United postpones motion to cancel union contracts

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United postpones motion to cancel union contracts  =

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Thursday December 26, 5:48 PM EST =


CHICAGO, Dec 26 (Reuters) - UAL Corp.'s (UAL) United Airlines said late o=
n Thursday it would delay until Friday filing court papers that would all=
ow the airline to terminate labor contracts with its unions.

The carrier said the delay was in response to requests from its unions du=
e to ongoing discussions with membership.

The world's No. 2 airline, which filed the largest bankruptcy in aviation=
 history on Dec. 9, has said it needs to trim labor costs by $2.4 billion=
 a year in order to meet the terms of its financing agreements.

A filing under Section 1113 of Chapter 11 of the U.S. bankruptcy code wou=
ld give the airline adequate time for court hearings on the issue before =
a Feb. 15 cost-cutting deadline set forth by UAL's lenders.

UAL has access to $800 million of debtor-in-possession, or DIP, financing=
 to help it operate while in bankruptcy. But it can not tap into an addit=
ional $700 million without achieving specific cash flow targets which req=
uire deeper cost cuts. =



=A92002 Reuters Limited. =


Roger
EWROPS

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