Air Transport World

More cost cuts loom for United.(Brief Article)

United Airlines was expected to unveil a new round of cost-cutting proposals to employees and lenders following a third and final rejection by the US Air Transportation Stabilization Board of the carrier's application for a federal loan guarantee to support its emergence from Chapter 11 bankruptcy protection. Although UAL does not face an immediate cash crunch, its unrestricted cash is forecast to fall to less than $800 million by year end unless it achieves new savings. In what it called a move to "preserve its options going forward," the carrier deferred a $72.4 million pension payment due July 15.

All three ATSB members voted against granting the guarantee, which United had cut to $1. …

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