Company Watch - Northwest Airlines.

Edited by Aram Gesar, [e-mail] For more global news, data, analysis and features, please go to: http://www.AirGuideOnline.com/professional.htm Sep 18, 2006

US Dept. of Transportation approved the transfer of the operating certificate of defunct Independence Air to Northwest Airlines, moving it closer to launching its new Regional subsidiary Compass Airlines. The proposed new service from Washington Dulles could begin as early as October. "We tentatively find that the introduction of Compass' service will likely enhance competition in the domestic airline industry, particularly in light of the recent cessation of Independence Air's operations at Washington Dulles International Airport, where Compass will base its new service," DOT wrote in a show cause order issued this week. "We also tentatively conclude that the proposed transfer will benefit Compass in its ability to initiate and sustain its proposed service." Sep 15, 2006

DOT further determined that Compass would "enhance air service in a variety of small and medium size markets and provide those communities and passengers with convenient connections to Northwest's domestic and international markets." DOT spokesperson Bill Mosley said the ruling is followed by a 14-day public comment period. NWA said in its filing it will begin with scheduled service between Minneapolis-St. Paul and IAD with a single 50-seat CRJ. It plans to begin taking delivery of 76-seat RJs in March. During its first year of operation, Compass would operate up to four aircraft. Sep 15, 2006

Northwest Airlines mechanics, represented by the Aircraft Mechanics Fraternal Assn., who went on strike in August 2005 are eligible for unemployment benefits following a reversal this week by the Minnesota Court of Appeals. A lower court had ruled that custodians and cleaners were eligible but the mechanics were not, a decision reversed when the higher court ruled, "It is undisputed that Northwest's terms imposed on AMFA members of both crafts constituted 25% wage reductions, as well as benefit cuts. We agree...these substantial reductions were sufficient to amount to a lockout, entitling the custodians and cleaners to unemployment benefits." AMFA said it still represents 3,551 mechanics, cleaners and custodians. Sep 15, 2006

DOT approves Northwest commuter subsidiary. The Department of Transportation will allow Northwest Airlines' subsidiary Compass Airlines to start flying out of Dulles International Airport next month. Compass will fly passengers to its hubs in Detroit, Minneapolis, Memphis, Tenn., and several small and midsize cities. Sep 12, 2006

Northwest mechanics eligible for unemployment, court rules: The Minnesota Court of Appeals ruled Tuesday that Northwest Airlines mechanics who went on strike may receive unemployment benefits. The court said the 25% pay cut imposed on the workers constituted a lockout. Sep 12, 2006

Delya Air Lines and Northwest Airlines are still reducing costs and seeking ways to exit Chapter 11, a year after filing for protection. They followed United Airlines and the former US Airways, which also have been in bankruptcy in recent years. With the industry seeing signs of a turnaround, the airlines are eager to resume normal operations. Delta plans to file its reorganization plan later this year and emerge from bankruptcy in the first half of 2007 and Northwest has said it too plans to come out of bankruptcy early next year. http://www.delta.com http://www.nwa.com Sep 17, 2006

Northwest to launch subsidiary with regional jets. Northwest Airlines is preparing to launch a new subsidiary, Compass Airlines, that will fly new jets on regional routes. The jets seat 76 and will be used in markets now served with planes seating 50 or 69 passengers. Meanwhile, the airline says it is on schedule to emerge from bankruptcy protection in July 2007. Sep 15, 2006