Expects Carrier To Be 'Different Company' Two Years After Filing For Protection From Creditors

Glenn Tilton, CEO of United Airlines, told the Chicago Tribune this weekend that he expects the airline will emerge from bankruptcy in the autumn, and that it "will emerge from bankruptcy in the fall a different company." The company filed for protection from creditors more than two years ago, and has been in bankruptcy proceedings for much longer than the industry expected it would be.

"It's going to be a rush, it's going to be an absolute rush," Tilton said of the United's exit from its reorganization.

The airline has managed to survive thanks not only to management efforts, but in large part because of labor union salary concessions totalling $2.56 billion. These concessions have allowed the airline to restructure itself, but it is still seeking another three quarters of a billion in labor cost reductions by the end of this month.

The company was also recently awarded a three month extension to file its reorganization plan with the court without interference from creditors, after the current deadline was about to expire January 31.

FMI: www.united.com