Hello, this is Jane Allen with an Update for Friday, March 17, 2006.

We announced this week our plans to spend $165 million over three years on new international first and business class seats. International Premium Product, or IPP, is this new initiative and it will be featured on all international wide-body fleet types across our long-haul network.

Needless to say, this is a significant investment for us, but an important one to remain competitive. It’s worth noting that this funding was included in our Plan of Reorganization. For some time, we recognized the need to move to the next generation of premium-class seating.

We’ve selected B/E Aerospace, Inc., the world’s leading manufacturer of aircraft cabin interior products, to design and manufacture the new premium seats. We’ll introduce IPP in two phases, with some enhancements scheduled to begin in 2007. Reconfiguration of our entire international wide-body fleet (747s, 777s and 767s), will take approximately two to three years to complete.

As you can imagine, our competitors would love to know what our next generation of seats will be as they develop their own plans. So for competitive reasons, you won’t hear many details of the seats in advance of their debut.

Through initiatives like IPP, we are focusing on delivering the service and experience our customers expect, and we’ll continue to identify opportunities to enhance every aspect of our customers’ premium travel experience. While this work is getting underway for next year, we are also focused on improvements to aircraft condition and cleanliness in the very near-term.

We have $400 million in our capital spending plan allocated to improvements in cabin interiors, upgraded computer systems and in the purchase of new ground equipment.

We clearly have an issue with declining customer satisfaction in the areas of interior condition and cleanliness of our aircraft. To help solve the problem, our maintenance team in United Services has formed a cross-functional team dedicated to reviewing the condition of our cabins. The team determined exactly what our customers expect when they walk onto an airplane. These expectations then were translated to an objective audit sheet with 28 different items that will be used to measure performance.

Thus far, the team has audited over 3,600 seats and a variety of lavatories, overhead bins and entertainment systems against this newly developed standard. They found the condition and cleanliness of the suede panels, seat covers, personal video screens and snake lights in many cases were not up to par for our premium customers, which you already know.

Looking into complaints about audio quality, the team suspected the audio jacks would be the problem. However, they found that while 98 percent of the audio jacks in the first-class seats were working, about 15 percent of the headsets were not. The team also anticipated that many of our tray tables would have to be replaced, but found that it is just one mechanism that needs replacement, not the tray table itself.

United Services has identified the work that must be done going forward, and they are redesigning the processes needed to address these issues. They will continue to audit the cabins to ensure we are meeting customer expectations.

As I said last week, the service you provide to our customers is paramount in shaping their perceptions of their flight and of our airline. We know however, that being competitive for premium customer business in the long-term means having fully functional, clean and attractive interiors – which is our goal.

That’s all for today. Thanks for listening and fly safely.