Northwest pilots agree wage cuts

Northwest is not alone in struggling against rising costs and competition

Northwest Airlines' pilots have voted to accept a contract that will cut their pay by 24%, a move the firm said is key to it emerging from bankruptcy.

It is the second pay cut the pilots have accepted. Northwest said the five-and-a-half year agreement will save it $358m (£194m) annually.

Northwest's other workers also have to vote on new employment deals.

Baggage handlers rejected their revised terms, and flight attendants are due to vote next month.

'Significant sacrifice'

The planned pay cuts range from 11.5% for ground workers to 24% for the pilots.

Pilots voted 63% in favour of the new contract, despite some union leaders urging them to hold out for a better deal.

"With today's vote, our pilots and their families have made another significant sacrifice to help secure Northwest's future," said Doug Steenland, Northwest's president and cheif executive.

Mark McClain of the Air Line Pilots Association said that: "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."

Northwest is one of America's long-established "legacy" airlines and is suffering amid increased competition from low-cost, no-frills rivals and record fuel costs.

The company filed for Chapter 11 bankruptcy protection in September, and earlier said it must reduce its staff costs to achieve annual savings of $2.5bn.

Chapter 11 bankruptcy allows a company to continue trading while it gets its financial affairs in order.