By: William Sluis, compiled from staff and wire reports

March 21, 2004, Chicago Tribune

United Airlines, which has encountered a bumpy ride in its effort to exit from bankruptcy protection, put off the date until at least late summer from the end of June.

Analysts said the delay is being driven by several factors outside United's control, including rising fuel prices and the controversial question of reducing pension benefits for thousands of employees and retirees.

An independent examiner said United did not mislead employees about its plans in order to get flight attendants to retire early last summer. The union accused management of misleading workers into retiring when it knew it would try later to cut their health benefits.

Also still up in the air: The airline's request for a $1.6 billion loan guarantee from the Air Transportation Stabilization Board.

The Elk Grove Township-based carrier filed for Chapter 11 bankruptcy in December 2002.

Since the filing, it has restructured many of its financial obligations, including collective bargaining agreements and many payments on its aircraft.

"Yet much remains to be done and some aspects of the timing of that work are simply beyond United's control," the airline's attorneys said in a court filing.

"It tells you their assets are worth less than they hoped," said Todd Pulvino, an associate professor at Northwestern University's Kellogg School of Management.

Watch for: Further delays in United's emergence from bankruptcy unless fuel prices drop significantly--and soon. The enormous runup in jet fuel has cast a shadow over the carrier's request for a loan guarantee.