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Wed, Jun 09, 2004

UAL Creditors Want To Sue Aircraft Providers

Say They Overcharged The Airline $1.1 Billion

United Airlines' unsecured creditors say some 30 aircraft providers overcharged the carrier $1.1 billion -- and they want the providers to pay up.

United doesn't agree with the creditors. The request to a Chicago federal judge who's overseeing the airline's mammoth Chapter 11 reorganization came over the airline's objections. UAL spokeswoman Jean Medina called the creditors' claims "baseless."

The creditors, however, say the companies that provide aircraft to United formed a sort of cartel, aimed at forcing the airline to pay higher prices for the aircraft it flies.

An attorney for the providers wouldn't return reporters' phone calls Tuesday.

FMI: www.ual.com

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