Northwest Airlines requests appointment of retiree committee

By Caroline Salls

Pittsburgh, Nov. 1 - Northwest Airlines Corp. requested appointment of a committee of retired employees for its Chapter 11 case, according to a Monday filing with the U.S. Bankruptcy Court for the Southern District of New York.

According to the motion, as a part of necessary labor cost savings, Northwest has or will be proposing reductions in costs associated with retiree medical benefits for existing and future retirees.

Under bankruptcy law, modification of benefits is permitted if the company and an authorized representative of the retirees agree to a modification or termination of retiree medical benefits, or if the company and the authorized representative do not reach an agreement and the court authorizes modification or termination of the benefits.

A hearing is scheduled for Nov. 16.

Northwest, an Eagan, Minn.-based airline, filed for bankruptcy on Sept. 14. Its Chapter 11 case number is 05-17930.

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