United Airlines Seeks U.S. Loan Guarantee
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UAL Corp.’s United Airlines will seek a U.S. loan guarantee to help secure new financing if the world’s second-largest airline’s employees agree to pay and benefit concessions, Chief Executive Jack Creighton said.
United had said it might apply for the assistance. Creighton said UAL is making progress in concession talks with the pilots union and met with the union representing mechanics and baggage handlers. The carrier is close to reaching agreements with workers who aren’t represented by a union, he said.
United has said it needs several billion dollars in labor cost reductions in the next few years. Creighton reiterated that UAL expects a loss in the current quarter and for the year. UAL’s daily losses are now “significantly” lower than the $5 million in the first quarter, he said.
UAL shares rose 6 cents to $11.44 on the NYSE.
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