This article from NYTimes.com has been sent to you by psa188@juno.com. United Talks of Total Savings as It Pushes for Federal Help November 27, 2002 By MICHELINE MAYNARD Throwing all of its ammunition into efforts to win approval for $1.8 billion in federal loan guarantees that would help it avoid bankruptcy court, United Airlines said yesterday that its recovery package would yield savings of $14.1 billion in the next five and a half years. That number, which United disclosed for the first time, represents a compilation of every resource the airline has gathered in its effort to remain solvent, including employee wage and benefit concessions, reductions in its flight schedules, the retirement of airplanes, and spending cuts throughout its operations. Nearly all of those savings had been previously announced, except for $1.2 billion in new savings announced yesterday. The package's most notable feature is the concessions United got from its main unions through 2008. Members of the International Association of Machinists vote today on their package, worth $1.5 billion to the airline. United, a unit of the UAL Corporation, clarified yesterday that the actual wage and benefit cuts negotiated with its employees would total $5.2 billion in the next five and a half years once it reduces its flight schedules, as it has announced it will do through next year. United and its unions had been aiming for savings of $5.8 billion through 2008. But United said the schedule reductions would lead to savings of $1.2 billion because the airline would rely on more efficient aircraft. It was the first time United had disclosed the $1.2 billion figure. The wage and benefit cuts, plus the flight schedule savings, are expected to give the airline $6.4 billion in savings from labor-related sources, United said. The airline also expects spending cuts to save $1.4 billion a year, or $7.7 billion through 2008. The combination of the two sets of savings results in the $14.1 billion number, the airline said. United said its employees would receive stock options and a profit-sharing plan once its recovery plan was under way. United also said senior executives would make contributions, which are still undisclosed, to the turnaround plan. The announcement of the figure for savings appeared to be part of an effort by the airline to counter contentions by some of its competitors that the airline has not cut costs sufficiently. The airline said yesterday that the contract provisions would not take effect unless it received the loan guarantees and completed a financing plan by Dec. 31. But that point seemed moot because United has said it will have to seek bankruptcy protection if it cannot win approval for the loan guarantees and misses a $375 million payment on debt, backed by aircraft, that is due on Monday. http://www.nytimes.com/2002/11/27/business/27UAL.html?ex=1039407002&ei=1&en=7fcddfb900947ff5 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