Press Release
Source: Air Line Pilots Association
United Pilots Ratify Recovery Plan -- Final
Approval of Plan Contingent on UAL Receipt
of ATSB Loan Guarantee --
Monday November 18, 3:16 pm ET
ROSEMONT, Ill.--(BUSINESS WIRE)--Nov. 18, 2002--The United Master
Executive Council of the Air Line Pilots Association, International announced
today that the pilots of United Airlines have overwhelmingly ratified changes to
the pilot labor agreement in connection with United''s Economic Recovery Plan.
The pilot agreement is a critical component of a $5.8 billion labor savings
program that will help qualify the airline for a federal loan guarantee through the
Air Transportation Stabilization Board (ATSB).
Approximately 80% of the eligible United pilot group cast votes on the new labor
agreement, which was approved by a vote of 6526 to 340.
The pilot agreement will provide the company with more than $2.2 billion cash
savings over a five-and-one-half year period. The new labor agreement will only
become effective upon the ratification of recovery agreements by the
Company''s other labor groups and United''s receipt of an ATSB loan guarantee
on terms reasonably acceptable to the pilots'' union.
We are gratified that the overwhelming majority of the pilot group has rallied
around an out-of-court restructuring program, said Captain Paul Whiteford,
chairman of the Master Executive Council of United pilots (UAL-MEC). The
recovery program is the best and only realistic course of action for United. This
pilot vote is the strongest possible statement of the pilots'' commitment to
stabilizing United and returning the carrier to profitability.
Under the new labor agreement, pilot wage rates will be reduced by 18% on the
effective date of the Economic Recovery Plan.
Source: Air Line Pilots Association
United Pilots Ratify Recovery Plan -- Final
Approval of Plan Contingent on UAL Receipt
of ATSB Loan Guarantee --
Monday November 18, 3:16 pm ET
ROSEMONT, Ill.--(BUSINESS WIRE)--Nov. 18, 2002--The United Master
Executive Council of the Air Line Pilots Association, International announced
today that the pilots of United Airlines have overwhelmingly ratified changes to
the pilot labor agreement in connection with United''s Economic Recovery Plan.
The pilot agreement is a critical component of a $5.8 billion labor savings
program that will help qualify the airline for a federal loan guarantee through the
Air Transportation Stabilization Board (ATSB).
Approximately 80% of the eligible United pilot group cast votes on the new labor
agreement, which was approved by a vote of 6526 to 340.
The pilot agreement will provide the company with more than $2.2 billion cash
savings over a five-and-one-half year period. The new labor agreement will only
become effective upon the ratification of recovery agreements by the
Company''s other labor groups and United''s receipt of an ATSB loan guarantee
on terms reasonably acceptable to the pilots'' union.
We are gratified that the overwhelming majority of the pilot group has rallied
around an out-of-court restructuring program, said Captain Paul Whiteford,
chairman of the Master Executive Council of United pilots (UAL-MEC). The
recovery program is the best and only realistic course of action for United. This
pilot vote is the strongest possible statement of the pilots'' commitment to
stabilizing United and returning the carrier to profitability.
Under the new labor agreement, pilot wage rates will be reduced by 18% on the
effective date of the Economic Recovery Plan.
