Air Transport World

One step forward, one step back at United.(Brief Article)

United Airlines' seesaw ride through bankruptcy continued into 2005 as it saw its hard-won pilot contract negated by the court while it subsequently reached tentative agreements with its cabin staff and mechanics.

In turning down the pilot deal after it had been ratified, US Bankruptcy Judge Eugene Wedoff explained that the contract, which was opposed by UA's other unionized work groups and its creditors, would have "unfairly tilted the bankruptcy process" in favor of the pilot union. It would have provided UA with $180 million in annual savings and the right to terminate the carrier's under-funded pilot pensions in exchange for roughly $550 million in notes that could be converted into company stock upon United's emergence from Chapter 11. …

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