On this page you'll find United News such as Newsreal and Eye-on-UA and now UA connections
.......................................
NEW Welcome to UA Connections UAConnections Daily and breaking new Employee publications like UA Today and NewsReal |
You can access UA Connections through one click from the SkyNet homepage. You'll find: Helpful information on employee travel and employee discount offerings. You can also click on the "Travel" button on the main page. For more info on pass travel, and policy changes |
NEWSREAL Today's News June 30, 2009 United and Continental Expect DOT to Approve Request for Antitrust Immunity Both United and Continental continue to expect that the U.S. Department of Transportation will finalize approval of Continental's request for antitrust immunity to join our immunized alliance with Lufthansa, Air Canada and several European carriers next month. While the U.S. Department of Justice has objected to certain aspects of the application, the final decision regarding the scope of immunity to be granted to the parties rests with the Transportation Department, which gave preliminary approval to the request several weeks ago. In response to media inquiries, Continental said, "We appreciate that Department of Justice has submitted its comments, which will allow the Department of Transportation to close the docket and move forward with the application. We remain confident that Department of Transportation will approve our application." The final ruling from the Transportation Department is expected in mid-July. Anti-trust immunity, similar to the status that Delta and Northwest Airlines have with KLM/Air France and SkyTeam, would enable Continental to cooperate with us and other immunized Star Alliance airlines on schedules and pricing. American Airlines and British Airways have submitted a similar request to the Transportation Department.
International SOS Provides Employees With Valuable Assistance While Traveling Overseas Have you ever wondered what you would do in an emergency situation while traveling outside of your home country? What if your passport was stolen or you lost your prescription medicine? In today's volatile world, finding yourself in the middle of political or social protests is not even far-fetched.
"The safety and well-being of all of United's people is our No. 1 priority," says Michael Quiello, Vice President-Corporate Safety, Security, Quality and Environment. "So we engaged one of the top firms in the industry, International SOS, to provide security and medical assistance in emergency and non-emergency situations." The new program is available to all employees, retirees and travel eligibles (including Enrolled Friends). Prior to your travels, visit the International SOS Web site (www.internationalsos.com ) which offers medical alerts, cultural tips, visa information, country facts and other relevant information. It's easy to access from the member's section by entering United's member ID number: 11BYCA000027. If you need to find a doctor or have a general health question, medical and dental referrals are simply a phone call away. The centers are available 24 hours a day, 7 days a week. For crews on an active ID and other employees traveling on company business, International SOS will provide medical resources in an emergency or evacuation to a medical center of excellence. For additional information, check the International SOS link on the Travel page of SkyNet under Travel Information. You can also print a member card or view a list of Frequently Asked Questions. Be sure to print your membership card and keep it handy as you travel. It contains our corporate membership number and phone numbers to access International SOS. See SkyNet for more details.
United Interline Pleasure Travel Program Adds KLM and LIAT KLM Royal Dutch Airlines and LIAT are being added to the portfolio of airlines available for employee interline pleasure travel privileges. Medium Zonal Employee Discount (ZED) fares for KLM take effect on July 1 for all employees while medium ZED fares for LIAT took effect June 22.
KLM serves cities across the United States as well as destinations in Canada, Africa, Asia, Europe, Mexico, Latin America, Middle East and the Caribbean.
With hubs in Antigua, Barbados and Trinidad, LIAT offers service to 21 destinations within the Caribbean.
ZED fares are an interline fare program used by many carriers worldwide for spaceavailable travel, replacing industry discount ID90/95 fares for interline travel on several carriers. ZED pricing simplifies and significantly reduces the cost of non-revenue, spaceavailable interline pleasure travel.
For more information on United's employee interline travel privilege program, visit the interline travel page in SkyNet's travel section.
UAL Corporation's stock (NASDAQ: UAUA) closed Monday, June 29, 2009, at 3.47, down 0.01 (0.29 percent), on a volume of 3,582,977 shares. The UAUA stock ticker is available on the right side of SkyNet's homepage.
Investing in Our Future Glenn Tilton, president, chairman and CEO, provided the following message to all employees on Thursday, June 4. Dear fellow employee: We have been talking with you about the progress we are making against Focus on 5, our operating agenda for the company. The work you all are doing is delivering results, improving our cost structure, our on-time performance and, importantly, our customer satisfaction. We now have the opportunity to further leverage the good work we are doing with a fleet replacement strategy as one of the building blocks to running a great airline. This week, we sent a request for proposal (RFP) to Airbus and Boeing that could result in a potentially significant number of aircraft that could ultimately replace our widebody fleet. We will also be assessing appropriate replacement of our Boeing 757 fleet. We have had ongoing discussions with both manufacturers for the last several years, and, as we have consistently said over that time, we will not invest in aircraft until we believe we can generate a return on our investment. The analysis we have conducted for more than a year suggests that time may be now, and we will begin more specific discussions with the manufacturers about a potential order that could be placed as early as the fall, with deliveries extended well into the future. The decision of whether to move ahead with new aircraft will be based on facts and analytical rigor. In addition to earning a return, any aircraft order must be financed in a way that strengthens our balance sheet over the long term and does not impact our cash position. We must also be able to retain fleet flexibility for the long term. This work clearly presents a strategic opportunity for both United and the manufacturers, as this program will define our fleet strategy for the next 25 years. Our timing is opportune, as this is a competitive environment for manufacturers, and, if the economics are compelling, the winner will place its new generation aircraft with one of the largest operators of twin-aisle aircraft in the world. The fleet decisions we have already made, notably retiring the B737 fleet, also positions us well as we review our options. An aircraft order that meets the requirements we have outlined will provide the opportunity to further improve our cost structure and better our operational performance while reducing our environmental impact and creating an improved onboard experience for our people and our customers. Next-generation aircraft also provide the capability to serve new destinations and further strengthen our network. Clearly, new aircraft provide us the opportunity to tailor and customize the customer experience, building off of the work we have done to reconfigure our international fleet. We believe the work we now have under way has the ability to benefit all of our stakeholders – our customers, our stockholders and our people. We look forward to beginning the negotiation process with the manufacturers and to building on the good work we have accomplished together. We will keep you posted on our progress. Glenn
Today's News May 8, 2009
United Finishes No. 1 Again in A :14 Rankings When we look back at the month of April, one word that may come to mind is challenging.
From spring snow storms in Denver to major thunderstorms throughout the U.S. system, our daily operation became a challenge - especially during the end of the 2009 Spring Break season.
While it was tough for 30 consecutive days, the phrase we'll remember the most months and years from now is this - No. 1.
For the third time in the first four months of 2009, United finished No. 1 in Arrival :14 (A :14) performance when compared to other major network carriers. Our 80.6 percentage was 7.2 points higher than our April 2008 figure, which placed us fourth among major network carriers.
"These results speak volumes to how hard all of our employees worked to achieve this feat during such a challenging month," says John Tague, EVP and chief operating officer. "It's a great feeling to beat the competition once again."
This latest first-place finish marks the fourth consecutive month that our performance has resulted in a cash payment to employees. Just as the case was in March, there will be another payout of 100 pretax dollars to eligible employees on the U.S. and Canadian payrolls. Our reward system is based on how we rank against American, Continental, US Airways and the combined Delta/Northwest.
The April A :14 Cash Incentive Program payout will occur later this month.
The Annual Incentive Plan rewards eligible salaried and management and international employees for exceptional corporate, divisional and individual performance.
Participation by our international employees will be subject to local laws and conditional on collective bargaining agreements and the local pay programs of the respective countries.
As H1N1 Calls Subside, Response Center Closes Operational changes in connection with the influenza A (H1N1) outbreak have begun to stabilize in the last few days, with fewer international locations reporting new policies and procedures.
As a result, we have closed the H1N1 Response Center.
Should the situation require it, we are prepared to re-open the Response Center to troubleshoot issues. In the meantime, however, supervisors and managers have been provided an alternate e-mail box that will be monitored daily.
Any urgent calls related to suspected cases of H1N1 should be directed to the Operations Control Center (OCC) duty director. In the event of any customer or crew issues that require immediate attention, please continue to notify the OCC.
Teams of employees have been working around the clock to provide support to our people, our partners and our customers who have had questions and concerns. Look to SkyNet and NewsReal over the next few days to read more about the extraordinary efforts our teams have put forth to address this significant public health issue.
If you have a story idea, please let us know. You can submit your story idea to us by contacting us by phone, e-mail or simply completing the Share Your Stories Story form on SkyNet.
1K in One Week, Customer Spends 98 Hours Flying Around the World Twice Over In one week, Jeff S., a teacher at an American school in Saudi Arabia, spent 98 hours flying around the world - twice - just to earn 1K status in our Mileage Plus program.
Dubbed a "mileage run," which is a flight taken solely to earn Mileage Plus miles or earn elite status, Jeff's trip totaled 52,000 miles. He will earn 104,000 miles toward his elite status as part of our Double Elite Qualifying Miles promotion, elevating him to 1K status.
Launched last month, our Double Elite Qualifying Miles promotion helps stimulate travel and loyalty during this challenging economic time while offering Mileage Plus members a quicker way to secure their elite status. More than 50 percent of our elite Mileage Plus members have signed up for this promotion.
"I never would have done this without the double elite qualifying miles," Jeff told the Wall Street Journal, which recently featured his "mileage run" that enabled him to attain elite status on United.
Traveling in United Economy, Jeff's trip started on April 2 in the Middle East. He flew to Washington, D.C., where he then flew to Los Angeles, Sydney, San Francisco, Sydney, Los Angeles, Boston, Los Angeles, Washington and then back to Saudi Arabia.
In Australia, it was reported that a customs agent who saw him entering the country twice in a few days quizzed him carefully on why he was staying only seven hours each time. The answer - to be a United 1K.
With 1K status, Jeff will receive several perks that will make his trips between the Middle East and the U.S. more enjoyable, including upgraded seats and mileage bonuses that will help continue to secure his loyalty into the future.
Walk to Empower is This Weekend - It's Not Too Late to Register It's not too late to show your support and register for this year's Breast Cancer Network of Strength Walk to Empower.
This year's walk takes place in 16 cities across the country this Sunday - Mother's Day. And as the national official sponsor and official airline of the Walk to Empower, we are proud to be representing United with teams participating in 15 out of the 16 cities.
Registration is free for United team members and you can still sign up for the walk by visiting walk.networkofstrength.org/united_national, or by visiting the United tents located in the team villages on walk day.
Today's News May 7, 2009 OCC Centralization Improves Reliability and More With major storms bearing down on two of our hubs, the Operations Control Center (OCC) has some critical decisions to make. Do we try to fly through it and salvage as much of the schedule as possible or start cancelling flights - knowing that some customers will miss that family event or key business meeting? The decision may affect tens of thousands of people over the next 24 hours.
No pressure.
"We contemplate the total cost of decisions based on all the information in the room, and we have a lot of it at any given point in time," says Joe Vickers, managing director- Operations Control. "The key is sorting through what is most relevant to make the safest and best proactive decision on behalf of customers, the network and the business."
The OCC is a collaborative group that includes meteorology, air traffic control coordination, strategy, flight dispatch and aircraft routers (OPB). Recently, System Aircraft Maintenance Control (SAMC) and Operational Engineering moved from San Francisco, and Flight Operations Technology moved from Denver to join the group and complete the team. (See May 6 NewsReal.)
"Everyone's an expert in what they do and that provides a 360 degree perspective," Joe explains. "Our team has seen all types of operational situations. They know everything about the fleet, and are highly motivated to get planes where they need to go, safely and on-time."
For Flight Training, there are side benefits for being near the OCC, says Bob Mackay, managing director-Flight Training. "The daily exposure it provides to the other operational groups provides Flight Operations with a better sense for the most frequent maintenance issues and operational challenges. We infuse those flight scenarios into the simulator training back at Denver Flight Training Center which helps pilots recognize and respond better to those situations the next time they encounter them on the line."
Proximity creates better business outcomes in other ways.
When flight attendants reported they were running out of potable water on new International Premium Travel Experience (IPTE) aircraft, for example, the OCC was quick to respond. Dispatch optimizes potable water supplies for performance and reduced fuel burn based on historical usage, but the team discovered faucets in the new IPTE galleys had stayed on longer. Water just kept going down the drain after a faucet was turned on, resulting in water shortages.
The OCC team was able to convene meetings immediately with Maintenance Engineering on the same floor and identify a viable solution to fix the faucets within days versus weeks, saving time and money.
Now, every issue has a cross-functional team to find solutions and make the best decisions for our customers and our employees.
Extending Our Hand To a Boy In Need Last Tuesday was a day that 10-year-old Vasco Sylvester will never forget. An orphan from the country of Malawi in southeast Africa, Vasco began a 20-hour journey with his escort Mac that was complete when they stepped off of UA945 at O'Hare (ORD). Vasco has a hole in his heart, an easily correctable surgery in the U.S. but not one that was readily available in Malawi. His demeanor and gentleness caught the attention of Chicago Sun-Times reporter Cathleen Falsani while on a personal trip to Malawi last year. After she profiled his desperate situation in a feature story, several Chicago hospitals offered to provide this life-saving procedure free of charge. The only remaining challenge was how to get Vasco to Chicago. As Cathleen wrote in the Sun-Times, "The tender-hearted people at United Airlines, in conjunction with their partners at South African Airways, told us they would take care of it - covering all the costs for their air travel. Such an outpouring of generosity in these frighteningly rocky economic times is overwhelming. The generosity of spirit of the American people never ceases to amaze and enliven me."
Chicagoans responded to the story by donating more than 6,000 dollars to support Vasco's time in the U.S. and his recovery in Malawi.
"We are grateful that we could take advantage of the resources we have available - airplanes and great employees - to invest in Vasco's future and bring him to our hometown for surgery," says Sonya Jackson, managing director-Corporate Social Investment.
We work with several organizations that support youth with potential, though helping Vasco took coordination with our Star Alliance partners and many of our employees.
The cross-divisional effort began with Corporate Social Investment, extended to Alliances and was executed by employees in Frankfort (FRA) and ORD.
In FRA, Customer Service Representative Birgitt Pfeffer provided Vasco and Mac with Global Services treatment to get the first-time flyers from their SAA flight to the United gate, where they were specially welcomed onboard by the flight attendants.
After landing at ORD, Jack Tripoli, airport operational supervisor for Terminal 5, welcomed them and personally delivered both to an excited Cathleen outside of immigration. You can see video of their arrival outside of ORD T5 and other information on Vasco's surgery and recovery in the U.S. by visiting Cathleen's blog at falsani.blogspot.com.
Vasco will spend several weeks in Chicago following his surgery before we and Star Alliance partner South African Airways fly him back to Malawi.
Roth IRA Update We are providing an update regarding legislation that allows qualifying active and former airline employees to transfer taxable bankruptcy-related payments to a Roth IRA.
Earlier, we stated the IRS had provided informal guidance that the 10 percent penalty for early withdrawal of funds from the Roth IRA would not apply. However, the IRS has recently clarified its position and determined that the legislation in no way affects the withdrawal rules for amounts transferred to a Roth IRA. Therefore, like normal Roth IRA rollovers, the 10 percent penalty for withdrawal of funds from the Roth IRA prior to five years from deposit will apply.
As a reminder, all taxable distributions eligible for transfer to a Roth IRA were previously distributed through programs such as Employee Equity and Employee Notes. Your W-2 for 2006 and/or 2007 will indicate if you received any taxable Equity or Notes distributions. Any amounts previously contributed to a 401(k)/PDAP account (which were, by definition, already tax-advantaged) are not eligible for transfer to a Roth IRA.
Please note: transfers to a Roth IRA must be handled by your financial institution, and should not be sent to United.
To complete the transaction, you must provide a copy of the IRS Form 8935 you previously received from United to your financial institution or IRA provider. Individuals are responsible for funding contributions to their Roth IRA and do not need to use the same exact funds received from United in making the transfer. Additional information about the Roth IRA program is available on SkyNet's Quick Hits section, under Employee Equity/Notes.
UAL Corporation's stock (NASDAQ: UAUA) closed Wednesday, May 6, 2009, at 5.96, down 0.26 (4.18 percent), on a volume of 8,289,653 shares. The UAUA stock ticker is available on the right side of SkyNet's homepage.
