Hello, this is Jane Allen with an update for Thursday, April 8, 2004.

Today, I have some great news to share about pension legislation and our Success Sharing results for the first quarter. I'll talk about the upcoming introduction of E-Travel for employees and United's announcement that it will end its relationship with Atlantic Coast Airlines (ACA) to fly United Express flights. Finally, I'll share some comments from Glenn Tilton about the good work our flight attendants are doing.

First, I'm pleased to let you know that the Senate just approved the pension bill by a vote of 78 to 19, a very positive development for all of us at United. With the House of Representatives having signed off on the legislation last week, it will now go to the White House for consideration, and we hope the President will sign the bill quickly.

This pension legislation includes both the corporate bond rate change and relief from deficit reduction contributions that we - and many other companies - have been seeking. The first measure re-sets the interest rates that are used to determine pension-funding requirements. The other eases the burden of funding our pension obligations on an accelerated basis.

I want to thank everyone who took the time to urge their members of Congress to support this important legislation. There's no doubt that you helped make this happen. I'll continue to keep you updated as the bill moves on to the President.

We also have good news about the company 's first-quarter Success Sharing results for on-time performance. Employees worked together to achieve a 69 percent on-time :00 departure performance during the first quarter -- 9 points above our first-quarter Success Sharing goal. That means employees will receive a Success Sharing award payment. The payment will be distributed around April 30. As Glenn Tilton said in Monday's Special NewsReal, these are results we can be proud of, and they demonstrate the kind of hard work and shared focus on our customers that we need to compete effectively. Success Sharing's financial rewards for employees demonstrate that we are doing things differently as a business by investing in our employees and focusing our collective attention on things that matter most to our customers. For more details on Success Sharing-including information about how you can impact United's On-Time :00 departure performance, definite intent to repurchase and the company's operating earnings-see the Success Sharing site on SkyNet's home page. Next week, we'll find out about our first-quarter Success Sharing results regarding customer satisfaction, and we will update you on those results.

Another piece of good news is that the on May 5 the company will activate the first phase of E-Travel for pleasure pass travel. On that date, all those eligible for unlimited non-revenue, space-available travel no longer will need to use Write-Your-Own paper travel passes. While procedures such as listing, check-in and security will remain the same, e-travel will allow you to simply walk up to the departure gate podium when your name is called and you will receive your boarding pass. This simplified process also will apply to travel eligibles who have unlimited NRSA travel benefits.

It's good to see United introducing E-Travel because of the convenience it offers employees and the savings it will achieve in the processing of pass travel charges. Paper travel passes required your signature to authorize payroll deductions and to indicate you had read and agreed to comply with company travel policies. Now, with E-travel, all active U.S.-payroll employees are required to complete a one-time authorization process for payroll deductions of travel charges and acknowledgement of United's travel policy to continue using pleasure travel benefits after May 5. For details on this process, see the April 6 NewsReal and SkyNet's E-Travel authorization site or travel site, both of which are accessible from SkyNet's home page. Don't delay, because pleasure travel benefits are subject to suspension for eligible employees who do not accept the authorization and acknowledgement by May 5. Letters explaining E-Travel are being sent to the homes of active U.S.-based employees, retirees and employees on voluntary furlough or leave of absence. Letters are being sent via co-mail to international-based flight attendants. Travelers who currently are invoiced for their pleasure travel, including retirees, international payroll employees and travel-eligible, non-active employees, do not need to complete the authorization procedure. In the future, United plans to expand E-Travel to all types of employee travel.

In other news, the company announced Monday that we have decided to end our relationship with Atlantic Coast Airlines (ACA). We will work with a new group of regional carriers to provide United Express service out of Washington Dulles and Chicago O'Hare. Our new United Express partners, Chautauqua Airlines, Republic Airlines and Shuttle America, will operate out of Dulles and O'Hare, along with our existing partners Air Wisconsin, Trans States and Mesa. SkyWest will serve O'Hare, as well. Since entering bankruptcy, we have worked hard to reduce costs and to build a more competitive and financially sustainable business. We are discontinuing our relationship with ACA because the cost structure of our agreement with that carrier remains significantly above current market levels, and ACA is not willing to renegotiate. Ultimately, we believe that our United Express service will improve.

ACA and United have agreed to a transition of aircraft that will begin on June 3 and will be completed Aug. 4. During the transition, we will continue to serve our customers at all locations where ACA operates as United Express, with no interruptions. Our transition management teams have developed a comprehensive plan to ensure continuing safe operations and to minimize any disruptions for our customers. We already have awarded new contracts at all locations where ACA currently performs ground handling for United Express. The ACA transition is subject to court approval and is one of the issues we need to resolve in order to exit Chapter 11. For more details, see the United Express site on SkyNet.

I also want to share with you comments that Glenn Tilton made at a recent Purser Seminar, where he recognized our flight attendants for the work they are doing. He said those of you on the front lines make an important contribution to United's top line because the feelings of our customers about United are based, in large part, on their interactions with you. Clearly, you are doing great work every day, as evidenced by our Marketrak results. Glenn noted that you should take pride in what you have achieved, and understand that it is critical that you continue this good work going forward. All of us must focus on doing even better work tomorrow because continuous improvement is critical to getting ahead in our very competitive industry. Glenn concluded his remarks with a reminder, based on his own experience on our flights, that our customers are constantly watching the job we do and expecting our very best.

Finally, I know that many of you will be observing Passover or Easter this week. I offer you and your loved ones my best wishes on these special occasions, and I hope you have a good week. Thanks for listening.