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

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...This may or may not be a stupid question...

How much parts commonality between earlier model DC-9s
(10's, 30's, etc) and the 717....

Bryant Petitt
Cumming, GA

--- Addison Schonland <addison@schonland.com> wrote:
> 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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