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From: A Source Close To Building F
T1:
Category: Northwest News
Date: 07 Jan 2006
Time: 19:20:36 -0500
Remote Name: 4.248.13.254
This article came from the PFAA Watch web site. It is very insightful and interesting reading, but very depressing as well. Hi Everyone, I don’t post regularly, so please do not jump on me for making these predictions about what NWA has up their sleeve in 2006. This isn’t mere speculation. I’ve been privy to some very important information because of a good friend I have in Building F. She and I have worked together for many years (started at Hughes), and she is very close to an ex-Pan Am’er, left over from the Hector days. This plan has been floating around MSP for the last week or so. I really don’t care about what NWA thinks of me posting this in this forum, because quite frankly, I’m on a voluntary furlough, could give two shits about NWA, and would love for them to come after me in their witch-hunt. #1 - The company will divide and conquer, and they will create the type of enviornment that Frank Lorenzo created at Continental, Eastern and Texas Air International. There will be huge groups of pro-union employees and probably even more scabs (especially on the Flight Attendant level). #2 - Those employees who ‘Scab’ will remain employed with NWA. The bankruptcy court will then allow NWA to terminate those workers who ‘strike’ (beacuse any strike, whether authorized or not, will be viewed as illegal by the US Bankruptcy Court). #3 - Northwest has a worst-case scenario for work-stoppages from all employee groups. That plan includes a minimum number of US-Based Flight Attendants (570) and a small number of pilots (135) to maintain the DTW/MSP to Europe/Asia operations. Everything else, feeder operations included, will be routed through Mesaba and Pinnacle, therefore drastically reducing, although with minimal financial impact, the amount of revenue generated by these flights. #4 - Scab Pilots: Within the pilot group, Northwest has approximately 230 line-qualified pilots that serve as Chief Pilots, Fleet Managers, Training Captains, Check Airmen and Simulator Instructors. Most are qualified on two aircrafts (namely A319/A320 & A330, or B747-400/B757). These pilots most likely will not honor an ALPA picket line. #5 - Scab Flight Attendants: This is a very touchy subject. While everyone can formulate their opinions (including myself), I believe you’ll find that there will be a lot of scabs within our work group. Please remember, the PFAA election ununified our group. Their lack of leadership and baldfaced lies to our group have solidified my beliefs that some flight attendants will not honor picket lines. As was shown in the AMFA showdown, NWA is only a business entity. They are not your friend, family or lover. This is a business whose only legal responsibility is to the shareholders, IRS and FAA - period. Those employees who do not fit-in with their business model will simply be relegated to a picket line, and NWA has no issues with this cruel end to their careers. #6 - NEWCO: Unfortunately, this is a reality. If you do your homework, you’ll find that an unnamed corporation has placed orders for 30 new Embraer 190’s with options for 30 more. (It may be NEWCO, it MAY NOT be NEWCO as well). However, Northwest cannot simply form an airline, with new airplanes, overnight. Even with Embraer’s track record of mass-producing aircraft FAST, this NEWCO simply would not come to be in a day or two. Speculation: NEWCO, simply put, would be like Lorenzo’s New York Air. Scabbing Pilots and Flight Attendants, qualified on aircraft like the DC9/A319/A320, operating under NWA’s operating certificate, will be transferred to NEWCO. After this happens, the only remnants of Northwest Airlines as we know it today, will be the international routes and a very small domestic feeder operation. #7 - Business Model: Northwest’s worst-case-scenario, called “Minimal Staffing Stragegy” provides for the following minimum number of Flight Attendants at each base, to provide for the international flying. The numbers below do not reflect reserve coverage (8% increase in head count) BOS: 24 F/A DTW: 288 F/A LAX: 48 F/A MEM: 24 F/A HNL: 60 F/A (extra 12 for PDX coverage) MSP: 152 F/A SEA: 48 F/A SFO: 24 F/A Theoretically, Northwest could operate bare-bones international routes with 688 Flight Attendants. Provided that approximately 120 of those Flight Attendants are Management/Training employees, that would require about 570 Scabs. That’s a very attainable goal for a company that knows their workforce is stuck between a rock and a hard place. Remember, bare bones means bare bones: minimum crew on each flight, no international patterns longer than three days. Asia and India based Flight Attendants would pick up the slack on all other routes, including those South & West of Tokyo, and in the South Pacific. So esentially, provided 1 24-in-7 and not violating any other FAR’s NWA could hypothetically operate its bare minimus route structure giving each Flight Attendant approximately 8 days off each month (for 24-7). Sounds like fun to me! #9 - ALPA Master Scab List: As of May 2004, NWA had 32 active SCAB pilots from their 1978 strike, and many more from the Pan Am 1985, United 1985 and Eastern 1989 strikes. You be the judge, but, once