NWAC Northwest Airlines (MM)

Northwest Airlines Adjusts Labor Cost-Savings Target EAGAN, Minn., March 29 /PRNewswire-FirstCall/ -- Northwest Airlines (NASDAQ:NWAC) announced in January that it was reevaluating its annual labor cost-savings target of $950 million in light of record high fuel costs, revenue negative domestic fare restructuring initiatives undertaken by various airlines and labor cost reductions at its primary competitors including United Airlines. After a careful review of these competitive issues, the airline has decided to adjust its annual labor cost-savings goal from $950 million to $1.1 billion. In addition, the carrier will be asking its unions to agree to a freeze of the current defined benefit pension programs. Northwest has proposed a new defined contribution pension program to replace the current defined benefit plan. The new $1.1 billion target includes $300 million in annual labor savings from Northwest pilots and salaried and management employees that went into effect in December 2004. Airline officials are meeting with union representatives to discuss the new labor cost-savings and pension proposals with a goal of reaching agreements with all contract groups as soon as possible. Northwest Airlines is the world's fourth largest airline with hubs at Detroit, Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and approximately 1,500 daily departures. Northwest is a member of SkyTeam, an airline alliance that offers customers one of the world's most extensive global networks. Northwest and its travel partners serve more than 900 cities in excess of 160 countries on six continents. DATASOURCE: Northwest Airlines CONTACT: Northwest Media Relations, +1-612-726-2331 Web site: http://www.nwa.com/

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