United Reaches Agreements with Flight Staff

7th Apr 2003

United Airlines (OTC BB:UALAQ.OB) today announced that it has reached tentative, six-year agreements with the Association of Flight Attendants (AFA) and the Professional Airline Flight Control Association (PAFCA) consisting of labor cost improvements, productivity enhancements and increased business flexibility.Ê The agreements are subject to approval by the UAL board of directors and any appropriate board committee.Ê The AFA’s tentative agreement also is subject to approval by the union’s Master Executive Council (MEC).Ê In addition, both tentative agreements require ratification by the membership of each union.

“These agreements move us much closer to achieving the savings we need to transform United into a resilient and profitable enterprise,” said Glenn Tilton, chairman, president and chief executive officer.Ê “This is a trying time for everyone at the company and I applaud our flight attendants and flight dispatchers for rising to the challenge.Ê In particular I want to thank Greg Davidowitch of the AFA, Mikel Alpers of PAFCA, all members of each union’s negotiating teams and United’s negotiating teams for their cooperation and long hours spent working on these agreements with the company.Ê This is an example of what we can accomplish collaboratively when we are focused on the common goal of sharing in the long-term success of United Airlines.

“The sacrifices that these agreements represent are necessary in preparing United to emerge from bankruptcy as a stronger, more competitive company,” Tilton said.Ê “We know that our timeline is getting shorter with each passing day, so we will urgently continue our negotiations with the International Association of Machinists on similar tentative agreements.Ê We are committed to reaching consensual agreements and will continue our around the clock discussions in the days ahead.”

Leaders from each union will present the agreements to their membership and establish a schedule for ratification.Ê The tentative agreements between the unions and United address the company’s short- and long-term cash needs, support the company’s plan for transformation, and provide average annual labor cost savings in line with the company’s financial requirements.

United in March reached tentative agreements with the Air Line Pilots Association.Ê Also in March, United’s meteorologists, represented by the Transport Workers Union, ratified contract changes.Ê News releases and other information about United Airlines can be found at the company’s web site, www.united.com.ÊÊÊÊÊÊÊ




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