$2bn deal could buoy United Airlines

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The future of United Airlines could be secured if the bankrupt carrier succeeds in closing a deal worth $2bn according to reports in the US media

United is understood to be in the closing stages of talks with investment banks JP Morgan and Citigroup, and the New York Times suggested that the loan would be part of a package that could see the airline emerge from bankruptcy in the first half of next year.

The remainder of the package would be underwritten by the Air Transportation Stabilization Board, established after September 11 2001 to aid the struggling US aviation industry. But United has still not resolved financial problems concerning its employee pension scheme which caused the board to reject its previous application for funds.

United filed for bankruptcy in December 2002, and earlier this year anticipated it would be solvent again by the beginning of 2004.