August 23, 2006 - Delivering results as one company

Hi, it's Glenn and it's the 23rd of August and I'm calling from Chicago.

Delivering and maintaining our performance – in safety, operational and financial results, together with the customer experience – requires a unified effort across United as one company.

Last week, in the face of new security measures that mixed complex operational realities with personal challenges for both our employees and for our customers, we saw that kind of response and the results it can deliver.

This week, we're implementing a new structure in two of our biggest operating divisions – Flight Operations and Onboard Service -- that delivers a one-company result for the corporation. 

To talk more about our work in both of these areas, I've asked Peter McDonald, our chief operating officer, to join me on today's call.  So, Pete, I'll turn the call over to you…

Pete:

Thanks, Glenn.  I'll start with our operating results first.  Last week, we finished the week first among our major network competitors in both on-time departure zero and on-time arrival 14.

That's important because ultimately our customers judge us on how their experience on United compares to their experience on other airlines. Our internal goals are important.  They provide benchmarks for us to measure and invest against, but we need to ensure we are competitive with our peers.  Last week, we met that challenge -- although we aren't consistent in that performance. 

Competitive arrivals and departures weren't the only highlights.  We completed more than 99 percent of our flights.  STAR departures were at 83 percent, more than three points above our goal.  And we were able to post these numbers with checked baggage up significantly.

Overall, it's a great performance and it shows how well we can adapt to changes in our operations.  I want to thank our front-line employees and leaders particularly for pulling together to keep our operation running safely and on time and ensuring that our customers receive the service they expect even when we are adapting to new policies and procedures.

As we adapt to new demands on our operation, we're also looking at new opportunities to run our company more efficiently.  We announced yesterday that Sean Donohue will lead both Flight Operations and Onboard Service.  He will oversee all aspects of flight deck and flight attendant operations, as well as scheduling, training and technology for both pilots and flight attendants.  We're also naming Captain Hank Krakowski to the position of vice president of Flight Operations and Charlie Ahmes as vice president of Onboard Service. 

With this organizational structure, Sean will lead the overall performance of the divisions, and Hank and Charlie will oversee the day-to-day operations,  which gives us efficiencies in the planning and management of both groups and keeps the focus on the specific and critical duties of our pilots and flight attendants.

With Sean, Hank and Charlie's leadership, and with the talented teams in Onboard and Flight Ops, we will ensure that we continue to operate safely, efficiently and with our customers' experience at the center of decision-making.

Glenn...

 

Glenn:

Thanks very much, Pete.  Both our operational results and the organizational announcements are prime examples of how we take the same approach – working more closely together to achieve better results – and execute it in a very different way across the company.

We have had an opportunity to continue to distinguish ourselves from our competitors in the way we respond to the operational complexities of our recent security challenges.  We consistently demonstrate a resilience that others can't match and I want to thank everyone for continuing to make safety and service  our top priority.

That's all for now on this call.  I'll be talking to you again soon.  Until then, stay focused on our customers, on one another…and stay united.