Weak pricing, high fuel costs and pension obligations will most likely cause Northwest Airlines to file for Chapter 11 bankruptcy protection by June next year, credit analysts predict. According to Bear Stearns and Co. analyst David Strine, Northwest – the United States’ fourth largest airline in terms of passenger traffic – could face near-term bankruptcy risk if air fares don’t increase and oil (prices) remains at current high levels. Stocks of the American carrier has fallen by as much as 53 percent this year, including a 19-percent drop amid reports that Northwest chairman Gary Wilson had sold almost 60 percent or some 2.5 million shares of his stake. The Eagan, Minnesota-based company had also been dissed by passengers for revealing in an interview that it stopped giving away free pretzels and magazines to coach class passengers as part of its cost-cutting measures. Compounding Northwest’s woes are possible labor strikes if unions refuse to grant cost concessions and agree to pension plan changes, a Gimme Credit analyst said. Northwest has told workers that costs must be reduced by $1.1 billion a year. The carrier is also negotiating with mechanics and ground workers for plans to save some $176 million by abolishing 2,800 of the 5,300 jobs and cutting the remaining workers’ pay by 26 percent. Local union leaders in Minneapolis had said a 50-percent reduction of the work force would not be accepted, adding that if Northwest continues along this tack, a strike could ensue. The airline meanwhile, is said to be girding up for a possible strike and has reportedly engaged the services of outsiders to ensure continued aircraft maintenance, and has contracted the services of a recruitment firm to deploy new flight attendants. Northwest’s nosedive could lead it straight to bankruptcy.
| Hectic, suspenseful hour in Manila |
The recently-held Galing ng Pilipino Energy Efficiency & Conservation Campaign was a success with GMA as the guest of honor. It was a private initiative of organizations like the Philippine Chamber of Commerce, Inc. (PCCI), Adboard, and DDB Cares. Our Ear-Spy revealed, however, that the event had a shaky start because a senator scheduled his press conference at the same time in a nearby hotel. You might ask: What does a solon’s announcement have to do with an energy conservation event? A lot. Especially, if the guest of honor reportedly did not want to begin her speech without knowing what bomb the senator might drop once again. When her handlers assessed the senator’s statements as manageable, the guest of honor promptly delivered her speech. Whew! Reporters and TV crews were scrambling between the two events like a herd of determined bison. One print reporter even forgot his Nokia Communicator in his hurry. That was certainly one hectic and suspenseful hour in Manila.
| Chavez files petition against doj, ntc on gma tapes |
Former Solicitor General Frank Chavez is taking up the cudgels for media and the general public who want to listen to the controversial GMA tapes by filing a petition for certiorari and prohibition against DOJ Secretary Raul Gonzalez and the National Telecommunications Commission (NTC). According to Chavez, the case is an assertion of the constitutional freedoms of speech and of the press, and the people’s right to information on matters of public concern. Chavez contended that the right to privacy of communication can
neither override nor suppress the people’s right to information on matters of public concern; more so if the person involved in wiretapped conversations is a public officer and in this case, no less than the President herself. The feisty lawyer, who has filed serious administrative and criminal cases of graft and conflict of interest against some government officials, asserted that basic freedoms should be held supreme over and above the prejudgment that possession, airing/playing of the controversial tapes is a violation of the anti-wiretapping law. Chavez said fears that playing the tapes could trigger widespread clamor for the President to step down could only be brought about by legitimate grievances. The blame should not be shifted to the people who simply want the truth, he insisted.
| Spy tidbiz: Plot on persona non grata |
Moles overheard talk that "overzealous" supporters are plotting to ambush a Southern legislator who admitted last week that her province cheated in the last elections. After this dastardly plot is done, "destabilizers" will be blamed as scapegoats. The legislator, who was recently declared
persona non grata in her own province, is soon planning to play a tape as evidence of election fraud. Being on her last term, critics charge that her motive is for the province to have new congressional districts. Whatever it is, extermination is a rather extreme measure for a
persona non grata.
| Spy vs. Spy: Hackers targetting Spybiz email |
Our apologies to contributors and letter writers for not having been able to respond to you lately. Unscrupulous characters and minions of those we have exposed routinely send viruses to our email address. Why, they even hack our spybiz@spyring.com address on occasion. Despite these vile attempts to sabotage Spybiz, we are determined to come out with the truth. We will not stop our efforts to expose the shenanigans of the corrupt and the incompetent, and we will continue to unmask corporate villains who hide under the guise of transparency and good governance to disguise their insidious agenda. We have backup systems and sophisticated equipment that will trace these criminals to their lairs. You can hack us but we’ll just keep sprouting again like mushrooms after a rainstorm. Meantime, Spybiz has set up the following alternative email address for those who have not been able to reach us: spybiz2@yahoo.com. Just keep sending your complaints, comments and other information. Cheers!
Join our ring of Eye-spies by sending your intelligence information, complaints, pictures, and comments to spybiz@spyring.com or spybiz2@yahoo.com
All information will be strictly confidential