Flight Attendants Now Threaten Strike

A Chicago federal judge Tuesday approved United Airlines' request to dump its massive employee pension plan, leaving almost $10 billion in unfunded liabilities on the table for the government to handle.

That means UAL Corporation has gotten around one of the biggest financial challenges it faced in its two-year effort to emerge from bankruptcy.

US Bankruptcy Judge Eugene Wedoff obviously didn't think much of the ruling, even though he issued it himself. It was "the least bad among a number of unfortunate choices," he told the Chicago Tribune after Tuesday's court session. The decision "keeps the airline functioning, keeps people employed," he said.

In spite of widespread analysis that said Wedoff's decision was a big win for United, there was no celebration at the company's headquarters in Chicago.

"This is not in any way a joyous day," CFO Jake Brace told the Tribune after the hearing. "This is not a good outcome. Unfortunately, it's a necessary outcome."

AFA union leaders were set to meet Wednesday to decide what action they will take in the wake of the court decision. Strikes against specific routes or specific airports are reportedly some of the actions they're considering.

In the meantime, UAL was to be back in court on Wednesday, hoping Judge Wedoff will allow the company to break its agreements with two labor unions.

FMI: www.united.com, www.afa.org