United Airlines last week told the US Bankruptcy Court in a filing that it needs $500 million more in cost cuts in order to attract exit financing and compete successfully in today’s marketplace.The new savings would be in addition to the $655 million in annual reductions the carrier reportedly previously told employees it needs (ATWOnline, Sept. 2) as well as any savings it would realize from terminating and replacing its pension plans.
United said this information has been included in the preliminary business plan it shared with key stakeholders, including its board of directors, creditors committee and unions. However, International Assn. of Machinists and Aerospace Workers spokesperson Joe Tiberi told Reuters that the union had not been informed of any new cost-cutting programs.
Meanwhile, the airline was granted a 30-day extension to file a reorganization plan with the bankruptcy court