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From Times Staff and Wire Reports

Northwest Airlines Hints at Bankruptcy Filing: Northwest Airlines officials said the company might have to file for bankruptcy protection to get the cost savings it seeks from its workers. Ben Hirst, the airline’s general counsel, said in a letter to the president of the Machinists union that the airline might ask to have existing labor contracts wiped out and have labor cost savings imposed by a judge. Hirst never specifically mentioned a Bankruptcy Court filing in the letter, but Northwest spokesman Doug Killian said bankruptcy is the implication of the letter. Union officials and people familiar with the situation have said Northwest has warned unions it would file for bankruptcy by the end of the month if it doesn’t have new contracts.

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