Hello, this is Jane Allen with an update for Friday, March 19, 2004.
This week I have news about the independent examiner's report on retiree benefits and United's most recent filing with the U.S. Bankruptcy Court. I'll also update you on February Marketrak results and our response to your feedback about Buy On Board. Finally, I'd like to welcome back our flight attendants returning from voluntary furlough and recognize a group of Onboard employees who work behind the scenes to support our flight attendants.
An independent examiner Thursday found that United told the truth when the company said it had not made a decision to seek changes to retiree medical benefits before July1, contrary to allegations made by AFA.
"I conclude that United's decision to seek section 1114 relief was not made before July 1, 2003," the Examiner wrote in his report. He also said, "I found no evidence to support the suggestion that United had a financial incentive to induce flight attendants to retire between May 1, and July1, 2003."
The company is beginning negotiations with retirees' authorized representatives on necessary modifications to benefits and looks forward to moving ahead toward consensual agreements with retirees.
On another matter regarding Chapter 11, United filed a status report with the U.S. Bankruptcy Court to update the judge on the company's restructuring. While we've made significant strides in our restructuring, we're going to exit when it's the right time for our business. We've always said that our primary goal is to exit bankruptcy as a competitive company with a solid financial foundation for the future. We need to - and we're going to - take the time necessary to complete our restructuring methodically and systematically, rather than emerge prematurely.
There are several major issues that must be resolved prior to our exit - the ATSB loan guarantee, pension reform and retiree benefits, fleet restructuring, municipal bonds and United Express. While we continue to make steady progress on these very complex issues, some aspects of the timing on this work are simply beyond our control. Still, we expect to resolve these remaining restructuring initiatives in the next few months and exit from bankruptcy in the summer.
Also this week, we announced February Marketrak results. They included exciting news for the company and for our Success Sharing plan for employees. We achieved an excellent customer Definite Intent to Repurchase ratings from our North America and international customers. In February, 38.8 percent of customers who participated in our Marketrak survey said they would definitely choose United for their next flight. That number exceeded our monthly and first-quarter customer satisfaction goals and keeps us on track to achieve our first-quarter Success Sharing goal for Definite Intent to Repurchase. Our flight attendant and catering groups are playing a key role in that effort. Flight attendants not only exceeded February and first-quarter Marketrak goals, they also received the best February ratings from customers since 1992 for North America and since 2000 for international. While our North America and international meal ratings were down slightly from January, they remain above goal for the quarter to date. Further, as you are aware, we introduced significant changes to our menus on March 4 in North America, and changes are planned for May 1 internationally, all of which are designed to keep our customer ratings moving in the right direction. By consistently meeting and exceeding our customers' expectations, we keep United competitive and move closer to reaping the financial rewards of our Success Sharing program. Keep up the good work!
On another topic, we continue to refine our Buy On Board processes, using feedback that flight attendants submit via *DIS 123. For example, you let us know that we needed to board even more meals on flights where we discontinued a complimentary snack effective March 4. As a result, our caterers have increased the number of Buy On Board offerings on those flights. We've also taken action to enhance the security of Buy On Board receipts and handheld units. This includes provisioning better locks for galley carts and returning receipts and handhelds to the First Class liquor cart, instead of the Economy liquor cart. Please continue to use *DIS 123 to let us know how we can make your job easier and ensure that we meet our customers' service expectations.
Now, I'd like to welcome back the first group of the 600 flight attendants recalled from voluntary furlough who returned to the line this week. We recognize that you are here earlier than you expected to be, but the recall is based on the addition of flying and results in the creation of more jobs. That's good news for our employees, our division and our company. We are delighted to have you back. We look forward to welcoming more of our recalled colleagues when they return on April 15.
Before I end this week's message, I want to recognize some Onboard employees who work behind the scenes. Our Crew Accommodations group does a terrific job of supporting flight crews and making the most of the money United spends on their hotel accommodations and ground transportation. Did you know that the department books about 3,300 rooms per day at 175 hotels worldwide? It also works with 60 companies to ensure flight crews have timely and safe transportation to and from hotels. In addition, by auditing hotel bills and canceling unneeded room reservations, the Crew Accommodations group has saved nearly $3.5 million dollars in the past year. Flight attendants have helped achieve those savings by notifying the department when their hotel reservations should be canceled. The interaction between Crew Accommodations and flight attendants is a great example of how Onboard employees support one another and work together for efficient, cost-effective operations. Thanks to all of you for a great job.
That's all for this week. Thanks for listening.