A bill that would give Northwest Airlines more time to fund its pension plans -- something the airline says it badly needs to restructure -- has stalled in the Senate, according to wire reports.
Reuters news service reported Tuesday that Sen. John Cornyn (GOP-Texas) had blocked the pension bill after hearing criticism of the plan from Texas-based airlines AMR Corp. (American Airlines) and Continental Airlines Inc. Those airlines have charged that the bill would unfairly benefit companies that file for Chapter 11 bankruptcy, as Eagan-based Northwest Airlines Corp. (Pink Sheets: NWACQ - News) and Atlanta-based Delta Air Lines Inc. (NYSE: DAL - News) did last month.
The Senate pension proposal would help distressed airlines by giving them 14 years to repair pension underfunding. Northwest and Delta Air Lines Inc. of Atlanta have lobbied in support of the bill.
Source: http://biz.yahoo.com/bizj/051004/1172950.html?.v=2
