NORTHWEST ANNOUNCES STAFF REDUCTIONS AS RESULT OF PREVIOUSLY ANNOUNCED FLIGHT CUTS AIRLINE OPERATIONS RETURN TO NORMAL

Northwest Airlines (NASDAQ: NWAC) said today that as a result of its September 15 announcement, reducing its scheduled service by approximately 20%, it will immediately reduce staffing levels by approximately 10,000 employees.

The carrier is taking this action because of last week’s terrorist attacks on the United States and the resulting reduction in passenger demand.

Northwest Chief Executive Officer Richard Anderson said, “The events of last week will have a lasting impact on all of us. Our thoughts and prayers go out to the thousands of innocent victims around the world and their families. We all agree, however, that it is imperative that our industry return to serving the needs of travelers and the global economy.”

The airline said it is flying nearly 100 percent of its new, adjusted schedule of some 1,400 daily flights.

STAFF/SCHEDULE REDUCTIONS

Northwest will decrease its management and contract payrolls through attrition, voluntary leaves, eliminating open positions, and layoffs.

“This is a very painful decision. However, the current operating environment dictates that we reduce our flying schedule significantly, which in turn requires a significant reduction in our staffing levels and payroll. These reductions are necessary to maintain Northwest Airlines as a successful company,” Anderson said.

Staffing reductions will involve approximately 9,000 contract and 1,000 management employees across the system. All work groups will be affected.

“In an effort to assist our affected contract employees, we will extend their health benefits until December 31. When the economy rebounds and the airline industry recovers, we hope that these employees will exercise their recall rights and rejoin the airline,” Anderson said.

The 20 percent flight reduction will result in the grounding of certain aircraft and reduced utilization of other aircraft.

Domestically, Northwest will continue to serve all mainline destinations. However, the number of flights to some cities will be reduced. Internationally, Northwest is suspending its Amsterdam-Delhi service. Flight frequencies in some markets will be reduced.

Northwest is continuing to make schedule adjustments. The revised system-wide schedule will be fully implemented on October 1.

NORTHWEST’S COMMITMENT

In discussing Northwest Airlines’ ongoing operations, Anderson said, “Everyone at Northwest is pleased to again be providing reliable service to our customers. Tens of thousands of our employees worked countless hours to bring travelers home safely. We worked equally hard to return our airline to full service, and we thank our customers for their patience,” Anderson continued.

“One thing has not changed for the traveling public. We remain totally committed to the safe and efficient operation of Northwest Airlines. Reliable service will remain the hallmark of our airline. We will continue to transport passengers to their destinations on-time, providing them with a clean cabin and with their luggage upon arrival.”

With approximately 43,000 employees worldwide, Northwest Airlines is the world's fourth largest airline with hubs at Detroit, Minneapolis/St. Paul, Memphis, Tokyo, and Amsterdam. With its travel partners, Northwest serves more than 750 cities in 120 countries on six continents.