Hello, this is Jane Allen with an update for Friday, April 2, 2004.

This week I'll review some good news that came out of the Bankruptcy Court and from the U.S. Department of Transportation. I also have updates for you on Success Sharing and ZED -- the Zonal Employee Discount program. In addition, I'll report on my meetings with flight attendants in San Francisco and pursers at World Headquarters. Finally, I'd like to recognize a number of Onboard employees whose community service work earned United We Care Grants for the organizations where they volunteer.

First, the Bankruptcy Court judge this week issued decisions on four proceedings involving United's municipal bond obligations. These bonds were issued to make improvements at the facilities we use in Denver, Los Angeles, New York JFK and San Francisco.

The judge ruled that our bond payments at LAX, JFK and SFO should be considered debt that existed before our company entered Chapter 11. That means they will be dealt with at the end of our bankruptcy case. This allows us to ensure that similarly situated creditors are treated equitably and fairly and that we act in the best interest of all of our stake holders, as Chapter 11 requires.

We are very pleased with the rulings about these three airports, which will help us reorganize more efficiently and effectively. While much work remains to be done, this successfully resolves one of our major outstanding issues for exiting Chapter 11.

As for the municipal bond in Denver, the court ruled against us. While we are disappointed, we will consider all of our legal options on this ruling. Our business plan anticipated the possibility of this outcome, so it will not impact our restructuring plan.

The U.S. Department of Transportation gave us more good news this week by approving our application for two daily non-stop flights between DCA and Denver. The law limits the length of flights to and from DCA to airports within 1,250 miles. However, Congress last year created some slot exemptions for additional service beyond that perimeter to points in the Western United States. By obtaining some of these slots, United becomes the only network carrier with non-stop service between DCA and Denver. We plan to start service this summer, pending final FAA approval. To meet expected demand, we'll use our B757 aircraft -- the largest aircraft type permitted at DCA. United also offers eight daily non-stop, round-trip flights between Washington Dulles and Denver.

On another topic, here's a quick update on ZED, the Zonal Employee Discount fare program that will offer employees zone fares for pleasure pass travel on other carriers. ZED fares will ultimately take the place of ID90 fares. The delays we have experienced in implementing ZED have been due to the complexities of getting carriers worldwide to file the complex tariffs necessary to enable our reservations team to calculate fares using an automated process in order to issue tickets. Now, ticketing automation is in place and the airline industry ZED committee has obtained agreement that all carriers will file ZED fares. Over the next month, we will be testing the fares being filed. We hope to establish the initial phase of ZED by July, barring any unforeseen setbacks during the test period. We plan to bring the Star Alliance carriers on-line first, then negotiate agreements with other carriers.

Last week, we held an officers meeting and the board of directors meeting in San Francisco. While there, I held a town hall meeting with flight attendants. I also spoke at a purser seminar this week at World Headquarters. At both meetings, I was struck by how focused our flight attendants are on United's business. Their questions and comments about serving our customers and keeping them on United made it clear they are committed to finding new ways to ensure that we can compete successfully against other carriers. I want to thank my hosts in San Francisco and at the pursers' seminar for these very worthwhile and enjoyable visits with employees.

Finally, I would like to recognize Onboard employees whose community service earned United We Care grants. As announced in NewsReal this week, United awarded $50,000 dollars in grants to 46 non-profit organizations where employees have volunteered at least 40 hours of service per year. I'm proud to say that seven of the grants were awarded in the names of Onboard employees. They include: Narita-based flight attendant Mark Richardson; O'Hare-based flight attendants Marilyn Flinn-Brender and Marjorie Theil, Pursers Valerie Taylor-Harvey and Scott Weiser, retired ORDSW flight attendant Linda Mook-Oliver and former JFKSW flight attendant Toni Diamond. Congratulations to all of you for making a difference in your communities and in the lives of the people who benefit from your volunteer efforts.

Well, that's it for today.

Thanks to everyone for your efforts this week.