Staff and Wire Reports
Northwest Airlines said Friday that it will slash 4,900 jobs and cut its flight schedule by 12 percent as the financially ailing carrier faces reduced passenger demand due to the war in Iraq.
The Eagan-based carrier, which lost $1.2 billion in the past two years, has already approached unions representing employees for cuts in wages and benefits in recent weeks.
Friday’s announcement means Northwest has evoked the “force majeure” clause in its labor contracts, meaning an “uncontrollable event” such as a war — releases parties from contractural obligations.
Northwest, the world’s fourth-largest airline, also said it would idle 20 aircraft, and that scheduling changes will impact its North American, Asia/Pacific and European routes.
