Bankrupt United Airlines said Friday it needs labor cost cuts on top of any gains from terminating employee pensions and expects to move toward voiding its labor contracts in early November.
United, a unit of No. 2 U.S. air carrier UAL Corp., believes that termination of its employee pension plans is likely, but will not go far enough, a lawyer for the air carrier said at a bankruptcy court hearing in Chicago.
The air carrier needs the additional labor cost savings in place by mid-January and still hopes that it can reach agreements with unions on the cost savings. United could reject union contracts under the bankruptcy code.
Also Friday, Bankruptcy Court Judge Eugene Wedoff granted United's request for another 30-day extension of its right to file a reorganization plan at the exclusion of any competing proposals.
In court papers, United said it expects to ask for a multi-month extension of the exclusivity period at the next regular bankruptcy hearing in November in order to execute cost savings, exit and other processes.
Elk Grove Village, Illinois-based United filed for Chapter 11 bankruptcy court protection in December 2002.
