Bush acts to delay United Airlines strike

United Airlines is expected to lose $1bn this year

President George W Bush has acted to delay a proposed strike by mechanics at United Airlines.

The president has created an emergency board to try and resolve the dispute, which will prevent the strike taking place during the holiday season.

"The president is concerned about the economy, particularly after September 11, and the effect that airline strikes would have on the economy, on the ability of the public to travel at this time," a White House spokesman said.

"He urges all parties to work together to resolve their differences."

The appointment of a presidential emergency board automatically prevents a strike for 60 days.

The board has 30 days to suggest a solution, and the airline and union will than have 30 days to consider it.

Pay claim

United's 15,000 mechanics voted 99% in favour of strike action last Friday.

The vote came after two years of talks between mechanics representatives and management failed to reach a solution.

The mechanics say they have not had a pay rise for seven years, whereas the airline's pilots got a pay increase last year.

United Airlines is already facing huge losses following the slump in air traffic after the 11 September attacks.

Two months ago, United's chief executive James Goodwin said the downturn had worsened an already difficult financial situation, and warned that the airline may "perish sometime next year."

Aviation analysts expect the company to lose up to $1bn this year, despite a package of emergency aid from the US government.