," Curt Kruse, a pilot and spokesman for the Northwest branch of the Air Line Pilots Association (ALPA), said Tuesday.
ALPA negotiators argue that it is in the best interests of the airline and the union to establish pay rates, benefits and work rules that allow Northwest to compete for 70-seat business.
"We believe the 70-seater is the right size aircraft to fill the gap between the Northwest narrow-body aircraft and the small jets currently flown by Northwest's feeders," Kruse said.
Under the current contract, all Northwest flying in airplanes containing 55 seats or more must be performed by Northwest pilots, except for three dozen 69-seat Avros flown by Eagan-based Mesaba.
Pinnacle, based in Memphis, is flying 44- and 50-seat Canadair Regional Jets (CRJs), but the number of 50-seaters is restricted based on a ratio with the narrow-bodied planes in Northwest's mainline fleet.
In April, Pinnacle CEO Philip Trenary said he'd like to see his airline fly larger airplanes. But he acknowledged that Northwest management probably wants to conclude its pilot negotiations before making decisions about acquiring more small jets.
Northwest has been reducing its workforce since early 2001 and 787 Northwest pilots remain on furloughs. They would have the first rights to obtain the 70-seat flying, according to the proposal that ALPA gave management July 1.
The union is awaiting a counter-proposal from management.
Northwest gave the pilots union a concessionary proposal in February 2003 that would have reduced pilot costs by more than $400 million a year. Management also asked ALPA to allow Northwest to acquire up to 72 small jets seating between 51 and 70 passengers. Executives wanted to remove all restrictions on small jets with 50 or fewer seats. And they wanted to expand seating on Mesaba's Avros from 69 to 85 seats.
A few months ago, Northwest ALPA offered to reduce pilot compensation by $200 million a year. The company has countered with a $300 million proposal.
Both sides hope to reach an agreement by the fall, because the airline has been losing money on its operations for the past three years. Northwest management is seeking to reduce all labor costs by $950 million a year, but the pilots' union is the only work group that has been willing to discuss cutbacks.
The 70-seater jet is a critical topic in the pilot negotiations, because it is a key aspect of defining the scope of flying for Northwest pilots.
There is a strong element of pragmatism in the pilots' approach because they are balancing Northwest's business interests with pilots' job protection interests, Kruse said.
That element was evident in a memo that pilot negotiators sent their members. "Pilot hourly pay rates at airlines currently operating 70-seat jets are significantly lower than pay rates under the NWA pilot contract," Northwest ALPA said in a mailing to pilots. "The difference in total pilot costs is even more pronounced due to differences in work rules, benefits and retirement."
Northwest ALPA included a comparison chart in its mailing that showed the estimated pilot cost per block hour for flying a 70-seat jet. It was $274.85 for Mesaba Airlines, $304.71 for Comair and $249.59 for American Eagle. There isn't a 70-seat rate in Northwest's current pilot contract, but the block hour cost would be $705.47 if the DC-9 rate were used.
That current contract says Northwest pilots have the right to fly jets of over 55 seats, with the one exception being the Mesaba Avros. "We want to translate that language into jobs," Kruse said, but the jobs won't materialize under the existing pay rates, work rules and benefits.
Northwest ALPA's proposal is reminiscent of talks that have been held at American Airlines, said Robert Mann, an airline industry analyst from New York. But American Eagle, the regional carrier, is flying the 70-seaters.
"Unless you bring along flight attendants, mechanics and ground personnel to similar regional pay rates, then you can't equalize the costs," Mann said. American was unable to achieve that goal, and he added that it will be a major challenge for Northwest management.
Liz Fedor is at
lfedor@startribune.com.
[/ QUOTE ]
Liz Fedor, Star Tribune
July 28, 2004 NWA0728
Pilot leaders at Northwest Airlines say they are willing to negotiate a lower pay scale that would allow the carrier to add 70-seat jets to its fleet.
The pilots union said its proposal would preserve jobs while at the same time help Northwest to capitalize on one of the fastest-growing segments in the airline industry.
