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Live from Japan: It's Glenn!

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Source: Glenn Tilton

Date: Jan 20, 2003

Hi, this is Glenn, and I'm recording this week's message from Tokyo, Japan. I'm in Japan with members of the United team for a number of exciting reasons.

We're here for the grand opening of the new lounge facilities in Satellite 3 at Narita airport, which took place today and was a tremendous success for United as we opened the beautiful new facilities. We were joined in the grand opening ceremony by Ambassador Howard Baker of the United States, who had some generous and gracious remarks to make about our airline from his perspective as a long and loyal customer. We were also joined by the chief executive officer of ANA, our Star Alliance partner here in Japan, Mr. Ohashi, who had some equally gracious and supportive things to say about United. All of which contributed to our principal reason for being here, which was to establish our commitment to Japan and to the Asia-Pacific market, today and in the future. That message has been very well received. And I've had the opportunity to deliver it to the TV media and to the print media here in Japan.

I've also had the opportunity to visit with our employees in Japan. We had a very large meeting this morning, and we're going to have a couple of visits tomorrow before I depart. Then I'm going to deliver an address to the American Chamber of Commerce here in Tokyo.

I want to take this opportunity to tell all of you that I am tremendously impressed with the dedication and the performance of our employees here in Japan. They're doing a terrific job. I'm also impressed with the deep respect they have for the company and the manner in which they show it during their discussions with me. My trip to Japan provides me with a good opportunity to talk to you about the continuing importance of our international network and certainly our network here in Asia-Pacific.

As we all know, we're in the midst of transforming this company. We're working hard, not only to return United to profitability, but also to make our company a model for the future of the airline industry.

Our goals include being flexible and nimble enough to respond quickly to changes in the ever-changing marketplace, which is becoming, as we all know, increasingly competitive. By offering a family of products that our customers want at prices they're willing to pay. By taking on the low-cost carrier competition in the United States, and by strengthening our mainline service and building on our successes with our worldwide Star Alliance partners.

One of our most valuable assets is our global network. For years, we have touted our route structure and the number of locations we have worldwide as something that no competitor could match. And everything we are doing today is designed to protect that competitive advantage.

A very significant part of that advantage comes from our international flying. In fact, our international network has generated most of United's growth and a sizable portion of our revenue for more than 10 years. Let me provide you with the details to support that. Between January and November of last year, 37 percent of our total passenger revenue came from customers with an international leg to their itinerary. That's a significant statistic.

As we continue our business transformation, the international routes are going to play an integral part of our success. In the Atlantic Division, we're going to continue to work closely with Lufthansa to implement our recently expanded agreement, contributing to long-term profitability. In Latin America, we will link key U.S. cities such as Washington, Chicago, Los Angeles and Miami as gateways to many Latin American markets through the mainline and through our Star Alliance partnerships. We're increasing our service in the Pacific through new United service, such as the recently announced San Francisco to Seoul direct flight, as well as expanding our code-share agreement with our partner ANA.

In the end, we're going to emerge from Chapter 11 as a leaner, more competitive enterprise, but no less an ambitious company. That's not to say that it isn't going to be difficult, as we have discussed in the past. We have major work ahead of us, and we need to continue to focus on building a more durable, more agile, more resilient and competitive company that is able to lead our competitors and this industry.

As I return from Japan, I am going to be looking forward to talking to you again soon. And seeing some of you in the next several weeks as members of the senior leadership team join me in visiting locations to talk with many of you and your colleagues. Until then, and until we get the next opportunity to talk, keep your heads up and be united.

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