United meets bankruptcy benchmark, warns of war impact CHICAGO (AP) =97 United Airlines met its lenders' financial benchmark for= the=20 first three months of its bankruptcy but acknowledged Wednesday that the=20 war in Iraq poses a worsening threat to its reorganization. United, which=20 lost a record $3.2 billion last year, is required under the terms of its=20 debtor-in-possession financing to show swift progress toward profitability= =20 this year or risk having its loans cut off. It said it had met "by a wide=20 margin" its lenders' first critical requirement =97 that it show a loss of= no=20 more than $964 million between Dec. 1 and Feb. 28 in earnings before=20 interest, taxes, depreciation, amortization and aircraft rent. The world's= =20 second-largest airline reported a $307 million operating loss and a $367=20 million net loss in February and ended the month with a cash balance of=20 about $1.5 billion. But its prospects for a successful reorganization have= =20 been seriously clouded by the Iraqi conflict and accompanying slump in air= =20 travel. While working to secure a proposed $2.56 billion in annual labor=20 cuts, it also is lobbying for federal aid for the beleaguered airline=20 industry. "Our results for the past three months show that United has made= =20 good progress in restructuring its operations and finances," chief=20 financial officer Jake Brace said. "However, the war in Iraq presents a number of serious challenges that are= =20 already affecting the industry and that are expected to negatively impact=20 earnings and cash flow for United and its competitors. We are moving=20 rapidly to address those challenges," he said. The company reiterated that it may have to impose additional wage cuts=20 beyond the temporary reductions made in January if its situation doesn't=20 improve soon. United, which operates 1,700 daily flights, said last week it= =20 was reducing its flying schedule by another 8% starting in April. It=20 notified its unions last that 2,300 flight attendants and 1,100=20 Indianapolis-based mechanics would be put on temporary leave. Hints of=20 progress are emerging from United's labor talks as it continues to=20 negotiate ahead of its May 1 deadline for voiding contracts in bankruptcy=20 court if no agreements are reached. The union representing 27,000 customer= =20 service, ramp and security workers told members it presented United with a= =20 proposal last week calling for $423 million in annual cost savings, or=20 $2.54 billion over six years =97 up from its previous offer of $2 billion.= =20 While specifics of the proposal were not disclosed, that total is not far=20 below the company's request for concessions from the union group: $445=20 million a year for a total of $2.67 billion. The pilots' union is being=20 asked to provide the biggest share of the labor savings, $1.1 billion a=20 year, in the form of lower wages and benefits and revised productivity=20 rules. Mechanics are being asked for $349 million in yearly cutbacks=20 through 2008 and flight attendants for $314 million. United on Wednesday=20 said its smallest labor group, representing 18 meteorologists, had ratified= =20 concessions that include a 13% wage cut. Shares in United parent UAL Corp.= =20 rose 3 cents to 88 cents in morning trading on the New York Stock Exchange. *************************************************** The owner of Roger's Trinbago Site/TnTisland.com Roj (Roger James) escape email mailto:ejames@xxxxxxxxx Trinbago site: www.tntisland.com Carib Brass Ctn site www.tntisland.com/caribbeanbrassconnection/ Steel Expressions www.mts.net/~ejames/se/ Site of the Week: http://www.thehummingbirdonline.com TnT Webdirectory: http://search.co.tt *********************************************************