United filed for bankruptcy protection 18 months ago

The airline is seeking a loan guarantee of $1.1bn, according to the Wall Street Journal. down from the $1.6bn it applied for last week.

It is also thought to have cut the term of the loan to five years from seven.

Officials rejected the last application on the grounds that the loan was not essential to aviation safety.

Third time lucky?

It was the second time that a loan application from United had been turned down.

The older, bigger carriers still have much adjustment to do Read the BBC's Stephen Evans on the problems facing United

The carrier, hit by soaring fuel costs and stiff competition from budget carriers, filed for emergency protection from its creditors under US bankruptcy laws in December 2002.

The government-backed loan would help United fund a restructuring plan aimed at getting it back on a firm financial footing.

The alternative option of raising the money from investors is likely to be problematic for United, which last made a profit four years ago.

There was speculation earlier this week that one of the officials who voted against United's last application had resigned from the Air Transportation Stabilization Board (ATSB), the committee which weighs up requests for funding from airlines.

This was denied by the US Treasury.