United Airlines will soon take another step toward ending its 2-1/2-year bankruptcy when it files a reorganization plan, but a business plan to be released later this year will provide more clues about its long-term survival prospects.

United's reorganization plan begins the formal process of leaving bankruptcy. The airline, in Chapter 11 since December 2002, hopes to emerge this autumn.

"I would think the report would start to identify some funding partners and some of the time lines," said airline consultant Robert Mann. "But there's still a lot of stuff that remains hanging and open."

Mann noted lingering questions about aircraft leases now being renegotiated and a conflict with the flight attendants union, which has vowed to recover lost pension plans even if it means a strike.

United spokeswoman Jean Medina said the company's business plan, to be filed later, would feature more information about the restructuring and outlook.

"United has done the work to improve the company across the board and build a competitive foundation for the future," she said. "We are a vastly different company than the one that entered bankruptcy and we look forward to the opportunity to prove the skeptics wrong."

Since filing bankruptcy, United has cut costs by USD$7 billion, restructured contracts with its United Express unit, dumped underfunded pension plans, renegotiated labor contracts and shrunk its work force to 60,000 from 80,000 employees.

United says it needs financing in the range of USD$2 billion to USD$2.5 billion and has received proposals in that range. The company in June boosted its debtor-in-possession financing to USD$1.3 billion.

Analysts agree the reorganization, which needs approval from eligible creditors and the court, is a key development, but say it may not get a very warm greeting.

"This is but one step on the long road to United emerging from Chapter 11. Expect much protest and opposition from key groups of employees and some creditors," said Anthony Sabino, airline expert and professor at St. John's University.

Some analysts have doubts about United's long-term viability, saying the changes are too slow and too minor.

"If you can look largely at the last 18 months as an indicator of what the company is going to look like going forward, they are going to be a moderately refined version of the United that got them into this in the first place," said Stuart Klaskin with KKC Aviation Consulting in Miami.

Klaskin said the carrier has made few substantial changes and it may need to consider a merger or an acquisition a few months after it emerges from Chapter 11. It also could have to file for bankruptcy again.

United, last week, said its net loss increased to USD$1.43 billion from USD$247 million a year earlier. But the airline said the loss included expenses related to its bankruptcy.