United will benefit from Chapter 11 - BWIA By JUHEL BROWNE T'dad Guardian 12.10.02 Chapter 11 bankruptcy protection will be beneficial to United Airlines, BWIA said yesterday. United, the world's second largest carrier, filed for Chapter 11 protection under the United States bankruptcy code yesterday after being unable to pay more than US $1 billion on debts. BWIA corporate communications director Clint Williams, who said Sunday the airline was concerned about United's present position, was much more optimistic when interviewed yesterday. He noted United's Chapter 11 status will not mean its demise. "We don't have a very clear concept of Chapter 11 here. Chapter 11 means they will continue operations as normal" Williams said. "We still consider them a very strong partner. We see them coming out of this leaner and more profitable." Chapter 11 protection, under US law, will allow United to continue its global operations while giving it access to special financing. Williams said by the time T&T regains Category One status from the US Federal Aviation Administration, BWIA expects United would be well on its way to recovery. Category One status would allow BWIA to take full advantage of its code sharing agreement with United, as well gain additional destinations. Since the September 11, 2001 terrorist attacks in the United States, in which two United planes were used as suicide bombs, United has suffered nearly $4 billion in losses. The entire global airline industry, including BWIA, has also suffered. Williams said there is a parallel between BWIA and United. "A significant factor is that they were unable to get the labour concessions they need to qualify for Government assistance," he said. "The difference is we don't have bankruptcy protection laws in this country." United has 83,000 plus employees and its pilots rejected a vote on a $700 million pay-cut package. This resulted in the Air Transport Stabilisation Board (ATSB) last week rejecting United's application for a $1.8 billion federal loan guarantee. Many of BWIA's junior staff also voted against US $700,000 in monthly labour concessions, but the Government decided to assist the airline. 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: (TnT News) http://www.tntmirror.com/ (TnT News) courtesy of Roj Trinbago Website & TnT Web Directory Roj's Trinbago Website: http://www.tntisland.com TnT Web Directory: http://search.co.tt *********************************************************