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NW Cargo May Downsize, NW May Sell WorldPerks  
User currently offlineWA707atMSP From United States of America, joined Oct 2006, 2226 posts, RR: 8
Posted (6 years 9 months 3 weeks 2 days 7 hours ago) and read 3842 times:

The Minneapolis Star Tribune is reporting today that:

A: NW Cargo may downsize its fleet of 747Fs, because they will be losing DHL as a customer late next year. DHL is NW Cargo's biggest customer

B: NW is considering spinning off its World Perks program

Link to article:

http://www.startribune.com/535/story/1591377.html


Seaholm Maples are #1!
37 replies: All unread, showing first 25:
 
User currently offlineTVNWZ From United States of America, joined Feb 2006, 2389 posts, RR: 2
Reply 1, posted (6 years 9 months 3 weeks 2 days 7 hours ago) and read 3823 times:

Airlines have to say they are looking into spinning their FF programs. that is what the Hedge Funds want to hear to drive up the stock. Let's see which airline will be the first to do so in the USA. I don't think it will happen.

User currently offlineKarlB737 From United States of America, joined Mar 2004, 3105 posts, RR: 10
Reply 2, posted (6 years 9 months 3 weeks 2 days 7 hours ago) and read 3780 times:



Quoting WA707atMSP (Thread starter):
The Minneapolis Star Tribune is reporting today that:

A: NW Cargo may downsize its fleet of 747Fs, because they will be losing DHL as a customer late next year. DHL is NW Cargo's biggest customer

B: NW is considering spinning off its World Perks program

C: Speculation about airline mergers has been strong. Davis said Northwest is "very actively looking at" who the right partner would be if mergers were to happen.


User currently offlineAmtrakGuy From United States of America, joined Sep 1999, 500 posts, RR: 0
Reply 3, posted (6 years 9 months 3 weeks 2 days 7 hours ago) and read 3730 times:

Quoting KarlB737 (Reply 2):
C: Speculation about airline mergers has been strong. Davis said Northwest is "very actively looking at" who the right partner would be if mergers were to happen.

Spirit Airlines. But don't know if government will like it because both NWA and Spirit have hub at DTW.

Because this would help NWA get their foot in Caribbean and South America. And Bahamas too.

[Edited 2007-12-04 13:44:47]

User currently offlineLobster From Germany, joined Oct 2008, 49 posts, RR: 0
Reply 4, posted (6 years 9 months 3 weeks 2 days 6 hours ago) and read 3617 times:

I find it hard to believe that NW isn't turning customers away in the cargo business especially with all the Asian traffic they have. Something stinks of poor marketing/pricing on their part.

And how exactly would NW "sell" WorldPerks?


User currently offlineCOSPN From Northern Mariana Islands, joined Oct 2001, 1619 posts, RR: 0
Reply 5, posted (6 years 9 months 3 weeks 2 days 6 hours ago) and read 3591 times:

747-200F's must cost a fortune with todays fuel prices and cargo is 99% EX ASIA not much value cargo going US- Asia

User currently offlinePSU.DTW.SCE From United States of America, joined Jan 2002, 7591 posts, RR: 27
Reply 6, posted (6 years 9 months 3 weeks 2 days 6 hours ago) and read 3584 times:



Quoting AmtrakGuy (Reply 3):
Spirit Airlines. But don't know if government will like it because both NWA and Spirit have hub at DTW.

Because this would help NWA get their foot in Caribbean and South America. And Bahamas too.

Not going to happen, period. Spirit is a privately held company and is under no pressure from the financial community to merge with anyone. Calling NK's operation at DTW a hub these days is kind of an overstatement - more like a focus city.

Quoting Lobster (Reply 4):
I find it hard to believe that NW isn't turning customers away in the cargo business especially with all the Asian traffic they have. Something stinks of poor marketing/pricing on their part.

Its not just NW who is seeing a softness in the Asian cargo market, they just have more exposure with their all-cargo ops.

