Word: northwest
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Dates: during 1990-1999
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...this is one industry, and one company, that glows white hot with anger between its labor and management. United, Northwest, USAir, TWA and Continental are lined up with labor negotiations like so many jets waiting to take off from O'Hare. Does this mean a year of strikes? Not necessarily, but the situation at American is a sort of wind sock for the industry...
...Corp., the parent company of American, has been a champion at it, having shaved more than $1 billion in costs. USAir knocked back 10% of its flights. Delta laid off a large percentage of its work force. Northwest decided to retrofit old aircraft instead of buying new ones. The majors stopped, for the most part, their suicidal price-cutting wars. They curtailed their wildly optimistic purchases of new aircraft that had led them into such trouble in the 1980s. They shut down unprofitable routes, leaving many cities to the commuters...
...Chiames: "We would be at such a disadvantage, we could not compete. The trend in the industry is to move to the regional jet, but this jet is not flown by the majors." The small jets are now flown by the likes of Comair, Delta's commuter affiliate, and Northwest Airlink, both of which have pay scales like American Eagle...
...Northwest Airlines is another labor trouble spot, with six unions currently in negotiations. Like United, Northwest gave its employees ownership of one-third of the company in exchange for 15% across-the-board pay cuts for three years. All parties are paying close attention to what happens at American. "The airline industry is a copycat industry," says Paul Omodt of ALPA in Minneapolis, Minnesota, which represents Northwest pilots. "What happens at one airline happens at another. There's not a lot of original thought." Labor negotiations are also due to begin at Continental...
DALLAS: American Airline's decision to slash domestic prices on average by 50 percent has sent fares falling throughout the airline industry. United, Northwest and Continental all trotted out similar discount plans this weekend in markets where they compete with American, leaving only Delta and USAir undecided among the major US airlines about which way the money is blowing. Reservation phone lines and websites for airlines with a discount plan were jammed Monday as passengers scrambled to take advantage of savings that are good only for tickets purchased by March 3. American is offering a 50 percent discount on average...