The U.S. Bankruptcy Court in Chicago rejected the agreement between United Airlines and its pilots that would allow the airline to terminate the pilots' pension plan, according to a statement issued today by United. The statement said the airline is "disappointed" that the court didn't approve the agreement, which members of the Air Line Pilots Association ratified yesterday. United believes the agreement "was fair and equitable," the statement said. "United is committed to working with ALPA to attempt to reach a consensual agreement that will deliver the cost savings we need to attract exit financing and successfully complete our restructuring."
According to a statement from the ALPA, the group is "disappointed with the judge's ruling and even more disappointed with the objections of the creditors and others who prompted the ruling." The statement said the pilots' union will meet with United "over the next few days to explore the consequences of the judge's ruling," but union officials cannot assure the parties will reach another settlement.
Sara Nelson Dela Cruz, spokeswoman for United's flight attendants union, said the union remains focused on reaching an agreement with the airline and had no further comment. Joseph Tiberi, spokesman for the airline's machinists' union, did not return calls seeking comment by press time.
Jean Medina, United spokeswoman, also did not return a call seeking comment by press time.
