Air Transport World

UA seeks to void labor agreements. (News Briefs).(Brief Article)

United Airlines on March 17 asked the US Bankruptcy Court to void its union agreements as it seeks to impose $2.56 billion in annual salary/benefit reductions and work rule changes on its labor groups. UA said it is continuing to work with the unions on consensual contract changes but needs to have savings in place by early May. In its filing, the airline warned that liquidation "is a distinct possibility" if it cannot reduce labor costs.

According to the Plan for Transformation presented to creditors at the end of Jan., the company has targeted achieving a stage-length-adjusted cost per ASM of 8.80 cents by 2005. United's 2002 first-half CASM based on a 1,200-nm stage length was 10. …

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