Good morning ... This is news for Feb. 24, 2009 Good morning ... This is news for Jan. 23, 2009 Today's News: 1. United and Aer Lingus Announce Transatlantic Partnership; Washington Dulles To Madrid Route Opens for Sale in April 2009 2. Worldwide Sales and Contact Centers Ready to Tackle Challenges 3. Around the System ---------------------------------------------------- United and Aer Lingus Announce Transatlantic Partnership; Washington Dulles To Madrid Route Opens for Sale in April 2009 ---------------------------------------------------- We are expanding our relationship with code share partner Aer Lingus, enabling us to introduce service between Washington Dulles and Madrid. This is an opportunity to leverage the new EU-US Open Skies Agreement with a new transatlantic, non-stop route that would not be economically viable on our own and brings more traffic and revenue to our network.
The new route opens for sale this April, with daily service starting in March 2010.
Under the agreement, which covers select long-haul service between North America and Europe, we will manage revenue generation and Aer Lingus will be responsible for operational aspects. The new route structure will be operated and sold under both Aer Lingus and United codes, leveraging both carriers networks.
"Our expanded agreement takes advantage of new opportunities under the US-EU Open Skies Agreement, benefiting our customers with additional competition and capacity in these markets," says Glenn Tilton, United chairman, president and CEO. "This partnership provides for a deeper commercial relationship with Aer Lingus, and capitalizes on the unique strengths of both our companies.
On Thursday, Ryanair was making a takeover bid for Aer Lingus and made a friendly poke at our partnership agreement. We responded, in kind, by saying we appreciate Ryanair's congratulations on a good addition to our network, and look forward to taking Aer Lingus customers to four continents and hundreds of destinations that Ryanair doesn't serve.
---------------------------------------------------- Worldwide Sales and Contact Centers Ready to Tackle Challenges ----------------------------------------------------
Last week, our Worldwide Sales division gathered for its 2009 planning meeting to address the impact the current economic downturn is having on the travel plans of our most frequent business travelers and, in turn, our bookings.
The two-day event, held in a suburb of Chicago, was a joint meeting with Field Sales, Customer Contact Centers and Sales Support, bringing our teams together to talk about 2009 plans, share best practices and learn about the latest techniques and resources.
"Our core mission is to create a strong pipeline of high-yield customer traffic that contributes to our overall revenues," says Jeff Foland, SVP-Worldwide Sales. Equally important is our parallel path of continuing to keep commission costs in line by working very closely with the top travel management companies that deliver a premium share of business to United.
The business we gain from major corporations with established contracts is important to United as the revenue yields are higher than those from our individual customers. In 2008, we saw the yield- per-mile rate from our corporate accounts more than double that of average United customer traffic during the year.
Participants took stock of the positive results of the many organizational changes and go-to-market approaches the Sales organization made in 2008 to improve its sales effectiveness, particularly how United can best influence the key decision makers of large-scale business travel. Various means at our disposal are either through corporate share agreements with the travel departments of our corporate clients, creative incentive agreements with the major travel agencies, and always looking at ways we can improve the individual business persons experience with United to encourage more travel.
Barbara Higgins, VP-Worldwide Contact Centers, also addressed the significant work her organization has done in recent months to improve the fundamentals and to refocus on the many touch points the teams have with our customers, including redefining the groups strategic direction and incorporating improved technology and managerial processes in support of our reservations sales and service representatives. Like our colleagues in corporate sales, we are building a high-performance execution machine that will help increase guest satisfaction and ultimately differentiate United from the competition in how we handle all interactions, Barbara says. The Sales and Contact Center teams heard from other United leaders about the work thats under way to improve our airlines performance, with presentations by Glenn Tilton; Dennis Cary, SVP and chief marketing and customer officer, and Joe Kolshak, SVP-Operations. John Tague, EVP and COO, joined the groups evening event and participated in the divisions Presidents Club awards program, which recognizes our top sales performers. In a breakout session entitled Voice of the Customer, a panel of executives from three of our top corporate accounts shared insights about their expectations of United, their perspectives on the current economic pressures and ways our account teams can create even stronger partnerships with companies. Following the forum, John Zapko, executive director of Global Strategic Procurement at Lenovo, a leading manufacturer of personal computers, said to a member of our leadership team, "If the rest of the team is as positive and energized as you all are, you've really got some good things happening at United." There were also deep-dive breakout sessions led by Kevin Knight, SVP-Planning, Doug Leo, VP-Revenue Management, and others to share detailed information about specific topics uppermost on our customers minds. We had some significant wins in a tough marketplace last year, including new and renewed contracts with large, well-known international corporations, as well as significant growth in our charter business, Foland notes. While the economy is obviously putting a lot of constraints on corporations' travel budgets, United has great momentum and leverage in how we partner with the key decision makers. We feel confident that we have a solid, value-added product to sell over the long term. ---------------------------------------------------- Around the System ---------------------------------------------------- United will become the first carrier in the industry to operate 500,000 flights under the FAA's Extended- range Twin-engine Operational Performance Standards (ETOPS) when Flight 945 from Frankfurt lands Friday morning at O'Hare. ETOPS rules permit twin-engine planes to be certified to fly routes that take it beyond 60 minutes flying time from the nearest airport. This ushered in a new era of aircraft service on many of our routes, while reducing fuel consumption. You'll read more about this historic flight in next week's NewsReal. UAL Corporation's stock (NASDAQ: UAUA) closed Thursday, Jan. 22, 2009, at 11.45, up 0.54 (4.95 percent), on a volume of 9,890,395 shares. The UAUA stock ticker is available on the right side of SkyNet's homepage. ---------------------------------------------------- Good morning ... This is news for Jan. 22, 2009
---------------------------------------------------- Today's News:
1. With United's Support, Chicago Students Witness History
2. Baggage Test Using Radio Frequency Identification (RFID) To Begin at ORD ---------------------------------------------------- With United's Support, Chicago Students Witness History ----------------------------------------------------
On television and the Internet, millions of people around the world watched the inauguration of President Barack Obama on Tuesday. With United's help, a group of 15 students from the South Shore School of the Arts, our partner high school in Chicago, joined the throngs of people who were fortunate to witness this historic event in person.
Their once-in-a-lifetime trip to the nation's capital - many of the students had never visited Washington before, and most had never flown - began early Monday morning with a surprise greeting by news reporters from Chicago's network television affiliates, who filmed the students stepping off their school bus and checking in at our counter at O'Hare. The students were given United backpacks and pens, as well as cameras and journals to document their trip and, after a send-off by ORD Customer Service Manager Lisa Cole, boarded Flight 580 to Baltimore (BWI).
"Everything was good and smooth" on board and upon arrival at BWI, says student Phillip Dickerson, who filmed the entire flight while on board.
The group hit the ground running, checking into their hotel and embarking on a volunteer project as part of their community service work on Martin Luther King, Jr. Day. On Tuesday, a busy Inauguration Day itinerary was highlighted by the chance to witness the swearing-in up close. "It was fun, it was nice, it was great," said student Michelle Hawkins. "It was cold, but it didn't matter. I was so elated to be there."
A special inaugural ball was arranged on Tuesday evening for the students who dressed in ball gowns and tuxedos.
Wednesday's agenda included visits to historic attractions, including the Corcoran College of Art and Design and the Capitol.
The students, who return to Chicago on Thursday, will share some of their photos with us. See SkyNet for news reports about this exciting journey and we will post pictures of their trip in the next few days.
---------------------------------------------------- Baggage Test Using Radio Frequency Identification (RFID) To Begin at ORD ----------------------------------------------------
In an on-going effort to improve and speed up customer bag check, United will conduct a small test at O'Hare (ORD) to validate whether Radio Frequency Identification (RFID) technology will do just that.
According to Initiative Leader Gary Dulaney, more than 1,000 Mileage Plus elite and their family members will take part in a six-week trial beginning in February. Registered customers that check-in online for domestic travel are eligible to take part.
"We're looking to validate whether this technology will speed up the baggage check process," Gary says. "Invitations were sent to Mileage Plus members earlier this month to participate in the test, and the immediate feedback was very positive." The trial, which is being conducted in close partnership with the Star Alliance Technical Advisory Committee, will feature RFID luggage tags that allow customers to "drop, scan and go." Customers will receive RFID tags at their home and are asked to put them on their checked baggage. The tags are re-usable, so customers only need to attach them once and leave them on their bags.
The customer will check in online and complete all steps before arriving at ORD. A United representative will scan the RFID tag and provide a baggage claim receipt for each piece. After the customer departs, the RFID tag will be scanned again before the bag enters into the sortation and screening process.
"To our knowledge, United is looking to become the first airline to use RFID technology for baggage induction," Gary says. "It's still a relatively new technology that companies are slowly beginning to embrace."
Gary points out that this is just the latest in a series of new and innovative ways we are trying to improve the customer's experience when flying with us. "We're going to find out through this trial what challenges we still need to solve if this is to become the next generation of baggage check," Gary says. ---------------------------------------------------- UAL Corporation's stock (NASDAQ: UAUA) closed Wednesday, Jan. 21, 2009, at 10.91, down 0.71, on a volume of 16,663,344 shares. The UAUA stock ticker is available on the right side of SkyNet's homepage. Good day... this is news for Jan. 16, 2009 Good day...this is news for Jan. 9, 2009 --------------------------------------------------- Today's News: 1. Five United Stations Scheduled to Convert to Express Flying 2. Continental To Join Our Interline Pleasure Travel Program 3. United Appoints VPs for Safety, Base Maintenance --------------------------------------------------- Five United Stations Scheduled to Convert to Express Flying ---------------------------------------------------- This week, our employees at five different stations were advised of United's decision to convert their mainline flights to United Express service. Indianapolis (IND), Dayton (DAY) and Burlington, VT (BTV) are scheduled to transition on March 29 and the remaining two stations, Miami (MIA) and Tucson (TUS) are scheduled to transition on June 4. This is the result of our decision last summer to resize the business, to remove approximately 100 of our older, less fuel-efficient aircraft from the fleet and to decrease overall capacity. We do not have enough mainline aircraft to continue serving all our current mainline markets. After a thorough analysis it made good business sense to transition these markets to one of our United Express partners so we may continue to serve these cities in a challenging economic environment. Four of these stations currently maintain a schedule that contains one or two mainline flights along with several United Express flights. The one exception is MIA, which serves the ORD, DEN and IAD markets with six mainline flights during the current peak season. United is beginning the competitive bid process to determine who can cost-effectively manage the ground-handling work at each location. At this time it is unknown who will be awarded the ground- handling contract and the exact impact to our staffing levels. However, a transition plan is being developed to ensure there is no disruption to our service when the new schedule begins in March and June. We are working closely with the IAM and our employees at the impacted airports to keep them informed as the process moves forward. ---------------------------------------------------- Continental To Join Our Interline Pleasure Travel Program ---------------------------------------------------- Continental will be joining our Interline Pleasure Travel Program, significantly expanding the number of destinations available to travel-eligible employees. Effective Jan. 9, discounted travel will be available at the medium Zonal Employee Discount (ZED) fare rates for travel in Continental Economy and Business class. Continental, together with Continental Express and Continental Connection, has more than 2,500 daily departures throughout the Americas, Europe and Asia, serving 134 domestic and 131 international destinations. Continental hubs serve New York, Houston, Cleveland and Guam. We continue to expand the number of employee travel partnerships and make enhancements to existing agreements, ensuring our travel privilege program remains competitive and brings value to our eligible employees for leisure travel. After United and Continental entered into an alliance last year, we began pursuing opportunities to link our network and services, with the pleasure travel program agreement one of the latest enhancements. Our pleasure travel program now offers ZED pricing, designed to simplify and significant reduce the cost of non-revenue, space-available interline pleasure travel. ZED fares are offered through an interline fare program used by many carriers worldwide for space-available travel, replacing industry discount (ID) 90/95 fares for interline travel on specific carriers. For more information about all elements of United's travel privilege program, including new and existing agreements with other worldwide carriers, visit the Interline Travel Privilege page in SkyNet's Travel Section and click Individual Carrier Agreements. ---------------------------------------------------- Captain Michael Quiello Named VP-Corporate Safety, Security, Quality and Environment; Mark Mounsey Named VP-Base Maintenance ---------------------------------------------------- On Thursday we named Captain Michael Quiello VP- Corporate Safety, Security, Quality and Environment; Mark Mounsey was named VP-Base Maintenance for United Services. Michael will be responsible for managing all aspects of corporate safety, security, environment and regulatory compliance and will oversee our internal evaluation programs. Michael, who most recently held a similar position at Delta, succeeds Bill Yantiss, who is retiring after almost 20 years with United, having held a variety of senior positions within the safety division, including a leading role in implementing our industry-leading Flight Operations Quality Assurance program and Aviation Safety Action programs. Mark joins us after a 20-year career at Pratt and Whitney and is filling an officer position that was vacated in the fall. Mark will be responsible for engines, components and airframe and facilities maintenance at our San Francisco Maintenance Center, as well as oversight for all maintenance performed by third-party maintenance providers. "Captain Quiello brings to United a depth of experience that will build on our commitment to integrate safety into every aspect of what we do, and we also look forward to Mark joining our leadership team in San Francisco, with his eight years of experience running world-class engine maintenance operations," says John Tague, EVP and COO. "We are recognized within the industry for our work on safety, and we thank Bill for his leadership and commitment to implementing and sharing best practices and wish him well in his retirement." Throughout Michael's career at Delta, he served in several safety and flight operations roles and currently serves on the Air Transport Association Safety Committee and on the Board of Governors of the Flight Safety Foundation. He has held the role of chief technical pilot, chief pilot at New York's LaGuardia and Kennedy airports and director of fleets. He was qualified as a captain on various aircraft, including the MD88, B757, B767 and B777. Michael is a former U.S. Marine Corps officer and a graduate of the U.S. Navy Flight School. Most recently, Mark was general manager of Pratt and Whitney's largest engine overhaul center in Cheshire, Conn., where he was responsible for the repair and overhaul of engines for more than 30 airlines. He is also a recognized leader and passionate advocate of continuous improvement, lean manufacturing and effective visual factory tools and practices. He mastered the United Technologies ACE Operating System and gained a deeper understanding of continuous improvement principles at the prestigious Shingijutsu Institute in Nagoya, Japan. Michael will report to John, and Mark will report to Jim Keenan, SVP-Maintenance, effective January 12. ---------------------------------------------------- UAL Corporation's stock (NASDAQ: UAUA) closed Thursday, Jan. 8, 2008, at 12.77, up 5.89 percent, on a volume of 6,794,550 shares. The UAUA stock ticker is available on the right side of SkyNet's homepage ---------------------------------------------------- Good day... this is news for Jan. 7, 2009 Today's News: 1. Responding to New LAX Competition 2. Alaska Airlines Chooses United in Hawaii ---------------------------------------------------- Responding to New LAX Competition ---------------------------------------------------- Recent announcements of new domestic and international service by Delta and the launch of Virgin Group start-up V Australia highlight the growing competition we face at our Los Angeles (LAX) hub. We remain well-positioned to compete in these more crowded markets. * United and United Express offer 185 daily departures to 57 destinations; that's 67 more departures to 25 more destinations than American, the next-largest carrier at LAX. Delta offers flights to fewer than half as many nonstop destinations as we serve. * In 2008, we added daily service from LAX to San Jose del Cabo, seasonal daily service to Melbourne, Saturday service to Puerto Vallarta and seasonal Saturday service to Bozeman, Mont. One market that will see new service from LAX this year is Sydney, Australia. Again, we remain in a strong position: in addition to a superior North America connecting network, our codeshare agreements with Virgin Blue and Air New Zealand enable our customers to connect to 11 cities in Australia and New Zealand from Sydney and to four cities from Melbourne. Additionally, our B747 service offers our International Premium Travel Experience (IPTE) service, with new seats in United First, new lie- flat seats in United Business and improved seat cushions, carpeting and inflight entertainment in United Economy. The IPTE service has driven higher year-over-year customer satisfaction as measured by United Promoters scores for six of the past eight months, with numbers continuing to trend higher. "Success in this market will depend on our network strength and on our ability to provide reliability, better service and products that our customers value," says Kevin Knight, SVP-Planning. ---------------------------------------------------- Alaska Airlines Chooses United in Hawaii ---------------------------------------------------- When Alaska Airlines entered the Hawaiian market and needed ground handling services for its flights, the decision to work with United was a natural one, says Kirk Chaffee, general manager for United in Lihue. "They liked that our employees here are very consistent and conscientious," Kirk says. "Our check-in is smooth, and our ramp employees do a great job of loading and offloading bags. That efficiency helped lead to an expansion of our initial agreement with Alaska." When Alaska began operations in Lihue 14 months ago, it became the first United Hawaiian station to offer them ground handling services. Gradually, Alaska recognized that they preferred our services to those of our competitors. The excellent service and support Alaska experienced in Lihue contributed to expanding the United/Alaska ground handling relationship to Maui and Kona, most recently. Performing ground handling services for other airlines ties directly to the corporate goal of revenue generation within our Focus on 5. "Our teams remain extremely consistent in their service, not just to Alaska but to United flights," Kirk says. "The employees who work the flights really take it seriously, and that shows in the results." ---------------------------------------------------- UAL Corporation's stock (NASDAQ: UAUA) closed Tuesday, Jan. 6, 2009, at 12.06, up 0.61, on a volume of 10,396,411 shares. The UAUA stock ticker is available on the right side of SkyNet's homepage. Good day... this is news for Dec. 25, 2008 ---------------------------------------------------- Today's News: 1. United Teams Up with the Chicago Bears to Make Children's Wishes Come True 2. Our London Heathrow Team Pulls Together to Deliver Holiday Mail to Troops in the Middle East 3. What Differentiates United From Other Airlines... 4. Around the System 5. Happy Holidays --------------------------------------------------- United Teams Up with the Chicago Bears to Make Children's Wishes Come True ---------------------------------------------------- The Spencer family arrived at their Gary, Ind., home to find all of their belongings on the street after their rental building was foreclosed on and all residents evicted without notice. Relocating to Chicago, and seeking Chicago public housing assistance, the nine-member family was not expecting this to be a very happy holiday season. For the Spencer family, our Holiday Giving program offered a way to put gifts under the Christmas tree and food on the table. Thanks to the generosity of our Tax Department employees, the Spencers received 375 dollars in grocery gift certificates during our annual Holiday Giving party. Our Tax team organized a "Bring Your Lunch - Feed a Family" day, taking the money they would have spent on their lunches and contributed it toward the gift for the Spencer family. "The look of surprise combined with the sincere gratitude made us very proud," says Michelle Bailey, an administrative assistant who helped organize the group's holiday fundraising efforts. "The spirit of the season is giving and bringing joy to others, and as a department we banded together and achieved that." Altogether, United's employees and retirees purchased gifts to fulfill holiday wish lists from more than 1,000 individuals like the Spencers as part of the annual Holiday Giving program. This year's festivities -- organized along with the Chicago Bears -- included a fun-filled holiday party at the United Club at Soldier Field, home of the Chicago Bears.
