Northwest Airlines Corp. on Wednesday joined the stampede of airlines cutting employees and adding fees,
announcing plans to cut 2,500 frontline and management positions and instituting a $15 fee for a first checked bag.
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Eagan, Minn.-based Northwest, which has a deal in place to be acquired by Delta Air Lines Inc., said it hoped the payroll reductions could be accomplished via voluntary programs including early-out, leave, work rule modification and attrition, but said furloughs could be used if it fails to reach its targets. The headcount reductions were expected after last month's announcement that the airline would cut its capacity by upwards of 9.5% in the fourth quarter in response to sky-high fuel prices.
Merger partner Delta has already instituted a similar voluntary attrition program that was oversubscribed.
It is too early to say what impact the cuts will have on the airlines' planned deal. The cuts are sure to add to work force anxiety at a time when employees are already questioning management's pledge not to cut frontline jobs after the deals close. However, by acting now, Northwest could do some of the dirty work for Delta before the deal closes. - Lou Whiteman
See Northwest's release
See TheDeal.com story on Delta's acquisition of Northwest
See DealWatch: Airlines
