UAL Conditional Agreement With Mesa

PRNewswire-FirstCall CHICAGO Nov. 12 :

UAL Corporation (BULLETIN BOARD: UALAQ) , the holding company whose
primary subsidiary is United Airlines, today announced that the company
has signed a non-binding Memorandum of Understanding (MOU) with Mesa Air
Group Inc., , agreeing in principle to revised terms under which both Mesa
and Atlantic Coast Airlines Holdings, Inc. would operate as United Express
carriers on those portions of the company`s United Express service
currently under contract to Atlantic Coast Airlines (ACA), in the event
that Mesa is successful in its bid to acquire ACA.

“United will continue to be a competitive force at Dulles International
Airport and remains committed to the routes currently served by United
Express with ACA. Our conditional agreement with Mesa would allow us to
continue our successful United Express model in this market,” said Doug
Hacker, Executive Vice President - Strategy. “We have a good relationship
with Mesa and this agreement contains the competitive structure and
performance metrics that provide reliable service to our customers, earns
a good return for the express carrier and makes sense financially for
The MOU signed by UAL and Mesa provides for Mesa to continue operation of
ACA`s regional jets and a portion of its turboprop fleet. The agreement
also provides opportunities for future growth.

United reiterated the company`s intention to continue to explore all
alternatives that would support the continuity of high quality United
Express service for our customers at Dulles International Airport and all
the routes currently serviced by ACA.

The MOU is subject to the parties entering into definitive agreements and
the successful acquisition of ACA. The MOU is also conditioned upon
approval by the U.S. Bankruptcy Court.


United and United Express operate more than 3,300 flights a day on a route
network that spans the globe. News releases and other information about
United can be found at the company`s web site at .