Can you say "whip-saw"?
Northwest considers other airlines to fly Mesaba routes
Liz Fedor, Star Tribune
Published October 17, 2003 MESA17
Northwest Airlines said Thursday that it is preparing to solicit proposals from regional carriers who can fly routes now flown by Mesaba Airlines with Avro jets.
Last week, Northwest revealed that it may terminate the service agreement it has with Minneapolis-based Mesaba to fly regional Northwest routes with the 69-passenger Avro RJ-85 jets.
Those 36 planes were acquired by Northwest between 1996 and 2000, but now Northwest executives are looking at putting other planes on the Avro routes.
"The operating costs of the airplane are significantly higher than other aircraft that could operate in similar markets," Northwest CEO Richard Anderson said in a conference call with analysts and reporters.
"The original revenue assumptions that we used back when we made that decision in '96 have changed significantly, particularly after 9/11," Anderson said.
Northwest will decide by December whether to terminate its contract with Mesaba, which would be a big blow to Mesaba because it generates 40 percent of its revenue from the Avro flying.
Northwest is in the process of seeking proposals from other airlines to replace the Avros with smaller regional jets. "Mesaba is eligible, of course, to place a bid with respect to the replacement of that airplane," Anderson said.
Currently, Mesaba and Memphis-based Pinnacle Airlines are Northwest's only regional flying partners. Northwest has been allocating new Canadair Regional Jets (CRJs) to Pinnacle, which has restricted Mesaba from expanding operations.
"We would hope to place a competitive bid for Northwest's regional growth," Mesaba spokesman Dave Jackson said Thursday night. However, Northwest provides all of the planes to Mesaba and Pinnacle, and Mesaba only flies one type of jet -- the Avro -- that may be removed by Northwest.
Tom Wychor, chairman of the Mesaba pilots union, told Northwest pilots gathered in Memphis Thursday that Northwest management is using "whipsawing tactics" to play the Northwest, Mesaba and Pinnacle pilot groups against one another.
He contends the Avro decision was timed to influence Mesaba's pilot contract talks, which have dragged on for more than two years. The pilots currently are conducting a strike authorization vote.
Liz Fedor is at [email protected].
Northwest considers other airlines to fly Mesaba routes
Liz Fedor, Star Tribune
Published October 17, 2003 MESA17
Northwest Airlines said Thursday that it is preparing to solicit proposals from regional carriers who can fly routes now flown by Mesaba Airlines with Avro jets.
Last week, Northwest revealed that it may terminate the service agreement it has with Minneapolis-based Mesaba to fly regional Northwest routes with the 69-passenger Avro RJ-85 jets.
Those 36 planes were acquired by Northwest between 1996 and 2000, but now Northwest executives are looking at putting other planes on the Avro routes.
"The operating costs of the airplane are significantly higher than other aircraft that could operate in similar markets," Northwest CEO Richard Anderson said in a conference call with analysts and reporters.
"The original revenue assumptions that we used back when we made that decision in '96 have changed significantly, particularly after 9/11," Anderson said.
Northwest will decide by December whether to terminate its contract with Mesaba, which would be a big blow to Mesaba because it generates 40 percent of its revenue from the Avro flying.
Northwest is in the process of seeking proposals from other airlines to replace the Avros with smaller regional jets. "Mesaba is eligible, of course, to place a bid with respect to the replacement of that airplane," Anderson said.
Currently, Mesaba and Memphis-based Pinnacle Airlines are Northwest's only regional flying partners. Northwest has been allocating new Canadair Regional Jets (CRJs) to Pinnacle, which has restricted Mesaba from expanding operations.
"We would hope to place a competitive bid for Northwest's regional growth," Mesaba spokesman Dave Jackson said Thursday night. However, Northwest provides all of the planes to Mesaba and Pinnacle, and Mesaba only flies one type of jet -- the Avro -- that may be removed by Northwest.
Tom Wychor, chairman of the Mesaba pilots union, told Northwest pilots gathered in Memphis Thursday that Northwest management is using "whipsawing tactics" to play the Northwest, Mesaba and Pinnacle pilot groups against one another.
He contends the Avro decision was timed to influence Mesaba's pilot contract talks, which have dragged on for more than two years. The pilots currently are conducting a strike authorization vote.
Liz Fedor is at [email protected].
