ravenscroft1999
you can call me "thurl" if you like
- Joined
- Feb 5, 2006
- Messages
- 45
CHICAGO, United States (AFP) - Pilots at Northwest Airlines ratified a contract that the airline said is a "major step" to help it emerge from bankruptcy protection.
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The agreement extends pay cuts of nearly 25 percent and will reduce labor costs by 358 million dollars a year.
It was the third pay cut pilots have accepted since December 2004. It was approved by 63 percent of the 95 percent of eligible NWA pilots who voted.
"The agreement is a painful but necessary part of a successful restructuring of Northwest Airlines," NWA Master Executive Council Chairman Capt. Mark McClain said in a statement.
"At this point, it is incumbent upon Northwest management to not squander our significant sacrifices, but to intelligently pursue a course that enables us to emerge from bankruptcy as a proud and profitable airline."
The Minnesota-based airline has also reached tentative agreements with its five other unions in order to reduce labor costs by an annual 1.4 billion dollars, a spokesman for Northwest Airlines told AFP.
Those contracts will need to be ratified in the coming weeks.
Northwest aims to cut 2.5 billion dollars off its annual operating costs in order to return to sustainable profitability after having entered bankruptcy protection on September 14.
Northwest Airlines is the world's fifth largest airline with hubs at Detroit, Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and approximately 1,200 daily departures.
For those of you flying NWA in the near future. Me and the DW were sweating this one, as we are flying down at the end of this month. NWA sweetened the deal in mid april with promises of 888 million in stock options for the pilots when the company emerges from bankruptcy. It's all over but the waiting now!
ADVERTISEMENT
The agreement extends pay cuts of nearly 25 percent and will reduce labor costs by 358 million dollars a year.
It was the third pay cut pilots have accepted since December 2004. It was approved by 63 percent of the 95 percent of eligible NWA pilots who voted.
"The agreement is a painful but necessary part of a successful restructuring of Northwest Airlines," NWA Master Executive Council Chairman Capt. Mark McClain said in a statement.
"At this point, it is incumbent upon Northwest management to not squander our significant sacrifices, but to intelligently pursue a course that enables us to emerge from bankruptcy as a proud and profitable airline."
The Minnesota-based airline has also reached tentative agreements with its five other unions in order to reduce labor costs by an annual 1.4 billion dollars, a spokesman for Northwest Airlines told AFP.
Those contracts will need to be ratified in the coming weeks.
Northwest aims to cut 2.5 billion dollars off its annual operating costs in order to return to sustainable profitability after having entered bankruptcy protection on September 14.
Northwest Airlines is the world's fifth largest airline with hubs at Detroit, Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and approximately 1,200 daily departures.
For those of you flying NWA in the near future. Me and the DW were sweating this one, as we are flying down at the end of this month. NWA sweetened the deal in mid april with promises of 888 million in stock options for the pilots when the company emerges from bankruptcy. It's all over but the waiting now!
