United Airlines is Cleared for Flight From Bankruptcy
CHICAGO (AP) — United Airlines’ tortuous restructuring came to a virtual end Friday in a bankruptcy courtroom.
But passengers won’t see a sudden transformation when it comes out of Chapter 11 on Feb. 1. Three years of changes already have turned the nation’s No. 2 airline into a leaner, more efficient carrier.
It has fewer and less well-paid employees than when it went into bankruptcy in December 2002, a smaller, younger fleet of airplanes, a better on-time record — and onboard meals are no longer free.
All that’s left to do is make a profit again, along with the company’s promise to return its full focus to the customer.
“I think passengers will start to notice a difference as soon as United starts reinvesting” in its operations this year, said industry consultant Robert Mann.
That is expected to come within months as parent UAL Corp. spends an expected $400 million in 2006 on refurbishing airplane cabins, adding more check-in kiosks, upgrading computer systems and buying new ground equipment.
CEO Glenn Tilton told employees that because of all the changes United already has made, competitors already are concerned.
The approval of its reorganization plan by U.S. Bankruptcy Judge Eugene Wedoff removed the final obstacle to United’s exit from bankruptcy after the largest and longest airline bankruptcy ever.
