Northwest Airlines will reduce its frontline and management employees by 2,500 as a result of capacity reductions taken to address the unprecedented run-up in oil prices. In addition, NWA will match its competitors and charge fees for the first checked bag and for frequent flier award tickets, and increase the fees for ticket changes.
In June, Northwest announced plans to reduce its system mainline capacity (domestic and international) in the fourth quarter of 2008 by 8.5% – 9.5% versus the fourth quarter of 2007. As a result of these flight reductions, Northwest will reduce its frontline and management personnel by 2,500. All NWA employee groups will be affected by this.
The reductions will be first achieved through a variety of voluntary programs including early-out programs, voluntary leaves, work rule modifications and attrition. Furloughs will be employed only if voluntary means fail to achieve the targeted reductions.
