United Airlines Ready to Take Off from Chapter 11 on February 1

United Airlines got a judge´s final go-ahead Friday to leave bankruptcy after a record three-year stay -- a smaller and more efficient carrier than when it began its overhaul but challenged more than ever by near-record fuel costs.

The approval of its reorganization plan by U.S. Bankruptcy Judge Eugene Wedoff removed the final obstacle to its targeted exit from Chapter 11 on February 1 after the largest and longest airline bankruptcy ever.

Once free of bankruptcy, UAL Corp.´s United intends to be more competitive with its rivals while working its way back toward profitability, which has eluded it since 2000. It also plans to improve its operations, spending $400 million this year on refurbished airplane cabins, more check-in kiosks, upgraded computer systems and new ground equipment.

The latest surge in oil prices back toward $70 a barrel, far above the $50 average that management is counting on to get into the black this year, underscored how difficult it will be for even a restructured United to make money. The company has net losses of over $15 billion since mid-2000.

But Friday, as the judge noted, was a time for exultation and relief for all involved with the nation´s No. 2 airline that the costly reorganization is complete.

Despite the losses suffered by employees and UAL shareholders, Wedoff said there is "reason to feel good" about the confirmation of the plan, which settles the company´s accounts with its creditors and sets out its new financing obligations.