United Airlines will go ahead with planned cuts

Airline Industry Information, April 12, 2005

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United Airlines is in no position to compromise on planned cuts due to the increasing fuel prices, according to the airline's CEO Glenn Tilton.

Tilton has restated the intention to eliminate pension plans for union members in the work force and to replace the current contracts in order to get enough financing to exit bankruptcy. The airline stated in a bankruptcy filing yesterday (11 April) that it intends to replace the pension plans and discard collective salary agreements with the mechanics and machinist unions unless an agreement on concessions is reached by 11 May.

United Airlines said that it shares the frustration of the employees over having to take such measures, but that it has found no alternatives, The Associated Press reported.

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