UAL Pilots: Expect UAL Won't Have To Cut Labor Costs

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UAL Pilots: Expect UAL Won't Have To Cut Labor Costs




Monday June 28, 1:35 PM EDT

NEW YORK (Dow Jones)--UAL Corp. (UALAQ) employee groups Monday made it clear they will resist giving up any more wages or benefits as the airline works to pull together the financing to exit bankruptcy without government help.

Earlier Monday, the Air Transportation Stabilization Board turned down for the third time the request for a loan guarantee from the world's second-largest airline.

The union representing United pilots said it's willing to help the airline exit bankruptcy, but not by offering more wage and benefit concessions.

"We will continue to work with United management in searching for solutions to move United Airlines toward financial health and an eventual exit from bankruptcy. We fully expect that such solutions will be found without the company again turning to employees who already have provided significant financial relief for the airline," the pilots said in a statement.



And a spokeswoman for the flight attendants union said those employees have given concessions, and the airline should look elsewhere to cut costs before coming back to the flight attendants.

"We have been very clear with United that we have given massive concessions and in spite of that have offered industry-leading customer service," said Sara Dela Cruz, spokeswoman for the Association of Flight Attendants.

Dela Cruz said flight attendants are anxious for the airline to exit bankruptcy. United filed for bankruptcy protection in December 2002. She said living with the uncertainty of bankruptcy has been difficult for employees.

But most airline experts say the decision by the ATSB not to provide a guarantee likely will keep the airline in bankruptcy longer than anticipated as the airline lines up private debt and equity financing.


Roger
EWROPS

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