Judge Allows Northwest to Freeze Pilot Pensions
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A New York bankruptcy judge allowed Northwest Airlines Corp. to freeze its pilot pension plan and approved the carrier’s request to negotiate lower lease and loan payments for certain aircraft.
The carrier, which filed for bankruptcy protection in September, and its pilots union, the Air Line Pilots Assn., agreed to the freeze of the defined benefit plan. The pilots will now get a defined contribution plan, the details of which are still being hashed out.
The airline also sought and received court approval to lower lease and loan payments for certain planes by renegotiating terms with lenders and lessors.
The Eagan, Minn.-based airline sought to freeze the pension plan for its about 5,500 pilots because it cannot afford to keep paying into it.
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