Northwest Airlines was poised to follow Delta Air Lines into bankruptcy protection yesterday, in a move that would send another 25 per cent of the US airline industry into court protection.

Delta was expected to file after the US market closed last night in a bid to restructure its operations and cost base after existing measures were wiped out by the surging price of fuel.

Northwest was yesterday assessing whether it could secure additional cost cuts ahead of an expected change in US bankruptcy laws on October 17th.

The change would reduce its room for manoeuvre in negotiations with creditors and labour groups.

The meeting was viewed by analysts as a last attempt to secure more concessions from the three unions representing 40,000 employees ahead of the law change. Its flight attendants are seen as the more resistant to cuts.

Analysts believe Northwest can break even if it can raise annual savings from the current level of $1.1 billion (€896 million) to $1.4 billion, and secure additional relief from proposed reform of pension regulations, which could cut its annual payout from $800 million to $230 million in 2006.

Both Delta and Northwest, if it opts to file, would be expected to follow the example of United Airlines and terminate their defined benefit pension plans.

Northwest, the fourth-largest US carrier by revenue, had $1.7 billion in free cash at the end of August.