UAL Unions Agree To Wage Cuts

United Airlines executives at a board meeting today were expected to begin analyzing the $5 billion in cost cuts offered last night by the airline's employee unions and are expected to respond to the offer within a few days, according to a spokesperson.

United Airlines' five employee unions proposed the cuts to take place over five years, saving the carrier $1 billion annually. The airline is seeking the wage cuts in an effort to obtain a $1.8 billion federal loan guarantee. The offer ultimately falls short of the annual $1.5 billion in cost cuts that United sought last month to align its costs in order to qualify for the loan guarantee.

The unions' cost-savings offer includes "significant savings from management," according to Greg Davidowitch, the president of the United chapter of the Association of Flight Attendants.