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United Airlines warned Tuesday that it plans to take the first steps in bankruptcy court next week toward throwing out its labor contracts.
The troubled company says it will file the motion next Thursday unless unions agree quickly to $2.4 billion in annual labor cuts.
The Illinois-based carrier says it must have those cuts in place by Feb. 15 to meet the conditions of its $1.5 billion in bankruptcy financing from a group of banks.
United says it will continue negotiating with its unions in the meantime. Pilots' union leader Paul Whiteford says he understands the motion would be “purely procedural.” But he says the company must provide more information if it expects the cuts to be approved.
United Airlines is the largest air-carrier at Denver International Airport and has several daily flights from Colorado Springs.