"NWA wants more gates built at Minneapolis terminal"

Saturday, July 10, 2004

NWA wants more gates built at Lindbergh terminal 
By Dan Wascoe
The Minneapolis (MN) Star Tribune 


Northwest Airlines, already the dominant carrier at Minneapolis-St. Paul
International Airport, is preparing to seek a "significant" number of
new gates at the main Lindbergh terminal as part of a plan for growth in
its domestic and international business.

If approved, the addition would be part of a realignment of gates and
airlines at the airport's two terminals, although it is uncertain who
would build and pay for the new gates, said Gordon Wennerstrom, the
Metropolitan Airports Commission (MAC) director of commercial management
and airline affairs. 

The request for new gates comes on top of Northwest's recent suggestion
that the MAC move some of Northwest's competitors, including American,
United and US Airways, to the newer, smaller Humphrey terminal.
Eagan-based Northwest has been increasing its use of regional jets, and
its partner, Pinnacle Airlines, christened its 100th airplane on
Thursday. Pinnacle and Mesaba Airlines both fly Northwest flights out of
the Twin Cities hub, and the growth of regional flights is one of the
drivers for more gates.

Since the 2001 terrorist attacks, Northwest has been operating a smaller
airline. It has fewer seats on the market, and the fares paid by
consumers are not covering the airline's operating costs. Despite the
tough financial environment, the airline has experienced growth in two
areas: It has continued to build its route network and it has rapidly
grown its regional jet service.

On Monday, Northwest will begin nonstop service between the Twin Cities
and Syracuse, N.Y., the 164th nonstop destination that Northwest will
serve out of its Twin Cities hub. Pinnacle, which is based in Memphis,
will fly those flights between the Twin Cities and Syracuse.

Since April 2003, Northwest has acquired 42 Canadair Regional Jets
(CRJs) that Pinnacle is using to serve Northwest routes. By the summer
of 2005, Pinnacle's fleet will expand to 129 regional jets.

"They've got a whole lot of regional-jet markets," Wennerstrom said.
"They want to expand capacity for the regional jets and find space for
the displaced large jets."

On Friday, the airline would not comment specifically about its
expansion plans at Minneapolis-St. Paul, but in an employee newsletter
published Thursday, Northwest executives highlighted their companywide
plans. They said they expected their hubs in Minneapolis-St.Paul,
Memphis and Detroit to continue to attract more passengers because they
had advantages over some other airports. In particular, Northwest noted
the availability of modern customs and immigration facilities. It has
projected passenger growth in Asia of 5 percent a year.

And in September, Northwest intends to join the international SkyTeam
alliance, which includes Alitalia and Air France.

Dennis Probst, who oversees terminal construction projects for the MAC,
said that the potential number of new gates is not clear but that it
would be "significant." A presentation by Northwest to the commission is
expected soon, perhaps this month.

To make room for the proposed gates, airport officials said the airline
might tear down some of its maintenance hangars and shift some of its
maintenance work elsewhere at the airport.

Wennerstrom said one scenario would have Northwest converting gates on
the C concourse for use by the smaller jets. Then gates vacated by
competitors on the E and F concourses would be available for some of
Northwest's jets that now use the C concourse. New gates could be built
at the end of the G concourse, and would provide more big-jet
accessibility.

Robert Vorpahl, a MAC development engineer, said that discussions of
Northwest's ideas have been held at the staff level but that the airline
has not made a formal presentation or offered financing details.
Northwest's current financial crunch has led to its requests that
employees take pay cuts. It also faces a 2006 deadline for making
deferred payments to the MAC.

Wennerstrom said talks have not been held yet with airlines that
Northwest wants moved to the Humphrey terminal.

MAC officials said that despite the lack of details, it's good news to
them that Northwest wants to continue expanding its Minnesota
operations. The airline and its partners lease about 85 percent of the
117 gates at the Lindbergh terminal. Northwest also is planning to add
25 gates at its other major hub in Detroit.

Two years ago Northwest was pushing the MAC to add six gates to the F
concourse for about $50 million, but the airline dropped that request in
light of its financial problems and a post-9/11 drop in air travel.


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