United Takes Off From Bankruptcy

More Cost-Efficient Carrier Emerges From Record Chapt. 11 Time

(CBS/AP)  United Airlines finally left bankruptcy Wednesday, a leaner and more cost-efficient carrier after a painful restructuring that began in 2002 and lasted an industry record 1,150 days.

The nation's No. 2 airline announced it had filed its exit documents in U.S. Bankruptcy Court Wednesday afternoon, officially ending the longest and costliest bankruptcy of any airline.

United marked the event in low-key fashion, sending top executives to airports around the country to thank United employees and customers for their patience.

"We have achieved a great deal in our restructuring to reposition this company and build upon our assets, an unrivaled global network and our dedicated employees," said Glenn Tilton, CEO of United and parent UAL Corp., in a statement accompanying the announcement.

But, in an apparent nod to the fact United still hasn't posted a profit since 2000, he added: "We can be better."

But workers feel betrayed, reports CBS News correspondent Bob Orr, because while employees took cuts, executives are now cashing in on the airline's reorganization.

Under a stock compensation plan approved by a bankruptcy court, United's 400 top executives could make more than $400 million — 40 million Tilton alone.

"They've worked harder than the guy at the top to make sure that this is a good value for the consuming public," said Tom Buffembarger, the Machinists Union president. "And they get … crapped on every time they turn around."

Airline analyst Darryl Jenkins warns the executive stock plan could backfire, Orr reports. If United doesn't make a profit soon, management may have to beg workers for more cuts.

"The only thing the employees are going to remember is the day they came out of Chapter 11 is that the top management rewarded themselves with multi million dollar bonuses," Jenkins said.

Pete McDonald, chief operating officer of United and parent UAL Corp., shook hands and talked with upbeat employees at Chicago's O'Hare International Airport before boarding a flight to do the same thing in San Francisco.

"It's a new beginning," McDonald said. "We're very thankful to our employees for their contributions and their focus on our customers, and we're very thankful to our customers for sticking with us through this difficult time," he said.