a scab, always a scab. Let us not forget the Scab F/A’s that Northwest currently employs from Eastern and TWA. (You know who you are, out of courtesy, I won’t name you). #10 - FAA Part 121 Operating Certificate: Apparently, NWA has already developed, formed and applied for a Part 121 Air Carrier Operations Certificate for this NEWCO. Remember, considering that NWA’s Part 121 Certificate For Passenger, and Part 141 for Cargo are two entirely different operating certificates under Wings Holdings, Inc. - Northwest Airlines ceased to exist, at least in part, in 1989, when Wings Holdings, Inc. obtained their operating certificate. What does this mean? Wings Holdings can legally transfer operating authority, whole or part, of the airline, to any company it wants to, with minimal impact on the “business entity” called NWA, Inc. So, esentially, this means that not only could NWA’s operating certificate be transferred to NEWCO (considering they’ve already applied for the certificate, I doubt this may happen), it also means that “liquidation” could be limited to just the airplanes, employees, terminals, gates and route authorities. “NWA, Inc” has filed for Chapter 11 protection, however, the other business entities that operate under the NWA, Inc. umbrella, as wholly-owned but seperate balance sheet compaines, namely: NATCO (Northwest Aerospace Training Corporation, Inc. which owns and maintains FAA Pilot & Flight Attendant facilities (NATCO Building & F Building & Mockups), NWA Air Cargo (seperate operating certificate & business entity), the WorldClubs and the following Gateways: DTW MSP MEM BOS HNL PDX SEA LAX SFO Could still exist and therefore serve as the foundation for NEWCO. What most people don’t realize is that Northwest is many hundreds of small mini-corporations (some LLC’s, some CO./INC.) that operate as a conglomerate for NWA, Inc. For example: if the airline were to liquidate its assets today, Wings Holdings, Inc. could esentially re-negotiate an aircraft lease under their name, lease the aircraft to NEWCO and begin to utilize it on MSP-AMS, for example. Why? Because the ‘MSP Hub Operation’ is considered its own, limited liability corporation. It just happens to operate in unison with Northwest Airlines, Inc., a subsidiary of NWA Corporation, wholly-owned by Wings Holdings, Inc. Twisted, isn’t it? #11 - Corporate Planning: The debtors named in Case No. 05-17930 (ALG), [the bankruptcy filing] are as follows: NWA Corp. NWA Fuel Services Corporation Northwest Airlines Holdings Corporation NWA, Inc. [the airline itself] NATCO. Northwest Airlines, Inc. [the umbrella through which the other business entites are operated] MLT Vacations Northwest Airlines Cargo, Inc [the cargo operation COMPANY, not the CARGO AIRLINE ITSELF] NWA Retail Sales, Inc. [Minnesota Corporation, 99% Owned By NWA, Inc; maintains shops in Bldg A, C, etc.] Montana Enterprises, Inc. [Montana Company: Real Estate Development,] more on them later NW Red Baron LLC [An operating entity used to funnel capital to Montana Enterprises, Inc.] Aircraft Foreign Sales, Inc. [Leases aircraft, owned by Wings Holdings, to NWA, Inc. the airline] a US Virgin Islands Corp. NWA Worldclub, Inc. [Owns the worldclubs, operates them on the behalf of NWA, Inc. the airline for NWA Corp.] NWA Aircraft Finance, Inc. [Inc. in Delaware, provides financing on behalf of Aircraft Foreign Sales, Inc.] I know this is long-winded, I apologize. My point is this: If the airline were to liquidate and the employees terminated, these corporate entities would remain intact; therefore allowing NWA Corp, under Wings Holdings, Inc. to operate a new, lower-labor cost carrier using all of the business entites we know today as Northwest Airlines, Inc. Furthermore, legally, Northwest could allow the Flight Attendants or Pilots to strike (legally or illegally) but force other employee groups, namely CSA’s, Reservation’s Agents, Clerical Staff, etc. to continue to work for these business entities while a new airline is formed or while the scabs continue to operate flights for Northwest the airline. Also, when NWA, Inc. [the airline] issues these press releases about negotiating lower aircraft lease rates, not hedging fuel, the cost of fuel, etc. you must read between the lines. Northwest Airlines [the airline entity], Pinnacle, Mesaba and KLM are all in an exclusive agreement to purchase fuel [at a rate nearly double the industry average] from NWA Fuel Services Corporation. It is factual that kerosene is being sold at a high rate right now, but the airline is forced to buy it from a sister company at nearly double the rate. [Does the PFAA know this? Nope!] The airline entitiy also renegotiated aircraft leases, financed through NWA Aircraft Finance, Inc., with the aircraft being owned by Aircraft Foreign Sales, Inc. at substantially lower [albeit higher than industry average] rate. MLT WorldVacations purchases group seats, for sale as package deals, on Northwest Airlines operated flights well below cost. NWA WorldClubs, Inc. is actually the company that maintains worldclubs for NWA throughout the world. However, they are actually the company that receives all of the revenues from sales of worldclub memberships. Ohh, what a tangled web we weave… I’ll write more on this topic later, as I have a whole lot to discuss, if y’all don’t mind. Profile