Northwest Airlines: Losing Biggest Cargo Customer
Rather major news out late today from the same Calyon Securities conference we referenced earlier today.
Northwest Airlines CFO Dave Davis told analysts today that Northwest Airlines' flying for DHL Express will end late next year.
DHL Express is the airline's largest cargo customer.
As some of you know, the cargo business at Northwest has already been posting rather anemic results over the last year or so. But this is not an easy situation for the airline to remedy. One, Northwest is the only major U.S. airline to have its own dedicated cargo fleet. Two, a major chunk of the airline's cargo business takes advantage of Northwest's exclusive rights to the Pacific. No way Northwest is going to give those up.
Interesting predicament.
Tickers: (NYSE:NWA)
Comments
I think Alaska Airlines might think differently ...
Posted by: Gordon Werner
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December 6, 2007 3:56 PM
Ah, true. But I tend to think of Alaska's cargo operation in a much different way than I do Northwest's. Probably because of Northwest's huge international cargo business. Alaska has never really sought to expand their cargo work outside of Alaska and the Northwest, have they? Or am I mistaken? I'm sure Bill Ayer or Jeff Pinneo will drop me a note and tell me. But short of that, I was under the impression that they don't do much cargo business outside their immediate environs, so to speak.
Posted by: Holly Hegeman
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December 6, 2007 4:18 PM