Hello, this is Jane Allen with an Update for Friday, April 15, 2005.

For each of us in Onboard, our professional focus remains on safety, service to our customers and doing our best work to ensure United's success. But all around us, the restructuring of United Airlines - and the fundamental transformation of our industry - continues, deeply impacting all of us personally and professionally.

As you know, in the past few days there have been a number of developments in the restructuring process and in Bankruptcy Court. As a result, we've heard from many of you asking how these developments are likely to affect United's flight attendants. To help clarify the situation, I'd like to tell you where things stand.

Back in November the Company said that in order to exit bankruptcy successfully it was necessary to achieve additional long-term labor cost savings from its employee groups, and to terminate and replace all four of our defined benefit pension plans. We entered into negotiations with all our unions, including AFA. As part of that process, we provided each union with the annual cost savings needed from each group, including Salaried and Management (SAM) employees. We also provided each union with the methodology and the baseline against which we calculated the necessary cost savings for its group and for SAM.

In January, the Company and AFA reached a deal, which AFA members ratified. The agreement addressed all collective bargaining issues except pensions and satisfied AFA's fair share of needed long-term labor savings. Since then, United and the AFA have continued to discuss how to resolve the pension issue. In addition, ratified agreements were reached with ALPA, PAFCA and TWU, and we received temporary savings from AMFA and IAM while discussions continue with them on new contract terms, including pensions.

Also in January the bankruptcy judge set a trial date of May 11th on all contract and pension issues that remain open as of May 11th. All parties were notified and April 11th was set as the last day that United could file a motion for pension termination and any necessary contract changes.

Last Friday, April 8th, AFA leadership presented United with a notice that the union intended to terminate the terms of the contract ratified in January. This was based on the AFA's assertion that United hasn't satisfactorily demonstrated that SAM employees will meet their portion of the collective savings requirement. Prior to and since receiving the AFA's termination notice, the Company has reaffirmed to the AFA and provided supporting data that it is on track to secure the full amount of collective savings from SAM - exactly what is required in the AFA agreement.

After receiving the AFA's termination notice last Friday, on Sunday the Company asked the AFA to reconsider its decision. With the May 11th trial just a month away and with the court's filing deadline just a day away, United told the AFA that - to save the time of a lengthy legal process and to assure that the required savings are in place - the Company would not challenge the union's claim that it is entitled to terminate its agreement. The Company further told the AFA that we would continue to go forward with our 1113(c) motion to seek authority to reject the AFA's contract based on the proposal the Company submitted to the AFA and the Court in early January if the AFA did not reverse its decision.

The AFA did not take action by the April 11th filing deadline, the Company filed a motion seeking the authority to terminate the Flight Attendants Defined Benefit Pension Plan and, if the AFA elects to proceed with termination of the contract terms, intends to impose contract changes sufficient to meet the AFA's target savings. As previously planned, this motion also sought the right to reject the collective bargaining agreements of the AMFA and IAM.

So, what does this mean for flight attendants? First of all, United has stated it will continue to work toward reaching a consensual agreement with the AFA, AMFA and IAM, addressing both pension and non-pension issues, before this comes to trial. In the meantime, the agreement ratified by flight attendants in January remains in effect. The court has set a trial date of May 11th to hear the AFA, AMFA and IAM issues, if consensual agreements have not been reached by that time.

In the event that the AFA proceeds with its stated intent to terminate the January agreement, United will need to ensure that the required AFA savings are in place through the potential 1113(c) trial. Thus, the Company today filed a motion asking the Court to grant interim relief from the AFA contract under Section 1113(e) of the Bankruptcy Code. The motion seeks to preserve the status quo and maintain flight attendants' current pay and work rules. There would be no changes to the contract's current contract terms. Were it not for the AFA's notifying United of its intent to terminate the terms of the contract ratified in January, the Company would not be in the position of having to file this motion for interim relief today.

I hope this helps to clarify the situation for you. We've made tremendous progress together - and our operations are extremely strong thanks to you and your colleagues who do a great job day in and day out. But there is still an enormous amount to do if we are to emerge successfully from bankruptcy. In the meantime, despite all the distractions, I commend you and thank you for remaining focused on safety and on consistently delivering service that will encourage our customers to fly with us again and again.

Thank you for all of your great work. Fly safely and I'll talk to you again next week.