Northwest Airlines opens new hangar, cargo center
Yet Northwest Airlines yesterday dedicated the new facility at the south end of the Seattle-Tacoma International Airport, reflecting a commitment to stay for a long time, the airline said.
Like other airlines, Northwest posted losses in the second quarter — $55 million, or 65 cents a share. That's compared with a profit of $155 million, or $1.26 a share, a year ago. While the loss was better than what analysts predicted, Northwest was forced into its second round of cuts this year.
Taken together, the airline plans to save about $340 million in expenses this year, trimming its work force by 1,500 through attrition, voluntary leaves and unfilled vacancies. About 500 layoffs may also be necessary, the airline said.
"It is hard to tell how long this downturn will last," said Doug Steenland, Northwest president.
Most airlines were hurt by a sharp drop in business travel as in the face of an economic slowdown.
United and American Airlines were the hardest hit. American's $760 million operating loss prompted it to cut $250 million from planned expenses this year, slap a freeze on hiring managers and reduce by attrition 300 to 400 management-support jobs.
But Steenland said Northwest also is trying to position itself for the turnaround, and the investment in Seattle is a part of that plan.
Steenland said the airline will not reduce its planned acquisition of new aircraft over the next five years because of the slowdown. Northwest will take delivery of aircraft from both Boeing and Airbus Industrie an average of every 13 days over the next five years.
Northwest has a mix on order, ranging from two Boeing 747-400s to the Airbus A330, which it plans as a replacement for aging DC-10s.
Northwest has 2,300 employees in Seattle and is the largest international carrier at Sea-Tac, with daily flights to Tokyo and Amsterdam. Steenland said the Amsterdam flight, one of Northwest's most successful operations, is a likely candidate for an upgrade to the A330.
Steenland said "perception is trailing reality" in terms of Northwest's image. The airline is often tagged "Northworst." In the past few years, it has had several highly publicized gaffs, including stranding passengers on a plane for nine hours in the middle of a Detroit snowstorm.
Investments such as the one here, plus new facilities at Detroit, Memphis and Minneapolis, the airline's three hubs, should position the airline to grow and it should also reduce delays, Steenland said.
According to most recent Department of Transportation statistics, Northwest had the fewest cases of lost luggage and the second best record for on-time operations and for the fewest number of passenger complaints.
About 300 employees, customers, business and community leaders and airline executives attended yesterday's dedication.
The maintenance facility has 151,000 square feet with an 82-foot high ceiling. The hangar is capable of handling a 747 and a DC-10 at the same time — with the doors closed, an important consideration in the winter.
The cargo facility is about 55,000 square feet and can handle more than 185 million pounds of freight a year, triple that of the previous facility.
The old hangar and cargo operation is being demolished to make way for the expansion of Concourse A in Sea-Tac's passenger terminal.
Steve Dunphy can be reached at 206-464-2365 or by e-mail at sdunphy@seattletimes.com.