11-29-2002, 11:28 PM
Join Date: Sep 2001
United Air Bankruptcy Could Come in Weeks
CHICAGO (Reuters) - United Airlines is likely to file for bankruptcy within the next two weeks unless it can soon get a new wage-cut deal from reluctant mechanics and a crucial federal guarantee of a $1.8 billion loan, sources familiar with the matter said on Friday. |
Mechanics at United, the No. 2 U.S. airline, on Wednesday rejected $700 million in proposed pay cuts over 5-1/2 years. The rejection sharply increased the odds of bankruptcy as a $375 million debt payment comes due on Monday.
The mechanics' rejection jeopardizes pay-cut agreements achieved by sister unions, including those for pilots and flight attendants. All the unions involved said the givebacks were contingent on every union taking part in the sacrifices.