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| Monday, 18 November, 2002, 20:53 GMT United Airlines cuts more jobs ![]() United says it can get back to profit by 2004 United Airlines is planning to cut 9,000 more jobs and reduce its flights in a bid to avoid bankruptcy.
Pilots at United also ratified an 18% pay cut effective from 1 December as part of a plan to help the airline gain US government loan guarantees and avoid bankruptcy. In a financial recovery plan, submitted to the Air Transportation Stabilisation Board (ATSB), the company said it expected to cut its flight schedule by 6% and retire 49 aircraft. United's parent company, UAL Corp, has made losses of billions of dollars in the past two years after being hit by a downturn in the industry and the effects of the September 11 terrorist attacks. The extra cuts in capacity will leave the airline's workforce depleted by one quarter, compared with its size before the attacks on New York and Washington. United has already axed more than 17,000 jobs. Pay cuts The pilots tentative pay deal was approved by 6,526 to 340, with 80% of those eliglible voting, said the Air Line Pilots Association. Flight attendants are also due to vote on a separate and smaller set of pay cuts but machinists, represented by the International Association of Machinists, have not yet struck a tentative deal. "We are gratified that the overwhelming majority of the pilot group has rallied around an out-of-court restructuring program," said Captain Paul Whiteford, chairman of the Master Executive Council of United pilots. "The recovery program is the best and only realistic course of action for United." Restoring United's health The airline is asking the ATSB to guarantee $1.8bn (�1.1bn) of a $2bn loan to keep the company solvent. Under its financial plan, United said it would save $1.1bn on labour costs and a further $1.4bn through other measures. The airline, based in Illinois, said that with the cutbacks it could make an operating profit by 2004. "Our plan is intended to restore United's financial health, and it gives us the ability to repay ATSB-guaranteed loans," said chairman and chief executive Glenn Tilton. "We're involved in an extraordinary process at United, addressing our immediate-term financial issues and fundamentally transforming our business," he added. The company's shares were up 18% at $3.49 during morning trading on the New York Stock Exchange. | See also: 11 Nov 02 | Business 05 Nov 02 | Business 04 Nov 02 | Business 18 Oct 02 | Business 17 Oct 02 | Business 17 Oct 02 | Business 16 Oct 02 | Business Top Business stories now: Links to more Business stories are at the foot of the page. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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