Hello this is Jane Allen with an update for Friday, August 19, 2005.

This continues to be a busy summer around the company, and I thank all of you for taking excellent care of our many customers. Not only do we have lots of customers in the air, but there is a lot of activity around the company to improve our competitive position.

We've talked for some time now about the need for us to continuously improve and to be more efficient every day. Once we exit bankruptcy, it's the only way we're going to outpace our competition and build competitive advantages that give us an edge in the marketplace.

You're going to hear a lot over the coming weeks and months about the process of continuous improvement. It's all about looking for better ways to run our business in order to be successful in the long run, and as a result, sustainable. And change is an inherent component of this process.

Those changes are coming throughout the company in the areas of revenue enhancement, cost reduction and service improvement. In airport operations and maintenance, improvement programs like FIT and LEAN are bettering our competitive position. From a revenue perspective, Economy Plus and Business One are giving us key points of differentiation among business travelers. In the Onboard division, we're looking at all of our processes and all of our vendor agreements for opportunities to improve. In fact, we've negotiated improved vendor contracts in a number of areas.

Today, we're issuing a special edition of Onboard Updates to communicate two changes that we'll be making on October 1st. These changes will affect staffing and scheduling for some of you, particularly if you're flying in North America.

From a staffing perspective, we have established a service standard across all domestic flights of 60 to 65 minutes that correlates with what customers tell us they expect. Over the last several months, we used a team of industrial engineers to conduct a number of time studies on all of our wide and narrowbody aircraft flying domestically. In addition, we talked with a number of you to identify your best practices for food and beverage service.

As a result, we have re-calibrated staffing breakpoints for domestic flights based on the new service standard of 60 to 65 minutes. These breakpoints assume a 60 percent Buy on Board purchase rate, which is significantly higher than what we've seen on any flights to date.

In addition, we are making changes to the construction of domestic widebody IDs. Historically, widebody and narrowbody IDs have been built separately, with widebodies consisting, for the most part, of one six-position base ID and one or more one-position IDs. However, the number of widebody flights in North America has decreased significantly over the last year as we have shifted more of these planes to flying international routes. As a result, six-position IDs for domestic widebody flights are accounting for a disproportionate amount of domestic credit hours, or time paid but not flown, as well as contributing to higher hotel and per diem costs.

Starting with the October bid, we will be eliminating six-position IDs for domestic widebody flights. These flights will be covered by one three-position ID and three or more one-position IDs. While it will result in change for some of you - 370 flight attendants were awarded pure domestic widebody IDs in August - this is a business decision driven by the reduction in widebody flying and the changes to our domestic service, including the expansion of Buy on Board.

Complete details of these changes are in the August 18th edition of Onboard Updates, which you can find in SkyNet today or in your mailbox next week. I urge you to review these details carefully and let us know if you have questions.

We're at the right time to make changes. The summer travel season will be over soon, and before we exit bankruptcy we want to be in a position of being as competitive as possible. Maintaining the status quo isn't going to be an option for us as we move forward. This is a fiercely competitive industry, and we need to be ready to succeed on our own.

My continued thanks for the great job that you do on the behalf of our customers every day. Fly safe, and thanks for listening.