United, Great Lakes Aviation Amend Deal
Fri Jul 18, 2:38 PM ET Add Business - AP to My Yahoo!
CHICAGO - United Airlines and Great Lakes Aviation Ltd. have amended their code-sharing agreement to allow United's regional subsidiary greater access to locations serviced by Great Lakes.
A motion to end the code-sharing deal between the companies was removed from the agenda of Friday's hearing of the Bankruptcy Court for the Northern District of Illinois, after the parties reached an agreement.
Chicago-based UAL Corp., the parent of United, had been seeking to terminate its arrangement with Great Lakes for cost-saving reasons after it filed for bankruptcy protection in December.
The agreement allows UAL to introduce United Express service into markets that were previously serviced by Great Lakes under the code-sharing deal.
Great Lakes flies to Western and Midwestern states from hubs in Chicago, Denver, Minneapolis, and Phoenix.
Meanwhile, UAL Chief Financial Officer Jake Brace said that the company continues to explore avenues for financing to cover UAL when it emerges from Chapter 11 protection, including private equity.
"A lot of people have expressed an interest in investing in us and we'll look at that when the time comes," he said.
Brace reiterated that UAL expects to emerge from bankruptcy in either the fourth quarter of 2003 or the first quarter of 2004.
He also said the airline is still in talks with the Air Transportation Stabilization Board for roughly $2 billion in financing.
Failure to secure a loan guarantee from the ATSB last year was one of the contributors to its filing for bankruptcy protection.