Hello, this is Jane Allen with an update for Friday, December 12, 2003

I have a lot of good information today on topics ranging from our exit from bankruptcy and pension relief efforts, to success sharing at United.

On the Chapter 11 front, many of you have read the five-part series that ran in NewsReal the past two weeks. It is an excellent summary of what we've accomplished since filing for Chapter 11 and the work still ahead of us if we are to successfully exit in 2004.

I was struck by how far we have progressed in just one year. Since filing for Chapter 11 on December 9, 2002, United has made major strides in substantially lowering costs, improving revenue performance and delivering top operational performance for its customers.

We have restructured the company by capitalizing on its existing strengths, its lower cost structure and flexibility. We are leveraging a complete portfolio of products that appeal to a diverse marketplace, beginning with a competitive mainline that retains a global network and an industry-leading frequent flier program. For example, United Express, which feeds passengers to United's mainline hubs and is expanding into more destinations where the mainline cannot operate profitably. We continue to nurture and expand the Star Alliance and international code share relationships. And finally, Ted, our new low-fare operation, will put a fresh face on our ability to compete with low-cost carriers on defined leisure routes.

We have realigned the company's organizational structure as well and have appointed new senior officers and directors with extensive experience in marketing, corporate restructuring and global finance. And there's more.

We've already laid the groundwork for additional cost-saving projects in 2004. It is part of the business plan that United has presented to its primary debtor-in-possession (DIP) lenders as we discuss the possibilities of those institutions taking the lead in providing the financing we require to exit Chapter 11. Those meetings went well, and we expect to hear back from them in the next several weeks. We also meet regularly with the ATSB to keep them apprised of our progress.

Another important step in our exit plan is to secure pension reform. In last week's message, I talked about the Governmental Affairs "Call to Action" and encouraged you to call or e-mail your U.S. Senators and Congressman to ask them to vote on some important pension legislation. Here's what's taken place since then. The U.S. Congress concluded its work for the year without taking action on pension relief. However, the Senate has committed itself to consider the corporate bond rate issue in January when it reconvenes. When it does, the Senate can also still consider a number of amendments, including steps to provide temporary relief from accelerated pension funding contributions mandated by current law. United intends to resolve its pension issues and is still on track for exit from bankruptcy protection in the first half of 2004. The company is pleased that the Senate has recognized the importance of the pension relief issue and has agreed to act on it in January.

The UGN employee "Call to Action" generated some 12,000 calls and emails to Congress. I want to thank everyone who took the time to support this important initiative. Look for updates on this issue in NewsReal and my weekly Update messages.

It's important to know that we remain on track for an exit from Chapter 11 within the first, half of 2004, which is in keeping with our initial estimate of 18-months. And we are able to do so because of the good work that is being done by everyone throughout the company. And we can't stop now.

The way we all do our jobs is tied directly to our company's success. So much so that we are introducing a Success Sharing Program in 2004 as a way to recognize and reward employees when we work together to achieve our corporate goals and build a competitive, successful airline. It is a way to build on momentum we've already achieved and create a company that is financially strong and stable. This exciting program will be introduced in Glenn Tilton's Eye on UA, and in NewsReal next week. I'll share more details in my next Update message.

Finally, I'm happy to report that our operational performance remained strong in November, and that we met or exceeded all of our performance targets. Then the cold winds blew in a major snowstorm that blanketed much of the U.S. Northeast. This presented many operational challenges. In fact, between Friday and Sunday we canceled 212 United flights and 175 United Express Flights.

Throughout the company, employees worked tirelessly to help our customers safely reach their destinations.

I've heard stories of many crew schedulers who worked double shifts during the three-day period to make the many reassignments that resulted from the flight cancellations. Our colleagues in crew accommodations handled 2,905 calls, about 30-percent more than normal. They also made arrangements for 1,135 additional hotel rooms in order to accommodate displaced crews.

My thanks to all of the domicile staff who supported the operation and to all of the flight attendants who cared for our customers throughout these difficult snowy days. I appreciate all of your efforts.

That's all for today. Thanks for listening and have a safe and enjoyable weekend.