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Turn of the century developments
In 1997, United founded the Star Alliance with Air Canada, Lufthansa, SAS and Thai Airways.
United was a launch customer of the Boeing 777 and had significant input on its design. It was also the first airline to introduce the twin-jet in commercial service.
In May 2000, United announced plans to acquire competitor US Airways in a complex deal valued at $11.6 billion. The offer drew immediate scorn from consumer groups and employees of both airlines. By the following year, regulatory sentiment was against the deal, and United withdrew the offer just before the Department of Justice barred the merger on antitrust grounds in July. The two airlines subsequently formed a partnership that led to US Airways's entrance into the Star Alliance.
May 2000 also saw a bitter contract dispute between United and its pilots' union. Planning for the busy summer season, United had counted on its pilots flying overtime. However, the pilots could not be forced to work overtime, and most pilots refused to fly the extra hours. Although United knew they would have to cancel numerous flights if this were to happen, they did not hire new pilots to make up for the potential shortage. Over the summer, United ended up having to cancel a large portion of its schedule at its major hubs. Eventually, CEO Jim Goodwin and the rest of the management had to get the pilots back in the cockpits and quickly offered the pilots a 48% increase over four years with up to 28% upfront. The large increase in pay and the loss of many of its frequent fliers, especially business travelers, started United on the road to bankruptcy. Coupled with the terrorist attacks of September 11, 2001 and the resulting economic and tourism downturn, United's economic woes went from bad to worse.
Oplan Bojinka and September 11th
Oplan Bojinka, Ramzi Yousef and Khalid Sheik Mohammed's plot against a large number of airliners targeted eight United aircraft flying transpacific routes on January 21, 1995. While this attack was prevented by an apartment fire in Manila, a "descendant" of the project perfected by Sheik Mohammed would cause death on United aircraft six years later.
As part of the September 11, 2001 Terrorist Attack, two United Airlines planes were hijacked, a Boeing 767-222 (Flight 175) that crashed into the South Tower of the World Trade Center in New York City, and a Boeing 757-222 (Flight 93) that crashed in rural Pennsylvania. The latter was suspected to have been directed towards either the White House or the United States Capitol building.
Bankruptcy and reorganization
United, with a strong presence on the West coast, benefited from...........