This article from NYTimes.com has been sent to you by psa188@xxxxxxxxx /-------------------- advertisement -----------------------\ THE DREAMERS - NOW PLAYING Set against the turbulent political backdrop of 1968 France when the voice of youth was reverberating around Europe, THE DREAMERS is a story of self-discovery as three students test each other to see just how far they will go. THE DREAMERS is released uncut with an NC-17 rating. Watch The Dreamers trailer at: http://www.thedreamers.com \----------------------------------------------------------/ Judge to Investigate Retiree Cuts at United February 21, 2004 By MICHELINE MAYNARD A federal bankruptcy court judge in Chicago agreed yesterday to investigate whether United Airlines misled its employees when it pledged to protect health care benefits for retirees, then moved to cut them a few months later. The decision is a setback for United's bid to reduce benefits for 35,000 retired workers, part of its effort to emerge from Chapter 11 bankruptcy by the end of June. At another struggling airline, US Airways, the pilots' union, which had previously dismissed the company's request for more wage and benefit cuts and had called for ouster of the chief executive, said yesterday that it would participate in drafting a restructuring plan that was likely to include a third round of concessions. US Airways, the seventh-largest airline, came out of bankruptcy proceedings last year and is trying to avoid seeking such protection again. Judge Eugene Wedoff of United States Bankruptcy Court granted a request by the Association of Flight Attendants and the International Association of Machinists and Aerospace Workers to appoint an examiner, who will look into United's actions on retiree health care benefits. He asked for a report in 30 days. In January, United, a subsidiary of UAL and the nation's second-largest carrier behind American Airlines, said it wanted retired workers to pay more for medical coverage. United's action, however, has met determined opposition from its unions, particularly the flight attendants. They maintain that United promised to protect health care coverage for flight attendants who retired by July 1, 2003. Some 2,500 flight attendants agreed to retire early, many on the assumption that they would receive full benefits, the union says. Union members picketed the bankruptcy court in Chicago and United's headquarters in nearby Elk Grove Village yesterday. United, which filed for bankruptcy protection in December 2002, maintains that it never gave up its right to reduce retirees' benefits, which it can ask to do under bankruptcy law. United's unions had the support of 109 members of Congress, most of them Democrats, who wrote to Glenn F. Tilton, the chief executive, asking him to reverse the company's action. United is waiting for approval of its reapplication for $1.6 billion in federal loan guarantees, the centerpiece of its emergence from bankruptcy. "When a hundred lawmakers tell you your behavior is reprehensive, you have to realize that cracking sound under your feet is thin ice," said Robert W. Mann Jr., a industry consultant in Port Washington, N.Y. At US Airways, the pilots agreed to discuss the restructuring plan after a two-day meeting with executives in Charlotte, N.C. Among the participants was the airline's chairman, David G. Bronner, who is also chief executive of the Retirement Systems of Alabama, the airline's biggest shareholder. It was the first time he met with any of US Airways' labor groups. US Airways faces a challenge this May from Southwest Airlines, which will introduce service from Philadelphia, one of US Airways' three hubs, on May 9. Two weeks ago, US Airways gave labor leaders a draft plan to cut the airline's per-mile operating costs by about 40 percent. Of that, US Airways said it wanted labor concessions equal to half the cuts. In addition to seeking cost cuts, US Airways is taking the offensive. It said yesterday that it planned to add flights on the most of the routes that Southwest Airlines will serve from Philadelphia. Increasing the frequency of service is a classic defense tactic by airlines when a new airline enters a pivotal market. On Thursday, another low-fare carrier, Frontier Airlines, said it would begin service to Philadelphia from Denver and Los Angeles, starting May 23. B. Ben Baldanza, US Airways' executive vice president for marketing, said his airline planned to "compete vigorously" in Philadelphia. Mr. Mann, the consultant, said he was not sure how long US Airways could compete. "They're willing to put up a fight," he said, "but ammunition costs money." http://www.nytimes.com/2004/02/21/business/21air.html?ex=1078388961&ei=1&en=ddf265e562e3d776 --------------------------------- Get Home Delivery of The New York Times Newspaper. Imagine reading The New York Times any time & anywhere you like! Leisurely catch up on events & expand your horizons. Enjoy now for 50% off Home Delivery! Click here: http://www.nytimes.com/ads/nytcirc/index.html HOW TO ADVERTISE --------------------------------- For information on advertising in e-mail newsletters or other creative advertising opportunities with The New York Times on the Web, please contact onlinesales@xxxxxxxxxxx or visit our online media kit at http://www.nytimes.com/adinfo For general information about NYTimes.com, write to help@xxxxxxxxxxxx Copyright 2004 The New York Times Company