Delta Air Lines should be able to attract private investment needed to exit bankruptcy even if it preserves its expensive non-union pension plan, the airline's chief executive said on Wednesday.

Gerald Grinstein told reporters at a Capitol Hill news conference that Delta had not spoken with potential financing partners. But he said investment advisers have told the company the costs of keeping the pension account should not disrupt its reorganization plans.

Grinstein said Delta would maintain the plan covering 91,000 non-union workers and retirees if Congress approves pension legislation within the next few weeks allowing airlines to stretch their contribution schedules.

Delta is, however, terminating its plan covering pilots mainly because of an expensive option that allows for lump sum payments.

Delta's total pension liabilities total more than USD$6 billion.

US Airways terminated its employee plans in bankruptcy to save money and make itself more attractive to investors needed to fund its merger with America West a year ago. United Airlines also dumped its plans as a condition of bankruptcy emergence. United exited Chapter 11 earlier this year.

Northwest Airlines chief executive Douglas Steenland, appearing with Grinstein to lobby lawmakers on the bill, also said it would likely try to terminate its three employee pension plans in bankruptcy if the final bill did not meet its expectations.

Northwest's pension deficit stands at more than USD$3.5 billion.

Both companies said terminating pensions would probably extend their stay in Chapter 11. Delta and Northwest hope to leave court protection next year.

A small group of US House of Representative and Senate negotiators leading the talks on Wednesday agreed in principle on a final version of legislation to strengthen traditional employer pension plans, the lead participant said.

Lawmakers have been working to tighten funding rules and close loopholes that allow companies to carry large pension deficits. Details were still being hammered out and any deal must also be approved by a larger committee of negotiators and both chambers.

Lawmakers close to the talks said earlier in the day they were confident negotiators would support a provision allowing airlines to extend their pension contribution schedule.

Northwest and Delta are insisting on 20 years to close their pension funding gaps, up from the typical corporate allowance of seven. But it was unclear if any timetable under 20 years would satisfy them and avert termination of their plans to save money.