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Northwest to launch compass
airlines by june
(Continued) Northwest said that it hopes to begin flying in June using a single 50-seat aircraft that would fly twice daily between Washington Dulles and Minneapolis-St. Paul International airports. Compass eventually would fly 76-seat planes during its first year, employing at least 36 such craft within five years. Northwest recently bought the Federal Aviation Administration-required operating certificate of bankrupt FLYi Inc., the parent company of Independence Air, which shut down in January. But before it can use the certificate, it needs other Department of Transportation approval, said Laura Brown, an FAA spokeswoman. Northwest Chief Financial Officer Neal Cohen will be CEO of Compass, but five other Compass managers will be from Independence Air. The filing said the new airline will choose the Bombardier CRJ-900 or the Embraer EMB-175 for its fleet in April, with delivery beginning in March 2007. Northwest relies more on regional flying than many other airlines because of its network of routes to small Midwestern cities. "The expansion of Northwest's regional flying through the proposed Compass Airlines operation is an essential part of Northwest's restructuring plan," the company said Wednesday in a written statement. It said Compass would eventually ferry passengers to all three of its hubs -- Minneapolis, Detroit and Memphis. Regional bidding Northwest regional flights are currently handled by Mesaba Airlines and Pinnacle Airlines. Northwest has asked for bids for that flying, and it has not disclosed the results. Even with Compass Airlines, Northwest might need another regional carrier because of limits on regional flying in its contract with pilots. Besides remaking how it handles regional flying, Northwest has been seeking pay cuts from all of its workers. On Wednesday, the union that represents baggage handlers said a May 15 trial date has been set for Northwest's request to reject their union contract. The union's 5,600 baggage handlers and ramp workers voted down Northwest's proposed pay cuts March 7 and authorized a strike. The union, the International Association of Machinists and Aerospace Workers, has said it expected talks to resume. Northwest has offered no signs of returning to the bargaining table, though, saying only that it would seek to throw out the union contract. Northwest spokesman Kurt Ebenhoch declined to comment Wednesday. A 'staggering' loss in 2005 In a message on its website, the union pointed out to members that pilots and flight attendants have reached tentative agreements with the airline. It also pointed out Northwest's $2.6 billion 2005 loss, which the union called "staggering." "In these circumstances, the best possible course is to pursue a negotiated settlement that makes a judge's ruling on the fate of our contracts unnecessary," the union said. Northwest has been seeking pay cuts from all its employees, either through negotiations or by getting permission from bankruptcy Judge Allan Gropper to void their contracts. Pilots are set to vote on their tentative agreement April 6 through May 3. But approval of the package, with its 24 percent pay cut, is far from certain. Mark McClain, chairman of the pilots union's governing council, endorsed the deal. But the council took no position on it, and the head of the Detroit local, A. Ray Miller, has said he is advising pilots to vote against it. Flight attendants have also reached a tentative agreement but have not scheduled a vote. On Wednesday, Northwest reported a $496 million net loss for February, mainly because of bankruptcy reorganization costs. The carrier said the loss included $431 million in reorganization expenses. Revenue was $889 million and operating costs were $919 million, Northwest said in a filing with the Securities and Exchange Commission.
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