NWA, Delta Warn That Pensions in Doubt Unless Congress Acts
The chief executives of Northwest Airlines Corp. and Delta Air Lines Inc. urged Congress Wednesday to pass long-stalled pension legislation, warning they could be forced to terminate their pension plans without action on the bill.
"A further delay is a functional equivalent of no," said Douglas Steenland, president and CEO of Northwest, at a Capitol Hill news conference.
"We are at a tipping point," added Delta CEO Gerald Grinstein.
The House and Senate passed separate pension bills at the end of last year, but negotiators have not yet reconciled them. A key sticking point is whether to single out financially struggling airlines for special treatment.
The Senate wants to give them up to 20 years to get back to full funding of their pension plans. House negotiators do not.
Steenland and Grinstein want the Senate language. Senators from their respective states, Minnesota Republican Norm Coleman and Georgia Republican Johnny Isakson, joined the airline executives in a push to pass the bill before the August recess.
Atlanta-based Delta and Eagan, Minnesota-based Northwest are operating under bankruptcy protection.
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