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Four Issues Need to Be Solved Before Filing Updated Business Plan

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Source: Archived Content

Date: Sep 23, 2003

United indicated to the media after their court hearing on Friday, Sept 19, 2003 that they need to resolve "four major issues" before filing an updated business plan to the federal government seeking loan guarantees.

They are:

  • Pensions
  • A contractual agreement with Atlantic Coast Airlines Inc
  • Municipal bond litigation
  • Rejection of aircraft leases under what is known as section 1110 of the bankruptcy code.

According to Reuters, the "pension issues alone are significant, and while the airline continues to lobby for legislative changes to cope with a massive underfunded pension obligation, it is unclear whether Washington will be willing to step in."

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