UAL Judge Delays Ruling On Pact With Pilots Thursday January 6, 7:29 PM EST CHICAGO (Dow Jones)--A federal judge on Thursday postponed a ruling on a controversial pact between United Airlines and its pilots union after several hours of oral arguments. Judge Eugene R. Wedoff of the U.S. Bankruptcy Court for the Northern District of Illinois said he would issue a ruling at a hearing on Friday morning. Creditors, unions and others have objected to the deal on the grounds that it may hurt the airline's chances to successfully emerge from bankruptcy and its unusual nature. The deal with the Air Line Pilots Association, which represents 6,900 active pilots and 2,100 furloughed pilots, includes a 15% pay cut and an agreement not to oppose the elimination of their pension plan. It also includes reductions to sick pay. In return, UAL Corp.'s (UALAQ) United agreed to increase contributions to a new retirement plan and issue $550 million in convertible notes to the pilots once the company emerges from bankruptcy. The pilots earlier Tuesday overwhelmingly ratified the new contract by a vote of 76.8% to 23.1%. Separate deals with two smaller unions, the Professional Airline Flight Control Association and the Transport Workers Union, were also ratified. The International Association of Machinists and Aerospace Workers agreed to an interim 11.5% pay cut which was approved by the judge earlier Thursday. The Chicago airline has already pared $2.5 billion from its labor costs, but said late last year that it needs to wring another $725 million in annual cuts in order to strengthen its balance sheet during its search for exit financing. Wedoff, the bankruptcy court judge, fueled speculation by some court observers that he may ultimately decide against the pact when, in his final question to a United attorney, he asked specifically about what would happen if the deal were not approved. Meanwhile, the bankruptcy court has set a hearing for Friday on UAL's request to cancel contracts with two unions that haven't yet agreed to cost cuts. As has been the case with other matters in United's bankruptcy case, last-minute deals are a possibility. If the pilots pact isn't approved, it would be subject to a similar but separate hearing. Roger EWROPS