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1,000 Workers to Be Laid Off at Northwest : Airlines: The move is the latest effort by the carrier to avoid bankruptcy as it struggles under debt and an industrywide slump.

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From Times Staff and Wire Reports

Northwest Airlines said Monday that it will lay off more than 1,000 workers, citing “the brutal economic environment of the U.S. airline industry.”

The job cuts include 780 flight attendants, 35 full-time and 140 part-time ground services workers and 88 reservation sales agents across the nation, Northwest said. The airline employs about 46,000 people.

The layoffs are the latest in a series of moves by the financially struggling carrier to escape the specter of bankruptcy that has claimed some of its rivals in recent years. Several recent flight schedule reductions, as well as replacement of larger, wide-body aircraft with narrower planes, have reduced the airline’s need for flight attendants.

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Last month, Northwest obtained a much-needed $250-million loan from lenders, suppliers and investors, which analysts say should help the airline make it through the slow winter months.

Barry Kotar, Northwest’s senior vice president for human resources, said the layoffs will help “assure Northwest Airlines’ long-term prosperity.”

“Adverse economic conditions and the brutal economic environment of the U.S. airline industry have required us to take aggressive action to reduce costs and improve operational efficiency,” he said.

The job cuts, effective Jan. 18, are being implemented on a seniority basis throughout the carrier’s system.

Hector Adler, vice president for in-flight services, said the reductions will not affect on-board service or flight staffing levels.

Northwest spokesman Jon Austin said the airline hopes some of the job cuts will be temporary furloughs.

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“These folks are on furlough,” he said. “That means that should conditions improve, they could be called back. Obviously, we all hope conditions will improve.”

The carrier laid off about 2,100 workers last year, he said.

Northwest is laden by the twin burdens of heavy debt incurred in a 1989 leveraged buyout and heavy losses resulting from an industrywide slump. The carrier has been struggling to reorganize without resorting to bankruptcy court.

Northwest last month announced loan and cost-cutting agreements totaling $2.2 billion and disclosed that it has delayed or canceled $6.2 billion in purchases of new aircraft.

The cost-cutting moves announced last month also included $900 million in concessions that Northwest’s six unions agreed to consider. Negotiations over those proposed givebacks continue, and Northwest has said management employees will also take cuts.

Northwest also announced agreement with Airbus to cancel a $3.5-billion order for 24 A340 jets and 50 A320s. In addition, the airline said it came to terms with Boeing to delay delivery of four 747-400s and 40 757s worth about $2.7 billion.

In addition, Northwest announced last month that it had arranged a $250-million loan package financed by a consortium that includes KLM Royal Dutch Airlines, and that its other lenders have agreed to reschedule about $340 million in 1993 principal amortizations on existing debt.

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