Quoting TVNWZ (Reply 1):
Airlines have to say they are looking into spinning their FF programs. that is what the Hedge Funds want to hear to drive up the stock. Let's see which airline will be the first to do so in the USA. I don't think it will happen.

Agreed. Everything is saying it because its what the financial markets want to hear.

Again, be careful about how things are said and worded at analyst presentations. Companies have to be over-conservative regarding their remarks to the financial markets regarding forward-looking statements. They also have to say they are considering all of their options as well as being slightly non-commital until the time is appropriate to take action.


User currently offline777STL From United States of America, joined Dec 2004, 3647 posts, RR: 3
Reply 7, posted (6 years 9 months 3 weeks 2 days 6 hours ago) and read 3581 times:



Quoting AmtrakGuy (Reply 3):
Spirit Airlines. But don't know if government will like it because both NWA and Spirit have hub at DTW.

Because this would help NWA get their foot in Caribbean and South America. And Bahamas too.

I have a feeling NWA is going to be on the losing end of a merger.



PHX based
User currently offlineAzjubilee From United States of America, joined Apr 2000, 3941 posts, RR: 27
Reply 8, posted (6 years 9 months 3 weeks 2 days 5 hours ago) and read 3542 times:

The bigger and more important question is WHY is NWA losing the DHL business?


AZJ


User currently offlineJFK787NYC From United States of America, joined Apr 2007, 812 posts, RR: 2
Reply 9, posted (6 years 9 months 3 weeks 2 days 5 hours ago) and read 3520 times:



Quoting COSPN (Reply 5):
747-200F's must cost a fortune with todays fuel prices and cargo is 99% EX ASIA not much value cargo going US- Asia

You are 100% incorrect. There is a ton of traffic traveling from both ends. The difference is from the side of the United States you have heavy things like machinery, metals, high quality very heavy goods.

From Asia's end you have very light garbage and electronics stuff coming from China. Cargo is totally going both ways, You seem to forgot that the little stuff the United States does produce is very very high quality goods. Plus, I would not be surprised NWA is bringing a ton of cargo from that region to Amsterdam and than further down with KLM.


User currently offlineNWAESC From United States of America, joined Aug 2007, 3389 posts, RR: 9
Reply 10, posted (6 years 9 months 3 weeks 2 days 5 hours ago) and read 3491 times:

Looks like we're pulling one freighter to start...(this may have been mentioned in the article, but the link wasn't working for me).

From the NWA employee website:


"NWA Cargo has announced, due to fuel costs at $95+/barrel and the low season for cargo shipments approaching, it will temporarily trim its freighter network by reducing one scheduled aircraft, effective January 1, 2008.

This network change will result in the cancellation of freighter service from Narita to and from Singapore and Bangkok, and Anchorage to Osaka will now route Anchorage to Narita. NWA Cargo will continue to offer service to Singapore and Bangkok via Northwest passenger flights. Additionally, freighter operations will still serve the eastbound Osaka market.

These schedule changes will allow NWA Cargo to focus on its core Asia-U.S. freighter network while analyzing future alternatives for new freighter markets/routes once business conditions improve."



"Nothing ever happens here, " I said. "I just wait."
User currently offlineLaxintl From United States of America, joined May 2000, 25416 posts, RR: 49
Reply 11, posted (6 years 9 months 3 weeks 2 days 5 hours ago) and read 3463 times:



Quoting Azjubilee (Reply 8):
The bigger and more important question is WHY is NWA losing the DHL business?

DHL now owns 49% of Polar.



