Missed Deadline Puts United Airlines Buyout Plan in Doubt

United Airlines executives and union officials said Wednesday that an employee buyout plan could be in jeopardy after both sides missed a deadline to produce a definitive agreement.

United, the International Assn. of Machinists and the Air Line Pilots Assn. were supposed to have completed an agreement by Tuesday under the preliminary terms of the deal.

But the day passed without results, and Wednesday both airline and union officials said there was no assurance that the buyout of the nation’s second-largest airline could be completed. The unions are seeking majority ownership of Chicago-based United, which would become the largest U.S. company controlled by employees.

United and union officials held talks Wednesday that continued late into the evening, but neither side would say whether the deadline would be extended.

“The IAM will not be a party to an agreement that isn’t fair and equitable for our members or that doesn’t address the fundamental problems facing United Airlines,” a machinists union statement said.

The supporters of the buyout have faced numerous other problems. For example, United’s flight attendants have decided against participating in the buyout and non-unionized employees have voiced their concerns about the plan. The employee buyout has also met with resistance within the ranks of the pilots and machinists, the two major groups behind the proposal.

Despite missing the deadline, investors, who apparently took heart in the continuing talks, bid up the stock price of United’s corporate parent, UAL Corp. On the New York Stock Exchange, shares rose $2.375 to close at $131.375.