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Pilots Ratify Recovery Plan
Final Approval of Plan Contingent on UAL Receipt of ATSB Loan Guarantee --
ROSEMONT, Ill.—The United Master Executive Council of the Air Line Pilots Association,
International announced today that the pilots of United Airlines have
overwhelmingly ratified changes to the pilot labor agreement in connection with
United’s Economic Recovery Plan. The
pilot agreement is a critical component of a $5.8 billion labor savings program
that will help qualify the airline for a federal loan guarantee through the Air
Transportation Stabilization Board (ATSB).
Approximately 80% of the
eligible United pilot group cast votes on the new labor agreement, which was
approved by a vote of 6526 to 340.
The pilot agreement will
provide the company with more than $2.2 billion cash savings over a
five-and-one-half year period. The
new labor agreement will only become effective upon the ratification of recovery
agreements by the Company’s other labor groups and United’s receipt of an
ATSB loan guarantee on terms reasonably acceptable to the pilots’ union.
“We are gratified that the
overwhelming majority of the pilot group has rallied around an out-of-court
restructuring program,” said Captain Paul Whiteford, chairman of the Master
Executive Council of United pilots (UAL-MEC).
“The recovery program is the best and only realistic course of action
for United. This pilot vote is the
strongest possible statement of the pilots’ commitment to stabilizing United
and returning the carrier to profitability.”
Under the new
labor agreement, pilot wage rates will be reduced by 18% on the effective date
of the Economic Recovery Plan.
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David Kelly, (847) 292-1700