UAL hopes to avoid bankruptcy


Aug 20, 2002
The following is from Channel NewsAsia.
----United Airlines says it may be able to avoid bankruptcy
03 October 2002 0913 hrs (SST) 0113 hrs (GMT)
US carrier United Airlines said it may be able to avoid a widely-feared bankruptcy filing if it is able to work out a deal with labour unions.
It is not a foregone conclusion but we will really only know over time, said chairman and chief executive Glenn Tilton.
He said his management team was doing everything it can to work out a deal with labour unions that would enable the carrier to return to profitability.
We are doing... everything we can, both management and labor, to reposition this airline... to compete in an out of court restructuring, he told reporters.
The two sides have been negotiating a cost cutting plan.
Unions have proposed US$1 billion in annual cuts for five years, while management in August said US$1.5 billion was needed annually for six years.
United Airlines has applied for guarantees from the Air Transportation Stabilization Board for US$1.8 billion of a two billion dollar loan.
Former chief executive Jack Creighton, who left last month, said in August the airline was preparing for possible bankruptcy ahead of US$875 million in debt payments due this quarter.
- Channel NewsAsia