Negotiations between Northwest Airlines and its pilots' union are at a "critical juncture" as a US bankruptcy court deadline for them to reach a deal looms, a pilots' union leader said on Tuesday.

A final deal could be fashioned if the two sides reached agreements on key issues such as job security, said Mark McClain, chairman of the Northwest chapter of the Air Line Pilots Association.

The two sides have until February 16 to reach a deal under bankruptcy rules, he said.

The deadline is the "reality that is motivating the parties," McClain said. "If the judge makes a decision and forces a decision on the parties, neither side wins."

A spokesman for Northwest Airlines declined to comment on the details of the negotiations, saying both sides were working hard to reach a consensual agreement.

Northwest, which filed for Chapter 11 bankruptcy protection in September, has asked the court to void its contracts with unions that have not agreed to concessions.

Negotiations between the carrier and its pilots' and flight attendants' unions are also going on out of court, with the judge encouraging them to reach a new deal.

McClain said resolution of issues that affected pilots' job security were fundamental to reaching an agreement. "There is no point in saving Northwest Airlines if a significant number of our members lose their jobs."

He said both sides had withdrawn their initial proposals on one such contentious issue -- how a regional carrier could be structured within Northwest -- and were working on establishing a new framework for it.

The two sides also differ on the amount of concessions they say the ailing carrier needs. The airline is seeking about USD$2.5 billion in annual savings, including about USD$365 million in givebacks from its pilots.

But the pilots, who have already made some concessions, say that the airline is asking for more than it needs and that they are reaching their limits.

"There is only so much blood that you can squeeze out of a rock," McClain said.

McClain said that if the negotiations failed, a pilots' strike was a "real possibility."