Thursday, March 24, 2005 - travel - travel

Another report showing airlines continue to seek cost cuts. In this one, the report is that NWAC seeks $950 million in annual labor savings after negotiating $300 million is compensation reductions among pilots and salaried workers.

It is always interesting to see how long it takes to negotiate union contracts. Managements seem to have all the patience needed. Delta's management talks about getting enough savings to make it through the tough times it projects for 1995 and 1996. NWAC says it hopes to conclude negotiations by year end. The optimism I have for the industry is that the annualized savings typically represents several dollars per share. An up-turn in the business, whenever it occurs, could send several dollars per share to the bottom line.