Hi, this is Glenn, and I’m calling from Chicago, on Friday the first of April.

On my last call, I talked to you about our efforts to reduce capacity and raise fares, and the positive impact on revenue of this decision along with our move to shift capacity from U.S. domestic to international routes.

Today on the call, I want to expand on how important it is for United to continue to focus on our role as a global airline, supported by our unparalleled international network and our Star Alliance partners.

In particular, we see great opportunities for United in the Asia Pacific market.

The economies of Asia, particularly China, are growing dramatically. U.S. companies, drawn by both the growth in foreign investment and in the number of more affluent consumers in the region, are establishing manufacturing, distribution and sales operations in Asia.

Investment is also continuing to come to the U.S. from Asia. Just think of the brands that originated in Asia and are today so much a part of our daily experience, such as Toyota, Sony, Samsung and Honda. These trade links drive our business of air travel.

As the middle-class and their disposable income continues to grow in Asia, more and more people in this market are traveling to the United States. The fastest growing travel segment originates in Asia. With time, it is expected to actually surpass travel to Asia that originates in the U.S.

Over the last year, we have been increasing our capacity in this high-growth market. Today, almost a quarter of United's total capacity is working in the Asia-Pacific arena.

Today, I have invited Mark Schwab, our vice president for the Pacific region, to join me on the call. Mark is in Singapore and is going to give us more detail on the opportunities and challenges that we face in Asia today. Mark over to you…

Mark Schwab: Thanks, Glenn. Good evening from Singapore -- my fourth stop this week to meet with our customers and fellow employees around the region.

As Glenn pointed out, Asia presents United with great opportunities, and we are moving aggressively to take advantage of those opportunities.

We are the largest U.S. carrier in China and a major player in Hong Kong and in Japan. This year, we have four daily non-stop flights from the U.S. to China, nearly doubling our capacity in that market. Load factors on these flights have remained strong, meaning the number of passengers has also doubled.

Right now, we have fully deployed our current rights to serve China under the new U.S. China agreement. However, we are very actively pursuing the opportunity to open new markets for United in China. For example we are determined to secure the rights to fly non-stop from San Francisco to Guangzhou, where a fantastic new airport opened last year.

Guangzhou is at the heart of the Pearl River delta manufacturing center, where exponential economic growth is being fueled by foreign investment. A couple of weeks ago, I met with the U.S. business community in Guangzhou, and they made a strong plea for us to enter this market. And, we won't give up until we are successful.

Business and leisure travel between Asia and the U.S. is on the rise. Visitors to the U.S. from China alone are forecast to grow at almost 10 percent this year, after growing 15 percent last year.

As you already know, last December, we launched the first passenger and cargo service in 30 years between the U.S. and Vietnam. We see this as a strong emerging market over the next ten years. We are the first to open that door, and passenger volumes in and out of Vietnam have exceeded expectations.

To meet demands in both Vietnam and Hong Kong, we are adding an additional 1,000 seats per week between Chicago and Hong Kong, beginning in May.

United is also continuing to build on our very strong presence in the Japanese market, where we currently have 19 daily flights. United’s Narita hub and alliance with ANA provides code-share flights to many destinations throughout Japan.

And this past Saturday, March 26, we launched new non-stop service from San Francisco to Nagoya, the only non-stop flight between the U.S. West Coast and Japan’s industrial center. Our partner, ANA, has 63 daily flights into Nagoya – from 13 cities around Japan – that conveniently feed passengers to our flight to San Francisco. Later this month, we'll add service from Nagoya to Taipei, doubling the number of flights from Taiwan.

Besides ANA, we have very strong Star Alliance partners in the region – Thai Airways, one of the original five founding members, Air New Zealand, Singapore Airlines and Asiana in Korea – as well as a good bilateral relationship with Air China. These partnerships greatly benefit our customers by expanding our reach far beyond the major gateways into other points across the Asia-Pacific region.

Cargo is a significant part of our business, generating over 15 percent of our total business to and from the Pacific. There is currently a huge movement of manufactured goods from Asia to the U.S. And, the U.S. is also a significant exporter to Asia, especially food products. We are growing our cargo business in this region as well.

So when we talk about reallocating capacity from the U.S. domestic to the international market, this is the sort of market opportunity we are working to capture for United.

Glenn. . .

Glenn: Thanks, Mark. I appreciate the excellent update.

Our expansion in the Asia-Pacific market is a prime example of how we intend to marshal United’s best assets today and in the future to meet the changing demands in the marketplace.

There remains many challenges to be met in the Asia market:

The regulatory environment in Asia continues to favor national airlines.

Strong Asian carriers deliver a good travel product, and they are continuing to lower their costs as the international travel market begins to look like what we are seeing in the United States – fierce competition coupled with record-high fuel costs, driving down revenue and profitability.

U.S. security and visa policies are also making it very difficult for customers in Asia to travel to the United States. While we support every effort to make flying safer, we at United will continue to work hard with the U.S. government to ensure that security policy does not hinder legitimate international travel.

There is also the very real possibility of the emergence of “super-carriers” in the Asia-Pacific market – large multinational airlines that will have the ability to be “super-competitors” as well. U.S. carriers will be at a distinct disadvantage because of U.S. regulations that limit foreign investment in U.S. airlines and effectively stifles consolidation in the U.S. domestic industry.

On April 4, I will be giving a speech to the Asia Society of San Francisco, and I'll discuss the opportunities and challenges that United and the entire American aviation industry faces in Asia. I look forward to sharing my remarks with you, as they will be posted on SkyNet after the speech has been delivered.

That’s all for now. Thanks again Mark. Until next time, stay United.