From the desert to the sea, to all of Southern California
User currently offlineNwafflyer From United States of America, joined Jul 2004, 1050 posts, RR: 2
Reply 12, posted (6 years 9 months 3 weeks 2 days 5 hours ago) and read 3454 times:

Is it the end of the world if NWA sells off world perks? I would think, those of use with a substantial number of miles would lose nothing. Now, if I had it to do again, I would have chosen Delta instead of NW. They have a much better program for those with over 1 million miles

User currently offlineBennett123 From United Kingdom, joined Aug 2004, 7613 posts, RR: 3
Reply 13, posted (6 years 9 months 3 weeks 2 days 5 hours ago) and read 3417 times:

JFK787NYC

I did not know that garbage was airfreighted long haul.  Wink


User currently offlineDeltaL1011man From United States of America, joined Sep 2005, 9435 posts, RR: 14
Reply 14, posted (6 years 9 months 3 weeks 2 days 5 hours ago) and read 3406 times:



Quoting 777STL (Reply 7):
I have a feeling NWA is going to be on the losing end of a merger.

yea it will soon be called Delta Cargo



yep.
User currently offlineTVNWZ From United States of America, joined Feb 2006, 2389 posts, RR: 2
Reply 15, posted (6 years 9 months 3 weeks 2 days 4 hours ago) and read 3378 times:



Quoting Nwafflyer (Reply 12):
Is it the end of the world if NWA sells off world perks? I would think, those of use with a substantial number of miles would lose nothing. Now, if I had it to do again, I would have chosen Delta instead of NW. They have a much better program for those with over 1 million miles

And Delta would tell you they are "considering" spinning off their FF program as well.


User currently offlineBurnsie28 From United States of America, joined Aug 2004, 7546 posts, RR: 8
Reply 16, posted (6 years 9 months 3 weeks 2 days 3 hours ago) and read 3255 times:

1. They are downsizing the Cargo ops for now due to the contract with DHL ending at the end of next year.

2. Selling worldperks, doubtful, like AA, it would hurt the airline more, because Air Canada's plan is a disaster for customers, who you have to pay for the right to earn mileage, on fares that are outrageous.



"Some People Just Know How To Fly"- Best slogan ever, RIP NW 1926-2009
User currently offlineJohnClipper From Hong Kong, joined Aug 2005, 844 posts, RR: 0
Reply 17, posted (6 years 9 months 3 weeks 2 days 3 hours ago) and read 3236 times:

My understanding is that almost since inception of the NW/DHL contract, the NW service has sucked. Unreliable aircraft ops into the DHL hub in CVG, then into ILN. Air freight x/US to Asia is always cheap, it's x/Asia to the U.S. where the airlines make money, regardless of the fuel cost (hence fuel surcharges).

User currently offlineAzjubilee From United States of America, joined Apr 2000, 3941 posts, RR: 27
Reply 18, posted (6 years 9 months 3 weeks 2 days 2 hours ago) and read 3152 times:

How do you know about the reliability of the freighter operation? Is it published somehwere or are you involved with NWA Cargo and the DHL operation?


AZJ


User currently offlineLexy From United States of America, joined Jun 2006, 2515 posts, RR: 8
Reply 19, posted (6 years 9 months 3 weeks 2 days 1 hour ago) and read 3119 times:



Quoting JohnClipper (Reply 17):
Unreliable aircraft ops into the DHL hub in CVG,

They don't use the CVG hub anymore. All the equipment inside is gone.



Nashville, Tennessee KBNA
User currently offlineTb727 From United States of America, joined Jun 2005, 1597 posts, RR: 9
Reply 20, posted (6 years 9 months 3 weeks 2 days ago) and read 3014 times:



Quoting Azjubilee (Reply 18):
How do you know about the reliability of the freighter operation?

Anyone happen to know what kind of time and cycles the NW 742F fleet happens to have on it? I know they have some early ones from about 1974ish without looking it up. Just wondering if I will be seeing any fly into OSC anytime soon. I would imagine they will want too much money for them anyways. The 742 is a great airplane, as long as you cover the fuel cost of course, you are good to go.



Too lazy to work, too scared to steal!
User currently offlineNwAflyer07 From , joined Dec 1969, posts, RR:
Reply 21, posted (6 years 9 months 3 weeks 2 days ago) and read 2968 times:



Quoting AmtrakGuy (Reply 3):
Spirit Airlines. But don't know if government will like it because both NWA and Spirit have hub at DTW.

