"While it is impossible to predict the impact higher fuel prices will have on the airline and pilot staffing, the current staffing picture continues to improve," he said.

"We are forecasting the need to begin recalling pilots next year to support the planned operational growth and normal attrition," Rainey said.

Northwest currently has 700 pilots on furlough. The progress it is making in its bankruptcy reorganization -- plus increases in passenger numbers -- is driving the comeback.

Although pilots say the news is the best they have heard since Sept. 11, 2001, they are "guardedly optimistic," said Capt. Mark McClain, pilot spokesman.

"We've been getting beat up for a long time, and now they say the beatings are going to stop. We'll wait and see if that's true," McClain said.

Northwest has reduced the size of the domestic airline 10.3 percent in the past year. It has not provided a forecast on the future size of the airline for at least two quarters.

It is unclear what effect, if any, these changes will have on the airline's capacity.

And all optimism is off, Northwest says, if fuel costs rise substantially or if it cannot restructure labor costs. It currently is waiting to see if its flight attendants and baggage handlers will ratify new contracts.

The cost of fuel is pushing Northwest to speed up the retirement of its 15 remaining DC10s.

The planes, including the aircraft used to service the Memphis-Amsterdam flight, will be replaced companywide by Jan. 8 with new Airbus 330s.

In Memphis, the change will take place Oct. 28, according to Kurt Ebenhoch, Northwest spokesman.

"The A330 will provide Northwest with fuel savings of up to 30 percent over the DC10, as well as maintenance and other cost savings," Ebenhoch said.

The change can't happen soon enough for Vicki Rush and her customers at A&I Travel.

"Northwest tested the A330 for a very short time in April," she said. "We were hoping we could kidnap it and keep it, because our customers love the 330."

Northwest introduced the plane in 2003. It features lie-flat bed seats in business class and digital in-flight entertainment and personal TVs in coach that allow customers to chose from a variety of movies, video programming, games that allow each passenger to stop and start on demand, Ebenhoch said.

The plane seats from 240 to 300 passengers, slightly more on the top side than the DC10.

Northwest also plans to return three 747-300s to the fleet and step up flying of its 757s next year, pending successful lease negotiations.

"The big thing is that through bankruptcy court, Northwest has lowered not only labor costs, but its aircraft leases have been restructured and obligations with other vendors have been restructured," McClain said.

"Now that our costs are the same as everyone else's, we can now focus on the market share we were losing."

He expects Northwest will restore service first to cities cut back to one daily flight.

In Memphis, they include Los Angeles, Seattle and San Francisco.

"We used to have two nonstops a day to each," Rush said. "And we particularly miss our late bank of flights in Memphis. We're not sure those flights will ever come back, but we sure sold a lot of them."

Regardless, she said, good news from Northwest "is good news for everyone. We hope it's good for Memphis."


Source: Commercial Appeal