Restructuring Firm to Analyze UAL Business Plan
October 22, 2004
Ladies and Gentlemen:
In early September, we filed a motion in the bankruptcy court to appoint a trustee to oversee United Airlines’ development of a viable business plan that would allow our company to successfully exit bankruptcy. The International Association of Machinists and Aerospace Workers (IAM) had also filed a motion to appoint a trustee. Since that time, the Creditors Committee has organized several working groups, consisting of principals and consultants of the Committee. Working groups were created to focus on various aspects of United’s restructuring including the development of a business plan.
AFA has continually worked to ensure that the core issue raised in our trustee motion – the direction and future of United - would be addressed. Today, we are encouraged that an agreement has been reached which directly deals with our primary concern. Within the next few days the court will be asked to approve the retention of Bridge Associates LLC, to conduct an independent evaluation of United’s business plan. Over a thirty day period, Bridge Associates will examine the business plan and provide a confidential written report to AFA, the IAM and United. As part of this agreement, upon the court approving the retention of the restructuring firm, AFA will withdraw the trustee motion.
Throughout United’s bankruptcy court case, we have been a powerful advocate for a successful reorganization and we will continue to work toward that goal. The magnitude of contributions and sacrifices made by Flight Attendants to the success of United Airlines is immeasurable. AFA will utilize this agreement for independent oversight and any other available tools to see that Flight Attendant sacrifices are prudently, fairly and meaningfully applied to a plan that returns United Airlines to premier status in the aviation industry.
Ensuring the success of our airline includes remaining unified in our determination and action to protect our wages, work rules, healthcare and pensions. Most importantly, stay informed and engaged through our website, Dear AFA, AFA E-lines and your Local Council. Our solidarity will lead us to our future success.
Greg Davidowitch, President
United Master Executive Council