Northwest ups annual cost savings target to $1.1 billion

In light of record high fuel costs, revenue-negative domestic fare restructuring initiatives undertaken by other airlines and labor cost reductions at its primary competitors, including United Airlines, Northwest Airlines yesterday announced that it is increasing its annual labor cost savings target from $950 million to $1.1 billion. In addition, the airline said it will ask its unions to agree to a freeze of the current defined benefit pension programs and has proposed a new defined ...