Skip Nav

Bankruptcy News Archive: 2003

Dec 18, 2003

• United Files Updated ATSB Loan Guarantee Application
  AFA Update -- This week, United reached a formal agreement to secure $2 Billion in exit financing with JPMorgan and Citigroup. The financing is contingent upon United gaining approval of its update to its previous proposal to the Air Transportation Stabilization Board (ATSB) for a federal loan guarantee, which was officially updated today.

Dec 9, 2003

• United's Bankruptcy: A Year in Review
  A reflection of the one year anniversary of United's bankruptcy.

Nov 21, 2003

• Bankruptcy and Pension Progress
  An AFA update on United's bankruptcy progress.

Sept 17, 2003

• United's LCO to Launch from Denver
  An AFA update on United's Low Cost Carrier.

Jul 18, 2003

• Bankruptcy Court Approved UAL's Retention Plan
  This evening Judge Eugene Wedoff approved United's key employee retention plan for selected professional and technical employees Friday.

Jul 11, 2003

• AFA Filed Objection With Bankruptcy Court Regarding KERP
  AFA's filing of their objection to Debtors' Motion for Key Employee Retention Program.
  • Download objection and exhibits >

Jul 4, 2003

• MEC President Letter: KERP
  Yesterday, United Airlines filed a motion in bankruptcy court for a new Key Employee Retention Program (KERP) that would provide bonuses for middle management.

Jun 20, 2003

• Report from the Bankruptcy Court
  United's lead attorney, James Spreyregen, told Judge Eugene R. Wedoff that the company expects to emerge from under the court's supervision in either the fourth quarter of 2003 or first quarter of 2004.

May 2, 2003

• Contractual Grievance Proof of Claim
  The bankruptcy court has granted the Association of Flight Attendants the right to file a proof of claim for any matter that is based upon our Collective Bargaining Agreement. This would include all Contractual grievances. As a result, Flight Attendants who may have filed a Contractual grievance or have a Contractual grievance pending do not need to file their own individual proof of claim.

April 30, 2003

• Debtors' Agreed-To Motion filed. 559 KB - 20 pages
• Let me simply advert to the remarks that I made when this case first came before the Court, and that is that the power of the Court in a situation like this is really very limited. In the context of Section 1113 of the Bankruptcy Code, for example, the only power the Court has is to either grant or deny a motion by the debtor to reject a collective bargaining agreement. It's an all or nothing proposition. The parties themselves have the opportunity to create solutions of considerably more subtlety and appropriateness for the case. And what has happened here is that the parties have done so. --Judge Eugene Wedoff, April 30, 2003 Bankruptcy Hearing

Apr 29, 2003

• Flight Attendants Ratify Concessions
  75% of eligible Flight Attendants who cast their ballots voted for the agreement, and over 63% of eligible Flight Attendants voted.
  • AFA Press Release >>
  • MEC President Letter >>
  • Vote Results >

Apr 9, 2003

• United Airlines Flight Attendants Set Vote on Tentative Agreement
  AFA Press Release - Voting will be conducted electronically, via telephone and internet, beginning Apr. 16, with ballots being counted on Apr. 29.

Apr 8, 2003

• MEC Resolution Passed: Accept Tentative Agreement
  MEC passed a resolution to accept the tentative agreement.  Unanimously recommended a "FOR" vote.

Apr 4, 2003

• AFA Reaches Tentative Agreement
  The AFA Financial Review Committee and negotiators for United today reached a tentative agreement for concessions that will contribute to United’s successful restructuring.

Mar 27, 2003

• ALPA Reaches a Tentative Agreement with the Company
  The tentative will be submitted to pilots for a ratification vote to be completed by April 11. AFA has not seen ALPA’s tentative.

Mar 26, 2003

• ERISA 45-day Notification Rule Q&A

Mar 18, 2003

• MEC President Addresses Media Coverage
  Some members of the press are reporting that an international conflict would cause United Airlines to liquidate. The Flight Attendants and other employees of United Airlines clearly understand that our company faces substantial challenges in bankruptcy, the weakened economy, and perhaps most critically a potential war with Iraq.
  
  The employees have repeatedly demonstrated total commitment to United’s success with #1 performance records, immediate sacrifices of wage cuts to ensure satisfaction of DIP covenants, and ratified concessions in an effort to achieve the ATSB loan guarantees.
  
  United Airlines has been in the forefront of the airline industry for over 75 years, and current obstacles will not dissuade its most ardent, faithful, and critical supporters from ensuring its continued viability. Liquidation is not an option for United Airlines.

Mar 17, 2003

• United Airlines Files 1113c Plan to Gut Flight Attendant Contract
  AFA Press Release
• MEC President Letter: 1113c Plan
• MEC President Letter to President George Bush: Campaign for Emergency Airline Relief

March 13, 2003

• Section 1113(c) Proposals / Responses Completed Since March 12, 2003

Feb 14, 2003

• Proof of Claim Form Information
  United recently mailed to all creditors including its employees a notice establishing May 12, 2003 as the deadline or “bar date” for filing a proof of claim in the bankruptcy.

Feb 26, 2003

• UAL Flight Attendants Propose Over $1 Billion in Cost Cuts
  AFA Press Release - United Airlines Flight Attendants presented management with a proposal on Feb. 26.  The proposal will save the airline over one billion dollars in Flight Attendant costs over the next six years, lowering flight attendant costs to a level that will enable United to compete head-to-head with Southwest and Continental Airlines.
• MEC President Letter: Introduction to AFA's Contract Modification Proposal

Feb 22, 2003

• MEC Resolution Passed
  The AFA UAL MEC has concluded that it will submit a proposal to United by February 28, 2003 and that such proposal will contain modifications to its Collective Bargaining Agreement that will allow UAL to accomplish a successful reorganization.

Feb 14, 2003

• United Management Demands Higher Cuts
  AFA Press Release - The company is now demanding $2.56 billion in annual cuts from its Unions versus the previously announced annual savings target of $2.4 billion.

Feb 5, 2003

• AFA Influenced Substantial Changes to KERP
  AFA Update - Today in bankruptcy court, United amended its motion to accept the Key Employee Retention Program. These amendments drastically reduced the total funds for the program. AFA has been instrumental in affecting fundamental changes to this program.
• MEC President Letter: United's Amendment to KERP Motion

Jan 29, 2003

• MEC President Letter
  Questioning United's Strategy

Jan 21, 2003

• Pension FAQs
  Questioning United's Strategy

Jan 10, 2003

• AFA Files Objection to Bonuses for Executives (897 KB - 33 pages)
  AFA Update - AFA attorneys filed a pleading Friday, January 10, asking the bankruptcy court to deny United’s motion to implement its Key Employee Retention Program, which would provide bonuses and extra pay to executives and managers while Flight Attendants are being asked to take huge cuts in pay and benefits.
• Interim Relief Plan Now Effective
  The interim relief plan is now effective since all Union groups are participating. ALPA, PAFCA and TWU ratified their interim relief agreements earlier this week. This morning, the judge ruled to impose a 14% emergency relief cut to the wages of the IAM represented employees.

Jan 8, 2003

• Flight Attendants Ratify Interim Relief Agreement
  In an extremely short time-frame, the AFA Membership ratified the Interim Relief Letter of Agreement. Almost 62% of eligible AFA Members voted, with more than than 93% voting in favor of the agreement.
  • AFA Press Release >>
  • View Results by Domicile >>

Jan 2, 2003

• MEC President Letter
  Recommends a 'For' vote on Interim Relief Tentative Agreement

EARLIER UPDATES from 2002 >>