Dobbs International Services Inc

United Airlines rejected an employee ownership offer from its pilots and ground crew unions late Friday, calling it "substantially deficient." The International Assn. of Machinists and the Air Line Pilots Assn. then rejected United's counterproposal, the company said. Consequently, United said, it will proceed with a planned sale of 15 of its 17 flight kitchens to Dobbs International Services Inc., a move the unions have said would trigger a labor confrontation.

The airline "fare" wars are heating up. Passengers aren't the only ones frustrated by the airlines' penchant for saving money by serving skimpier meals on many flights. It's also tough on the leading caterers of airline food, and that's a big reason why two of them announced Wednesday that they're merging. SAirGroup, the parent of Swissair, said it is buying Dobbs International Services Inc., the second-largest U.S. airline food caterer, from Viad Corp. of Phoenix for $780 million.

The airline "fare" wars are heating up. Passengers aren't the only ones frustrated by the airlines' penchant for saving money by serving skimpier meals on many flights. It's also tough on the leading caterers of airline food, and that's a big reason why two of them announced Wednesday that they're merging. SAirGroup, the parent of Swissair, said it is buying Dobbs International Services Inc., the second-largest U.S. airline food caterer, from Viad Corp. of Phoenix for $780 million.

United Airlines rejected an employee ownership offer from its pilots and ground crew unions late Friday, calling it "substantially deficient." The International Assn. of Machinists and the Air Line Pilots Assn. then rejected United's counterproposal, the company said. Consequently, United said, it will proceed with a planned sale of 15 of its 17 flight kitchens to Dobbs International Services Inc., a move the unions have said would trigger a labor confrontation.

United Airlines studied a $5-billion employee ownership offer Friday from its pilots and ground crew unions, which faced a midnight deadline for cutting a deal. Should United's parent company, UAL Corp., fail to reach an agreement with the unions, it has a range of unilateral cost-cutting moves under consideration, including a restructuring of United into at least two carriers.