After making little headway on pay cuts Northwest Airline says it needs, federal mediators on Wednesday released the airline and its mechanics union from contract talks, starting a 30-day cooling-off period. Northwest, the nation's fourth-largest airline, has pledged to keep flying if there's a strike, using managers and mechanics from contractors. But even if they make a deal, the uncertainty could hurt bookings at Northwest during the busy summer flying season and steer the carrier closer to a bankruptcy filing.
See "Impasse Is Declared in Northwest Talks", Associated Press, The New York Times, July 20, 2005