One Small Step For Easing Flight Cancellations?

Things may just be getting better at Northwest Airlines. The beleaguered Eagan, MN-based airline announced this week it reached a tentative deal with the Air Line Pilots Association on contractual changes to pilot work rules, all aimed at stemming the rising tide of cancelled flights over the past two months.

Reuters reports the agreement, which is subject to approval by the Northwest ALPA Master Executive Council, calls for changes to several rules pertaining to international flights, as well as the settlement of several outstanding grievances by the pilots union against Northwest management. In exchange, the airline agreed to reinstate overtime pay for pilots flying anything over 80 hours per month, equal to 50 percent of regular pay, effective August 1.

As ANN has reported, pilots were reluctant to work such overtime hours to help the airline meet its flight schedule towards the end of June and July, by which time many of Northwest's pilots had "timed out" after the required 90 flight hours per month.

As a show of protest against lucrative bonuses paid to Northwest executives -- following steep concessions to pay and benefits taken by pilots and other employees during bankruptcy -- ALPA had encouraged pilots to "fly the contract"... in essence, to not work voluntary O/T.

In an attempt to stave off what Northwest has called high rates of "pilot absenteeism," the airline also proposed a 'Summer Reliability Incentive Program" -- which calls for all contract employees, including pilots, to receive incentive pay for perfect attendance between August 4 and September 3.

That pay would equal 15 percent of eligible earnings, up to a maximum of $1,000 per worker. The proposal is subject to ratification by ALPA members.

Earlier this week, a Northwest spokesman conceded the airline only completed about 92 percent of its scheduled flights from July 27-29, compared with the carrier's typical average completion rate of around 99 percent. The cancellations caused Northwest some $25 million in lost revenue for the second quarter of 2007, Reuters notes.

For a carrier just two months out of bankruptcy... that's the last thing Northwest needed.

FMI: www.nwa.com, www.alpa.org