Unions dismiss United Airlines' shutdown claim

Unions have responded angrily to a warning by United Airlines' chief executive that it's in danger of going out of business.

In a letter to employees, James Goodwin claimed United would stop flying some time next year if it didn't stop 'haemorrhaging' cash at current levels - made worse following the US terror attacks.

Aviation industry experts are divided on the chances that United might fail that quickly, with some saying it's unlikely and others suggesting it's possible.

They say US Airways, America West and, possibly, Continental are in worse situations, although United is going through its cash alarmingly quickly - with losses estimated at £20m a day.

Labour officials representing United employees claim Mr Goodwin is using scare tactics to force a reopening of costly labour contracts, or gain leverage in negotiations with 15,000 mechanics and 30,000 ramp and customer service workers.

Tom Buffenbarger, president of the International Association of Machinists and Aerospace Workers, claims Mr Goodwin's "alarmist rant" undercut passenger confidence just when it was beginning to return. "I refuse to accept his assessment of United's future. We want to see the books," he said.

IAM spokesman Frank Larkin suggested United's management may also be trying to get more money out of the US government, which has already rescued the domestic airline industry with a $15bn package designed to stave off bankruptcies.

Herb Hunter, union leader for United pilots, said Mr Goodwin's letter raised troubling questions. "It scares the people, it scares the employees."

Mr Hunter suggested the chief executive's comments were linked to labour negotiations, and claimed he was "using fear as a tactic".

United spokesman Joe Hopkins declined to comment on claimed that Mr Goodwin's remarks were a ploy. The airline has announced plans to lay off about 20,000 of its 100,000 employees, and has reduced daily capacity by 26% to 1,654 flights.