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Restructuring Firm to Analyze UAL Business Plan

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Source: AFA

Date: Oct 22, 2004

AFA to Withdraw Trustee Motion as Independent Plan Scrutiny Begins

CHICAGO -- The Association of Flight Attendants-CWA (AFA) today achieved its core objective in filing its motion to appoint a trustee through an agreement under which United Airlines will hire Bridge Associates LLC, an independent restructuring firm selected in consultation with AFA, to analyze United's business plan.

In early September AFA filed a motion in the bankruptcy court to appoint a trustee to oversee United Airlines’ development of a viable business plan that would allow the company to successfully exit bankruptcy.  The International Association of Machinists and Aerospace Workers (IAM) had also filed a motion to appoint a trustee. 

AFA has continually worked to ensure that the core issue raised in its trustee motion – the direction and future of United - would be addressed.  The Union is encouraged that an agreement has been reached that directly deals with our primary concern.    Within the next few days the court will be asked to approve the retention of Bridge Associates LLC, to conduct an independent evaluation of United’s business plan.  As part of this agreement, upon the court approving the retention of the restructuring firm, AFA will withdraw the trustee motion.

Over a 30-day period, Bridge Associates will examine the business plan and provide a confidential written report to United with copies to AFA and the IAM.

“United Airlines Flight Attendants have been a powerful advocate for a successful reorganization and we will continue to work toward that goal,” stated AFA United Master Executive Council President Greg Davidowitch. “The magnitude of contributions and sacrifices made by our Members to the success of United Airlines is immeasurable. AFA will utilize this agreement and any other available tools to see that Flight Attendant sacrifices are prudently, fairly and meaningfully applied to a plan that returns United Airlines to premier status in the aviation industry.”

More than 46,000 Flight Attendants, including the 21,000 Flight Attendants at United, join together to form AFA, the world’s largest Flight Attendant union. AFA is part of the 700,000 member strong Communications Workers of America, AFL-CIO. Visit us at http://www.unitedafa.org/.

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