United, Pilots Union Reach Tentative Agreement

United Airlines, in an attempt to avoid liquidation, late yesterday announced it had reached a tentative agreement with the Air Line Pilots Association to cut $1.1 billion a year in labor costs over the next six years.

The agreement's ratification is pending the approval of UAL Corp.'s board of directors and United pilots. ALPA will present the agreement to its members, and a vote on the proposal is expected by April 11.

"We are committed to continuing to work collaboratively with our remaining unions on similar agreements and will continue to negotiate with them around the clock, if necessary, in the days and weeks ahead," said Glenn Tilton, UAL chairman, president and CEO.

Ratings agency Standard & Poor's today said that as United faces financial losses from declining travel due to the war, the tentative agreement would advance the airline's attempt to lower costs but may lead to violations of borrowing agreements with debtor-in-possession lenders.