More than 150 employee volunteers, including pilots, flight attendants, ground crew employees and others, along with their friends and families, used their vacation time and days off so they could assist with the event. For this year's activities, our Corporate Social Investment team coordinated with the Chicago Bears organization and six non-profit agencies -- the Chicago Housing Authority, Department of Children and Family Services, James R. Jordan Foundation, Chicago Parks District Youth Football League, Women in Need Growing Stronger (WINGS) and Teen Living Program. Parents and their children were treated to an afternoon of fun, games and holiday cheer, as well as opportunities to meet some of their favorite Chicago Bears players, including Brian Urlacher, Robbie Gould, Rashied Davis and Josh Beekman. Staley -- the Chicago Bears mascot -- joined the fun and welcomed our guests as well. "Despite the tough economic times we all face today, the generosity of our employees and retirees has not diminished," says Sonya Jackson, managing director Corporate Social Investment. "I'd like to thank everyone who made this year's contributions extra meaningful."
Visit SkyNet's Corporate Social Investment site (under Departments on the home page) to view photos from the Holiday Giving festivities. ---------------------------------------------------- Our London Heathrow Team Pulls Together to Deliver Holiday Mail to Troops in the Middle East ---------------------------------------------------- Neither snow nor rain nor diverted aircraft kept special holiday mail from reaching U.S. troops stationed in the Middle East thanks to our ground crew at London Heathrow.
Our Flight 930, carrying holiday mail for troops in Iraq and Afghanistan as well as for sailors stationed on ships in the Persian Gulf, was headed from San Francisco to Heathrow on December 19 when it was diverted to London Gatwick Airport.
The flight continued on to Heathrow, but landed with just one hour for the ground crew to transfer mail containers onto a connecting flight to Bahrain, where the mail would then be transferred to military aircraft.
This is when International Ramp Services -- led by Richard Miller, manager, and Ian Chappell, service director -- went into action. Their team members, some working 14-hour shifts, pulled together to make sure that the mail containers made the connecting flight. The team also coordinated with our partners Qatar Airways and Gulf Air to make sure that all of the mail would reach troops in time for the holidays.
"Our soldiers and sailors will get their mail on time, and that is really what matters at this time of year," says Bob Uttmark, managerPostal Sales. ---------------------------------------------------- What Differentiates United From Other Airlines... ---------------------------------------------------- Letters from customers -- the good and the bad -- come everyday to us at United. They are the tales of road warriors, of first-time travelers, and of customers who want their voices heard.
As we continue to manage through irregular operations caused by difficult weather across the system, a letter referencing a customer experience last Friday recognizes the type of services that thousands of our customers received on United flights around the world:
Dear United,
I am writing to express my gratitude and appreciation for your DCA Gate 29/31 staff members on the evening of Friday, Dec. 19, 2008. This was the day of the massive Midwest/Northeast snowstorm, and trying to make it home (to ORD from RDU, via DCA) was a challenge. My worst fears about connecting flights were realized as American, my original carrier, canceled my second DCA-ORD leg without explanation or warning.
Thankfully, at DCA, I was Rule 240ed* over to United. When I checked in on United Flight 631 at DCA, I was greeted at the gate with warmth and cheer by Ms. Sullivan, who had probably had a very long day and no reason to be particularly happy. The first thing I noticed was the extreme speed and efficiency with which she and her team processed the crush of American and US Airways refugees. New boarding passes were printed in 20 seconds for each passenger, and distributed with careful instructions. The staff communicated clearly and collegially with each other, probably the result of both careful training and a positive work environment. Everyone I saw had sympathy for the harried passengers.
As a side note, my in-flight experience was as pleasant as could be, with a spacious and clean A319 interior and smiling, cheerful flight attendants...
I know this is a tough time for all of us, especially the airlines, but I want to commend you on the fact that what differentiates United from the other airlines is its high-quality, well-trained staff. I have been singing their (and United's) praises ever since...
Again, thank you to Ms. Sullivan and her team at DCA. She made what could have been a disastrous day of flying an efficient and even pleasant one, and I am now happily home for the holidays.
Sincerely, Hirsh S. Durham, NC
* Rule 240 states that an airline will put you on another airline's flight at no charge if your original flight has been delayed or cancelled. ---------------------------------------------------- Around the System ---------------------------------------------------- For all U.S. domestic employees working on Christmas Day, snack boxes with a variety of special, high-end food items will be provided, along with a holiday greeting card. The items includecrackers, cheese, snack bars, chocolate bars and other treats. For our international teams, funds have been provided for celebratory food items to be enjoyed on the respective holiday for their specific location. For Onboard Service, in addition to our working crew members, the snack boxes will also be provided to our people in crew scheduling, crew accommodations and the Flight Attendant Service Center. ---------------------------------------------------- Happy Holidays ---------------------------------------------------- Best wishes to all our fellow employees, family and friends for a very happy holiday season this December.
NewsReal will resume on Friday morning. In the meantime, stay happy and healthy. ---------------------------------------------------- UAL Corporation's stock (NASDAQ: UAUA) closed Wednesday, Dec. 24, 2008, at 10.58, up 0.21, on a volume of 1,958,766 shares. The UAUA stock ticker is available on the right side of SkyNet's homepage.
---------------------------------------------------- Good morning... this is news for Dec. 17, 2008 Today's News: 1. STAR Winners, Star Teamwork 2. United, Singapore Airlines Team Wins New Star Alliance CEO Awar ---------------------------------------------------- STAR Winners, Star Teamwork ---------------------------------------------------- Congratulations to the teams at the winning stations for November in our STAR Reliability Recognition Program, which promotes our efforts to "start the airline right" and drive on-time performance. The November winners include three repeat top- performers Washington Dulles (IAD), Washington, D.C. (DCA) and Raleigh Durham (RDU), as well as two first-time monthly winners, Grand Rapids (GRR) and Albuquerque (ABQ). "We all know that on-time departures, whether a STAR flight or not, is just good business," says Bill Huston, service director Washington Dulles. "If we don't get the early flights out on time, the delays snowball through the day." In Raleigh Durham, communications and teamwork are the keys to the station's success. "We are in constant communication with the ramp, operations, flight crews, ticketing and customers to ensure that all operations pertaining to each flight proceed as routinely as possible," says Bonnie Wisler, Raleigh Durham customer service representative. For the CSRs who regularly work on the station's daily STAR flights, it's critical to avoid any last- minute surprises. "We proactively tag bags, check groups, pre-assign seats, check for customers with special needs and identify our Mileage Plus customers even to the point where we're checking for the next day," Bonnie says. "We also interact with customers, both personally and through announcements, so they know what to expect during boarding and to help identify any potential issues that could cause delays." Bill adds that no two STAR flights are alike. "I can honestly say there are no routine STAR flights," says Bill, who has worked for United for 39 years. "Each one has its own set of circumstances, but with experience you tend to anticipate areas that will need extra attention." While every flight is unique, pre-planning for the flight and following standard operating procedures help achieve on-time STAR departures, says Meg Corbett, service director and training coordinator at DCA. "We always plan for an on-time departure," says Meg, who has worked on STAR flights for five years. "Pre- planning helps to avoid delays, and our pre-planning includes initializing the passenger boarding system, managing the departure management list and managing carry-on bags." For this month's winners, the STAR award is part achievement and part competition. "We take great pride in focusing in on 'starting the airline right' every morning," says Steve Tanzella, general manager in Albuquerque. For the Grand Rapids station, which won a monthly STAR prize for the first time, the team wants to maintain their top-performing ways. "We are focused on keeping the traveling trophy at our station," says Diana Weiss, general manager. The station that exceeds its goal and posts the highest STAR performance is awarded a traveling trophy that it can display for employees and customers. In addition, our quarterly winners receive funds to host a local celebration. For more information, visit the STAR Reliability Recognition site under Airport Operations on SkyNet. ---------------------------------------------------- United, Singapore Airlines Team Wins New Star Alliance CEO Award ---------------------------------------------------- At the Star Alliance Chief Executive Board meeting in Chicago last week, Beth Turner and Katie Russell from United joined Sandra Au from Singapore Airlines in accepting the new Star Alliance CEO Award for the Automated Document Check (ADC) project. Automated Document Check was conceived by alliance members as the first fully integrated automated document verification system to smoothe the way for international customers traveling to points all across the world. Member carriers shared in the cost of developing the tool, which would have been prohibitive for a single carrier. As a result, customers from across the Star Alliance will benefit from the system. Singapore Airlines is the first Star member carrier to implement the tool realizing savings from shorter check-in times and a reduction in immigration fines for mis-processed documents. "The team developing Automated Document Check has significantly contributed to Star Alliance's leadership in the industry, creating a product that is an industry first. This project is an example of the value of the alliance in which, bringing experts from the various airlines, we are able to develop a product above each carrier's individual capabilities," said Star Alliance CEO Jaan Albrecht. According to Turner and Russell, ADC simplifies the document check process in a time of stringent security and visa requirements and is a key enabler for international kiosk and Web check-in. "When it is fully rolled out at United, ADC will simplify the international check-in process for our agents, because it automatically checks visa and passport requirements and returns what is essentially a red-light/green-light response, with very little opportunity for errors," says Beth, a senior staff representative in Airport Services Planning. "This product shows the true strength and power of an alliance," says Katie. "We had the privilege of working with so many talented people in their fields coming together with a common goal to simplify travel for our customers and our employees." Candidates for the Star Alliance CEO Awards were nominated by the alliance management board members and sounding board members, who surveyed the carriers for nominations. Another award was granted to the team that developed and is operating the nine Star Alliance Connection Centers. ---------------------------------------------------- UAL Corporation's stock (NASDAQ: UAUA) closed Tuesday, Dec. 16, 2008, at 10.22, up 0.70, on a volume of 6,162,481 shares. The UAUA stock ticker is available on the right side of SkyNet's homepage. NEWSREAL
I just received an update on the JFK Flight Office "reorganization" I had invited Pat and Barbara Maffeo, 30 years with United, to be our Pete Sofman Good Morning Pete, Thank you for the invitation, it sounds great but unfortunately With regard to our "reorganization" here's the low down as of There will be Regionalization of Flight Operations.. JFK will become a Barbara's job is still firm, but Tyrone and I have been told that our Due to this consolidation, our Chief Pilot Bob Spielman will go back The Business Manager's position, (formerly Sharon Meyer, Denise Maria DiDomenico's job was eliminated, but she is now working at JFKOZ. As of right now....all of this should transition in Jan., 2009.....but Presently, the pilots pull up their own flt planning paperwork ( we do Pete, thank you for the invitation, give my best to everyone, keep Take care, Pat Patricia M. Harben NEWSREAL Good morning... this is news for Dec. 5-Dec. 8, 2008 ---------------------------------------------------- Today's News: 1. United Mainline and Express Show Strong Operational Performance During Busy Thanksgiving Travel Period 2. United Services Paint Program Update ---------------------------------------------------- United Mainline and Express Show Strong Operational Performance During Busy Thanksgiving Travel Period ---------------------------------------------------- We turned in a strong operating performance for both mainline and United Express during the 10-day Thanksgiving holiday travel period. Our performance was significantly better than the same time period last year in nearly all categories -- giving us good momentum as we continue to work through the busy season. November 20-30 2008 Report for United (Over Same Week Last Year) NEWSREAL --~--~---------~--~----~------------~-------~--~----~ Nov. 20-30 Nov. 20-30 2008 2007
Departure Completion 99.3 (UA) 98.6 (UA) (Percent) 98.5 (UAX) 97.2 (UAX) On-time Departure :00 71.9 (UA) 50.2 (UA) (Percent) 73.0 (UAX) 64.1 (UAX)
Scheduled departures 79.7 (UA) 66.3 (UA) before 9:00 a.m. 80.2 (UAX) 78.0 (UAX) on-time :00(STAR)(Percent) Arrival on-time :14 86.1 (UA) 71.3 (UA) (Percent) 81.8 (UAX) 73.0 (UAX) Revenue Load Factor 76.6 (UA) 79.5 (UA) (Percent) 75.5 (UAX) 76.1 (UAX)
See SkyNet for a letter from Scott Dolan and Joe Kolshak about our holiday performance.
---------------------------------------------------- United Services Paint Program Update ---------------------------------------------------- Our ongoing focus on improving the condition of our products goes beyond the passenger cabin. In addition to repainting the fleet in our new livery, we are taking steps to improve the condition of our aircraft exteriors. Steve Hastings, manager-Aircraft Appearance, says 139 United aircraft of all fleet types have been painted in the new mainline livery, leaving 224 to be painted (excluding the B737s). The entire livery refresh program is anticipated to be complete in 2011. Planes are currently being repainted at an average rate of three to four narrowbodies each month. Each paint job takes between seven and 15 days and is carefully scheduled to minimize down time yet address the neediest exteriors first. The repainting schedule is currently skewed in favor of the Airbus 320s, as the Ted planes are rebranded with mainline livery. Of the 56 Ted aircraft, 22 have been repainted, and the remainder will be done by June 2009. Half will be finished by the end of this year. "Our other aircraft are scheduled for painting using a comprehensive audit model that looks at paint adhesion, visible markings, gloss and color fade," Steve says. "This allows us to target aircraft that have the worst condition." Other factors considered include maintenance visits, flight schedule and vendor capacity. The top priority now, according to Mike Lorenzini, managing director of SAMC, is to address mismatched radome paint schemes. The radome is the enclosure that protects the radar antenna at the nose of the aircraft. The fleet is being reviewed through a callout to identify aircraft with mismatched radomes and cowlings. Mark Buechin, quality manager-Line Maintenance, said that as of Monday, December 1, data on 414 aircraft had been entered and 11 of those were found to have mismatched radomes, which occur when we make maintenance adjustments for the sake of keeping the aircraft in service rather than delaying flights for merely cosmetic reasons. The new processes, combined with improved communication among departments, will help speed the matching of components with airframes, says Kevan Sklanka, manager-Component Maintenance. The radomes group in SFOLX has been working hard to adjust to the new customer demand, says Supervisor Felipe Mendoza. They have filled orders for five of the 11 mismatched radomes and are working on the other six. The shop will also work to maintain an inventory of at least two radomes per fleet, one in each paint scheme, so replacement orders can be filled immediately. The radomes of different liveries will no longer share the same Part Control Number (PCN), further simplifying the process. "In our earlier process, there was no visibility working strictly to complete a PCN fill," Kevan says. "We would get a request for a radome, fulfill the PCN request and ship it. Now we'll know exactly what they want by livery and be able to ship one out right away, then go right to work replacing that radome in the paint scheme in our inventory." ---------------------------------------------------- UAL Corporation's stock (NASDAQ: UAUA) closed Thursday, Dec. 4, 2008, at 10.43, up 0.51, on a volume of 8,312,959 shares. The UAUA stock ticker is available on the right side of SkyNet's homepage. Dec 4, 2008 Category Daily Goal On Time +00 58.2% 56.8%
---------------------------------------------------- Today's News: 1. United Is First U.S. Carrier To Participate in Environmental Flight Initiative Across the Pacific 2. We Are Reinstating Our Seasonal Service between Denver and London 3. We Are Streamlining Flight Operations Division to Improve and Modernize Operation 4. October Brings Good Results for United Promoters and STAR Reliability 5. Remember to Complete Your 2009 Annual Benefits Enrollment by Wednesday, November 19 ---------------------------------------------------- United Is First U.S. Carrier To Participate in Environmental Flight Initiative Across the Pacifi ---------------------------------------------------- On Friday, United became the first U.S. carrier to participate in the Asia and South Pacific Initiative to Reduce Emissions (ASPIRE), saving 1,564 gallons of fuel and 32,656 pounds of carbon emissions on a single flight across the Pacific to showcase savings gained from next-generation technology.
