This is Jane Allen with an update for July 11, 2003.

You are probably aware that the company filed a motion in bankruptcy court to initiate a retention plan for some of our professional and technical employees. The proposed program would help the company stem a serious "brain drain" of technical and professional employees, primarily in the Information Service division, (ISD), who are working on key company initiatives.

Over the past year, ISD's attrition rate has been nearly twice the average of the rest of the company. The individuals targeted through the program have highly specialized skills and work on projects that are critical to our successful emergence from Chapter 11.

For example, automation that will proactively manage irregular operations by rerouting aircraft, pilots and flight attendants is currently in development. Through this initiative we will realize financial as well as operational benefits.

In the area of revenue management, we are relying on subject matter experts to determine a pricing structure that will enable us to effectively compete with low-cost carriers and Internet pricing, while providing the revenue we need.

It's also important to understand that United is reliant on older computer technology such as Unimatic for operational use. These systems require programming abilities that are no longer readily available, and programmers that are proficient in these older languages and applications are in high demand and short supply. Even when we do find replacements, the lengthy training period required to bring them up to speed jeopardizes our timeline for exiting from bankruptcy.

I want to make it clear that retention programs are not about the value of an employee. They are about the critical nature of the work necessary for certain key projects.

Of course there are many factors that contribute to our long-term viability. We must provide excellent customer service to emerge from Chapter 11 and succeed beyond exit, and we rely on flight attendants to be the helpful, caring face of United to our customers each day. Unfortunately, the reality is that we have more flight attendants than needed to operate the aircraft schedule, which has resulted in furloughs. The Information Services group is facing the opposite dilemma. Their work is increasing exponentially while their staff is dramatically decreasing.

I know that this is a sensitive subject. I realize that AFA disagrees with the company's position on retention programs, and I respect their view. That said, these programs are a necessity in order to remain competitive in today's marketplace and sustain our business.

I want to conclude today's message with some very important thank yous. I appreciate the O'Hare domicile's hospitality during my visit on Thursday. I enjoyed talking with many of you, listening to your views and answering your questions. In fact, I can't wait to get out to the field again. I will visit the Washington Dulles domicile next Friday, San Francisco the following week, and Europe after that. I'll share my entire schedule of domicile visits with you in a letter next week.

I also want to thank the scheduling team for piecing together the operation over the very busy and stormy July 4th weekend. In fact, the number of IDs they repaired due to delays, misconnects or cancellations over the past week was too great to calculate. And thanks to all of you for doing your best despite short staffing in some cases and high passenger volumes systemwide. According to Larry DeShon, it was the worst seven days in 72 years for thunderstorm activity, and I know you worked through it.

That's it for today. Whether you are flying, or at home with family, have a safe and happy weekend.