United is one of a number of US airlines in financial turmoil

The troubled carrier hopes to make annual savings of $112m (�58.3m) through the programme of cuts, which will affect 8,500 US-based employees.

Separately, United is also asking its unionised staff to take a temporary 4% pay cut from the start of 2005.

United is one of a host of US airlines facing severe financial problems.

Executive cuts

Its parent company - UAL Corp - filed for bankruptcy protection in December 2002 after the carrier failed to cope with spiralling costs, increased competition from low-cost operators and weak demand.

United chief executive Glenn Tilton and seven other leading executives are taking an 11% pay cut.

Officers face an 8% reduction in pay while management and salaried workers will suffer 6% and 4% downgrades respectively.

"We believe that this is a fair and equitable way to achieve the immediate cost savings necessary to exit bankruptcy," said a United spokeswoman.

"We are building a company that can succeed in a leaner, more competitive market and provide opportunity and value to our employees."

Further savings

On top of the proposed cuts, United needs to find a further $613m in annual labour savings.

The carrier has threatened to ask a federal bankruptcy court to enforce a proposed cost-cutting package with unionised staff if it cannot reach agreement with unions.

United has not yet said when it hopes to emerge from bankruptcy protection, although experts believe it will be the autumn of 2005 at the earliest before it can do so.