NWA To Expand A320 Fleet In Asia But Strategy Unchanged

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NWA To Expand A320 Fleet In Asia But Strategy Unchanged
By Steve Lott
June 12, 2003


Northwest plans to operate eight Airbus A320 narrowbodies in its
Asia/Pacific network this summer, a dramatic shift from its traditional
Tokyo operation consisting of high-capacity jumbo aircraft, but CEO Richard
Anderson said the carrier has not changed its strategy for the region.  In
his most recent message to employees, Anderson said the airline is still
flying its full portfolio of airport and route slots. He said the carrier
this summer will still have all the same service, but with smaller planes
and fewer frequencies.  We're in every market, but we've tried to get to
the smallest gauge airplane," he said. The airline actually developed the
strategy of using narrowbodies before the SARS pneumonia outbreak and even
before the Sept. 11 terror attacks, as it wanted to take full advantage of
Tokyo's second, shorter runway.

A good example of the capacity change is the airline's Tokyo-Beijing route,
which once operated with a 350-seat Boeing 747. Largely due to the SARS
pneumonia scare and the general downturn in air travel, Northwest will
operate the route with an A320. "We can substitute an A320 for a 747 and
not lose any revenue because we're only carrying 70-100 passengers a day,"
he said.  He reported that there will be eight A320s flying in the Pacific
network this summer, and the only 747-200 that will be operating
transpacific will be in the Seattle market. The San Francisco route will be
operated with a Boeing/Douglas DC-10, Los Angeles a 747-400, and
Minneapolis and Detroit will both have daily flights with a 747-400, as
will New York Kennedy.  In his message, Anderson also addressed the
question of what happens when the market grows again. "We have plenty of
capacity in the system," he said. Northwest is parking its 747-200s, which
is giving it "down time" on airplanes that would have normally flown south
and west of Tokyo Narita. Referring to the -200s as "whales," he said the
aircraft will now sit in Narita while the other narrowbodies operate
"interport."  Anderson told staff that the airline will be in position to
capture the traffic rebound in the Pacific. "But so long as we have the
SARS situation that we have on our hands, we are not going to vary the
strategy of the airline," he said. "We're flying our full slot portfolio
and we're staying in all the markets." The only market where Northwest will
pull out is Kaohsiung, "but that was experimental anyway," he noted.


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