United Airlines

About United Airlines

United Airlines filed for Chapter 11 bankruptcy on December 9, 2002, the largest airline bankruptcy at the time. United had 22 billion in assets. The airline had failed to win government loan guarantees after September 11. CEO Glenn Tilton led the restructuring. United terminated four pension plans, shifting 6.6 billion in obligations to the PBGC, the largest pension default in US history. Employees lost approximately 30 percent of expected pension benefits. United emerged from bankruptcy in February 2006 after 38 months, one of the longest airline bankruptcies. United merged with Continental in 2010. The United bankruptcy demonstrated the financial vulnerability of legacy carriers to fuel prices, labor costs, and economic downturns.