United is now to concentrate on private funding

The Air Transportation Stabilisation Board said it had rejected the firm's third plea for a bailout.

The board said there was nothing in the renewed request for a $1.1bn (�600m) loan to justify a change of heart, and told the firm not to apply again.

United Airlines now says it will concentrate on seeking private funding to help it exit bankruptcy.

Bail-out

The ATSB was set up after the 11 September 2001 attacks, with a mandate to keep the US aviation industry flying.

The board will not accept any further submissions from United Air Transportation Stabilisation Board

Airlines across the world hit turbulence, with several going to the wall and some of the US's biggest names forced into bankruptcy.

The board's job was to give loan guarantees up to a maximum of $10bn to airlines that could not survive without them and whose collapse would imperil the US commercial aviation network.

So far it has doled out $1.56bn, the biggest slice of which - $900m - has gone to US Airways.

Many observers believe that the attacks simply brought pre-existing problems in the aviation business to a head, rather than causing them.

The ATSB's guarantees are contingent on viable business plans, a condition which usually means sharp cuts in costs and staff.

Silver lining

United Airlines' initial request, for $1.8bn to guarantee a $2bn loan, was thrown out in December 2002 for being unrealistic.

Its second approach, for $1.6bn, was rejected earlier this month because the ATSB judged it could successfully get the money from the private-sector aviation finance industry.

The ATSB has stuck by this judgement in its unanimous final decision, which also said: "The board will not accept any further submissions from United."

The airline found some solace in this reasoning.

"While we disagree with their decision, we are gratified by the ATSB's public recognition of our progress and are already moving forward to secure the exit financing we need to take United out of bankruptcy," the airline said in a statement.