Clark Howard's Tips
Northwest flys through company strikeAugust 22, 2005
The current strike at Northwest Airlines is a great example of the changes happening in the airline industry.
The airline has done something unprecedented by breaking up the union responsible for the mechanics and cleaning of the planes.
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But Northwest wasn't having it. The company kept flying even though it spent about $20 million to break the strike.
It's the clearest sign yet that the American people control what happens in the airlines. Consumers have taken a stand about how much they want to pay and airlines are finally listening.
The downside is that workers are negatively affected. Employees either take a massive pay cut or they lose their jobs.
But the airline has reduced its prices in order to stay in business, and it's worked. The consumer is winning out.
The FAA is monitoring how planes are being maintained, which is good from a safety feature. But when no one expected Northwest to fly through the strike, it did.
It means eventually there will be no distinction between "full-fare" airlines and "discount" airlines. Ultimately, all airlines will have to reduce their prices or go belly up.
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