Struggling US air group United Airlines could be forced into bankruptcy as early as next week, if a staff vote on cutting pay does not go in its favour.

Thousands of mechanics, baggage handlers and other workers have been asked to vote on whether to accept a pay cut of between 6% and 7% in an effort to save $1.5bn in wages.

Unfortunately it is essential that United bankruptcy is avoided

Joseph Tiberi, Association of Machinists and Aerospace Workers

The moves are part of United Airlines' efforts to cut its labour costs by $5.2bn over five years in order to receive a much-needed loan from the US government.

The airline has already agreed pay cuts with pilots and flight attendants in order to stave off bankruptcy but union members have warned that without further cuts, the airline will not meet debt repayments.

Crunch time

The latest group of staff totals 37,500 employees.

They will vote this week on whether to accept the smaller pay deal as part of the airline's recovery effort.

While the agreement has won union support, the Association of Machinists and Aerospace Workers said the move had not been well-received.

Absent a ratified recovery plan, bankruptcy is all but certain to follow, and follow quickly

District 141

"Once again, they have to sacrifice in order to save the company," said union spokesman Joseph Tiberi.

"Unfortunately it is essential that United bankruptcy is avoided."

United Airlines is the second largest airliner in the US.

But it has suffered badly from the sharp knock to the industry in the wake of September 11 and the rising popularity of budget airlines.

Reports suggest in the last few months, the airline has been losing $7m a day, and it must somehow find funds to pay off $375m in debt by 16 December.

Flight path

The $5.2bn saving in labour costs is one of the key points of United's financial recovery package.

A 'no' vote by machinists would almost certainly mean an end to the airline's hopes of a $1.8bn federal loan guarantee which it needs to stave off bankruptcy.

The loan would come from the Air Transportation Stabilisation Board, set up after the September 11 attacks.

"Absent a ratified recovery plan, bankruptcy is all but certain to follow, and follow quickly," said Randy Canale, head of District 141, which represents public contract workers.