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Wed, Jun 18, 2008

Northwest Plans More Cuts, And More Grounded Planes

DC-9 Fleet Will Be Reduced To 61 Aircraft

On Tuesday, Northwest Airlines announced its second cut in capacity in two months, further building on fleet reductions announced earlier this year.

The New York Times reports Northwest plans to ground 14 Boeing 757 and Airbus A319 aircraft by the end of this year. The airline will also ground many of its aged DC-9s... though not as many as you might think. According to a regulatory filing this week, Northwest will keep 61 DC-9s in the skies, down from 94 at the beginning of 2008.

The airline also announced more cuts to its domestic and international flying, by up to 9.5 percent. That's significantly higher than the seven percent cutback Northwest announced in April... and further reinforces the impact high fuel prices are having on airline operations.

Northwest CEO Doug Steenland reiterated the carrier plans to achieve the cuts through reduced service frequencies, and not b y dropping cities from its schedule.

"We expect to accomplish this with fewer frequencies," Steenland told the paper, adding the rise in fuel costs "is significantly increasing the cost structure" for airlines. "It puts us and others in a position where we need to pass through those costs to our customers."

Some jobs will also be cut as a result, though Northwest has yet to put a firm number on how many.

Though Northwest cites fuel prices -- which have climbed over 83 percent over last year, notes the Air Transport Association -- as reason for the cutbacks, the streamlining of operations and grounding of older planes should also better align Northwest for its proposed merger with Delta Air Lines.

FMI: www.nwa.com

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