"ASPIRE United" used 11 fuel-saving initiatives during its flight from Sydney to San Francisco, reducing fuel burn and emissions by using up-to-the- minute fuel data, priority takeoff clearance, normally restricted airspace around Sydney's airport and new arrival procedures. Prior to the flight's arrival, California Governor Arnold Schwarzenegger joined United Boeing 777 Captain Rick Shay in the cockpit of a B-777 to receive a tutorial on tailored arrivals, a special arrival procedure that generates fuel savings with a smooth, continuous descent rather than the traditional step-down approach. "The governor was interested in understanding how continuous descent arrivals like the tailored arrival can substantially reduce our CO2 emissions and commented on what a difference it would make for the environment if all of the flights could fly a full Tailored Arrival like our flight 870 from Sydney just did," Rick says. "He understands the need to invest in next-gen technologies to improve the productivity of the National Airspace System and reduce green-house emissions." After the flight landed, Pete McDonald, EVP and chief administrative officer, joined the governor and representatives from the Federal Aviation Administration (FAA), Boeing and San Francisco at a press conference to discuss the environmental flight and to push for modernizing our Air Traffic Control system. Data from the flight will be analyzed by the FAA in its ongoing effort to accelerate the development and implementation of operational procedures to reduce the environmental impact of our flights. Media coverage of United ASPIRE is available on SkyNet. ---------------------------------------------------- We Are Reinstating Our Seasonal Service between Denver and London ---------------------------------------------------- On Thursday we will open for sale passenger and cargo service between Denver (DEN) and London Heathrow (LHR), reinstating a route that we originally launched earlier this year to enable our customers to fly to London from any of our five U.S. hubs. The daily, nonstop Denver-London service will operate on a Boeing 777 between April and October. As we do with all our routes, we will assess how this service performs before we make any other decisions about flying this route in 2010. The Denver-London service was terminated in late October as a result of ongoing efforts to size our business appropriately to reflect market conditions and volatile fuel prices. With fuel prices significantly lower today, and due to customer interest in the Mountain Region for service to London during a peak travel season, we decided to reinstate the route. "We are constantly reviewing our schedule to respond to customer interest and provide them with the best route network for their travel needs," says Kevin Knight, SVP-Planning. "We will continue to adjust our capacity to market conditions and seek new opportunities to serve markets that respond to our customer needs and deliver the results necessary to return us to profitability."
On Tuesday, as previously announced, we will open for sale new daily service to Geneva (GVA) from our Washington Dulles (IAD) hub. Pending government approvals, we plan to begin service in spring 2009, operating the flight with a Boeing 767 configured with our new, fully lie-flat business class seats. The proposed schedule between Denver and London begins in April 2009 and our Washington Dulles and Geneva route opens for sale on Tuesday for flights in the spring. See SkyNet for more details. ---------------------------------------------------- We Are Streamlining Flight Operations Division to Improve and Modernize Operation ---------------------------------------------------- To better align our flight training organization with all operations control functions, the Flight Operations division will begin relocating leadership and some support services to our Operations Center (OPC) in Elk Grove Village. "As we work to improve and modernize our operation, we will continue to benchmark and follow industry best practices to improve how we support and train our pilots by providing tools and resources that enable them to do their jobs," says Howard Attarian, VP-Flight Operations. "These changes will help fundamentally realign our operation for smarter, faster decision-making and improved reliability." In July we combined United Services, Flight Operations and Operations Control into a single operating division that has full responsibility for ensuring that the right decisions are made for maintenance, training, staffing and operational performance of our aircraft, as well as the support of our people. With last week's announcement, we will fully integrate Flight Operations by bringing flight training, flight standards and technology together with the Operations Control Center in Elk Grove to centralize our leadership and improve our operation while maintaining our high standards of safety and customer service. In bringing all the flight operations leadership together with the command center in Elk Grove, we will leverage the synergies between departments. Key leadership positions will move from the Denver Flight Training Center (DENTK) to be more closely aligned with the operations, improving functionality and developing better training programs, including some distance learning. "We are also continuing our efforts to modernize our domiciles, including the development of a stand- alone pilot service center," Attarian says. "As we develop the service center, we will be looking to our pilots to provide input into its design and management, with the ultimate goal of providing our employees with the resources they need to do their jobs and operate a world-class airline." ---------------------------------------------------- October Brings Good Results for United Promoters and STAR Reliability ---------------------------------------------------- October was a good month for us with a UP score that surpassed our quarterly goal, and five stations exceeding their goals for STAR Recognition. Our consolidated United Promoters (UP) score for October was 24.7 percent -- 3.0 points ahead of the quarterly goal as a result of solid gains in our A :14 performance and several Domestic Mainline and United Express drivers. This marks the third month in a row that UAX has exceeded goal. Our October winners in the STAR Reliability Recognition Program are: * Washington Dulles -- IAD, the second hub to be a STAR winner for two months in a row, following Denver's achievements in July and August * Washington, D.C. -- DCA, a third-quarter winner and a monthly winner in July that continues its successful performance * Columbus - CMH, achieving its first monthly prize; the station was a second-quarter winner * Harrisburg -- MDT, scoring its second monthly victory; the station was a second-quarter winner * Bangkok -- BKK, a third-quarter and second-quarter winner, achieving its third monthly win Visit UA Connections on SkyNet for full stories on both our October UP scores and October STAR Reliability Recognition Program. ---------------------------------------------------- Remember to Complete Your 2009 Annual Benefits Enrollment by Wednesday, .Nov. 19 ---------------------------------------------------- Be sure to make your 2009 benefits selections by Wednesday, November 19. To enroll in benefits, go online at www.ualbenefits.com or call 888-825-0188 to speak with a United Benefits Service Center representative. Refer to your 2009 Personal Enrollment Worksheet or contact the United Benefits Service Center for your health care options and monthly contributions. The worksheet also includes your PIN to access the United Benefits Web site. Please remember that even if you keep your same coverage, you must re-enroll in your Flexible Spending Account and the automatic crossover each year. For more information, visit the Annual Enrollments page available through the banner ad on the SkyNet homepage. ---------------------------------------------------- UAL Corporation's stock (NASDAQ: UAUA) closed Monday, Nov. 17, 2008, at 10.69, up 0.54, on a volume of 7,808,829 shares. The UAUA stock ticker is available on the right side of SkyNet's homepage. Nov 17, 2008 Categoty Daily Goal On Time +00 69.6% 68.3%
Good morning...this is news for Nov. 7-Nov. 10, 2008 ---------------------------------------------------- Today's News: 1. United's Annual Benefits Enrollment Period Runs Through November 19 2. United Receives Best in Business Class Award From Executive Travel Magazine 3. Brussels Station Wins Punctuality Award ---------------------------------------------------- United's Annual Benefits Enrollment Period Runs Through November 19 ---------------------------------------------------- As a reminder, the Annual Benefits Enrollment period runs through Wednesday, November 19. The elections you make will be effective beginning January 1, 2009, through the end of the year, unless you have a qualified family status change or work event. If you elect coverage under the Medical PPO option or the Health and Wellness PPO and enroll in a Health Care Flexible Spending Account (FSA), you are eligible for the "automatic crossover" feature. This option automatically submits your eligible medical expenses (e.g. deductibles and copayments) and retail pharmacy expenses (including mail order prescriptions from Medco) to your FSA so you get reimbursed without submitting receipts. If you are interested in this feature, your authorization is needed yearly. Refer to your personal enrollment worksheet or contact the United Benefits Service Center. We have also added new links to the Annual Enrollment page on SkyNet, which include information regarding the cost of medication for the Health and Wellness PPO as well as a Q and A on annual enrollment, the Health and Wellness PPO, the Health Risk Assessment and OptumHealth -- our new Behavioral Health Services administrator. Don't forget to enroll in a health care and/or dependent care FSA by November 12, 2008 for an opportunity to win an iPod nano. Once you've submitted and confirmed your benefit elections, your name will be entered in a random drawing to win. The Annual Enrollment page can be accessed by clicking on the banner on the SkyNet homepage. Employees can enroll or make changes online at www.ualbenefits.com to avoid long wait times. Those who prefer to enroll by phone can call 888-825-0188 to speak with a United benefits service representative. ---------------------------------------------------- United Receives Best in Business Class Award From Executive Travel Magazine ---------------------------------------------------- United is enjoying "suite dreams" after receiving another accolade for its new international United Business service. Executive Travel magazine honored our airline with its 2008 Leading Edge award for Best Domestic Airlines for Business Class Service based on feedback from high-end business travelers. "The readers of Executive Travel understand and appreciate high-quality, innovative products and services, and we are pleased to honor United with this award," says Janet Libert, editor, Executive Travel. "United's new business class service is a reminder to our readers that they may land at their destination relaxed and refreshed, ready for whatever awaits them." Dennis Cary, SVP and Chief Marketing and Customer Officer, notes, "We appreciate the recognition for the investments we are making to create a uniquely comfortable travel experience for our business class customers. We look forward to giving even more customers the opportunity to enjoy a truly lie-flat seat in our business class cabin." Customer feedback regarding our new International Business and First Class products has been very positive, according to our United Promoters (UP) score. For example, customer ratings for In-Flight Entertainment and Seat Comfort have improved substantially, helping to drive a 14-point gain in the UP score on our 767 and 747 fleet year to date - - more than double that of older business and first class products on those fleets. Our all-new United Business seats give us the distinction of being the first U.S. network carrier to offer 180-degree, fully-flat beds in business class. The business-class experience also features on-demand entertainment and cuisine from world- renowned Chef Charlie Trotter. The new United Business seats -- available to customers traveling to several destinations in Asia and Europe -- are being rolled out on additional aircraft across the international fleet. Executive Travel, published six times a year by the American Express Publishing Company, provides frequent travelers with information so they can live life on the road as well as they do at home. ---------------------------------------------------- Brussels Station Wins Punctuality Award ---------------------------------------------------- The Brussels Airport honored United with its Punctuality Award-Long Haul Airline for the second year in a row for our daily service from Belgium to Washington, D.C. To secure the award, we surpassed other nominees Delta, Ethiopian Airlines, Etihad Airways and US Airways. The airport awards airlines in the categories of marketing, environment and safety, and efficiency and punctuality. "I dedicate this award to the hard-working Brussels staff who go above and beyond the call of duty every day," says Patrick Hereng, the station's manager. "I would also like to commend the inflight and cockpit crews for working as a team with our ground staff here every day, 24/7." Our on-time performance at Brussels for the past 12 months ended Oct. 23, 2008, the night of the awards, was 66.8 percent on-time :00. ---------------------------------------------------- UAL Corporation's stock (NASDAQ: UAUA) closed Thursday, Nov. 6, 2008, at 14.27, down 0.19, on a volume of 8,169,810 shares. The UAUA stock ticker is available on the right side of SkyNet's homepage. Nov 6, 2008 Category Daily Goal On Time +00 65.0% 68.3% Oct 31- Nov 3 ------------ --------- --------- --------- --------- ---- Delta offers service to 287 destinations in 58 countries. Delta serves Jet Airways offers service to a number of destinations within India ZED fares are an interline fare program used by many carriers For more information on United's employee interline travel privilege
Our new service, Door-to-Door Baggage, enables customers to ship "Door-to-Door Baggage is another new service from our Travel Options Up to 10 days prior to travel, a customer visits My Itineraries on Door-to-Door Baggage joins other offerings in our Travel Options
---------------------------------------------------- SPECIAL NEWSREAL Good morning ... This is news for Oct. 14-16, 2008 ---------------------------------------------------- Today's News: 1. Employees, Families, Customers and Friends Enjoy 'Fleet Week' Event at San Francisco Maintenance Center ---------------------------------------------------- Employees, Families, Customers and Friends Enjoy 'Fleet Week' Event at San Francisco Maintenance Center ---------------------------------------------------- Under a perfect early autumn sky, nearly 10,000 employees, family members, customers and friends gathered on the ramp at the San Francisco Maintenance Center (SFMC) Sunday, October 12, to celebrate the third annual Fleet Week Employee Event. Culminating San Francisco's Fleet Week armed forces celebration, the event featured demonstrations by the U.S. Navy's Blue Angels, displays of military and civilian aircraft, a plane pull contest, exhibits, classic cars and motorcycles, entertainment and a chance to meet Blue Angels pilots and crews. More than 120 premium customers and members of the FlyerTalk.com community joined us at the event and toured the new International Premium Travel Experience cabins featuring our new United First Suite and the lie-flat United Business Class seats. Frank Dean, San Francisco-based flight attendant, and several colleagues hosted the FlyerTalk.com visitors, giving those frequent fliers an exclusive "behind-the-scenes" look at our maintenance operation. Six U.S. Navy Blue Angel jets roared over the crowd on their way to a performance at the San Francisco waterfront, returning 50 minutes later to treat the crowd to a low-altitude flyover and breakaway formation before landing and taxiing back to the base. The Blue Angels pilots -- who made the base their home for the previous week -- then took time to meet with our employees, families and friends, sign autographs and pose for photos.
The Blue Angels ground crews won a Plane Pull contest, towing a United 737 20-feet in 9.52 seconds. Jim Keenan, senior vice president of United Services, and Joe Kolshak, senior vice president of Operations, welcomed and thanked employees and their guests for attending. George Midwin, supervisor of mainframe maintenance, chaired this year's volunteer committee, and, along with dozens of co-workers from both the maintenance base and airport, helped organize the six-hour event for employees as part of San Francisco's annual Fleet Week celebration. Pictures from this year's event will be featured on SkyNet's UA Connections page this week. ---------------------------------------------------- UAL Corporation's stock (NASDAQ: UAUA) closed Monday, Oct. 13, 2008, at 7.00, up 0.98, on a volume of 12,449,506 shares. The UAUA stock ticker is available on the right side of SkyNet's homepage. Good morning ... This is news for Oct. 10-13, 2008 August July August Scheduled departures 72.18 70.96 72.08 Arrival on-time :14 72.91 68.25 66.20 On-time Departure :00 54.36 51.13 51.60 Mishandled baggage rate 6.48 5.20 5.42 Complaint rate 1.84 1.91 2.87 Cancelled flights 2.05 3.11 2.68 Among Six Major U.S. Carriers) Note: United reviews its performance relative to five other major network carriers, each of which accounts for more than five percent of U.S. domestic airline capacity. Those carriers include American, Continental, Delta, Northwest and US Airways.
