Hello, this is Jane Allen with an Update for Friday, January 14, 2005 and I've got a lot of news to share with you.
I'll begin by giving you a recap of where we are with respect to the 1113 process. As you know, last Saturday, January 8, we reached a tentative agreement with the AFA on the permanent labor cost savings we need to successfully complete our restructuring, while leaving the difficult pension issues to be resolved. On Tuesday, the AFA Master Executive Council (MEC) unanimously recommended that the agreement be sent to flight attendants for ratification. The AFA is committed to a rapid ratification process, which we expect will be completed by January 31.
Next, AMFA, which reached a tentative agreement with United last Friday afternoon, will begin the ratification process with their membership. The outcome of the AMFA ratification vote should be known during the last week of January.
The tentative agreements with ALPA, PAFCA and TWU were all affected by Judge Wedoff's ruling last week. United remains committed to working with ALPA to attempt to reach a consensual agreement that will deliver the cost savings we need to attract exit financing, successfully complete our restructuring and that will be acceptable to the Court. We expect that these agreements will be revised as necessary and resubmitted to the court at a later date. And finally, the interim cost savings approved for the IAM last week remain in effect. You'll find the most current information on our restructuring and the 1113 process in NewsReal and on SkyNet. I'll also provide you with updates in my weekly message as they occur.
We have been operating on two crucial tracks for so long - restructuring and running the operation, that it's easy to forget there is a great deal of other work being done. And it is because of the hard work and perseverance of many employees in divisions throughout the company that I'm able to make the following announcement: ZED is finally coming to United.
Today the company announced the initial rollout of ZED, or Zonal Employee Discount program, which offers affordable rates for international interline discount travel. This mileage-based program will launch for ticketing Jan. 19, 2005.
ZED fares ultimately will replace industry discount ID90/95 fares. Of course, we are focusing first on carriers our employees use most frequently for international interline travel. Because Lufthansa is at the top of that list, employees and retirees will be eligible to purchase ZED reduced-rate interline tickets on this Star Alliance partner first, beginning next week. However, we'll add other ZED-fare carriers as we complete interline travel agreements and align our automation with theirs.
To start, adult ZED fares will apply to all eligible interline travelers, including children and infants. In the future the program will include child- and infant- discount fares.
To learn the details of the ZED program, read the Jan. 14 edition of NewsReal. You'll find more information on Zonal Employee Discounts in the "Travel" section of SkyNet.
Also, managers and supervisors will be receiving talking points about ZED they can share with you. I want to thank Gaea Gomez Fidler in Onboard, as well as folks in Flight Operations, Worldwide Sales Performance and International Support, ISD, HR, Revenue Management, Reservations Planning and Customer Service Planning, all of whom worked together to deliver this great benefit to United employees. ZED is a positive benefit for all employees and retirees eligible for interline travel, but there is no incremental cost to the company.
Finally, I want to recognize San Francisco-based flight attendant Chris Primi. Chris was the inspiration for an article in the November 2004 edition of Start, a manufacturing publication, written by United customer Peggy Smedley. In the article, Ms. Smedley recounts her experience onboard a recent United flight. She credits Chris with leaving an indelible mark on her by the way he spoke to her. She writes, "I felt very important. I felt my business was important to him. He showed me that customer service is more than meeting the goals of your customer, it's about making your customer feel good when they least expect it." She concludes her article by saying, "Thank you for making me feel like my business matters to United. It is your kindness and generosity that has me sharing this story with 85,000 executives who could make United their airline of choice."
We often underestimate the number of people who may be influenced by the things we do. This is an extraordinary example of the far-reaching impact of one person's actions. I want to thank you Chris, for providing a level of service so exceptional that not only did your customer take notice, she was compelled to share her story with so many others.
That's all I have for today. Thank you for listening.