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The Honolulu Advertiser
Posted on: Thursday, July 10, 2008

Northwest Air will cut jobs, add fees

By Joshua Freed
Associated Press

MINNEAPOLIS — Northwest Airlines Corp. said yesterday it will cut 2,500 jobs because of high oil prices, and will soon begin charging $15 to check luggage and up to $100 to redeem a frequent-flier award ticket.

The airline said it expects the new fees to add $250 million to $300 million a year in revenue.

Northwest said the job cuts — which represent about 8.3 percent of its workforce — will include front-line and management workers. It said it will start with voluntary departures and leaving open jobs unfilled before moving to furloughs to reach the 2,500 total.

Northwest had said previously it would require fewer workers after it cuts 8.5 percent to 9.5 percent of mainline flying in the fourth quarter of this year. It has said overall capacity will shrink 3 percent to 4 percent because it is adding regional seats. As of the end of 2007, Northwest employed about 30,000 people.

Northwest also said it will begin charging $15 for the first checked bag, matching a fee announced earlier this year by US Airways, American Airlines, and United Airlines. Northwest's new fee applies to tickets sold after today for travel starting Aug. 28 in the U.S. or to Canada.

Northwest also announced a fee for issuing frequent-flier tickets, beginning Sept. 15: $25 for domestic tickets, $50 for trans-Atlantic tickets and $100 for trans-Pacific tickets.

Last month, Delta Air Lines Inc. announced a $25 surcharge for redeeming frequent flier tickets for domestic travel and $50 for international tickets. Delta, which is buying Northwest, has not added a fee for the first checked bag.

American Airlines was the first major U.S. carrier to announce a fee on first checked bags. American also charges $50 to $100 to book a frequent-flier ticket within less than 21 days.