NEWSREAL * * *
NEWSREAL Good morning.......this is news for July 25-28, 2008 Today's News:
1. United, Continental and Eight Star Alliance Members File Antitrust Immunity Application with U.S. DOT
2. United Offers Early Out Program to IBT- Represented Mechanics and Related Employees
3. United Names Timothy Canavan Vice President of Maintenance and Aircraft Appearance
4. United Announces May 2008 DOT Results
---------------------------------------------------- United, Continental and Eight Star Alliance Members File Antitrust Immunity Application with U.S. DOT ----------------------------------------------------
United, Continental Airlines along with eight other member airlines in the Star Alliance, asked the U.S. Department of Transportation (DOT) on Wednesday to allow Continental to join the group of nine carriers that already hold antitrust immunity. Approval by the DOT would enable United, Continental and the other immunized Star Alliance carriers to work closely together to deliver highly competitive flight schedules, fares and service to our customers.
"Filing this application for antitrust immunity is an important step toward realizing the full potential of our partnership," says Glenn Tilton, chairman, president and CEO.
Additionally, United, Continental, Lufthansa and Air Canada have requested DOT approval to establish a trans-Atlantic joint venture to create a more efficient and comprehensive trans-Atlantic network for our customers, offering them more service, scheduling and pricing options and establishing a framework for similar joint ventures in other regions of the world.
The DOT has approved more than 20 applications for antitrust immunity in the past, including the recent approval of immunity for six-way alliance activities in trans-Atlantic markets for the SkyTeam carriers Air France, Alitalia, CSA Czech Airlines, Delta, KLM Royal Dutch Airlines and Northwest Airlines. The DOT ruling allowed these carriers to consolidate their alliance activities.
In June we announced Continental's plans to join in the Star Alliance (see June 19 Special NewsReal). In the U.S, where antitrust immunity would not apply, we plan to begin broad codesharing with Continental, which eases travel for customers flying on itineraries using both carriers, and cooperation on frequent flyer programs, elite customer recognition and airport lounges.
Because there is little overlap between our networks, customers will benefit from access to a broader network available through this partnership. Additionally, once implemented, customers will benefit from a coordinated process for reservations/ticketing, check-in, flight connections and baggage transfer.
These cooperative activities are subject to notice to the DOT, which we and Continental will submit separately, and Continental exiting certain of its current alliance relationships. Continental currently anticipates that it will join the Star Alliance and begin broad codesharing and other commercial cooperation with us in the fourth quarter of 2009.
Although Continental cannot officially join the Star Alliance until it exits SkyTeam in 2009, we are beginning work on cost savings and other initiatives that are not dependent on antitrust immunity. We are currently pursuing five workstreams, each being co- led by a United and Continental officer.
Specifically, we are identifying the path to closer alignment of our frequent flyer programs, combining our considerable purchasing power, providing a world-class IT infrastructure to improve services and reduce costs, extending our lounge network and finally optimizing airport facilities to enhance network connectivity and cost savings. All of the work is critical to ensure that we can fully realize the value of this opportunity for our company, our customers and our shareholders. --------------------------------------------------- United Offers Early Out Program to IBT-Represented Mechanics and Related Employees ----------------------------------------------------
This week United began offering an Early Out program to International Brotherhood of Teamsters (IBT)- represented mechanics and related employees in United Services and Airport Operations. The program gives as many as 500 eligible employees the opportunity to separate voluntarily from the company with severance payments based on years of service and full retiree pass travel benefits.
Full-time IBT-represented mechanics and related employees who are at least 45 years old with at least 15 years of service as of the assigned effective date will be eligible to participate. Effective dates will be either September 1 or October 1 for United Services employees, and November 1 for Airport Operations employees who are approved for the program. The last day of employment for participants will be August 31, September 30 and October 31, respectively.
Applications for the Early Out program will be accepted between July 23 and August 1. All applications must be received by 17:00 Central time August 1.
Full program details and application forms are available on SkyNet's United Services and Airport Operations department pages. --------------------------------------------------- United Names Timothy Canavan Vice President of Maintenance and Aircraft Appearance We announced on Friday that Timothy Canavan has been named vice president-Maintenance and Aircraft Appearance for United Services. In this role, Tim will lead the company's line maintenance and aircraft appearance teams to improve the reliability, workability and interior cleanliness of our fleet. "Tim's strong background and extensive experience in maintenance will provide tremendous value as we work to improve our processes in the face of escalatingcosts," says Joe Kolshak, SVP-Operations. "His main focus will be on leading our maintenance team to safely deliver our customers a reliable aircraft, with a clean and workable interior."
Tim joins United from Delta, where he spent 22 years in a variety of leadership positions in maintenance and airport operations, transforming a number oforganizations and achieving immediate performance improvements. Most recently, Tim led Delta's worldwide cabin appearance and ground support equipment operations, where he was responsible for the successful implementation of several new initiatives, including programs that focused on employee ownership to improve cabin appearance, and large-scale Lean improvements.
Tim also led Delta's technical operations and quality division, where he was responsible for Lean implementation that transformed the company's base, engine and component maintenance groups to continuously identify and remove waste while improving quality and customer value.
Tim, who assumed his role on July 14, and is based at United's Operations Center and he reports to Joe.
--------------------------------------------------- United Announces May 2008 DOT Results ---------------------------------------------------- The recently released U.S. Department of Transportation report for May 2008 shows a mixed performance in the major categories we measure in the business. We improved our complaint ranking from sixth place to fourth. We also maintained our rankings in on-time arrival :14, on-time departure :00, and cancelled flights. However, we lost ground in terms of STAR on-time :00 departures and mishandled baggage rate, moving from fourth to fifth in both categories. United's complaint rate was 1.61 per 100,000 customers, a decline of almost one full percentage point, which moved us up from 6th place to 4th among the major U.S. carriers in this category. "While we are pleased with our improvement in the complaints category, we clearly have more work to do," says Scott Dolan, SVP-Airport Operations and Cargo. "We have a very focused plan to return us to the level of performance we achieved last year, and we plan to build on that work to ultimately attain top-tier performance in all categories."
DOT May 2008 Report for United (Among Six Major U.S. Carriers) May April May 2008 2008 2007 Scheduled departures 72.66 75.39 82.99 before 9:00 a.m. (5th) (4th) (1st) on-time :00(STAR) (Percent) Arrival on-time :14 72.42 72.77 75.66 (5th) (5th) (2nd)
On-time Departure :00 54.87 56.30 62.64 (Percent) (4th) (4th) (4th)
Mishandled baggage rate 4.76 4.91 4.83 (per 1,000 customers) (5th) (4th) (2nd)
Complaint rate 1.61 2.55 2.00 (per 100,000 customers) (4th) (6th) (5th)
Cancelled flights 1.77 1.73 0.88 (Percent) (5th) (5th) (3rd)
Note: United reviews its performance relative to five other major network carriers, each of which accounts for more than five percent of U.S. domestic airline capacity. Those carriers include American, Continental, Delta, Northwest and US Airways. ---------------------------------------------------- UAL Corporation's stock (NASDAQ: UAUA) closed Thursday, July 24, 2008, at 7.45, down 1.90, on a volume of 21,746,503 shares. The UAUA stock ticker is available on the right side of SkyNet's homepage. Jul 24, 2008 Category Daily Goal On Time +00 40.9% 56.0%
Frequency Chicago Albuquerque 2 to 1 Denver Atlanta 3 to 2 Los Angeles Baltimore 2 to 1 San Francisco Albuquerque 2 to 1 Washington Burlington 4 to 3
NEWSREAL United Announces New ZED Agreement with Qantas Posted July 7, 2008 Qantas is Australia’s largest airline, operating throughout Australia, New Zealand, Asia, North and South America and Europe. Our new ZED agreement also includes travel on Qantas' subsidiary Jetstar.
June 2, 2008 United Announces Additional Details about Capacity Reductions Posted May 30, 2008
As part of these changes, we will be exiting the Anchorage (ANC) market entirely. Because we have experienced revenue losses on mainline service to Anchorage during the fall and winter months, and given the increasingly challenging environment, we no longer can maintain this service. This change is effective September 2 for all flights except our daily Denver-Anchorage flight, which will continue to operate through September 20. As of September 21, we will no longer serve ANC. Our Human Resources representatives will work closely with IAM and senior leadership to address options for the 32 IAM-represented CSRs and 3 salaried and management employees in Anchorage. We are also focusing on more profitable international flying with widebody aircraft. As a result, effective July 7, United will reduce its weekly service between Los Angeles (LAX) and Hong Kong (HKG) from seven to four days per week, Thursday through Sunday, through the summer. Effective September 2, we no longer will serve HKG through LAX. Service to HKG through remaining cities will continue. We will continue to target new, profitable, international opportunities, including our recently announced service to Dubai and Moscow in October (see May 9 NewsReal). Along with the entire airline industry, we are responding to the impact of record-high oil prices that, at current rates, could potentially raise our 2008 fuel costs by more than 3.5 billion dollars over last year. We will continue to report capacity changes throughout the system as they occur. Contact: Karen Maxwell - HDQPR - Unitel 997-8629 Good morning........this is news for May 28-29, 2008---------------------------------------------------- Today's News: 1. Employees Meet Operational Goals in Nearly All Categories in April 2. Readers of Conde Nast Traveller Choose United for 2008 Innovation and Design Award ---------------------------------------------------- Employees Meet Operational Goals in Nearly All Categories in April ---------------------------------------------------- For April 2008, employees worked through thunderstorms and high winds that caused an increase in weather and air traffic control delays and cancellations, especially in Chicago at the end of the month. Despite the weather problems, employees delivered above-goal results in most categories. System on-time arrival :14 was above goal by 3.4 points at 72.6 percent. On-time departure :00 performance was 56.3 percent, 5 points above goal; and departure completion was 98.3 percent, 0.1 points above goal. United Express delivered an on-time arrival :14 of 74.3 percent, just 0.3 points below goal. On-time departure :00 performance was 64.1 percent, 2.7 points above goal. Departure completion was precisely at goal at 97.6 percent. Hard work and preparation led to significant improvements in STAR performance at stations across the country. System STAR on-time departure :00 performance was precisely at goal at 75 percent; and UAX STAR on- time departure :00 was above goal by 3.5 points at 78.5 percent. The April STAR results are a good indication of the work being done at stations across the system to build momentum in preparation for the busy summer travel season. The best performing stations in STAR on-time departure :00 for the month are: United mainline: Best hub was Los Angeles at 76 percent; best intermediate station was Omaha at 90.2 percent; and best small station was San Antonio at 97.1 percent. United Express: Best large station (with five or more daily departures) was Portland, at 92.1 percent; best mid-sized station (with 3-4 daily departures) was Allentown, Pa., at 93 percent; and best small stations (with 1-2 daily departures) were Buffalo; Casper, Wyo.; Sioux Falls, S.D.; Idaho Falls, Idaho; Montrose, Colo. and Vancouver, all at 100 percent. For more information on STAR performance, please see the May 23 NewsReal or visit the STAR Reliability Recognition page on SkyNet. ---------------------------------------------------- Readers of Conde Nast Traveller Choose United for 2008 Innovation and Design Award ---------------------------------------------------- Travelers and travel magazine aficionados alike gave a nod to United's new international premium cabins this spring in the second annual Conde Nast Traveller Innovation and Design Awards, in association with Marriott International. A panel of experts added the lie-flat premium-cabin seat designs by Daniel Weil of world-renowned firm Pentagram, and the industrial design team of B/E Aerospace, to a short list of notable recent designs in aviation. Readers of the magazine were then invited to choose their favorites from among the panelists' selections by visiting www.cntraveller.com. Our new seat designs triumphed in readers' hearts over competition from: * Singapore Airlines' new suites aboard its A380s, * Emirates' A380s, * the Bell 427 helicopter, * the Embraer Lineage 1000 private jet, * Jet Airways' first class cabins, * the Boeing 787 VIP edition, * Virgin Galactic's SpaceShipTwo, and * EADS' Astrium Spaceplane. Winners were also awarded in nine other categories: infrastructure, communications and technology, sustainable, style on the move, retail, culture, leisure, transport, and gourmet. "Developing the two new cabins with United is the pinnacle, it is the moment where the customer is put first," Weil said. "We delivered a comfortable environment in a perfect setting." United conducted extensive research with frequent international business travelers and employees to develop a product that provides more personal space and comfort. A cross-functional team, including Aircraft Appearance, Customer Experience, Engineering Maintenance, Onboard Service and Project Management, played a role in seat development to ensure maximum comfort, long-term durability and ease of maintenance. ---------------------------------------------------- UAL Corporation's stock (NASDAQ: UAUA) closed Tuesday, May 27, 2008, at 8.18, up 0.66, on a volume of 7,960,516 shares. The UAUA stock ticker is available on the right side of SkyNet's homepage. May 26, 2008 Category Daily Goal On Time +00 57.4% 51.3% Arrivals OT +14 74.9% 69.2% Star OT +00 73.4% 75.0% Completion Rate 98.3% 98.2% Load Factor 85.6% -- Psgrs. Boarded 202623 Sch. Departures 1489
Our UP results are as follows: While we exceeded overall goals for Domestic Mainline, International and United Express, our customers are telling us we need to continue our focus on improving key drivers such as Baggage Deliver. NEWSREAL NEWSREAL NEWSREAL United Announces Plans to Launch Nonstop Service to Dubai and Moscow Posted May 6, 2008 We plan to tap into two thriving economies with new daily passenger and cargo service to Dubai (DXB) and Moscow (DME) from our Washington Dulles (IAD) hub. Pending government approvals, United plans to begin both of the services on October 26. The aircraft to fly the Dubai and Moscow services will be available as a result of our decision to delay our San Francisco-Guangzhou service, as well as our seasonal schedule changes. Dubai, a key Middle East trade port, real estate haven and major world hub for IT and financial services, will become the second, fast-emerging Middle Eastern city United serves. In October 2006, we launched three weekly flights between Washington Dulles and Kuwait, and in December 2007 we increased this schedule to daily service. Service to Moscow, Russia's prime financial, scientific and cultural center, will mark our fifth new capital-to-capital service in the last two years, bringing the total to 12. With our first-ever flights to Dubai and Moscow, our Washington Dulles hub now will serve 24 international destinations, including five that began operating in the past two years: Beijing, Kuwait, Rio de Janeiro (seasonal service restarts in September), Rome and Tokyo. Washington Dulles also offers customers traveling from Dubai and Moscow onward connecting service to 88 destinations in the U.S., Canada and the Caribbean. The proposed schedule between Washington Dulles and Dubai is: United 976 Dep: 10:02 p.m Arr: 6:50 p.m.* United 977 11:30 p.m.* 6:44 a.m. All routes and frequencies are subject to change. The proposed schedule between Washington Dulles and Moscow is: United 96 Boeing 767 4:45 p.m -- 9:30 a.m.* United 965 Dep: 11:20 a.m. -- Arr. 3:35 p.m. All routes and frequencies are subject to change. *Scheduled departure times are for October 26-November 1. U.S. Daylight Saving Time ends on November 2, and flight times will adjust accordingly. Both aircraft will undergo United's multi-million-dollar product enhancement that brings to United First and United Business true flat-bed seats, on-demand entertainment and other spruced-up amenities that create the optimal space to work, sleep or relax while traveling to Dubai for approximately 13 hours and Moscow for approximately 10 hours. United remains the only U.S. airline to offer customchoice of four different seating sections - United First, United Business, Economy Plus and Economy. The new route is expected to serve as an important cargo entryway for the Middle East region's high demand for petrochemical, construction and consumer goods and for Russia's growing demand for industrial and consumer commodities. Mail also is expected to represent a significant amount of cargo volume on these flights.----------------------------------------------------
Good morning...this is news for April 28-May 1, 200 1. New EasyCheck-in Kiosk Software Will Help Employees More Easily Manage Their Own Travel 2. You Can Now Reset Your Own SkyNet Password ---------------------------------------------------- New EasyCheck-in Kiosk Software Will Help Employees More Easily Manage Their Own Travel ---------------------------------------------------- The May 5 implementation of the 25-dollar per bag fee for customers checking more than one bag will sharply increase the always-present need for our front line employees to focus on assisting our revenue customers. (See attachment for an Adobe Reader - PDF file - "Free Baggage Allowance Change Internal Q & A" Dale T) The May software release for EasyCheck-in will include enhancements for non-revenue travel. Beginning May 15, all NRPS travelers will have the opportunity to change their confirmed flights both before and after check-in. This functionality was added for NRSA employees in February. As always, all employees, companions, retirees and dependants are expected to use an automated check-in source when traveling (Easy Check-In online or Easy Check-In kiosk). Only those who are unsuccessful will need to ask a CSR for assistance. Remember to provide your dependents and companions who are traveling unaccompanied with your file number and any associated record locator numbers to aid them in this process. To make it easier for employees to manage their travel needs independently, enhancements and additional features for employee travel will be added throughout the year. For EasyCheck-in at the kiosk, it's important to note:
* NRPS travelers will not be allowed to change flights if they have pre-checked bags.
