United get nod for reorganisation plan
A bankruptcy court in the US has approved a reorganisation plan to take United Airlines out of Chapter 11.
Judge Eugene Wedoff said there was “reason to feel good about the plan” which comes three years after the carrier admitted it was embarking on a period of “profound and agonising change.”
“Three years ago United Airlines was, bluntly, in danger of dying, with all its assets liquidated and all of its jobs lost,” Judge Wedoff said.
He added the reorganisation will enable it to have the “potential to be a profitable investment, a reliable business partner and a stable employer.”
Stability is a word not often associated with US carriers in recent years. Since filing for bankruptcy protection, United Airlines has shed 25,000 jobs, those who remained saw wages and benefits cut and shareholders watched their stock become worthless.
United president, chairman and chief executive Glenn Tilton said: “The confirmation of our plan validates more than three years of work to make United a sustainable enterprise, ready to compete successfully with the strongest carriers.
“The tremendous work of our employees during the most difficult times is an indication of what we are capable of moving forward.
“We will build on our momentum as we continue to differentiate United in the marketplace and focus fully on our customers for a stronger future.”
Unless there is an appeal – thought unlikely – the airline is expected to emerge from Chapter 11 on February 1.
Report By Steve Jones
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