Northwest Airlines plans to launch another regional subsidiary to operate large regional jets during its court-protected Chapter 11 reorganisation.
The new feeder plan was revealed by president and chief executive Doug Steenland during a meeting with unsecured creditors in New York, where he also said the carrier is seeking between $2.2 billion and $2.5 billion in “profit improving initiatives”. Northwest has two feeder carriers, Mesaba Airlines – in which the major owns a 27.8% stake – and Pinnacle Airlines, which was once a wholly owned Northwest subsidiary.
These carriers are undergoing schedule and staff cuts as part of a fleet-reduction programme imposed by the mainline carrier’s management following its Chapter 11 filing. Few other details of the new subsidiary are contained in Steenland’s presentation to Northwest’s creditors. However, the Air Line Pilots Association (ALPA) says that the carrier plans to operate 70- to 100-seat aircraft.
Neither Mesaba nor Pinnacle operate aircraft of this size, and under its current scope clause Northwest’s ALPA unit says that mainline pilots have the sole right to fly these larger regional jets.
The pilots union adds that it has only been told the new regional subsidiary “is a management want” on a “wishlist” and that negotiations on the possible launch will not begin until the carrier’s management has given ALPA its new business plan. Northwest would not comment further on Steenland’s presentation.
This revelation, however, might end speculation that Northwest is set to be the launch customer for Bombardier’s planned CSeries, which is being marketed as a 110- to 130-seat aircraft. The rumours centre on the replacement of Northwest ageing McDonnell Douglas DC-9s, which seat from 78 to 110 passengers.
DARREN SHANNON/WASHINGTON DC
Source: Flight International
