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Monday, 11 November, 2002, 08:12 GMT
United Airlines wins cabin crew pay cuts
United Boeing 777
United Airline's cabin crew must still agree the deal
Flight attendants at United Airlines, the US's second-largest carrier, have agreed to sweeping pay cuts to save it from bankruptcy.

Their union has agreed in talks with management to pay cuts worth $412m (�259m), spread over five and a half years.

A tentative deal comes a week after pilots at the struggling airline accepted wage cuts of $2.2bn.

United is trying to labour costs by 15% in order to remain solvent.

State aid in the balance

The airline has warned that it could be forced to apply for protection against bankruptcy unless its cash shortage is alleviated in some way.

Unless it can persuade its workforce agree to pay cuts, the airline will not be granted a $1.8bn federal loan guarantee that would enable it to keep afloat.

However, United's flight attendants must still agree to accept the package the union has negotiated.

In a letter to flight attendants, chief negotiator Greg Davidowitch said: "The sacrifices we are now considering will enable our airline to... avoid bankruptcy and return our airline to premier status in the airline industry."

The deal with pilots sent shares in United Airline's parent firm UAL soaring in New York as investors breathed a sigh of relief.

United's efforts to convince its staff to take pay-cuts continue.

Machinists and salaried employees have not agreed as yet.

The cost cutting measures are a crucial part of the airline's efforts to return to profitability after 30 months of losses.

See also:

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