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Strategies & Market Trends : Sharck Soup -- Ignore unavailable to you. Want to Upgrade?

To: Jim Spitz who wrote (35905)	9/21/2001 12:46:34 PM
From: Softechie	Read Replies (1) \| Respond to of 37746

Northwest Airlines to Cut 10,000 Jobs Northwest Airlines Cutting 10,000 Jobs, Reducing Service Following Attacks By GREGG AAMOT Associated Press Writer MINNEAPOLIS (AP) -- Northwest Airlines announced Friday it will cut 10,000 jobs, or 19 percent of its work force, and reduce service by 20 percent to counter a business slowdown in the wake of terrorist attacks in New York and Washington. The carrier attributed the action directly to last week's terrorist attacks. ``The events of last week will have a lasting impact on all of us,'' chief executive Richard Anderson said. ``Our thoughts and prayers go out to the thousands of innocent victims around the world and their families. We all agree, however, that it is imperative that our industry return to serving the needs of travelers and the global economy.'' Northwest is the latest in a string of carriers to sharply reduce its work force and service since the Sept. 11 attacks. Air carriers, along with aircraft maker Boeing, have announced layoffs of more than 100,000 workers. Northwest said its cuts, ``necessary to maintain Northwest Airlines as a successful company,'' will be made through attrition, voluntary leaves, eliminating open positions and layoffs. The cuts involve 9,000 contract and 1,000 management employees, and affect all work groups. Before the announcement, Northwest had about 53,000 employees, including 21,000 in Minnesota. The airline said it would continue serving all mainline destinations, but the number of flights would be reduced. Internationally, it was suspending its Amsterdam-Delhi service. Northwest is continuing to revise its schedule, and won't be finished implementing the changes until Oct. 1, the company said. No further details were given on the service cuts. Before the cutbacks, Northwest had about 1,700 daily departures systemwide; the new schedule is about 1,400 daily flights. One analyst estimated this week that Northwest was spending $22 million a day from reserves. The company's stock has lost 51 percent of its value since the attack. In morning trading Friday, shares of Northwest fell $1.29, or nearly 12 percent, to $9.72 in morning trading on the Nasdaq Stock Market. On Thursday, the airline met with representatives of the Air Line Pilots Association and the Aircraft Mechanics Fraternal Association to discuss the recovery plan. Eagan-based Northwest announced shortly after the attacks that it would reduce its flight schedule. Major carriers American, Continental, Delta and United have also trimmed their schedules by 20 percent since the attacks. On Wednesday, Anderson and other top officials testified before the House Transportation Committee to seek government aid for airlines. Congress is set to pass a $15 billion relief package that could go to President Bush on Friday. The House was expected to approve the plan overwhelmingly on Friday, and the Senate could follow suit later in the day, sending it to President Bush for his signature.