Northwest says clock is ticking, on itself

EAGAN, Minn., July 26 (UPI) -- Northwest Airlines Corp. used its second quarter report Tuesday to say bankruptcy is imminent if it doesn't get at least $1.1 billion in U.S. labor cost cuts.

The struggling Eagan, Minn.-based carrier reported losses of $225 million for the quarter.

"We need to rapidly achieve at least $1.1 billion in labor cost savings and resolve our pension plan challenges by freezing our defined benefit pension plans and obtaining federal legislation that addresses existing problems in the pension laws," said chief executive Doug Steenland.

"Failing to do so will force Northwest to consider other alternatives, including filing under Chapter 11 of the U.S. bankruptcy code."

Steenland also said the company has contingency plans if its talks with its mechanics union are unsuccessful.