Hi, it's Glenn, it's Thursday evening and I'm calling from Chicago .

We have talked many times on this call about change, including the systemic change in how our customers value their air travel, and how we as United are responding to the new market realities.

There can be absolutely no doubt that this industry is facing serious challenges: airfares are at 12-year lows, fuel is at record highs, the industry faces surplus capacity, no pricing power, and we approach the slowest travel season of the year.

Our challenges, and also our opportunities, have never been greater. We have faced difficult challenges and tough choices from the start of the bankruptcy, and we face them again today.

We must address the current situation realistically and, at the same time, position our company to win in the future.

To do that, we must achieve additional savings totaling 2 billion dollars annually, including the termination and replacement of our pensions.

One third of these savings will come from non-labor cost reductions, one third will come from pension replacements and one third will come from labor costs.

When we have completed this restructuring, we will have cut our costs by 7 billion dollars a year on average.

As I said at the outset of this particular call, this is a challenge. It's a challenge that must be met. And, it must be equitable for all of our employees.

I recognize, as I should, that it must begin with me and my seven direct reports. We will together take a 15 percent pay reduction, effective January 1.

Today we have given specific cost-saving proposals to our union groups, including suggested modifications to wages, benefits and work rules. We will work closely and cooperatively with these groups, and we hope to be able to reach consensual agreements.

Our salaried and our management employees will also participate.

Once again, I think it's fair for all of you to ask if this challenge -- and this sacrifice -- is worth it.

I personally believe that the answer is a compelling yes. The reason is that within this industry, with all of the challenges that every company faces, we have a better opportunity for success than many, many others.

To take that opportunity -- to be successful and to have a future -- we together have to meet these challenges today, as difficult as they may be.

And I know how hard this is for everyone.

You have already made significant contributions over the past two years to put this company on far more competitive footing. Our customers have recognized that commitment, and they have continued to fly on United, even when other choices were available to them .

While we work our way through this, we must continue to give our customers the service that they expect. After all, this is our challenge, not theirs. No company is better positioned to provide them with the service that they need and they require and to win in the long term.

Until the next call, keep your heads up, stay focused and, above all, stay United.