UAL Outlines Massive Cost Cuts

Chicago, Aug 30: | Updated: Aug 31 2002, 05:30am hrs
United Airlines (UAL), the No 2 US carrier, said on Thursday it wants $9.0 billion in cost cuts over six years from its labor unions to avoid a bankruptcy filing, but two big unions had immediate negative reactions to the proposals, throwing the airlines future into question.

UAL Corps United, which has been hard hit by terrorist attacks, declining revenues and labor strife, said it was seeking $1.5 billion in annual savings from labor as part of a plan to cut yearly costs by $2.5 billion and avoid a bankruptcy filing this autumn. But pilots almost immediately rejected the cuts, calling them totally and wholly unacceptable and complicating an already murky future for the airline. (Reuters)