United’s Chapter 11 Filing ‘More Likely’
Glenn Tilton, the chief executive of UAL Corp.’s United Airlines, said a Bankruptcy Court filing is a “more likely outcome†in the wake of the government’s decision this week not to bail out the No. 2 U.S. carrier.
“We have been preparing for a Chapter 11 filing for months, and we are ready if we decide that’s the best course for the company,†Tilton said. He warned that in bankruptcy, deeper cost savings would be needed, and union work rules must be “on the table.â€
Pilots union leaders held their second day of meetings with United managers, but refused to say whether they had discussed a possible attempt to avert bankruptcy.
A United confirmed that its board planned to meet today, but declined to comment on the airline’s financial status or plans.
Shares of UAL fell 7 cents to 93 cents on the New York Stock Exchange.
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