Northwest Airlines confirms 2,500 job cuts and announces new fees

Jul 10, 2008 (AIRLINE INDUSTRY INFORMATION via COMTEX) -- NWA | Quote | Chart | News | PowerRating -- Northwest Airlines (NYSE: NWA | Quote | Chart | News | PowerRating) has said that 2,500 employees will lose their jobs as a result of planned cuts to capacity later this year.

The airline announced last month plans to reduce its system mainline capacity (domestic and international) by a total of around 8.5% to 9.5% in the fourth quarter, compared with the fourth quarter of 2007.

These flight reductions mean that Northwest will reduce its frontline and management personnel by 2,500. Initially the company will make cuts through voluntary measures, including early-out programmes, voluntary leaves, work rule modifications and attrition.

Northwest has also said that it will match its competitors by introducing new fees to help offset the current high fuel costs.

For tickets sold on or after 10 July, for travel starting on 28 August within the United States and between the US and Canada, the airline will charge USD15 for passengers' first checked bag. Northwest already charges USD25 for a second checked bag and USD100 for three or more checked bags.

Northwest is also increasing its ticket change fees by USD50 with immediate effect.

In addition, in what the airline said was a temporary service fee, a charge will be introduced for WorldPerks Award tickets issued in North America on or after 15 September 2008. The fee will be USD25 for domestic tickets, USD50 for transatlantic tickets and USD100 on transpacific routes.

Doug Steenland, president and CEO of Northwest Airlines, said that these fee increases help to offset "our extraordinary fuel prices" and better align the company's costs with providing these services.

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