* UA NRPS travelers are subject to the same cancellation and booking code fees as today. This group will be allowed to change flight dates (today instead of tomorrow and vice versa). Every employee needs to be aware of these guidelines. * NRSA and NRPS travelers also have the option of checking in for roundtrip travel when the return is within 24 hours. * Employees, dependants or companions not listed in the correct cabin will be re-listed and placed on the departure management list. Applicants and employees of other airlines including UAX will be allowed to change flights for the same day as their original flight date only, in the same or lower booking code as the original flight. For more information on employee travel processes and guidelines, visit SkyNet's Travel section.
---------------------------------------------------- You Can Now Reset Your Own SkyNet Password ----------------------------------------------------
Effective Monday, April 28, employees can reset or change their SkyNet password without calling the Service Desk.
The new password management tool gives you more control over your password, while adding security to SkyNet's important applications and information. To use the password tool, follow these four steps: * Log into SkyNet. Go to the password management tool through the Change Password link under Quick Hits on the homepage. * Click on the link for "Change Answers to Authentication Questions." This opens a list of 20 security questions choose four of them as your "challenge" questions. * Type in the answers to your four challenge questions and click on the "Save" button at the bottom of the screen. Once registered, you will be taken to a separate screen to validate your questions and click on "OK." * Next, you'll be asked to change your password. Type in your new password and confirm it by retyping the new password. Click on the "Change Password" button. This will now be your SkyNet password for the next 90 days. Once you have completed these steps, you can choose to reset your password or change answers to your challenge questions at any time by using the Change Password link on SkyNet. If you forget your password, enter your user ID on the SkyNet login page and click on the "forgot password" link. You will be asked to answer the four challenge questions that you selected in the password tool. If you answer all four questions correctly, your password will be reset. If you do not answer these questions correctly, you must contact the Service Desk for assistance with the password change. If you have any questions about the password management tool, please call the Service Desk at Unitel 700-5800 or 800-255-5801. ---------------------------------------------------- UAL Corporation's stock (NASDAQ: UAUA) closed Monday, April 28, 2008, at 14.81, down 0.40, on a volume of 7,026,074 shares. The UAUA stock ticker is available on the right side of SkyNet's homepage.
United's Mechanics Change Union Representation Posted March 31, 2008 There were 8,631 eligible voters who cast 6,789 valid ballots, with 4,113 voting for IBT and 2,631 for the Aircraft Mechanics Fraternal Association. Forty-five voted for others. "United is always committed to working productively with the elected representatives of our employees, and we look forward to working with the Teamsters to ensure United's position as a strong, profitable and competitive airline," said Doug McKeen, SVP-Labor Relations. United's current collective bargaining agreement for mechanics and related employees -- including wages, work rules and benefits -- remai
Mar 23, 2008 NEWSREAL SPECIAL NEWSREAL --~--~---------~--~----~------------~-------~--~----~
From: Skynet United News
United is enhancing its pleasure travel policy for United, United Express and Mileage Plus travel-eligible employees, retirees and travel-eligible family members. Several changes will take effect Nov. 1, 2007: * First, we will no longer assess service charges for U.S. domestic and international flights in United Economy on United and Ted. We will continue to waive service charges for travel in United Economy on United Express. Applicable transportation taxes and fees will continue to apply. * Second, Performance Incentive service charge-waived flight segments, which are provided when we meet our reliability and customer goals, will have their usage period lengthen from one year to two years. This will give employees more time to take advantage of the awards. Any Performance Incentive segments that remain in your "bank" as of Nov. 1, 2007, will expire two years after the date of issuance. You can see how many segments you have by visiting WebList and clicking "My Coupons." * Employees who list themselves in United First or United Business using Performance Incentive segments but who are ultimately seated in service charge-waived United Economy will have their Performance Incentive segments returned to their "bank" of unused segments. * Next, we're simplifying the way pleasure travel service charges for United First and United Business are calculated that, in many cases, will reduce the cost. Premium cabin travel prices will be based on a new zonal fee structure, matching the Zonal Employee Discount (ZED) service charge structure currently used on some interline carriers. ZED pricing is based on the mileage between a point-to-point origin and destination. * Premium cabin prices will be discounted 65 percent off ZED fares for U.S. domestic travel and discounted 50 percent off ZED fares for international travel. * The cost for travel to Hawaii, which we've traditionally priced separately from other U.S. domestic travel, will be calculated in the same way as mainland domestic. * To assist employees in determining cabin pricing, the calculator on WebList will soon be updated so you can quickly and easily see the new pricing. * To make premium cabin pricing more consistent between mainline and United Express, we will be introducing the discounted ZED service charges for travel in the United First cabin on United Express. * Finally, in the first quarter of 2008, United employees, retirees and travel-eligible individuals will board United Express flights based on company hire date or years and months of service, according to United's travel policy. This will replace the current boarding at BP-8C, same day, time of check-in policy. * As always, United Express employees will board first on their own carrier, before other non-revenue, space-available travelers. For example, when the aircraft is operated by SkyWest, the boarding priority would be the SkyWest traveler, the United traveler, and then other United Express partner travelers. * Separately, we are reviewing our companion travel policy and will keep you posted if we make any changes to this travel privilege. "We are pleased to introduce these enhancements to our travel policy," says Pete McDonald, executive vice president and chief operating officer. "The changes are an acknowledgement of the value we place on our employees and our commitment to improving the employee experience, while making our travel policy more consistent across the company and more competitive within the industry." A letter that details these changes will be mailed to employees and retirees in the near future.
|
EYE-ON-UA Well-positioned to Succeed in 2009 Glenn Tilton, president, chairman and CEO, sent the following message in an e-mail to all employees on Monday, January 5. The New Year brings a new administration and Congress to Washington, D.C. President-elect Obama and his team face enormous challenges, both in the U.S. and abroad. There is little argument that the scope of issues to be addressed is as broad and complex as any new administration has confronted. The drive to stimulate the economy will clearly be the new administration's top policy objective. We play a unique role in enabling global commerce and connecting the U.S. to world markets, and the industry will need to partner with the new administration and Congress to ensure that we can contribute to restoring the global economy and our ability to compete in it. Investment in infrastructure already has been identified as a top governmental priority and we welcome that, particularly as it relates to improving the air traffic control system (ATC), which we know is inadequate and inefficient, yet so important to the future efficiency and growth of the U.S. and our industry. For the next two years, United will chair the Air Transport Association (ATA) and will be involved in leading industry efforts to make progress on infrastructure and other key industry policy priorities at this important time. 2008 was an extraordinary year -- unprecedented in the speed and severity of the global impact of first $147 oil and then the economic downturn and recession marked by failures in business sectors once thought immune from such catastrophic breakdowns. Our industry, more than most, is impacted by any number of external factors and we have been well tested in our ability to work through circumstances that could not be predicted. During the course of the year we transitioned from managing volatile and historically high fuel costs to navigating rapidly deteriorating economic conditions. The decisive and consistent actions we took served us well in both circumstances. * Our capacity reductions, driven initially by escalating fuel prices, have been important in managing the decline in demand caused by today’s recession – and the industry followed our lead. * Cutting our costs by more than $400 million – both fixed and variable – while reducing capacity by 4 percent, has been critical in keeping us competitive, and the fact that we expect to end 2008 at about a 1.5 percent increase in unit costs despite our capacity reductions is key in building our investors’ confidence. * Creating new sources of revenue offers our customers choices and has contributed to our bottom line at a time when fewer passengers are flying. * Completing a steady stream of financial transactions despite the tight credit markets has improved our liquidity and cash position. * Focusing on operations reliability and customer satisfaction delivered performance improvements on what matters most to our customers: planes that are on time and clean and people who provide courteous and respectful service. * Strengthening our position within the Star Alliance has benefited our customers and our competitive position, as does our announced partnership with Continental to connect our networks and leverage cost and revenue opportunities. These timely actions in 2008 have set us up to move forward aggressively in managing what we can control – executing our business plan of improving the fundamentals of our airline in 2009. The industry is now benefiting from lower fuel prices. In the short term, as with the rest of the industry, the rapid fall in fuel prices created obligations related to fuel hedges put in place to offset previous price increases. The benefit of lower fuel prices is expected to have offset completely the impact of those fuel hedge positions by April -- and if current fuel price levels hold, it would mean an overall savings for United of approximately $2.5 billion in fuel costs in 2009. We have done much to strengthen United’s position and we will continue to take actions that benefit our company in the ongoing challenging environment. We have strong partnerships, a strong brand and network; we are focused on the right plan -- both our product and our performance are improving. Never compromising the safety of our customers and our people, our efforts for further improvement in our safety is our first priority and is the foundation of our work, commanding our attention above all else. We have a great team at United and we have the collective benefit of the work we do, individually and as a part of the many teams tackling tough issues every day and developing new approaches. Our recent performance is evidence of our progress. We completed a challenging December in which our year-over-year performance was better in all our fundamental operational metrics despite more difficult weather conditions. We opened 2009 by flying President-elect Obama and his family from Honolulu to Chicago on New Year's Day – and our entire team executed the trip flawlessly. You can read more about the flight in today’s NewsReal and later today Joe Kolshak and Scott Dolan will have a wrap up of December for you. We go into 2009 prepared, well-positioned and resolved to succeed. Thank you for all your hard work in what was by any measure a tough 2008 – and I wish you and your families all the best for the New Year. Be safe and stay United, Last Updated: 2008.11.13 Continental Alliance Progress Glenn Tilton, president, chairman and CEO, sent the following message in an e-mail to all employees on Thursday, November 13. Late yesterday afternoon, the U.S. Department of Transportation set the timetable for final consideration of our application for Continental to join the group of nine Star Alliance carriers that already hold antitrust immunity and to start a trans-Atlantic joint venture among United, Continental, Lufthansa and Air Canada. We are in the home stretch of this DOT process. This is another significant milestone for us and brings us closer to being able to develop extensive codesharing with Continental in the U.S., compete well with other alliances and pool our international passenger revenues across the Atlantic. If awarded anti-trust immunity, we can work with our partners to operate as a single carrier on these international services, delivering more travel options and better competing with our larger competitors. After my last e-mail, I heard from many of you that you were encouraged by the opportunity the planned alliance with Continental creates for all of us and for our customers. Our competitors are taking note of this opportunity as well. The day after the Delta-Northwest merger received approval from the Department of Justice, in a spoil tactic, Delta filed an objection to what we provided to the DOT to support our application for antitrust immunity, seeking to delay our approval by requesting additional information. The DOT agreed yesterday that we had provided sufficient information in our application, and it is proceeding over Delta’s objection to move forward with final consideration of our application. The DOT has set a timetable of two weeks for others to comment on our application, supporting it or objecting to it. We will have seven business days to respond and anticipate we could receive approval as soon as next month. This application was a significant effort, with 10 carriers involved, and because of the thoroughness and rigor of the work behind it, it has moved forward effectively. I told you in my last email of the upcoming meetings with Continental CEO Larry Kellner and members of our teams in Houston. When we met last Friday, we reviewed the progress all teams are making along multiple workstreams. Larry and I reviewed and endorsed some 25 separate projects that, once implemented, would capture important cost savings and create opportunities in the areas of information technology, frequent flyer programs, lounges, procurement and sales and marketing. While in Houston, John Tague and I also had the opportunity to tour Continental’s operations center. As the economic and business environment continues to be impacted by a combination of unprecedented factors, we see tremendous value in our planned alliance from a cost, revenue and customer satisfaction perspective, and our peers clearly see that our unique relationship with Continental is a competitive threat. As we have discussed, we have the right network, right people and importantly, right partners to succeed in this market. And, as we saw with our application before the DOT, hard work, rigor and a focus on running the best airline will win the day. We look forward to completing our planned alliance with Continental and will keep you updated on our progress. Be safe and stay United, An Important Milestone in Our Continental Partnership Glenn Tilton, president, chairman and CEO, sent the following message in an e-mail to all employees on Thursday, October 30 . As expected, yesterday, the Department of Justice completed its investigation of the Delta-Northwest merger. That closing represents an important milestone in our relationship with Continental as they transition out of SkyTeam and join us in Star Alliance. As Continental transitions out of SkyTeam, we will continue our work with them to plan our new partnership that was outlined by our framework agreement reached this past June. Our relationship is intended to leverage the strength of our two companies and link our networks and services worldwide. Through our partnership, we will offer the most comprehensive network in the United States, and when Continental joins us in Star Alliance, we will have the network with the broadest scope and greatest choice of service in the world. We are pursuing work along several tracks, which puts us in a better position in today’s global marketplace. As you know, we plan to develop extensive codesharing with Continental in the U.S. so that customers can benefit from both of our frequent flyer programs and airport lounges, and elite customers can enjoy recognition in both programs. We also are seeking approval from the U.S. Department of Transportation to allow Continental to join the group of nine carriers that already hold antitrust immunity. This will start with a joint venture among United, Continental, Lufthansa and Air Canada. The expanded joint venture will help us compete with other alliances and will enable us to pool our passenger revenues and follows a very successful model we already have in place with Lufthansa. We expect approval later this year. And, we expect that Continental will officially join the Star Alliance in the fourth quarter of 2009. Beyond the regulatory approvals and network connectivity we are pursuing, we also have significant work under way to develop cost savings and revenue synergies. The teams are meeting again this week, looking at how we can leverage opportunities in corporate real estate, information technology, frequent flyer programs, procurement and our airport lounge networks, and Continental CEO Larry Kellner and I are meeting next week to review progress to date. All of this work provides significant benefits for our customers that we could not realize on our own, and generates revenue and cost savings for United. With Continental, we have a unique relationship that enhances our competitive position and will serve us well in a market that will continue to face volatility. As we discussed last week, our cost performance is improving. Importantly, our operational performance is also improving, and for each of the last four months we are closing the gap with our peers in on-time performance. The good work you are all doing is making a difference, and I want to thank you for that. It is that work, and that focus on safety, our customers and running the best airline we can that will enable us to compete well against our peers, no matter their size. We have the right network, the right partners and the right people to be the airline we know we can be. We ran a better airline in the third quarter, and as we go forward, our focus on improving our performance will drive further improvements. The opportunity is here, and the time is now. Be safe and stay United, Our Board of Directors Meeting Update Glenn Tilton, president, chairman and CEO, sent the following message in an e-mail to all employees on Friday, October 3. Last week we met with our board of directors for our annual strategic planning session. The timing of our meeting coincided with the unique sequence of market activities that are causing the unprecedented ripple effect we are all seeing played out today in the U.S. economy and increasingly around the world. With that as a backdrop, we discussed the economic and business environment in which we operate – including the cost of fuel; the state of our industry in the domestic and in the international markets; and, specifically, the opportunities for our company to be more competitive and successful going forward. There is much to talk about – with changes across the industry that can potentially impact how and where we compete. We benefit from a strong board of directors who are fully involved in our company throughout the year and take every opportunity for candid and probing conversations with our management team. We had an excellent two-day working session – consistent with business basics that we must earn a return greater than our cost of doing business. The majority of our time was spent discussing the work we have under way to strengthen our company overall – focusing on opportunities that have the most impact on improving performance and running a good airline. All our senior vice presidents participated and took our board through the specifics of our plan for 2009 that will build on our safety leadership; drive revenue and reduce cost; and move us to a better competitive position in service and reliability metrics important to our customers – and that make a significant difference for our people working across the system. We discussed our investments in the business, including the schedule for converting all of our international fleet to our new first and business class cabins. Our alliance with Continental is an important opportunity for both our companies, and we gave the board a progress report on the initiatives we have under way. We also reviewed our three-year financial plan, including the work to deliver industry-leading revenue performance, reduce costs company-wide, moderate risks related to fuel volatility and build our cash position. Next week we begin small-group meetings with our leaders from across the company to discuss the same opportunities and issues we discussed with our board and how we are moving forward in 2009 to improve our performance and return United to profitability. As Kathy Mikells, our incoming CFO, said in her e-mail on Wednesday, we have taken important steps on that path, including closing a transaction this week that builds our liquidity by $125 million and another $150 million in sight by year end. As Kathy said, closing these transactions, along with our $1.2 billion agreement with Chase announced last month, in a market where credit is increasingly hard to come by says much about our company. In this environment, we all understand that the work we have under way to build our liquidity, generate cash and control costs is critical. We are on track to reduce our costs, excluding fuel, by some $500 million this year and we are doing well in lowering our overhead expenses as we reduce capacity. We have a good plan in place to take the company forward. As we discussed with our board, and as we have discussed previously, we will focus only on those things that will improve the fundamentals of our operations — to strengthen our performance and deliver the results that we want for our company – and that our customers and our shareholders expect. Take care and stay united,
