United Seeks Employee Concessions
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NEW YORK (AP) _ The chairman and chief executive of United Airlines, John Creighton, said that the airline will apply for a loan guarantee from the federal government by the June 28 deadline if it can get unspecified concessions from its workers.
``We expect to see substantial participation by United’s employees,″ said Creighton, speaking at a Merrill Lynch conference in New York. ``If that in fact occurs, we will apply for federal loan guarantees.″
A component of the airline bailout package passed by Congress after Sept. 11 made $10 billion in loan guarantees available to airlines that could meet stringent financial criteria.
Creighton said that ongoing negotiations with the company’s workers has taken longer than he would like.
United, the nation’s second-biggest airline, has had discussions on the issue of unions representing pilots and machinists as well as with the company’s officers and non-union employees.
The federal agency in charge of reviewing loan guarantee applications, the Air Transportation Stabilization Board, has required airlines to reduce costs to qualify.
On Monday, US Airways filed for a loan guarantee valued at $900 million, saying the money was necessary to prevent bankruptcy.
America West Airlines received $429 million last year in federal loan guarantees.
In late afternoon trading, shares of UAL Corp., United’s parent, were up 4 cents to $11.42 on the New York Stock Exchange.
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