This article from NYTimes.com has been sent to you by psa188@juno.com. UAL Weighs Asking U.S. for More Time to Seek Loan September 11, 2002 By EDWARD WONG United Airlines said yesterday that it could ask the federal government for an extension of a mid-September deadline to revise its application for a federal loan guarantee. But the carrier said it would first talk with its unions about proposed concessions. Executives told the unions last month that UAL, United's parent company, planned to file by Sept. 16 a revised application for a federal loan guarantee and that the company needed its labor groups to agree to $1.5 billion in annual concessions to bolster the application. In its original application, United asked for a $1.8 billion loan guarantee on $2 billion in private loans. But it said federal officials balked because United had not shown deep concessions from employees and suppliers. Now, Glenn F. Tilton, United's new chief executive, is apparently willing to take more time, depending on what the unions propose. "The coalition of United's labor organizations is working hard on a proposal that the company needs to carefully review before updating its application for a federal loan guarantee," said Joe Hopkins, a United spokesman. "But we haven't yet decided to ask for an extension. That decision will be made after we have further conversations with the coalition about the timing on their proposal." That statement came after the pilots' union said early yesterday that Mr. Tilton had already asked for a two-week extension. Union leaders met last week to discuss how to work with Mr. Tilton to hammer out a recovery plan, and they are putting together a concession package with input from their financial advisers. The International Association of Machinists and the Air Line Pilots Association said yesterday that they want to present a business plan that will allow the airline to get financing from capital markets even if the government does not give United the loan guarantee. Some industry experts have raised doubts about whether United can get financing without government backing. The unions have balked at the $1.5 billion in annual concessions asked of them by John W. Creighton Jr., who stepped down as United's interim chief executive on Sept. 2. "That certainly got the debate started," said Randy Canale, president of District 141 of the machinists' union. "It was a rather draconian proposal presented to the employees." Herb Hunter, a spokesman for the pilots' union, said the proposal that his union received from the old management was "out of the ballpark." "We're dealing with a new head now," he said. "Hopefully, the rudderless ship will now have a direction." Mr. Creighton said last month that United could be forced to file for bankruptcy protection if it did not get the federal loan guarantee. It is scheduled to begin paying off large debts in mid-November. Mr. Tilton told union leaders last week that he wanted to avoid bankruptcy, but has made no public comments saying that United will definitely stay out of Chapter 11. At US Airways, which is operating under bankruptcy protection, the machinists are expected to vote on Sept. 17 on a concession package put together by management. They rejected the proposal last month, but US Airways has since asked the bankruptcy judge to scrap the union's collective bargaining agreement. It is the only labor group that has not agreed to concessions. http://www.nytimes.com/2002/09/11/business/11UNIT.html?ex=1032749367&ei=1&en=4dbcd05060143e5d HOW TO ADVERTISE --------------------------------- For information on advertising in e-mail newsletters or other creative advertising opportunities with The New York Times on the Web, please contact onlinesales@nytimes.com or visit our online media kit at http://www.nytimes.com/adinfo For general information about NYTimes.com, write to help@nytimes.com. Copyright 2002 The New York Times Company