Hello, this is Jane Allen with an update for Friday, November 5, 2004.

As we've discussed for the past several weeks, United is facing an unprecedented set of challenges along with the entire industry. Fares are at 12-year lows, fuel costs are at historic highs and significant overcapacity has left us with virtually no pricing power as we approach the slowest travel season of the year.

Given the economic reality we are facing, including our accelerating losses and cash burn, we have no choice but to take further action to do more to restructure our company. Without this additional work, we will not be able to obtain financing to exit bankruptcy. Our goal continues to be to exit Chapter 11 as a competitive, profitable enterprise that will be sustainable and provide jobs for our employees for the long term.

To attain this goal we must make changes to address our short- and long-term issues, and the changes we need to make are difficult. Given the urgency of United's financial situation and the stark financial reality in the entire industry, we have no choice but to continue to focus on immediate companywide cost savings initiatives.

Yesterday, we provided each of our unions with proposals for changes to our collective bargaining agreements that will provide us with needed savings. Today we filed a motion with the bankruptcy court that asks the court to enter a scheduling order for an 1113 process. Our goal is to reach consensual agreements with each of our unions, but if that does not happen, the 113 process permits the company to ask the court to reject the collective bargaining agreements so that necessary changes can be implemented. Glenn talks about all of these events in a new Eye-On-UA, which I encourage you to listen to or read.

Specifically, United must achieve additional savings of $2 billion per year in order to successfully restructure. Roughly one-third will come from termination and replacement of pensions; one-third from labor changes; and one-third from non-labor initiatives.

When we have finished this work, we will have reduced total costs by approximately $7 billion annually. These difficult but necessary changes include approximately $725 million in annual savings from all employees, above the previous changes we have made to restructure the company. These changes will be allocated fairly and equitably across all groups, including salaried and management employees, based on each group's share of the company's labor costs.

The executive team knows that they must lead with regard to the difficult changes ahead. To that end, United's Executive Council - composed of Glenn and his seven direct reports - will be taking a salary reduction of 15 percent. This salary reduction will be larger than reductions for other groups.

You have made significant contributions over the past two years to put this company on far more competitive footing. I know this is tough, but the critical financial challenges that we're facing today mean that we have to do more to succeed. We need to get through this - and we will.

We are committed to working closely and cooperatively with all of our employee groups in the days ahead to reach consensual cost-savings agreements. And we remain open to other cost-cutting proposals that the unions or others might want us to consider.

I realize how difficult this news is for all of you and your colleagues across the system. And I understand how challenging it has been and will continue to be for you to remain focused on doing a great job for our customers. I truly appreciate your dedication and the terrific work you are doing, and I want you to know that your good work remains key to our success.

The hurdles ahead of us are significant - but so are the opportunities. And no one is better positioned in this industry than United to be a successful, winning company.

That's all for today. I'll talk with you again next week.