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Last Updated: Friday, 5 November, 2004, 18:58 GMT
Northwest pilots accept pay cuts
Northwest airlines plane
The Minnesota-based carrier needs to make big cost savings
Pilots at Northwest Airlines, the fourth largest US carrier, have agreed to accept a 15% pay cut.

The deal, which is to run for the next two years, was approved by a 89.1% margin and will allow the airline to save $265m (143m).

Northwest, struggling against high fuel bills and fierce competition, says it needs to save $950m in total.

The company, which last year cut 4,900 jobs, is continuing pay cut talks with other members of staff.

'First hurdle'

Northwest's pilots are to get 3.5 million in stock options plus additional profit sharing in exchange for accepting the pay cut.

And as part of the agreement, Northwest executives are to take the same 15% salary cuts as the pilots.

"We recognized that this agreement alone won't solve Northwest's problems, but it will let them overcome some near-term hurdles," said Hal Myers, a Northwest pilot and union spokesman.

In a statement Northwest said its long-term outlook remained strong, "assuming we are able to achieve competitive labour cost agreements."




SEE ALSO:
Chief executive leaves NorthWest
01 Oct 04 |  Business
Northwest airlines cuts 4,900 jobs
21 Mar 03 |  Business
War forces airline cutbacks
21 Mar 03 |  Business


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