Hello, this is Jane Allen with an Update for Friday, June 25, 2005.

Today, the U.S. House of Representatives passed a spending bill that included an amendment seeking to prevent the Pension Benefit Guaranty Corporation (PBGC) from using government-appropriated funds in fiscal year 2006 to carry out the court-approved agreement to take over four United pension plans. This legislation has not been brought before Senate, and, as of today, is not yet scheduled.

The company issued a statement on the action saying, in part:
"…today's House vote on the Miller Amendment will have no immediate effect on United's restructuring. We remain focused on taking all steps necessary to emerge successfully from Chapter 11. Our agreement with the PBGC enabling the agency to assume our defined benefit pension plans is, as both the PBGC and the Bankruptcy Court have agreed, necessary - a fact that no legislation can change…"

Going forward, we will confer with the PBGC and our legal counsel to see what, if any, impact the amendment that now could be considered by the Senate would have on the company if it ultimately became law.

However, the PBGC's process has already begun, and will continue. Earlier this week, the PBGC placed legal notices in major newspapers, which is the first step in its process to terminate involuntarily and assume the administration of the pension plans for the employees, retirees and other participants in both the Flight Attendant Plan and the Management, Administrative and Public Contact Plan, which includes all officers.

Employees in these plans will continue to receive a pension from the PBGC, paid according to the agency's maximums. Once the PBGC takes over the plans, all information to plan participants will come from the PBGC, including information about what benefits participants will receive. For active employees, pension benefits in each of United's defined benefit plans continue to accrue until June 30, 2005, the official termination date. For employees who've already announced their intention to retire, for the time being, retirements will continue to be processed by United's Pension Department as they are received.

In addition to the payments employees will receive from the PBGC, United has already negotiated replacement plans as part of our ratified agreements with ALPA, AMFA, PAFCA, and TWU, and our tentative agreement with IAM; and has developed a replacement plan for salaried and management employees. The AFA is now the only union without a consensually negotiated replacement plan.

Many of you have asked what actions you must take in light of these announcements. There is nothing you must do. Once the PBGC takes over the plan, it will send specific information and instructions to plan participants.

We look forward to AFA's leadership accepting our open invitation to discuss a workable solution for a viable replacement plan for our flight attendants.

However necessary these difficult actions may be to ensure the long-term success of our company, I understand that they are complicated and emotionally charged for all of us. Despite these distractions, it's critical that we maintain a relentless focus on providing our customers the best service we can, so they will choose United over the competition time and time again. There is no question that you play a critical role in our customers' experience. I know our customers are in good hands with you. Please keep up the excellent work.

That's all for today. Fly safely, and I'll talk to you next week.