Re: FW: Aviation Daily: Northwest's DC-9s Key To Flexibility, Cost Control

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The question would have to be..would NW want to train a new cadre of pilots
for the 717?  With the 318, training is common with the other busses.
Then again....you are correct...it's all about money.

Gotta love those NW DC-9s.

Walter
DCA

----- Original Message -----
From: "Addison Schonland" <addison@schonland.com>
To: <AIRLINE@LISTSERV.CUNY.EDU>


> By this logic guess who is waiting in the wings to get 717s cheap?  NW
could
> swoop in and pick them all up for a song....that means no 318s, but its
> about the money.  Boeing would give them away to keep the line going.  If
NW
> buys them Boeing gets the big airline endorsement they need -- a win-win.
> AA looks back and thinks about its costs going up and sighs.
>
> -----Original Message-----
> From: The Airline List [mailto:AIRLINE@LISTSERV.CUNY.EDU]On Behalf Of
> Roger & Amanda La France
> Sent: Thursday, January 17, 2002 6:27 AM
> To: AIRLINE@LISTSERV.CUNY.EDU
> Subject: Aviation Daily: Northwest's DC-9s Key To Flexibility, Cost
> Control
>
>
> Aviation Daily: Northwest's DC-9s Key To Flexibility, Cost Control
>
>
> By Steve Lott/Aviation Daily
>
> 17-Jan-2002 7:50 AM U.S. EST
>
>
>
> Northwest plans to keep operating its large fleet of aging DC-9
narrowbodies
> well into the future, as the planes are a key part of the carrier's
strategy
> to keep costs low and rebound from the current crisis.
>
>
> As long as industry revenues remain weak, most agree that airlines that
keep
> expenses in check will come out on top. Northwest CEO Richard Anderson
views
> the DC-9 fleet as a significant competitive advantage to keep costs low
and
> maintain its capacity flexibility. "Suddenly our fleet strategy looks
good,"
> he told The DAILY in Minneapolis.
>
>
> Northwest today will report a fourth quarter loss, but executives are
> expected to highlight the fact that the airline has maintained a unit cost
> advantage relative to the industry. Celebrating his first anniversary next
> month as CEO, Anderson said the airline's cost-cutting moves and fleet
> strategy put it a step ahead of most other U.S. majors.
>
>
> The airline flies about 170 DC-9 variations from its three hubs to its
wide
> network of many smaller domestic cities. Anderson said the 30-year-old
DC-9
> is a perfectly sized aircraft because of its high-frequency operating
> capability and the fact that there is no comparable replacement available.
>
>
> Anderson cited DAILY data showing that Northwest's block hour costs for
its
> 114 DC-9-30s is $2,133, significantly below the costs of the Boeing 737
and
> Fokker 100 (DAILY, Nov. 6). "The DC-9s are all paid for, and it is a very
> profitable, very reliable airplane. It is also very efficient to operate,"
> he said.
>
>
> Northwest operates the DC-9 an average of seven cycles per day on a fairly
> short stage length. The carrier uses its larger Airbus A319s and A320 on
> hub-to-hub markets and long-haul flying. "Northwest uniquely needs a
> 100-seater," he said. "Frequencies are best served by a very efficient,
> low-cost airplane that has very high reliability."
>
>
> He said that the 737s are not a good replacement as they are too large for
> the DC-9 markets. "The worst thing you can have in our business is an
> airplane that's too big for the market," Anderson said. "No airline went
out
> of business for having airplanes that were too small for the market they
> were serving."
>
>
> While Northwest is occasionally criticized for its aging fleet of DC-9s,
> Anderson said the airline spent as much as $7 million per aircraft for a
> complete overhaul, inside and out. "It's basically a completely
refurbished
> airplane," he said. The airline hushkitted all the planes, installed new
> interiors and fixed all the technical issues that historically caused
> reliability problems.
>
>
> Because the capital cost of the DC-9 is low, Northwest can carry nine
spares
> to boost its on-time performance and reliability. "We use these airplanes
to
> have a lot of flexibility because the capital cost is essentially zero,"
he
> said.
>
>
> The airline also can adjust its capacity quickly thanks to the large fleet
> of DC-9s. It has retired its MD-80s, 727s, 747-100, and all the 747-200s
> that are not higher-power, higher-gross-weight versions. Anderson said the
> airline is working to retire its DC-10-40s "as fast we can." While the
> airline has retired some of its oldest DC-9-10s and will retire more when
> they hit about 100,000 cycles or roughly 35 years of age, the DC-9 is a
> cornerstone of its near-term fleet strategy. Northwest will take delivery
of
> 61 aircraft this year -- 23 regional jets and 38 mainline aircraft.

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