=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SF Gate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2003/02/06/f= inancial0026EST0006.DTL ---------------------------------------------------------------------- Thursday, February 6, 2003 (AP) United trying to determine size of restructured fleet DAVE CARPENTER, AP Business Writer (02-06) 21:26 PST CHICAGO (AP) -- Two months into its bankruptcy reorganization, United Airlines is still working to determine what size fleet it should fly. The airline said Thursday it would make $128 million in catch-up payments on its leased airplanes but told a judge it needs more time to figure out its restructured fleet. United is expected to seek the approval of federal bankruptcy court to break dozens of its 463 airplane leases in its push to cut costs and become leaner and more competitive. But with its 60-day grace period on payments in bankruptcy expiring Friday, United told Judge Eugene Wedoff it will take additional time to negotiate new leases. The world's second-largest carrier said it had so far identified 154 leased planes it definitely wants to retain, necessitating the $128 million in back payments. It said it was negotiating interim leases on an unidentified number of additional planes. Without an extension to the deadline, a lessor could repossess a plane when the 60-day period expires and no new payment is made. But at a time when the commercial airplane market is severely depressed and hundreds of planes sit idled on desert runways, it's considered unlikely that financiers would take back planes United doesn't want. United declined to say how many planes it envisions keeping or reveal mo= re details about its plans, despite new pressure in court from the companies leasing the aircraft. "We have a large and complicated fleet," United attorney Marc Kieselstein said of the need for more time. "Logistically it wasn't practical in 60 days." Chief financial officer Jake Brace told reporters the planes to be kept would be "generally the newer ones," but he would not elaborate. United said in a message to employees this week that it hopes to cut $500 million in annual costs by renegotiating aircraft leases and mortgages and restructuring its fleet. It already is working to slash as much as $2.4 billion a year in labor costs in new agreements the company has said it hopes to hammer out by March 15 so it isn't forced to seek court-imposed terms. Brace also said United was continuing to talk with union leaders about their objections to plans to launch a separate low-cost carrier. United avoided a court showdown over its proposed new pay and benefits program for managers when the flight attendants union withdrew its objection. The flight attendants, angered about increasing management's pay at a time when employees are taking cuts, said they did so "with great reluctance" after the airline agreed to significantly reduce the list of eligible participants and funding. On the Net: www.united.com =20 ---------------------------------------------------------------------- Copyright 2003 AP