Northwest Adds Fees, Cuts Jobs

Northwest Airlines today said it is following its peers in significant layoffs and additional fees, including a first-bag surcharge, frequent flyer redemption charges and ticket change fees.

On the heels of plans to reduce capacity up to 9.5 percent in the fourth quarter, Northwest today said it would eliminate 2,500 "frontline and management" positions. The carrier said it would start with voluntary programs, including "early-out programs, voluntary leaves, work rule modifications and attrition," but acknowledged it may have to resort to layoffs if those programs do not meet the goal.

The carrier also said it would join American, United and US Airways in charging some coach customers $15 to check their first bag. The policy, which goes into effect on Aug. 28 for flights booked beginning July 10, applies to coach passengers traveling within the United States and Canada, but exempts full-fare coach passengers and elite status frequent flyers.

The carrier also will levy charges for frequent flyer award tickets, charging $25 for domestic travel redemptions, $50 for transatlantic and $100 for transpacific. Northwest CEO Doug Steenland called these charges "a temporary service fee to partially offset our fuel costs. As fuel comes down, we will revisit this decision."

Beginning today, Northwest will charge $50 more for ticket changes for domestic travel, and up to $150 for international travel.

Steenland said the new fees could yield up to $300 million per year, "which will help ease the burden of these record high oil prices."