Northwest Airlines reaches agreement with Airbus and Pratt & Whitney

Northwest Airlines' board of directors has approved agreements reached with Airbus and Pratt & Whitney for the two manufacturers to continue delivery and financing of all of the remaining 14 A330-300 and A330-200 aircraft that Northwest has on order.

The agreements, filed yesterday in U.S. Bankruptcy Court, are subject to approval by the Bankruptcy Court, as well as certain other conditions.

During its restructuring, Northwest is reducing labor costs, strengthening its balance sheet and optimizing its fleet to more effectively compete in an increasingly competitive environment.

“The A330 is the most modern, fuel-efficient jet in Northwest’s international fleet, and as such, it is a vital part of securing our future,” Northwest's President and CEO Doug Steenland said. “The continued financing agreements with Airbus and Pratt & Whitney will ensure that Northwest can continue to meet customer needs by offering a wide-ranging international route system.”

Airbus has agreed to finance 10 of the 14 A330s, and Pratt & Whitney will finance the other four. The aircraft are scheduled to become part of Northwest’s fleet during 2006 and 2007.

Terms of the agreements were not disclosed.

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