Financial Update Glenn Tilton, president, chairman and CEO, sent the following message in an e-mail to all employees on Thursday, September 18. Kathryn Mikells, who will step into her new role as our CFO on November 1st, is in New York today where she presented at the annual Calyon Securities Airline Conference. Today we made an important announcement about the completion of our Chase agreement that immediately boosts our liquidity by about $1.0 billion, further strengthening our cash position. I have asked Kathryn to update you on the presentation she gave and provide more information about the work that she led in closing our agreement with Chase. Please take a moment to read the message from Kathy. Thanks, * * * Dear Fellow Employees: As Glenn noted, I am in New York today discussing with investors how in this changing market, and with ever volatile fuel prices, cash is king. This morning we announced the closing of our Chase deal that has bolstered our cash position by approximately $1.2 billion, including improving our cash flow by about $200 million in the next two years and releasing about $350 million of previously restricted cash compared to our reserve level just last quarter. Just as important, it reinforces the confidence that JPMorgan Chase has in our company and the work we are all doing to strengthen our business. Notably, we raised this additional liquidity position without impacting our hard assets, and we still have more than $3 billion in unencumbered assets that gives us flexibility for the future. While 2007 seems far away, our results last year – generating $1 billion in operating profit, reducing our debt and generating industry-leading revenue results – were important; they demonstrated to our investors our ability to produce strong financial results, and they provided us with a good footing for the challenges we are facing with fuel costs and the changing environment. That said, we continue to lead our peers in free cash flow. Fuel, as all carriers at the conference noted, has challenged our industry and essentially wiped out all the gains carriers made during a short period of profitability. However, we are in a good cash position; unlike many of our peers, we have modest capital expenditures planned and no aircraft on order. We talked with investors about how we are focusing everyone in the company on the core elements that will drive cash flow and margin improvement, better our operational performance, provide a clean, reliable product, improve service and of course do so safely. Our investors understand that executing better and consistently on blocking and tackling to run a good airline benefits them, our customers and all of us. That work also includes the steps we are taking to reduce our capacity to ultimately get the balance of supply and demand right, so we can command fares to cover our costs. Investors were also interested in the steps we are taking to improve our revenue. We know the run up in our fuel bill has to be covered by additional revenue, and the increase in the charge for a second bag that we announced on Monday is a good example of how we are increasing our revenue. Our non-fuel costs also must be reduced, and we are on track to achieve a $500 million savings this year. It is significant that as we lower our capacity, we have held our non-fuel cost guidance. We have done this by removing variable costs, including fuel, that go down with less capacity, as well as fixed costs, including our recent emphasis on reducing our overhead expense. As we noted in our guidance we provided to investors yesterday, we expect our mainline passenger revenue to be up between 4.5%-5.5% year-over-year. We expect our mainline unit costs, excluding fuel, to be up between 1% and 1.5%, which reflects a modest performance improvement over the cost guidance we provided a quarter ago. Yesterday’s guidance indicated that we expect an accounting non-cash loss on our fuel hedges. However, based on September 15 prices, we actually expect a modest cash gain in the quarter for contracts that will settle in this period. The future impact of our hedges will be based on actual prices at the time the contracts settle. Ultimately, as fuel prices moderate, so will our fuel expense, and that is good news. And, as we discussed with investors, we are executing our plan that addresses the market challenges the industry now faces and we are focused on returning to profitability. As we continue this work, I will send you updates on our financial position. Kathryn
Last Updated: 2008.09.18
Hi, it’s Glenn, it’s Tuesday, August 26th, and I am calling from Chicago. On the call last week, we talked about the priorities of our company -- improving the fundamentals of our business: focusing on revenue, costs, operational performance, cleanliness of our product, and service – with safety first and foremost. The customer is at the center of our work, and one of our key measures of success is how well we deliver our product and service to our customers. Our work continues to reduce our costs and create new sources of revenue. The end goal, as Dennis Cary noted last week, is to continue to give customers choices they did not have previously, but in a way that provides value to them and improved revenue for United. Today, Graham Atkinson, executive vice president and chief customer officer, joins me on the call to discuss the linkage between our fundamental priorities and the evolving needs and preferences of our customers. Graham plays a critical role working closely with our leaders across the company to meet our goals of delivering exceptional service and experiences to our customers and creating competitive advantage for United. So, Graham, I'll turn the call over to you. Graham: Thank you, Glenn. As we all know, the airline industry is changing and we’re aggressively confronting higher commodity costs and building our business to operate in a world where higher fuel prices are, unfortunately, the norm. I talk with customers every day and many understand the challenging environment and have asked that we make smart decisions as we evaluate new options and ideas. Our work is focused on maintaining a thorough understanding of our customers and the needs and expectations of today’s traveler; it’s critical for us to understand the reasons why they choose United and what they value and are willing to pay for. Their expectations and preferences, as well as their budget, continue to evolve. In order to build a successful, sustainable business, we must continually tailor products and services around what different customers value most and what makes sense in today's business environment. We know that one size does not fit all, and we’re not trying to be all things to all people. Instead, we’re offering distinct choices and working to deliver consistently on the expectations of our customers. With safe, reliable, clean transport and courteous service as a foundation, we’re firmly committed to our premium customer strategy of rolling out products, services and amenities that provide more comfort and differentiation — something our premium customers have asked for and, importantly, are willing to pay for. By developing a unique portfolio of offerings, we can capture a greater share of premium guests, who generate nearly 50 percent of our, and the airline industry’s, revenue. For this reason, our efforts are focused on products such as the International Premium Travel Experience, or IPTE, reconfiguration of the A320 Ted fleet to add premium cabins, the launch of our Westin partnership for lounge and onboard products on premium service, or p.s., as we call it, as well as other initiatives designed to enhance the overall premium travel experience with United. One of the most significant product improvements we have made in my 18 years with United is indeed the redesign of our new international first and business cabins. The significant investment in the International Premium Travel Experience, as we call it, is a very visible example of our commitment to our most valuable customers. With the launch of the inaugural flight last year, United earned the distinction of becoming the first major U.S. airline to offer customers 180-degree, lie-flat seats in business class on overseas flights. Work on reconfiguring the international widebody fleet continues, with seven 767s and four 747 aircraft currently in service. On August 14, the inaugural flight to the Asia-Pacific region took place with a newly reconfigured 747. This aircraft will fly primarily between San Francisco, Hong Kong and Singapore. We already know our best customers are responding favorably to our new international premium service. Global Services, 1Ks and Premier Executives continue to give us high marks after traveling on reconfigured planes. UP, or our United Promoters scores, are nearly 15 points higher on IPTE aircraft versus non-IPTE aircraft. Already, reconfigured aircraft, along with our other premium investments, have helped us capture a greater share of the valuable premium customer segment. Our loyalty consolidation measure of success – which is about enticing our most valuable customers to fly United most often, rather than splitting their business amongst other carriers – has increased 13 percent when comparing the first half of this year to the first half of last year. As we gain more insight into customer behavior and purchasing patterns, we also need to revisit the value proposition for people who buy primarily on price. Our challenge is that we cater to many kinds of customers, those who are willing to pay more for higher quality, and those who only want the lowest-cost option. So we need to be smart and proactive about testing new, sensible ideas. A good example of this is our decision to launch a trial of different food options for both business and economy class. As part of this trial, on domestic flights with three cabins of service, we will be offering United Business customers complimentary fresh sandwiches, salads, snack boxes, snacks and drinks. On trans-Atlantic flights originating out of and returning to Washington Dulles, we will offer economy customers fresh Buy on Board options, including sandwiches, salads and snack boxes. By being nimble, flexible and deliberate, we can test new ideas and make the appropriate evaluation and business decision, thereby further positioning United for success. Our customer strategy involves numerous initiatives that are designed to enhance every interaction our customers have with us, from ticketing through to their final destination. Raising the bar on service is also a critical area of focus. Everyone who travels on United should experience a clean, workable product as well as courteous service, and we continue to work on these important foundational aspects of our business. When I talk to our customers, obviously I hear that the big things like our new international premium cabins do matter, but it’s also the little things we do that really make a difference. Consistency of service and taking opportunities to create memorable moments are equally important. As such, I would like to close by recognizing and thanking my front-line colleagues for their hard work as they put our guests at the center of their daily work. And with that, Glenn, back to you. Glenn: Thanks, Graham. Our success is largely measured by how our customers view us. Understanding our customers and what they value is key to meeting their expectations when they travel. Graham, as you said very well, we will continue to tailor our investments with an understanding of what our customers value most and what makes sense in today’s economic environment, and we will continue to be proactive in testing new ideas. That's all for now. I'll be talking to you again soon. Until then, stay focused on our customers and, of course, on one another … and stay united. --~--~---------~--~----~------------~-------~--~----~
Good morning, it's Glenn. It's the 22nd of July, and I'm calling today from Chicago. This week, we will take an important step in our partnership with Continental when we and other immunized Star Alliance partners apply for approval to have Continental join our antitrust-immunized group of nine carriers in Star. This Department of Transportation application lays the foundation to a partnership that clearly has all the right elements for success: a shared commitment and understanding of the opportunities we can create together; and teams with the capabilities, attitude and relationships to make those opportunities a reality. This is the first of what we expect will be more joint ventures with Continental, work that takes on even greater importance in the current economic environment. Later this morning I'll be joined by Jake Brace, John Tague, Graham Atkinson and Pete McDonald to talk about our 2008 second-quarter results on a conference call with our investors and the analyst community, together with journalists who follow our industry. Our industry continues to be challenged by unprecedented fuel prices, most recently hitting an all-time high of $147 a barrel. In the second quarter alone our fuel expenses increased $773 million — or more than 55 percent — compared to the same time period last year. Excluding our previously announced $2.6 billion largely non-cash accounting charges, today we reported a $151 million net loss that was driven by these record-breaking fuel prices. Other airlines that have reported their quarterly results are facing the same challenges, and most have reported second quarter losses as well. Now, more so than ever before, it is important that we think differently, as we are with our Continental partnership, and take aggressive actions to offset these unprecedented fuel prices and strengthen our competitiveness. While our revenue results for the quarter were in line with our peers, we need to improve our performance to keep United in the leadership position we've had for the past 12 months. It is critical that we pursue new revenue streams like our new baggage, merchandising, ancillary fee and other opportunities that are worth in excess of $1 billion per year over the next few years. As many carriers — led by United — have shifted capacity to the international market, this has created new pressure on revenue. As such, to enable better revenue management, we are reducing our fourth-quarter international flying by 7 percent. We are eliminating routes that are not competitive in this fuel environment, such as Denver-London, Los Angeles-Frankfurt and San Francisco-Nagoya, closing our Nagoya station. We committed to reducing our fourth-quarter mainline domestic capacity by 16 percent year-over-year. As recently as last Thursday we removed some 50 routes from our domestic schedule, and will continue this process as we eliminate 100 airplanes from the fleet. By making these necessary flight reductions, we can optimize our revenue potential and improve our profitability. Our cost performance in the second quarter was encouraging, as we performed better than Wall Street’s expectations, and maintained our cost guidance even as we reduced capacity. That said, as we fly fewer airplanes, we can reduce the costs that are necessary to run the airline. Today we announced that we're increasing our 2008 non-fuel cost reduction program by some $100 million to $500 million. All told, we will take the difficult but necessary step of reducing our workforce by 7,000 — including some 1,500 salaried and management staff by year end, and 5,500 front-line employees by the end of next year. It is important to know that we will continue to invest in safety and make strategic investments in high impact areas that improve our customers’ travel experience. A critical issue across the industry is liquidity and we are positioned well relative to our peers. We recently closed a number of transactions that add approximately $550 million in additional cash to our balance sheet, and we have several other actions under way, which we expect to announce over the next few months. As the entire industry faces these challenges, an unprecedented number of airlines, labor groups and industries like agriculture and trucking have come together with the Air Transport Association to call on Congress to stop oil speculation, which drives up both the volatility and the price of fuel. If you have not done so already, visit stopoilspeculationnow.com to learn more about the industry’s effort and take action. We're hopeful that Congress will quickly enact legislation to improve the oversight and transparency of trading in these markets, as well as some governors on trading for pure speculation. While fuel continues to challenge our industry, it is critical that we get the basics right. We must focus on the fundamental work to strengthen the performance of our company and deliver the results that our customers, shareholders and employees expect. Today our industry is challenged as never before, and I very much appreciate the work that you are doing for our customers during the very busy summer travel season. That's all for now. I'll be talking to you again soon. Until then, stay focused on our customers, and of course on one another ... and stay united. July 1, 2008 – The Industry's Call for Oil Market Reform Hi, it's Tuesday, July 1, and I am joined on the call today by Pete McDonald. Today, I want to discuss with you the record-breaking cost of fuel. This is an industry crisis. This week, oil hit an all-time high of $143 per barrel — up from $62 a barrel just one year ago. Recently, I and the CEOs of the U.S. carriers who are members of the Air Transport Association, met in Washington, D.C., with Illinois Senator Dick Durbin and asked him to lead the fight to address rising fuel prices — specifically the effects that excessive speculation are having on the oil market. As Oppenheimer Funds analyst Fidel Gheist recently said, "There is absolutely no shortage of oil. I'm absolutely convinced that oil prices shouldn't be a dime above $55 a barrel. I call it the world's largest gambling hall. It's 24/7. Unfortunately, it's totally unregulated. This is like a highway with no cops and no speed limit, and everybody is going 120 miles an hour." This is a time for industry and for political resolve. Real jobs, real customers, economies and communities are being punished by the hesitation to act. This is not an esoteric debate. Fuel is a commodity that must reflect its fundamental value and not a price driven by speculation. United is taking immediate action in our business, as Pete will discuss, and we are asking our legislators to act with the same immediacy, and pass legislation to reform the oil market. Pete, I'll now turn the call over to you. Pete Thanks, Glenn. There can be no doubt that our industry is facing a crisis with the price of jet fuel 141 percent higher than January of last year. The ATA projects that at fuel prices averaging around $136 a barrel, our industry will pay more than $20 billion more for fuel this year, and our airline alone will pay more than $3.5 billion. Largely driven by escalating fuel costs, the U.S. airline industry stands to lose in the range of $10 billion this year. The Air Transportation Association is leading the way in Washington, D.C., working with several legislators to enact legislation that creates a more transparent and regulated market for trading oil. They have a public education campaign under way on the gravity of the situation and the impacts of excessive speculation to our business and the customers we serve. But we can't wait for the government to act, so we too are responding aggressively to this unrelenting challenge — and taking action. We reduced our capacity and announced grounding of 100 aircraft. We launched new and innovative revenue initiatives, such as the bag check fees. And we reduced our capital spending and non-fuel operating expenses. Operationally, we have a consistent focus on reducing fuel use, with longstanding processes and recently announced initiatives, including our new engine wash that will save us 3 million gallons of fuel annually. While all of these steps — fare increases, new fees and cost cutting — are critical for our airline, we must also address the volatile and inflated price of oil. The consequences are devastating — with 10 airlines filing for bankruptcy since the beginning of the year, and eight of those ceasing operations. As you said, Glenn, there are significant ramifications for our people and our communities. The ATA estimates that more than 200 communities will lose air service this year, with 60 already losing flights and another 40 scheduled to lose service later this year. The industry expects to lose 24,000 jobs — at United, we have already announced a reduction of 1,400 to 1,600 salaried and management jobs and the announced furloughs of 950 pilot positions. United, the ATA and our unions are supportive of legislation that will provide reform in the oil market. Only 22 percent of the oil that is traded on the open market will ever be used. The remaining 78 percent is traded by "speculators" — those who trade the commodity but have no intention of ever using it. There has been a 71 percent increase in speculators in the market since 2000, contributing to the unprecedented drive up in the price. We are asking for a fair, transparent and balanced energy commodities market, with legislation that includes: fully closing all loopholes allowing institutional investors unlimited investment; ensuring all energy traders, including those trading on foreign boards of trade, are subject to the U.S. exchanges limits and increasing margin requirements and imposing appropriate disclosure. As you said, Glenn, this is the most critical issue facing our industry, and we need to act decisively. Glenn? Glenn Thanks, Pete. Hesitation is not an option — for United, the industry or Congress. We are urgently working with Senator Durbin and key legislators so they understand the real impact oil prices are having on our business, our employees and the communities which we serve. We will encourage them to put politics aside and to pass legislation to reform the oil markets. We will stress that lack of action is unacceptable — we simply don't have that luxury — as losses for United and the industry and our customers continue to mount. We are asking for legislation by the end of July. We will be coming back to you to talk about specific actions we are taking and how you can participate. That's all for now. I'll be talking to you again soon. In the meantime, stay focused on our customers, and of course on one another... and stay united.
