Air Transport World

United edges toward bankruptcy, loan guarantee. (News Briefs).(Brief Article)

United Airlines edged closer to bankruptcy but also possibly toward meeting the conditions of the Air Transportation Stabilization Board from which it is seeking a $1.8 billion federal loan guarantee. The airline now has tentative cost-saving agreements in place with its pilots, valued at $2.2 billion over 5.5 years, and its flight attendants, valued at $412 million over the same period. UA aims to reduce total labor costs by $5.8 billion over the period, with additional "nonlabor improvements" totaling $1.4 billion and capital spending cuts of $1.2 billion through 2005. The FA pact came just two days after the carrier announced plans to lay off 2,700 flight attendants beginning Jan. 31 on top of 2,100 already on furlough. …

Log in to your account to read this article – and millions more.