United Flying Out of Bankruptcy After Record Stint

United Airlines finally leaves bankruptcy today, a leaner and more cost-efficient carrier after a painful restructuring that began in 2002 and lasted a record 1,150 days.

April 21, 2003 - United starts charging for meals on flights.

May 1, 2003 - New labor contracts go into effect reducing labor costs by $2.56 billion annually for six years.

Feb. 12, 2004 - United launches its new Denver-based discount carrier, Ted.

June 28, 2004 - United loses third and final try for a government loan guarantee, forcing it to seek new financing.

Aug. 19, 2004 - United says in a bankruptcy filing that it likely will terminate and replace its employee pension plans.

Oct. 6, 2004 - United cuts domestic flight capacity by 12 percent and increases international capacity 14 percent amid intensifying discount-carrier competition in U.S. and more lucrative routes internationally.

Nov. 4, 2004 - CEO Glenn Tilton says record-high fuel costs mean United has no choice but to eliminate pensions and cut wages further to gain an additional $2 billion in reductions.

May 10, 2005 - Bankruptcy Judge Eugene Wedoff approves United's plan to terminate employee pensions, clearing the way for the largest corporate-pension default in American history.

July 21, 2005 - United completes second round of negotiated labor cuts in bankruptcy, adding another $700 million in annual labor savings.

Sept. 7, 2005 - United files reorganization plan outlining its intentions for repaying its debts and wiping out its stock. Forecasts nearly $1 billion operating profit in 2006 but based on oil prices falling to $50 a barrel.

Oct. 6, 2005 - United signs off on a $3 billion loan from JPMorgan Chase & Co. and Citigroup Inc. enabling it to exit bankruptcy.

Dec. 30, 2005 - United announces majority of creditors have voted for its reorganization plan.

Jan. 20, 2006 - Reorganization plan approved by bankruptcy court.

Feb. 1, 2006 - United emerging from bankruptcy after three years, 51 days.

Copyright 2005 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

News stories provided by third parties are not edited by "Site Publication" staff. For suggestions and comments, please click the Contact link at the bottom of this page.

We Recommend