charlipr
Posts: 262
Joined: Sat Dec 10, 2005 7:12 am

Northwest Talks Up Spinoff

Mon Oct 29, 2007 6:44 pm

Northwest Talks Up Spinoff

By Ted Reed
TheStreet.com Staff Reporter
10/29/2007 2:29 PM EDT
Click here for more stories by Ted Reed


Northwest Airlines (NWA - Cramer's Take - Stockpickr), echoing similar comments from four other legacy carriers, said Monday it is exploring the possibility of spinning off its frequent-flier program.

Full Story: http://www.thestreet.com/_aol/s/nort...A?cm_ven=AOL&cm_cat=FREE&cm_ite=NA
 
D L X
Posts: 11655
Joined: Thu May 27, 1999 3:30 am

RE: Northwest Talks Up Spinoff

Mon Oct 29, 2007 6:49 pm

You should change your thread title. It sounds like NW is spinning off part of its airline, but it's not.

Why are all the airlines mulling spinning off their frequent flier programs? How can it still work if it's not part of the company?
 
7e72004
Posts: 3440
Joined: Thu Apr 01, 2004 12:15 am

RE: Northwest Talks Up Spinoff

Mon Oct 29, 2007 10:21 pm

I thought NW was spinning off a part of the airline *lol* I was wondering if they were going to call it "West." *lol*
The next generation of aircraft is just around the corner!
 
atpcliff
Posts: 109
Joined: Mon Jun 11, 2001 6:24 am

RE: Northwest Talks Up Spinoff

Mon Oct 29, 2007 10:50 pm

Hi!

Air Canada did this VERY successfully.

cliff
KYIP
TRY. It's all you have control over, and it's what God wants.
 
azjubilee
Posts: 3380
Joined: Sat Apr 29, 2000 5:26 am

RE: Northwest Talks Up Spinoff

Mon Oct 29, 2007 10:54 pm

Worldperks IS indeed apart of the airline, just like Compass, NWA Cargo and Mesaba. If it makes sense financially and if it adds value to the product and investors, it could be something that is done. They're exploring all options and by no means have comitted to anything.


AZJ
 
LASoctoberB6
Posts: 1936
Joined: Thu Nov 09, 2006 4:23 pm

RE: Northwest Talks Up Spinoff

Mon Oct 29, 2007 11:47 pm

And here I thought we were gonna have another TED....
[NOT IN SERVICE] {WEStJet}
 
CitrusCritter
Posts: 770
Joined: Wed May 30, 2007 10:36 am

RE: Northwest Talks Up Spinoff

Tue Oct 30, 2007 12:52 am

Quoting LASOctoberB6 (Reply 5):
And here I thought we were gonna have another TED....

Little Red? Or perhaps "Clifford" ??  Wink
 
7e72004
Posts: 3440
Joined: Thu Apr 01, 2004 12:15 am

RE: Northwest Talks Up Spinoff

Tue Oct 30, 2007 1:21 am

I like Clifford...what about "Red Neck?" It would go hand in hand with the "heartland" strategy  Big grin
The next generation of aircraft is just around the corner!
 
isitsafenow
Posts: 3413
Joined: Sun Feb 01, 2004 9:22 am

RE: Northwest Talks Up Spinoff

Tue Oct 30, 2007 1:36 am

We all know this can go either way....one drops it, they all do. OR
one drops it and the others don't and the first one reinvents it again.. The old "brought back by popular
demand..."
safe
If two people agree on EVERYTHING, then one isn't necessary.
 
burnsie28
Posts: 5035
Joined: Mon Aug 02, 2004 1:49 am

RE: Northwest Talks Up Spinoff

Tue Oct 30, 2007 3:16 pm

Quoting Atpcliff (Reply 3):
Hi!

Air Canada did this VERY successfully.

cliff
KYIP

I don't know if i would call it successfully for the passengers, their Aeroplan sucks now that its privatized, its almost impossible to earn miles without paying extra to do so, or buying a full fare ticket.
 
TWFirst
Posts: 5752
Joined: Wed Apr 19, 2000 5:30 am

RE: Northwest Talks Up Spinoff

Tue Oct 30, 2007 3:19 pm

Quoting Isitsafenow (Reply 8):
We all know this can go either way....one drops it, they all do. OR
one drops it and the others don't and the first one reinvents it again.. The old "brought back by popular
demand..."

They're not talking about doing away with it... there are lots of loyalty programs out there that are not owned/managed by the client company. They're talking about essentially outsourcing it so the liability isn't on their books. They may spin it off to shareholders or they may sell it.
An unexamined life isn't worth living.
 
RJNUT
Posts: 1182
Joined: Thu Dec 30, 1999 1:58 am

RE: Northwest Talks Up Spinoff

Tue Oct 30, 2007 3:21 pm

and if all the airlines spin off frequent flyer programs, what value would they have,,maybe the 1st few that are sold off , but after that I dont see where the money is, just a large marketing data base is all one seems to be acquiring!
 
EXAAUADL
Posts: 1740
Joined: Tue Jun 13, 2006 3:48 am

RE: Northwest Talks Up Spinoff

Tue Oct 30, 2007 3:47 pm

Quoting D L X (Reply 1):
Why are all the airlines mulling spinning off their frequent flier programs? How can it still work if it's not part of the company?

Cuz greedy wall street is making them. a lot of debt was changed to equity and now that equity isnt performing as well thanks inpart to other greedy wall streeters who plow $$$$ into oil futures, thus hurting original greedy wall streeters NW investment.