UAL bid to land rescue loan fails

BANKRUPT United Airlines faces more upheaval after it lost its third and final try for a government loan guarantee.

America's Air Transportation Stabilisation Board unanimously voted down the airline's revised request, saying it could survive without government help.

The carrier had originally asked for a guarantee of $1.6bn (£870bn) but reduced that to $1.1bn when it was turned down.

The board said it would not entertain any other United attempts to secure government backing.

The decision will force the airline to seek new financing and is likely to delay United's emergence from Chapter 11 bankruptcy protection, with more job losses now almost inevitable despite huge pay and benefits cuts already made.

The board, which was set up in the wake of the 11 September terrorist attacks on the US, said that the airline had taken positive steps to cut costs and strengthen its competitive standing. It added that, as credit markets had improved, it had a chance of getting financing.

United said it disagreed with the decision but added: 'We are gratified by the ATSB's public recognition of our progress and are already moving forward to secure the exit financing we need to take United out of bankruptcy.'