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Published on 5/17/2005 in the Prospect News Distressed Debt Daily.

United reaches tentative agreement with mechanics union

By Caroline Salls

Pittsburgh, May 17 - United Air Lines Inc. reached a tentative out-of-court agreement with the Aircraft Mechanics Fraternal Association, which achieves cost savings for United while, the company said, addressing the union's concerns over pay, job security, benefits and work rules, according to a company news release.

The agreement is subject to ratification by AMFA membership.

United said, if ratified, the proposal will help it move forward in its restructuring.

United, a Chicago-based airline, filed for bankruptcy on Dec. 9, 2002 with the U.S. Bankruptcy Court for the Northern District of Illinois. Its Chapter 11 case number is 02-48191.


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