NEW YORK (AP) -- A New York bankruptcy court judge on Tuesday allowed management of Northwest Airlines Corp. six more months to develop a reorganization plan.þþThe carrier, which faced a Jan 12. deadline for such a plan, in court papers called its bankruptcy ''among the largest and most complex cases ever filed,'' at a time when ''the entire airline industry is in financial turmoil.''þþJudge Allan L. Gropper said he has ''been impressed'' by Northwest's constructive approach to its restructuring.þþAttorneys for Northwest, the fourth-largest airline, said it may not actually have a plan until the end of 2006 and reserved the right to seek further extensions. They also said the carrier may not seek debtor-in-possession financing until it has more clarity on its cost structure.þþNorthwest may not generate ''significant'' money until 2009 or 2010, according to an earlier filing by Seabury Group LLC, which the carrier hired to advise it through bankruptcy.þþThe carrier also said in a recent court filling that the shape of its business would depend on the cost savings it can get from workers, aircraft financiers, and pension and retiree obligations.þþWithout knowing how the issues will be resolved, Northwest said it can't decide which markets to serve, which airplanes to fly, or which leases to reject. Under Chapter 11 protection, the airline may renegotiate or reject leases for aircraft.þþOn Jan. 17, a trial is set to begin on Northwest's requests to reject union contracts and impose the company's own terms on its pilots, flight attendants, and ground workers. þþ
Source: NY Times
