United seeks to block probe of pension issue

Tuesday, Feb. 10, 2004 | 11:21 a.m.

United Airlines says its flight attendants and retirees were clearly warned that their health care benefits could wind up costing more as the company battled to emerge from bankruptcy.

The nation's second-largest airline on Monday filed a response in U.S. Bankruptcy Court in northern Illinois to a motion from the Washington-based Association of Flight Attendants union asking for an examiner to be appointed to investigate a change in retirement benefits and the timing of the company's actions.

"The AFA's motion is a transparent attempt to sensationalize, and thereby derail, the (bankruptcy code) process that has regrettably proved necessary for United to reorganize successfully," the filing says.

"An examiner is not required because the record in these proceedings could not be any more clear: United repeatedly, consistently, responsibly, honestly, forthrightly and unambiguously told its flight attendants that the company might ultimately find it necessary to seek changes to retiree benefits of the sort expressly provided for by ... the bankruptcy code."

The filing is particularly relevant to Las Vegas-based United flight attendants, who plan a leafletting campaign at McCarran International Airport on Thursday. That's the day when United's new Ted low-cost air carrier begins service between Denver and Las Vegas.

The flight attendants say they and other United employees gave up millions of dollars in concessions to help keep United flying, only to see some of that money squandered in the marketing of Ted. The flight attendants say they hope they can put their concerns about their health benefits in the spotlight that will be cast on the Ted launch.

Las Vegas is one of the key cities in the launch of Ted. By the end of April, United plans to have 26 daily Ted round trips running between Las Vegas and Denver, Los Angeles, San Francisco and Washington's Dulles International Airport. Many of those flights replace existing mainline United service.

A spokeswoman for United said Monday that the union's efforts to raise the health-care issue when the airline is attempting to promote Ted is counterproductive.

"We view these actions as completely unnecessary," said spokeswoman Jean Medina from the company's suburban Chicago headquarters.