Hello, this is Glenn. I want to speak with you today about something that is very much on all of our minds, and that's the issue of war with Iraq. This issue, of course, concerns all of us, first as individuals and also as family members. But, of course, it also concerns us as employees of United Airlines, since our industry would be one of those industries first affected and likely affected deepest.

We've been working on two key fronts to prepare. First, we have been working in conjunction with the Air Transport Association regarding relief from the federal government. A study released this week by the ATA that you may have seen in newspapers says the most likely scenario in the event of war would be for industry losses of 4 billion dollars above and beyond the 6.7 billion dollars in losses already anticipated in 2003. Without government action, the study also estimates there could be a loss of as many as 70,000 jobs.

Key elements of the industry plan that is recommended include the repeal or the suspension of a number of taxes and fees paid by airlines, passengers and shippers, and requiring the TSA to take over all screening of passengers and the costs related with such screenings. The industry's view is that this step was intended in the first place by the law that created the TSA. And then, draw down sufficient quantities from the Strategic Petroleum Reserve, which is a supply of oil kept by the government for just such emergency situations, in order to prevent the physical interruption of the jet fuel supply and to moderate jet fuel prices, which as we all know have been dramatically rising.

Second, as a company, extensive work has been underway for some time to develop contingency plans. In the event of impact from war, we will take several key steps:

• We will reduce our schedule quickly, possibly by an initial 10 to 12 percent.
• We will pursue additional employee furloughs accordingly.
• We will seek prompt covenant relief from our lenders, our banks who have loaned to us in bankruptcy.

Our hope is that these steps will enable us to weather the war's impact, but of course, no one can predict the duration of the war or the intensity of the conflict. If not, then we would potentially have to seek additional, temporary reductions in pay. But only as a last measure, only as a last recourse.

We are also monitoring customer behavior very closely. But, unfortunately, we are already seeing a drop-off in bookings, and we are prepared to move quickly should it become necessary, even prior to actual hostilities.

As I've said many times before, these are extraordinarily difficult times. Yet you continue to deliver strong work every day, which is the only thing I could ask of you. So as we collectively work our way through the issues before us, continue to keep your heads up, be proud of the work you are each doing and stay United. I'll be talking to you soon as events develop.