Northwest Airlines has issued a statement regarding the Aircraft Mechanics Fraternal Association's (AMFA) decision to discontinue contract negotiations with the company:

"We are disappointed that AMFA leadership has broken off talks with Northwest Airlines. The company had hoped that AMFA membership would have had the opportunity to vote on the airline's latest proposal.

Northwest remains willing to negotiate with AMFA to reach a consensual agreement. As we have previously stated, the economic pressures affecting the airline, particularly the skyrocketing cost of fuel, have intensified.

Our latest proposal calling for $203 million in annual savings from our AMFA-represented employees is consistent with the new labor-cost savings that the company now is seeking from all of its employees.

The company's proposal included severance that was equal to the maximum amount available to any Northwest contract employee. The severance proposal would have allowed our AMFA-represented employees to be furloughed to continue to receive a paycheck through the end of the year.

As we advised AMFA last Tuesday, we will begin hiring permanent replacements for the striking AMFA technicians beginning September 13.

The airline continues to run normally and the current mix of FAA-licensed Northwest managers, contract technicians and third-party vendors continue to reliably meet the needs of Northwest's customers."

FMI: www.nwa.com