United faces deadline in next 21 days By Marilyn Adams, USA TODAY United Airlines' fortunes have been declining for two years, but the next=20 21 days will determine whether it becomes the biggest U.S. airline ever to= =20 descend into bankruptcy. United says it's unable to make a nearly $400=20 million debt payment due Dec. 2 without an emergency loan guaranteed by the= =20 government. Without the $1.8 billion loan, it will be forced into Chapter=20 11 bankruptcy protection. Top United officials were meeting Monday and=20 today with the federal Air Transportation Stabilization Board (ATSB) in=20 Washington about the airline's application for the loan guarantee. But a=20 daunting amount of work remains to be done for the carrier to qualify=20 before Dec. 2. To satisfy the loan board's conditions, United needs=20 ratified pay-cut agreements from all its labor unions by Nov. 30. Employees= =20 have pledged $5.8 billion in pay and benefit cuts over 5 1/2 years. Members= =20 of the pilots and flight attendants unions are voting on $2.6 billion in=20 contract concessions agreed to by their leaders. Pilots will finish voting= =20 by Monday, but 23,000 flight attendants in bases around the world will need= =20 until Nov. 30 to vote, union officials said. The airline hasn't reached an= =20 agreement with leaders of the International Association of Machinists, its= =20 largest union, which represents mechanics, ramp workers and ticket agents.= =20 Members won't vote until a tentative deal is reached. The next three weeks are critical, Tom Buffenbarger, national IAM=20 president, said in an interview Monday. "But we're making progress, and=20 we're optimistic" the deadline will be met. Last week, United announced a=20 German bank had agreed to restructure $500 million in debt. But United has= =20 said that won't happen with the Dec. 2 debt, which is owed to a variety of= =20 bondholders. If United were to make the debt payment without getting the=20 loan, its cash would "approach zero sometime during January," J.P. Morgan=20 analyst Jamie Baker projected Monday. United, the world's second-biggest=20 airline based on revenue, is burning through more than $7 million in cash=20 daily as travel demand and revenue remain weak 14 months after terrorists=20 destroyed two of its jets. It lost a record $2.1 billion in 2001 and has=20 posted $1.7 billion in losses this year. Last week, the carrier's uphill fight became more clear when the loan board= =20 =97 which had been silent on United's application =97 took the unusual step= of=20 making public a letter it sent the airline outlining gaps in its business=20 plan. Board executive director Dan Montgomery cited six areas in which=20 officials wanted more detail, including the wage cuts and revenue=20 projections, "before the ATSB can determine whether UAL (United's parent)=20 qualifies." United officials are playing down the ATSB letter and=20 emphasizing how much has been accomplished recently. In a taped message to= =20 employees Monday, CEO Glenn Tilton called this "an incredibly challenging=20 time" and urged workers to "keep your heads up." Contributing: Dan Reed The owner of Roger's Trinbago Site: Roj (Roger James) *************************************************** escape email mailto:ejames@escape.ca Trinbago site: http://www.tntisland.com CBC Website http://www.tntisland.com/caribbeanbrassconnection/ The Trinbago Site of the Week: (I95.5FM) http://www.i955fm.com (Radio Station I95.5FM) courtesy of Roj Trinbago Website & TnT Web Directory Roj's Trinbago Website: http://www.tntisland.com TnT Web Directory: http://search.co.tt *********************************************************