United to furlough 2,700 attendants

By Alan Ohnsman
Bloomberg News Service

CHICAGO — UAL Corp.'s United Airlines said it plans to furlough an additional 2,700 flight attendants because of reductions in its 2003 flight schedule as the airline tries to lower costs to avoid bankruptcy.

The job cuts, which begin Jan. 31, bring the total number of attendants laid off to 4,800, the airline said on its Web site.

Calls to UAL weren't returned and a message on an after-hours media line said the company had no additional comment on the matter.

Sara Dela Cruz, spokeswoman for the Association of Flight Attendants, said United furloughs employees by seniority and "generally our Honolulu flight attendants are very senior." Because of that, "It should not be forced on any of the Honolulu flight attendants," she said.

United said it has about 23,800 flight attendants worldwide — including about 450 in Hawai'i, including those who have already been furloughed. The flight attendants last month joined other employees in offering to take a pay cut as part of a plan to save UAL $5.8 billion over 5 1/2 years and keep the world's second-biggest airline out of bankruptcy court. Talks with flight attendants continue.

UAL is trying to reduce costs to remain viable, win approval for a federal loan guarantee that would help the company raise $2 billion in private loans and avoid a Chapter 11 bankruptcy filing. UAL said it won't be able to pay $445 million of debt and other obligations due by year-end unless it can raise the money.

UAL Chairman and Chief Executive Glenn Tilton has said the company is seeking to restructure outside of bankruptcy.

The company said its human resources department will support flight attendants in "career transitions."