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United Airlines plans $ 1.4bn cost savings

New York, Oct. 22: UAL, the parent company of United Airlines, told employees in a phone message on Monday that it had pinpointed a total of $ 1.4 billion in annual operational cuts. Of that, a company spokesman said, $ 100 million would come from a streamlining that includes the loss of about 1,250 jobs.

That cut results from the closing of reservations centres, the elimination of a maintenance line and the conversion of five airport stations to cheaper regional jet service. Those efforts, along with a reduction in the flight schedule, will eliminate the 1,250 jobs.

The planned cuts are intended to help strengthen a revised business plan that the company expects to submit this week to the federal government to bolster its application for a $ 1.8 billion federal loan guarantee.

Executives are also expected to meet with leaders of United’s five unions throughout the week to try to win concessions totalling $ 5.8 billion over five and a half years.

“This week is again most critical,” Glenn F. Tilton, the chief executive of UAL, said in his weekly phone message to employees.

UAL is working feverishly to stay out of bankruptcy court, despite the pessimistic prognostications of many analysts.

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