United Airlines' parent company filed its long-delayed reorganization plan Wednesday, declaring its intention to emerge from federal bankruptcy early next year as a "much more competitive" firm than the one that entered Chapter 11 protection in December 2002.
The huge filing, made in U.S. Bankruptcy Court, lays out UAL Corp.'s intentions for United and the 26 other, smaller subsidiaries involved in the restructuring as well as detailing its proposals for repaying creditors.
The bankruptcy overhaul, initially expected to last 18 months, is now ensured to take more than three years _ complicated by higher fuel prices, the difficulties in obtaining two rounds of labor cuts and the failure to secure federal loan guarantees.
But the No. 2 U.S. carrier is hopeful that its return to the black _ excluding hefty restructuring costs _ and positive cash flow this summer signals a turnaround is finally under way.
"United has made tremendous progress in our restructuring to improve performance across the board, in costs, revenue, operations and service to our customers," said Glenn Tilton, United's chairman, CEO and president, in a statement accompanying the filing.
"Today, we are more flexible, more efficient and more resilient. As a result, United is now positioned to compete with the best carriers and confront the challenges of a volatile industry," he said.
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