glad to see somebody laughed. I'm just waiting to see if I have a job. It's out of my control What else can I do but laugh.
CHICAGO (Dow Jones)--United Airlines has asked the judge overseeing its bankruptcy case here for permission to extend the exclusivity period on its reorganization plan through April, according to court documents.
UAL Corp.'s (UALAQ) United said that a three-month extension to the exclusivity period, a part of bankruptcy law that prevents the submission of rival reorganization plans, would allow the company "to capitalize on positive momentum in implementing its restructuring objectives."
The current exclusivity period was set to expire on Jan. 31. The proposed extension would run until April 30. A hearing on the matter has been scheduled for Jan. 21.
Chicago-based United filed for bankruptcy in December 2002 and has said that it expects to emerge sometime this year.
The airline last week secured a number of key concessions from its union groups.
In recent days, United has reached tentative agreements on concessionary new labor contracts with its flight attendants and its mechanics. The company also has reached an interim deal with its machinists.
But the bankruptcy court last week threw out a complex deal that was negotiated with its pilots union, which resulted in the withdrawal of pacts with two smaller unions. United has pledged to work quickly on new deals with those groups.
United, in reaching the agreements, was able to avoid a high-profile trial regarding its requests to have the existing contracts canceled. That trial was slated to begin last week on Friday.
Beyond the labor savings, United said it will continue to downsize its aircraft fleet by rejecting contracts on 15 Boeing 737s this month. The company has already reduced the cost of operating its fleet by about $500 million per year and in early October announced a 13% reduction to its fleet to 455 planes.
United is evaluating initial proposals on its bid request for the regional airline routes currently served by Air Wisconsin. After seeking bids from 14 regional airlines, including Air Wisconsin, the company received 11 expressions of interest. United will now work with each bid and identify the best package, according to the filing.
The termination of pension plans is another issue on the horizon. Federal law requires between 60 days to 90 days advance notice of voluntary termination. The company said it must begin evidentiary proceedings both with the Pension Benefit Guaranty Corp. and in bankruptcy court to determine if the company satisfies federal law for a voluntary termination.