Just what the US needs - more regional jets! Well at least Northwest is planning on retiring the DC9s sometime in the next century.


Northwest Airlines said on Thursday it placed firm orders for 72 new aircraft split equally between Bombardier CRJ 900s and Embraer 175s.

Northwest said it also received options on the 76 seat planes from Bombardier and Embraer.

The Minneapolis-based airline did not disclose the value of the orders, which are subject to approval by the US Bankruptcy Court for the Southern District of New York.

In addition to the order for 36 planes, Montreal-based Bombardier said it had taken options for an additional 96.

Bombardier said the value of its orders based on list price would be USD$1.35 billion for 36 planes, and the value could rise to USD$5.18 billion if all options are exercised.

Bombardier shares rose almost 8 percent on Thursday as at least one analyst upgraded his rating on the stock on the prospect that the company will land some big orders on its regional jets.

Bombardier has been in a tough battle with Embraer to win regional jet contracts during an industry slump.

Northwest said the new planes will lower its operating costs over aircraft they will replace such as the Avro Regional Jet 85 through lower fuel consumption and maintenance costs.

Compass Airlines, Northwest's regional subsidiary, will operate the new Embraer aircraft as Northwest Airlink, and an Airlink partner yet to be determined will operate the Bombardier planes.

Northwest also said it continues in talks with unnamed aircraft makers for 100 seat planes to replace its DC-9 fleet, and it will take back 15 CRJ200 aircraft it previously rejected.

(Reuters)

October 31, 2006
Northwest Airlines on Tuesday posted a large quarterly net loss due to reorganization and other one-time items.

Northwest, which has been in bankruptcy for more than a year, said its third-quarter loss totaled USD$1.2 billion, compared with a loss of USD$475 million a year earlier.

The loss was due to USD$1.4 billion in restructuring and bankruptcy-related charges, partly related to curtailing employees' pension plans.

Northwest has now lost more than USD$3.89 billion since filing for Chapter 11 bankruptcy protection in September 2005 according to the company's quarterly reports.

The carrier, like many traditional rivals, has been suffering from low-cost competition and more recently from high fuel costs. Airlines like Northwest have lately been fighting back by cutting costs and selling fewer seats at higher prices to maximize profit margins.

Northwest is in the process of cutting its costs by USD$2.5 billion a year and has already met its labor cost savings goal of USD$1.4 billion by renegotiating its union contracts. The airline is expecting to emerge from bankruptcy in the first half of next year.

Excluding the one-time and restructuring charges Northwest reported a third quarter net profit of USD$252 million versus a net loss of USD$234 million in the year-ago quarter.

Northwest's operating revenue rose 1 percent to USD$3.4 billion, helped by higher ticket prices. Operating expenses fell 12 percent, excluding unusual items, to USD$3 billion, spurred by cuts in labor costs.

During the quarter Northwest's fuel averaged USD$2.18 per gallon, excluding taxes, up 18 percent from a year ago. The higher prices were partly offset by lower capacity -- the number of seats for sale -- Northwest said.

The airline repeated its forecast of a loss, excluding reorganization items, for the last four months of this year.

(Reuters)

EAGAN, Minn. (AP) -- Northwest Airlines Corp., which is working to emerge from bankruptcy, is planning to recall hundreds of furloughed pilots this year and next, more than it initially said it would recall, the pilot's union said.
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Weasil,

A buddy of mine who freelances at CAE in DEN said they've just got a contract to do systems/cpt's/sims and OE for up to 200 pilots for the new NW connection carrier.

Nov 22, 2:13 PM EST



By JOSHUA FREED
AP Business Writer

MINNEAPOLIS (AP) -- Baggage handlers for Northwest Airlines Corp. stopped working briefly in its Detroit and Minneapolis hubs on Wednesday in a dispute over who will clean airplanes, a union official said.

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