Northwest declined to comment on the pilot proposal Tuesday. The Eagan-based airline does not have any 70-seat jets in its fleet. Its smaller jets have fewer than 70 seats and are flown by lower-paid pilots at its regional affiliates, Mesaba Airlines and Pinnacle Airlines. Northwest wants regional pilots to also be able to fly 70-seat jets, which the current Northwest contract prohibits, the union said.
Instead of allowing Northwest to assign the flying to Mesaba or Pinnacle or another regional airline, pilot leaders are offering to negotiate labor costs that are competitive with other 70-seat operators.
"What they want is 70-seaters," Curt Kruse, a pilot and spokesman for the Northwest branch of the Air Line Pilots Association (ALPA), said Tuesday.
ALPA negotiators argue that it is in the best interests of the airline and the union to establish pay rates, benefits and work rules that allow Northwest to compete for 70-seat business.
"We believe the 70-seater is the right size aircraft to fill the gap between the Northwest narrow-body aircraft and the small jets currently flown by Northwest's feeders," Kruse said.
Under the current contract, all Northwest flying in airplanes containing 55 seats or more must be performed by Northwest pilots, except for three dozen 69-seat Avros flown by Eagan-based Mesaba.
Pinnacle, based in Memphis, is flying 44- and 50-seat Canadair Regional Jets (CRJs), but the number of 50-seaters is restricted based on a ratio with the narrow-bodied planes in Northwest's mainline fleet.
In April, Pinnacle CEO Philip Trenary said he'd like to see his airline fly larger airplanes. But he acknowledged that Northwest management probably wants to conclude its pilot negotiations before making decisions about acquiring more small jets.
Northwest has been reducing its workforce since early 2001 and 787 Northwest pilots remain on furloughs. They would have the first rights to obtain the 70-seat flying, according to the proposal that ALPA gave management July 1.
The union is awaiting a counter-proposal from management.
Northwest gave the pilots union a concessionary proposal in February 2003 that would have reduced pilot costs by more than $400 million a year. Management also asked ALPA to allow Northwest to acquire up to 72 small jets seating between 51 and 70 passengers. Executives wanted to remove all restrictions on small jets with 50 or fewer seats. And they wanted to expand seating on Mesaba's Avros from 69 to 85 seats.
A few months ago, Northwest ALPA offered to reduce pilot compensation by $200 million a year. The company has countered with a $300 million proposal.
Both sides hope to reach an agreement by the fall, because the airline has been losing money on its operations for the past three years. Northwest management is seeking to reduce all labor costs by $950 million a year, but the pilots' union is the only work group that has been willing to discuss cutbacks.
The 70-seater jet is a critical topic in the pilot negotiations, because it is a key aspect of defining the scope of flying for Northwest pilots.
There is a strong element of pragmatism in the pilots' approach because they are balancing Northwest's business interests with pilots' job protection interests, Kruse said.
That element was evident in a memo that pilot negotiators sent their members. "Pilot hourly pay rates at airlines currently operating 70-seat jets are significantly lower than pay rates under the NWA pilot contract," Northwest ALPA said in a mailing to pilots. "The difference in total pilot costs is even more pronounced due to differences in work rules, benefits and retirement."
Northwest ALPA included a comparison chart in its mailing that showed the estimated pilot cost per block hour for flying a 70-seat jet. It was $274.85 for Mesaba Airlines, $304.71 for Comair and $249.59 for American Eagle. There isn't a 70-seat rate in Northwest's current pilot contract, but the block hour cost would be $705.47 if the DC-9 rate were used.
That current contract says Northwest pilots have the right to fly jets of over 55 seats, with the one exception being the Mesaba Avros. "We want to translate that language into jobs," Kruse said, but the jobs won't materialize under the existing pay rates, work rules and benefits.
Northwest ALPA's proposal is reminiscent of talks that have been held at American Airlines, said Robert Mann, an airline industry analyst from New York. But American Eagle, the regional carrier, is flying the 70-seaters.
"Unless you bring along flight attendants, mechanics and ground personnel to similar regional pay rates, then you can't equalize the costs," Mann said. American was unable to achieve that goal, and he added that it will be a major challenge for Northwest management.
Liz Fedor is at
lfedor@startribune.com.
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