United employees to pay service charge on tickets = = = = Monday December 23, 3:57 PM EST = CHICAGO, Dec 23 (Reuters) - Bankrupt United Airlines said on Monday it wa= s reinstating service charges for all employee tickets to help it achieve= $1.4 billion in non-labor cost savings. The charges, which take effect Jan. 1, will cover the $32 million annual = cost of providing employee travel benefits, the airline said in a recorde= d message to employees. United, a unit of Elk Grove Village, Illinois-based UAL Corp. (UAL), file= d the largest bankruptcy in aviation history on Dec. 9. The airline is under increasing pressure to slash costs in order to meet = agreements with banks that have lent the carrier money to continue operat= ing while in bankruptcy. Previously, United employees did not pay service charges on coach or busi= ness class tickets for domestic or international travel, UAL spokesman Je= ff Green said. They paid government taxes and paid service charges only t= o travel in first class, he said. = The airline's workers will continue paying government transportation, sec= urity and facility taxes on all tickets in addition to the service charge= s. The new service charges also apply to United retirees, the airline sai= d, but do not apply to employee tickets for United Express flights. The carrier also said that employees on any paid or unpaid sick leave wil= l now need supervisor permission to use their employee travel benefits. In addition, United is changing the way it calculates fares for employee = companions traveling on the airline. As of March 1, employee companions will receive a 90-percent discount off= of full-fare economy-class tickets, Green said. Previously, companion fa= res were determined by a formula based on miles flown. The airline said it was sending letters to employees detailing the change= s to their travel benefits. In other news, United said on Monday that KLM Royal Dutch Airlines (KLM) = (KLM) will cancel an agreement providing discounted fares to United emplo= yees as of Dec. 31. KLM has decided it cannot honor current reduced rate = agreements with United because of KLM's new automation and tax issues, UA= L said. KLM Chief Executive Leo van Wijk said in an interview published on Monday= that the Dutch carrier would have to cut costs to prevent another loss i= n the fiscal year starting in April 2003. All tickets issued before Dec. 31 will be valid for travel completed on K= LM within 90 days. United said it was trying to negotiate a new arrangeme= nt with KLM for discounted employee fares. UAL shares were down 19 cents, or about 14 percent, at $1.11 on the New Y= ork Stock Exchange on Monday afternoon. = =A92002 Reuters Limited. = Roger EWROPS