This article from NYTimes.com has been sent to you by psa188@juno.com. United's Plight Sends Shivers Through Chicago December 6, 2002 By JOHN W. FOUNTAIN CHICAGO, Dec. 5 - As United Airlines hurtled toward an expected bankruptcy filing, workers, travelers and elected officials here, the airline's hometown, were left with many questions today. The worry was not just over the fate of United, the world's second- largest carrier, but also over the fate of the airline's workers, the Chicago economy and the future of air service. "If United goes bankrupt, think of all the people that are going to be unemployed," Justin Duberman, 32, a hockey agent on his way home to Boston, said as he stood in a United check-in line at O'Hare International Airport this morning. "To be honest, I don't know enough about what's going on behind closed doors about the situation. I just hope my flight leaves today." Mr. Duberman said the possibility of the airline's filing for bankruptcy protection had also left him wondering about frequent-flier miles. "I'm really concerned about that, actually," he said. "You get to a certain point where you just have so many." For workers, there were more pressing concerns. "Everybody's worried," said a United employee who has been with the airline as a ramp service worker at O'Hare for five years. "I tell these young guys, `Have a background.' I have a business degree. If I leave here, I figure I can find another job." The employee, who insisted on anonymity, said: "A lot of people bought cars, homes and everything else, and now they've got to worry about how they are going to pay for all that. I'm very disenchanted about this company." The news today that a federal panel had said that United's business plan was "not financially sound" and that government assistance in the form of $1.8 billion in loan guarantees would not solve the airline's competitive problems came as a blow to city and state officials, who had lobbied on behalf of the loan guarantees. But some, including Mayor Richard M. Daley, remained hopeful. In a statement today, Mayor Daley said: "The Airline Transportation Stabilization Board's decision to deny the $1.8 billion loan application of United Airlines is a disappointment and a blow to United and its employees, who have contributed to Chicago's development as a world-class aviation center. "United has been an excellent corporate citizen in the Chicago community. We are hopeful that they will long continue to provide first-rate service for the nation's air travelers. I am confident that Chicago will remain the center of transportation and aviation for the nation and indeed the world." Earlier this week, in hopes of helping to strengthen United's case, Gov. George Ryan of Illinois said he supported a plan for the state to sell $200 million in bonds to help the airline. Today, Dennis Culloton, a spokesman for Governor Ryan, called Wednesday's decision by the Air Transportation Stabilization Board "very disappointing." "We thought that we were sending a strong message to Washington that this was important to our community and we were working in Springfield to try to provide additional support - to put our money where our mouth is," Mr. Culloton said. "At this point we've been in contact with United and we've told them that the governor is ready and willing to do whatever we can to continue to support United Airlines. We know that United is busy assessing the situation and determining its next steps. But we continue to be foursquare behind United." "There's some comfort," he added "in the fact that operations are continuing at United as they go through this difficult period." On Tuesday, United announced plans to lay off 352 pilots within the next three months, reducing the total to about 8,250. The airline also said it planned to cut senior management ranks by 18 percent, to 36 senior managers. Some workers fear that more layoffs - and the airline's filing for bankruptcy protection - are only a matter of time. "It's pretty much inevitable now," said a pilot who has worked with United more than 10 years. "For me, personally, it probably will not be that much of an impact because of my seniority. But some of the more junior guys are going to lose their job." Paul M. Green, a political scientist at Roosevelt University, likened United - a hometown airline - to a hometown sports team, and the rejection of United's loan guarantee, to defeat. "When you win you have a high," Mr. Green said. "When you lose, you have a low. Obviously this one hits us in the gut, because United has been associated with us for a long time." For Todd Lamb, a United passenger at O'Hare today, news of United's troubles was still settling in. "It actually kind of surprised me," said Mr. Lamb, 32, who manages a hospital radiology department and was on his way home to Minneapolis. "I have always thought that United's business was pretty stable. "Am I concerned about it?" Mr. Lamb added. "Yeah. It would be really unfortunate in terms of competitive pricing. It's a tough economy out there. I guess they've got to do what they've got to do. Hopefully, they can make the changes and get everything worked out." http://www.nytimes.com/2002/12/06/business/06CHIC.html?ex=1040188671&ei=1&en=79c6c93a1b357f1e 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