United Asks Its Unions to Accept Bigger Cuts

United Airlines asked its unions to accept labor cost cuts totaling $2.4 billion as it seeks to reorganize in Bankruptcy Court, according to unions representing flight attendants and mechanics.

The request from UAL Corp.’s United is more than twice the $945 million in pay and benefit concessions the world’s second-largest carrier sought before filing for Chapter 11 protection from creditors on Dec. 9.

United, which has some of the highest costs in the industry, is trying to reduce expenses to emerge from bankruptcy protection within 18 months. Unions must act on the proposals by mid-February to satisfy terms for $1.5 billion in bankruptcy financing, the United Assn. of Flight Attendants told members in a message posted on its Web site.

The machinists union, which represents United mechanics, cleaning workers and baggage handlers, was “incredulous” after seeing the proposals, said Scotty Ford, president of the mechanics’ district. “We’re discussing strategy with our financial and legal advisors.”

The company began making presentations to union leaders on the proposals last week and won’t comment on the details, United spokesman Rich Nelson said.

Previously negotiated wage and benefit reductions weren’t enough to help the airline win approval for a $1.8-billion U.S. loan guarantee request. A federal board decided not to provide government backing, saying United’s financial plan was unsound.

UAL shares declined 25 cents to $1.50 in New York Stock Exchange trading. The shares, which are about 55% owned by employees, have dropped 89% this year.