According to a Reuters news report, sale of UAL stock is not in ESOP members’ long-term best interest, the Air Line Pilots Association (ALPA) master executive council representing United pilots said in a letter to independent fiduciary State Street Bank & Trust.
State Street said recently that it may sell up to a fifth of the plan’s UAL shares, about 10.9 million, over the next 90 days.
United and its pilots have tentatively agreed to $2.2 billion in wage cuts over 5-1/2 years, and United on Tuesday said it has renegotiated $500 million in debt due later this year, significantly strengthening a bid for federal loan guarantees, ALPA said, according to the Reuters report.
UAL, the second-largest US airline behind American Airlines parent AMR Corp., is 55% owned by the pilots, machinists and salaried and management workers. Each group has a seat on the board of directors.