1998 Volume 121 No 1–4 - Phi Delta Theta Scroll Archive

Morale at Northwest continued to improve.
Employees could see that the airline
was doing better. Dasburg even
started holding a monthly "Dial Das"
phone session to answer questions and
listen to criticism. In fact, one
employee's suggestion is credited with
earning the company $100 million in savings
and extra revenues.
In 1997, Northwest was named "Airline
of the Year" by Air Transport World.
What a great honor for a company that
was a few years earlier, among the most
criticized. The magazine cited the ingenious
alliance with KLM, continued profits,
strong hubs, and loyal customers,
especially business travelers, as the
airline's strengths.
This year, unfortunately, hasn't been so
pleasant for the airline. With a strike that
lasted two weeks, the airline lost valuable
revenue and customer loyalty. The
union's pay concessions that saved the
airline in 1993, now were the catalyst for
the strike that threatened to cripple or
even unravel the airline. But now, unlike
in the past, interruption of Northwest
operations would have a critical effect on
many state and international economies.
"We were well aware of the regional,
national and international impacts of a
strike at Northwest Airlines. It was our
sincere desire to avoid any service disruptions
and the inconvenience that the
strike ultimately caused our passengers,
our employees and the communities we
serve. However, a risk inherent in the collective
bargaining process is that the two
sides may not be able to come to an
agreement without going through the
extraordinary event of a strike," said
Dasburg.
The impact of the Northwest strike
soon attracted the attention of officials in
Washington. President Clinton later announced
to the country that, having spoken
to leaders on both sides, an
agreement was at hand. Northwest
planes were soon back in the air. Nevertheless,
recovery from the strike will take
more than just getting the airline's fleet
back into the air.
"Re-establishing the trust of both our
customers and our employees will be key
to regaining our momentum. We'll have
to show our customers that they can depend
on the products and services
Northwest Airlines offers. It's the commitment
to service by our people that
will make that happen," said Dasburg.
Preliminary indicators show that, although
hurt by the strike, both sides may
be better off. Analysts were unsure how,
but they knew the pay cuts taken in 1993
would somehow have to be addressed,
especially with Northwest's continued
profit earnings. Now management and
the unions at the airline can breathe a
little easier. Through the dynamic partnership
of Dasburg, Wilson and the employees
of Northwest Airlines, the carrier
should continue to set industry standards.
But what kind of relationship do these
two powerful men have What are their
individual and joint responsibilities
How do they get along
Speaking of the pair's responsibilities,
Wilson says that he's the non-executive
chairman of Northwest Airlines in the
European sense. "I have no operating
responsibilities, and John as the CEO,
manages our business. I don't, myself,
devote full-time to the business, but I'm
very active in working with John on strategic
issues. Frequently I'll handle things
that, together, we think are important.
For instance, John doesn't like frequent
overseas travel since he has a young family.
So I do a lot of the international
work that's required. We also spend a lot
of time together, talking strategically
about the company. We can complete
each other's sentences! We've worked
together that long. We have a great working
relationship. He's just a great partner."
In a separate interview that demonstrates
the bond between these two Phis,
Dasburg reiterates that Wilson and I
"have a wonderful working relationship;
after all these years I can complete his
sentences, and he can complete mine. It's
a rare luxury to enjoy not only working
with Gary, but socializing together as
well."
In addition to their work with the airline,
both Wilson and Dasburg are
With his experience at
Marriott, CEO John
Dasburg increased
20 THE SCROLL FALL 1998