Northwest Airlines reduces schedule by 12% and lays off 4,900 staff

Northwest Airlines announced today that it will reduce its system-wide flight schedule by approximately twelve percent, as measured on an available seat mile basis.

The carrier said it is taking this action because of a drop in passenger demand due to both the threat of and now the commencement of hostilities with Iraq.

Because of the reductions, Northwest estimates that approximately 20 DC-9, A320, 757-200, DC10-30, and 747-200 aircraft will be removed from service. Schedule changes will impact the airline’s North American, Asia/Pacific and  European routes.

Schedule changes will be displayed in all reservation systems by March 29.

“We apologize to our customers for any inconvenience this schedule reduction might be causing them. However, we must take this measure in  response to the reduction in demand due to the war with Iraq,” Richard Anderson, chief executive officer said.

STAFF REDUCTIONS

The airline also announced that because the level of flying is being reduced  substantially and aircraft are being removed from service, Northwest is forced to reduce its overall staffing level by about 4,900 employees. All employee groups will be affected.

The carrier will decrease its payroll through attrition, voluntary leaves, leaving open positions unfilled and layoffs. A relief package including pay,  medical coverage and flight privileges will be offered to employees who are furloughed due to the latest staff reduction.

Furloughed employees eligible for relief pay are those whose contractual rights do not allow them to take another job in the Northwest Airlines system. The package provides between one and four weeks of base pay,  determined by years of service with the company. In addition, it includes medical coverage through April 30, 2003. Full travel privileges will remain in place through December 31, 2003.

"Clearly, the last two years have been a difficult and painful period for our employees. Due to the weak demand for business travel which emerged in March, 2001, the subsequent impact of the terrorist attacks on the United States in September of that year, and now, armed conflict with Iraq, we have been forced to reduce our workforce by some 17,000 employee positions,” Anderson added.