This is Jane Allen with an update for July 3, 2003.

Although I am new to United, I am not new to the impact that Sept. 11, SARS and a general decline in travel have had on our industry. We have reduced our aircraft schedules and downsized our airline. Aside from simply posing challenges to our business, these events have had a dramatic impact on our employees, as well.

Today we began the flight attendant furlough rebid process. As previously announced, all current voluntary furloughs will become void on Aug. 31. We must reduce our flight attendant population by a total of 6,246, about 1,400 more than are currently on furlough. Fortunately, retirements and higher manpower requirements through December have tempered this number. Voluntary furloughs will be offered in increments ranging from seven to 43 months, and will be effective Aug. 31. Bidding for the voluntary furlough will run through July 23. If there is an insufficient number of volunteers, involuntary furloughs will be required in reverse seniority order.

I know that the prospect of the rebid brings mixed feelings. Some of you will welcome the opportunity to bid for furlough. Others hope to remain on voluntary furlough and are concerned that this rebid may change that outcome. I also realize that because we need to furlough additional flight attendants, some of those furloughs may be involuntary.

Although these actions are necessary based on the needs of our operation, I understand how unsettling the process will be until it is resolved. Please know that representatives of both United and AFA are working together to minimize the impact these actions have on you.

On the good news front, this week we announced plans to reinstate select Pacific flights and increase the frequency of others. Effective Aug. 1, we will reinstate service between Chicago and Hong Kong with four flights weekly. Further, we also will increase service between Chicago and Beijing to three flights a week, up from two in July. We will begin offering daily flights between San Francisco and Hong Kong in August, up from three flights a week in July. We also will begin offering daily flights between San Francisco and Shanghai, up from five flights a week in July.

Unfortunately, our increased presence in the Pacific does not include reinstating our SFO-TPE route, as I told you last week. Thus, our TPE domicile will be closing.

We are doing our best to ensure that our employees in Taipei experience a smooth transition to their new domiciles. Members of the Onboard staff, Human Resources, Labor Relations and Relo Action, which is offering us assistance with transfer and moving issues, are currently conducting information sessions with flight attendants affected by the closure. We will continue to offer our support as long as it is needed.

In corporate financial news, UAL Corp. this week filed its May Monthly Operating Report with the Bankruptcy Court. The good news is that we met our debtor-in-possession (DIP) financing requirements for the fourth straight month, which is important as part of our short-term survival. However, we still have work to do on our restructuring plan for exiting from bankruptcy. We have to continue to meet these targets and secure exit financing, among other things. Specifically, we need exit financing to fund our emergence and secure our near-term viability.

While our financial picture is steadily improving, our operational performance has leapt off the charts. Coming into the July 4th weekend in the United States, we'll face heavy loads as families take to the skies for the long holiday. Thank you in advance for helping to make their travel memorable. You are doing a great job, and I am truly impressed by your exceptional efforts and care of our customers.

I have experienced a genuine sense of welcome from those I've met in my short time at United. I am delighted to be a part of the United team and to work with you to do great things for our company and for each other.

Whether you are working, playing or laying-over somewhere on July 4th, I wish you and your families a safe and happy holiday.