Because this would help NWA get their foot in Caribbean and South America. And Bahamas too.

Better chance of NW buying out Emirates and merging with Lufthansa than that happening. Two completely different work environments, cost structures, and cultures. Read the latest ATW magazine article about Spirit and how they nickel and dime every single penny and you'll start to understand the huge problems with a buyout. (ex. Spirit's main headquarters has a sign that says "This self-service reception area allows the company to save 2 cents per customer by not staffing the front desk.")


User currently offlineSean-SAN- From United States of America, joined Aug 2002, 770 posts, RR: 1
Reply 22, posted (6 years 9 months 3 weeks 1 day 23 hours ago) and read 2878 times:

DHL also utilizes Air Hong Kong for many of these cities, and they are conceivably cheaper and more reliable considering they operate from Asia and have relatively new planes. If they can get lift (Polar or CX perhaps?) to HKG, they might not need NW so much.

User currently offlineCOSPN From Northern Mariana Islands, joined Oct 2001, 1619 posts, RR: 0
Reply 23, posted (6 years 9 months 3 weeks 1 day 21 hours ago) and read 2809 times:

JFK 787NYC,

Of course they are not flying empty but the rate EX USA is very very low ..I am sure cant even cover the cost of fuel ...I doubt many huge tractors and earth moving equipment is send via air...RO RO car ships are loading up with hay just to fill up... One reason the USD is going down...Imbalance of trade..


User currently offlineJohnClipper From Hong Kong, joined Aug 2005, 844 posts, RR: 0
Reply 24, posted (6 years 9 months 3 weeks 1 day 21 hours ago) and read 2795 times:

I used to work at the CVG airport before NW switched the DHL plane from CVG to ILN. Many a time, the plane was at the gate when it should have not been. That kind of reliability is not good in an express/courier operation. Freight doesn't matter, but express/courier service needs reliability.

25 Scouseflyer : I'd imagine that they'd sell the customer list and rights to run the programme to a third party in a similar to the way that Nectar (http://www.necta
26 Alias1024 : My guess would be to spin it off and have an IPO. I'm not a fan of airlines selling their FF programs, which are extremely valuable assets. The best
27 JFK787NYC : You are correct, How much gross weight can be loaded on a 747 Cargo? How many times a week does NWA have an all cargo flight leaving from the United
28 Max999 : I think NW's general reluctance to upgrade to newer planes in a timely manner is coming back to haunt them. Many of their cargo competitors (NH, CX,
29 Burnsie28 : Well if your talking daily, your looking at if you include ANC about 8 daily. 13 Would take about 3 days. Wrong. NW is actively looking into the foll
30 JFK787NYC : I was talking about picking the car up from seller, bringing the car to a Shipping Forwarder, Processing all proper paperwork AirWayBill, Invoice's,
31 Post contains links JSquared : They are? I know there were a few threads that mentioned the possibility, but nothing definite. NW 747 Freighter Status (by N501US Oct 17 2007 in Civ
32 Max999 : Burnsie, if NW is definitely looking at replacing the fleet then that's insider information I wouldn't know about. For now, there doesn't appear to b
33 Burnsie28 : It was mentioned in an Employee newsletter sometime ago.
34 COSPN : Sorry JFK787NYC, I Did not know Bentleys and other such "top end" Cars were made in the USA??? As for Maybach and Bentleys, Wikipedia.org says they ar
35 Post contains images Asiaflyer : So if Asia produces garbage and US produces high quality goods, the consumers appears to have opposite preferences. US consumers buying garbage and a
36 StasisLAX : DHL express and same-day courier services involve strict service level agreements (SLA) that parcel delivery will be completed by a specific time and
37 BlueFlyer : FF is an ancillary activity, maintenance not so much, after all the planes do need to be maintained in order to operate, whereas a FF is technically
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