Hello this is Jane Allen with a special update for Wednesday, January 25, 2006.

Earlier this month, I talked about the importance of being the number one airline for our customers. For us to be successful, we must deliver great service and great value on a consistent basis, while operating in the most efficient and effective means possible.

Our willingness to make the changes necessary to ensure our survival and long-term viability, and our success in managing through these changes, are the major reasons why we are preparing to exit bankruptcy next week. Continuous improvement across our business is an absolute necessity for our company to be successful.

Today, we are announcing several decisions aimed at continuing the work that we have been doing over the past three years to improve our ability to serve our customers, manage our operations and operate profitably. These decisions are based on a comprehensive study undertaken over the past several months in which we looked at all aspects of the work we do in Onboard. In conducting this study, we took into account the many changes we have seen in our business over the past three years. The complete details are in a letter from me that is being distributed throughout the division today. These changes, which will impact our domiciles, regional crew desks and the Service Center , will help us to remain competitive. I'll begin with the domicile changes.

Last year, we carefully reviewed our operations to determine the appropriate domicile structure given our current and forecasted flying. This study was part of a long-term plan to continuously look at the work we do. Based on our review, we reached several decisions. We are closing the Paris and Newark domiciles and the Philadelphia modified co-terminal. The last day of operations for Paris will be May 1, 2006 , and the last day of operations for both Newark and Philadelphia will be May 31, 2006 . Given the changes to our route structure and our fleet, these locations are no longer cost effective to keep open. Flight attendants at those locations will be offered the option to bid for openings at designated domiciles. We are meeting with the AFA to obtain their input concerning these closures.

We realize that these closures will have a significant impact on all of our employees in these locations, and we regret that this is a necessary decision. We are meeting with all impacted employees to discuss their options and to help them with the transitions ahead.

In addition, based on the study we conducted last year, we are redefining the work performed by our domicile managers, supervisors and staff. Our intent is to enable our domicile teams to spend more time working with active flight attendants on matters that will directly impact our safety and service performance, and require them to spend less time on administrative activities. This change is tied to the evolving role of our Service Center which I will cover I will discuss later in this update.

Moving on, based on a thorough review of our crew desk operations, we have made the decision to close our crew desks at LAX, SFO, DEN and ORD and consolidate that work at OPBSK. This will result in more efficient operations and considerable savings for the company. The consolidation process will begin in April, and we expect it to be completed by year-end.

We understand that this changes significant impacts our crew desk team members, and we regret that it is necessary. We are meeting with these employees to discuss their options and help them with the transition that they are facing.

We know that this decision will change how flight attendants and domicile team members work with crew scheduling. Prior to the consolidation, we will communicate new policies and procedures on how we will work together in a centralized scheduling environment.

Also based on the study we conducted last year, we have decided to move more administrative work from our domiciles into the Service Center , where it will be handled more efficiently and effectively. By shifting this work, our domicile staff will have more time to spend on activities directly related to our active flight attendants and the delivery of top notch safety and service to our customers.

In order for the Service Center to take on new work, we will move some of their current activities to an outside vendor. The Service Center will manage all the work that is done by the vendor and will continue to handle the balance of the work they do and the new work coming from the domiciles. Service Center team members have already begun the transition process, and, in April, the transfer of work to the vendor will begin. We know this means a lot of change for our Service Center team members and we are meeting with them to discuss our plans and to support them with the changes.

The decisions we announced today have been carefully considered and are based on many months of study and analysis. They have not been taken lightly. We understand the impact that these decisions will have on many of our people and will help them through the changes as we move forward.

We firmly believe that the changes we announced today will put resources where we will need them most over the months and years to come, and that they will enable us to improve our customer, operational and financial performance.

The lessons of the last three years underscore for all of us the importance of creating a sustainable business by attracting and retaining customers and running our operations efficiently and effectively. As I mentioned earlier, our ability to successfully adapt to and manage through change has been a significant factor in our success to date, and I fully expect that to continue.

I want to thank all of you for your continued commitment to our company, to your fellow employees, and to our customers. The work performed by the members of our team is diverse and each individual plays an important role in our collective success. Thank you for all that you do every day to make our company a success.

Thank you for listening and fly safely.