Hi, it’s Thursday, June 19, and I'm in Chicago today, as we announce a new partnership with Continental Airlines that will redefine the industry by going forward in a way that is beneficial for our airlines, employees, shareholders, customers and the communities we serve. Our new planned partnership responds to the need for different thinking and solutions in an industry confronted by extraordinary and volatile fuel costs and dramatically changed market conditions. Following the decision by Continental not to merge, we suggested to Continental that an alliance partnership with ourselves and the Star Alliance would be compelling and allow us to achieve many of the benefits of a merger — we began the work that led to the agreements announced today that take us well beyond the benefits of a standard codeshare. This partnership takes advantage of the relationships we established during the effort both carriers put into our merger discussions. We've developed a solid working relationship with the Continental team and we're very pleased to invite them into Star as our new partners. United and Continental will plan to link our networks in a substantive and impactful way that will greatly benefit our customers, employees and investors, and will put us both in a position to compete far more effectively than we can today against strong global competitors. Continental will be applying to join the global antitrust-immunized alliance we have with some of our foreign partners, so that we can form joint ventures in each of the major international competitive arenas: trans-Atlantic, Latin America and Asia. Together with Continental, we will offer the most comprehensive national network in the United States. As Continental joins us in the Star Alliance, we will offer the broadest scope and the greatest choice of service in the entire world, making us highly effective competitors within the United States and in key international markets. This takes Star, already recognized as the leading global alliance, to a new level of competitiveness. Starting here in the United States, we and Continental plan to develop extensive codesharing, making travel easier whenever an itinerary involves both carriers. Customers will be able to take advantage of the benefits of both carriers’ frequent flyer programs and airport lounges, and elite customers will enjoy recognition in both programs, so that business travelers in particular can easily draw on the resources of both airlines. In the international region, we plan to establish joint ventures including other partner airlines, so that we can work together as a team with common incentives to deliver consistent and excellent service to global travelers. This will start in the trans-Atlantic region, with a joint venture among United, Continental, Lufthansa and Air Canada. Continental will apply to join in the antitrust immunity that United already has with several of its partners, including Lufthansa and Air Canada. This will facilitate the planned joint ventures and help us compete with other immunized alliances in an increasingly global aviation marketplace. Under this structure we will pool our passenger and cargo revenues. We already have a very successful model for this in place with Lufthansa, a joint venture that has been delivering significant revenue to United for five years. Our partnership with Lufthansa has turned our United flights between Germany and the U.S. into some of the most successful in our international network. With the customer feed that we get from Lufthansa, we have increased our service since 2002 by six daily frequencies between the two countries, growth that would not have been possible without those connections. Adding Continental into the partnership will simply further enhance our ability to offer our customers the most convenient service across the Atlantic and in other parts of the world as we expand our newly formed relationship. In addition to the network and customer benefits, we'll work with Continental to find sources of cost savings and operational efficiencies that can be gained through cooperation in areas such as common technology, procurement, the use of facilities, including lounges. Within the limits of our agreements, we will explore opportunities to reduce spending by pursuing common contracts with suppliers and combining our considerable purchasing power. We will leverage shared information technology capabilities to develop world-class systems more cost effectively, and investigate the possibilities to standardize and optimize our real estate and lounge systems across the world. There is tremendous potential for both cost and operational efficiencies and new revenue, and we plan to explore every opportunity. This partnership with Continental is an important win for United and for Star Alliance. As was widely reported in the press, Continental was evaluating membership in all three global alliances and was being actively recruited by British Airways to join oneworld. It's a credit to the members of the Star Alliance and to the Star organization that we were able to bring Continental into our alliance. This partnership is also a key component of our five-point plan, giving us access to a new and growing source of revenue and an opportunity to find efficiencies and cost savings. At the same time, it builds our competitiveness both within the United States market and internationally, strengthening our reach, customer base and our already world-leading alliance. This is the right time for this move. Our industry is under tremendous pressure due to today’s record high fuel prices. We need to be creative in finding ways to increase our revenue and reduce our costs. My expectation is that, years from now, we will look back on this day and see that we made the right choice at the right time and got the right results. That’s all for now. I’ll be talking to you again soon. In the meantime, stay focused on our customers, and, of course, on one another... and stay united.
Hi, it's Glenn and it's Wednesday, June 4, and I'm calling from Chicago to continue our communication of the actions necessary for us to successfully compete in an industry challenged by record high fuel prices and a softening economy. As I mentioned in last week's call, we are leveraging our discipline on capacity, taking aggressive action to put our aircraft where they have the best opportunity to earn a profit and addressing the need to size our business to the changing market. We are focused on reducing costs and improving revenue, both through fare and fee increases and by developing new sources of income. Today we are announcing additional steps that reflect our commitment to and confidence in our action plan, setting us on a path to profitability and in line with the expectations the market has set for the industry overall. Together with our solid platform of financial flexibility, built on a competitive cash balance, our significant unencumbered assets and the fact that we have no aircraft on order, these additional steps will enable us to compete more effectively – and ultimately more profitably – in this environment. I have asked John Tague, our chief operating officer, to join me on today's call to discuss the specifics of the actions we are announcing today. With that, I'll turn the call over to John. John: Thanks, Glenn. Earlier this year, we laid out a five-point plan aimed at building a United fit to win in today's reality. That plan sets out actions against five levers that we are pulling to be more efficient and ultimately profitable with today's fuel prices. Developing new sources of revenue is a key area of focus, by offering more products, such as Economy Plus and our best-in-class international premium cabins, while unbundling services like our recently introduced fee for a second bag. We are generating hundreds of millions of dollars in new revenue. We also continue to reduce our non-fuel costs and capital expenditures – work that will be made easier as we tighten our focus and simplify our business. We are building capacity levels that support the price increases necessary today and, of course, sizing our business appropriately. Today, we are announcing a number of significant steps aimed at strengthening United's ability to compete effectively and position ourselves in the future for profitability in the face of unprecedented fuel prices. While these are difficult decisions that will impact many of our employees, they nevertheless must be made if we are to assure United's long-term viability as a leader in the industry. One key component of our strategy is simplifying our fleet while reducing our capacity, particularly in the domestic market. To that end, we are removing a total of 100 aircraft from our fleet. This reduction includes the retirement of our 737 fleet – a total of 94 aircraft – 30 of which we announced early this year. This is provided we can work out terms with certain lessors. With that reduction, we will cut our mainline domestic capacity in the fourth quarter of 2008 by 14 percent year over year and further reduce domestic capacity in 2009 by 11 percent year over year, creating a capacity reduction over 2008 and 2009 of 17 percent in our domestic mainline operations. In addition, we are electing to retire six Boeing 747-400 aircraft, reducing our international capacity by 3.5 to 4.5 percent year over year in the fourth quarter of 2008 and 4 to 5 percent year over year in 2009. This change recognizes that, while the vast majority of our international markets are performing quite well, there are a few markets that simply can't be profitable at today's fuel prices. These reductions dramatically simplify our fleet and reduce our maintenance liability, significantly cutting the future investment required to maintain a modern fleet at United Airlines. They also retire our oldest and least fuel-efficient jets, reducing our average fleet age by 1.3 years to 11.8 years, giving us among the youngest fleets in the industry. These decisions also positively impact our customers by removing the aircraft that generate the lowest customer satisfaction levels among our narrowbodies and that operate at lower overall reliability levels. Even with these reductions, we will continue to maintain convenient schedules with quality service across our network to the most important destinations, an offering our customers have come to expect from United. We remain committed to all of our U.S. hubs and will achieve this reduction over time principally by eliminating frequencies, with modest reductions of routes and destinations. The reductions associated with the removal of the first 30 737s announced earlier this year are already in our published schedules. Schedule changes associated with the additional 50 aircraft will be completed in the near future. About 80 aircraft are expected to be out of the system by the end of 2008, with the other 20 coming out by the end of 2009. In addition, today we are also announcing the elimination of our Ted product offering and reintegrating the 56 A320s back into mainline configuration as we retire the 737 fleet. This will give us the flexibility to redeploy unprofitable leisure flying towards markets of greater importance to United and our customers, allowing us to ease much of the schedule impact associated with the retirement of the company's 737 fleet. As we implement these changes, we will have to take the difficult but necessary step of reducing our workforce. To that end, we expect to reduce our salaried and management staff by between 1,400 and 1,600 employees, including the previously announced reductions of 500. Work is currently under way in each division to decide the critical priorities and determine the necessary SAM reductions. As we finalize schedules, we will identify what reductions are necessary on the front line and communicate those as soon as available. Sustainable performance improvement will also be essential to our success and will be achieved most importantly by focusing on the basics. To ensure that, we will continue to support and invest in United's industry-leading safety performance, while also focusing on running a great airline in areas that are most important to you, our employees, and to our customers. First and foremost, we will – and we must – improve our reliability as well as the cleanliness and condition of our fleet. As we set our sights on the future, we must build the right leadership team with the right skills and commitment if we are to realize our potential of running the best airline in the U.S. In support of that objective, we are announcing today the appointment of Joe Kolshak as senior vice president-Operations. Joe joins United having served successfully for many years as a senior leader at Delta Airlines, most recently overseeing Delta's flight operations, ground operations, maintenance, safety and security, operations control and Delta's regional operation. United is fortunate to have Joe join our team, he will report to me and be responsible for Flight Operations, United Services and Operations Control. Joe is a proven results-driven leader, and we welcome him to United. In addition, Alex Marren will be promoted to senior vice president-Onboard Service. She will now be responsible for the full range of work within the division, including worldwide flight attendant operations, catering, crew accommodations and flight attendant scheduling. Cindy Szadokierski, who has been responsible for Operations Control, United Express and Ted, will now be our vice president of United Express and Airport Operations Planning, reporting to Scott Dolan, SVP-Airport Operations, Cargo and United Express. As part of this reorganization, Sean Donohue, our senior vice president of Flight Operations and Onboard Service, and Bill Norman, our senior vice president of United Services, will both be leaving United after long careers and dedicated service to the company. We wish them both very well as they move on from United. These changes reflect an unwavering commitment to drive performance improvement and the accountability that is necessary for us to become the leading U.S. airline. We aspire to nothing less, and we will do the work that will allow this company to achieve that objective. Glenn, back to you. Glenn: Thanks, John. With fuel at historically high levels, United and our competitors need to redefine ourselves in this marketplace. The answers are not easy, yet this environment demands that we and the industry act decisively and responsibly. At United, we are committed to take whatever steps are necessary to meet the challenge that today's economic environment presents, and work is under way to develop new revenue opportunities, to limit our capital expenditures and to take any other actions beyond capacity reductions we need to get us on the path to profitability and industry leadership in performance and customer service. That's all for now. I'll be talking to you again soon. Until then, stay focused on our customers and, of course, on one another... and stay United. May 30, 2008 - Taking Steps Necessary to Compete Hi, it's Glenn. It's Friday, the 30th of May, and I am calling from Chicago. There continues to be much speculation and much written about our company, and what our future plans might be, particularly in an environment of $130 oil. We have discussed with our board of directors the actions we need to take in this environment, and the strategic options we might pursue, including a merger. We have long been a proponent of consolidation within our industry as one tool that enables companies to more successfully compete in the global market and better cope with current challenges. After a considered review by our board of directors, United has determined that it will not be pursuing a merger at this time due to issues that could significantly dilute benefits from a transaction. We are evaluating other options, and will do what is right for United. As we have discussed previously on this call, we stack up well competitively, we benefit from the work we have done to improve our balance sheet, and we have a solid cash position and $3 billion in unencumbered assets that give us some flexibility in an environment that will continue to be extremely challenging. The U.S. industry is facing a $20 billion increase in fuel, and United, at current prices, is looking at a $3.5 billion increase over last year; it's clear that the status quo is not sustainable. The magnitude of the challenge the industry faces demands unprecedented change. We are already taking significant steps, including grounding 30 aircraft, and reducing mainline domestic capacity by 9 percent by the fourth quarter. That said, we must do more, and that work is under way. We will take the additional steps to size the business appropriately, leverage our capacity discipline to pass on commodity costs to customers and accelerate development of new revenue sources. Further, we are reducing non-fuel costs and our planned capital expenditures to improve free cash flow. We will be back with you soon with more specifics on next steps. Our action plan is aggressive, and we remain confident in our ability to put our company in a position to succeed. As always, we will continue to give you the straight facts. That's all for now. I'll be talking to you again next week. Until then, stay focused on our customers and, of course, on one another... and stay united.
Hi, it's Glenn and it's Monday, April 28 and I'm calling from Chicago. With Continental' s announcement yesterday, the dynamics in the U.S. airline industry continue to evolve. Each airline has options and will make its own decisions. We continue to evaluate our options and will do what is right for United. We also continue to believe that new business models are required to respond to the challenging market environment; for a shift of that magnitude, management teams must fully embrace the inevitability of change and have a meeting of the minds for any prospective partnership to be successful. United's strategy is consistent - focused on building a stronger, more competitive company - and we are confident of our future. We have generated significant free cash flow and have 2.9 billion dollars in unrestricted cash. We have a strong balance sheet and three billion dollars in unencumbered assets that give us access to capital. Our financial results in the past 12 months, led by our industry-leading unit revenue performance, give us a solid foundation to manage through the complexities of this current economic environment, and continue to move forward on the aggressive five-point plan we announced last week. At our regular performance council meeting today, we are focused on delivering against that plan. Our work is focused on driving new sources of revenue, improving operational performance in critical areas, reducing cost and cash outflow from operating and capital budgets and, at the same time, ensuring we do not impact premium customers and our employees' ability to deliver safe and reliable service. As we continue to plan for sustained fuel costs above 110 dollars, increased global competition from international carriers and a softening economy, our focus will be on that work. In these economic conditions, it is the quality of our work that matters most. That's all for now. I'll be talking to you again soon. Until then, stay focused on our customers and, of course, on one another...and stay United. April 22, 2008 - First Quarter Results Good morning, it's Glenn, it's the 22nd of April, and I'm calling today from Chicago. Later this morning I will be joined by Jake Brace, Graham Atkinson, Pete McDonald and John Tague to talk about our 2008 first-quarter results on a conference call with our investors and the analyst community, together with journalists who follow our industry. An increase of $618 million in fuel expense over last year resulted in a first-quarter loss for the company of $537 million. Although both our revenue performance and our non-fuel cost performance were good this quarter, they were not enough to offset the significant and rapid rise in fuel prices. To put the challenge we face into context, if crude stays at $110 a barrel this year, our fuel bill will increase by well over $2 billion compared with last year when fuel averaged $72 a barrel. As expected, all U.S. network carriers who have reported results to date have a loss for the quarter. In recent weeks, six carriers have filed for protection under Chapter 11, and four of them have ceased operations altogether, all of them citing increased pressure from fuel costs. Last week Delta and Northwest announced their proposed merger, citing fuel and changes in the global competitive environment as key reasons for this action. Consolidation is not a new topic to the industry or to United, nor is it the single answer to how we can be competitive in a changed marketplace. It is one of the changes required to address the gap between where we stand today and profitability and sustainability. As we have discussed many times, the environment will continue to change and be challenging. The work we have under way to generate new revenue and better our operating performance and cash flow is critical to adapt to these market realities. Today, we announced additional measures we are taking to improve the financial performance of our company. This includes passing on increases in our commodity costs and creating new revenue opportunities. We continue to be aggressive in putting forward fare and fuel surcharge increases. We are improving profitability by adjusting domestic capacity to strike the right balance between supply and profitable demand. We are reducing our fleet by a total of 30 aircraft, 10 to15 more than we previously announced. We expect by the fourth quarter, mainline domestic capacity will be down by about 9 percent on top of a 5 percent reduction in the fourth quarter of last year. In addition to cost control measures we announced last quarter, we are reducing both our planned capital and operating spending for the year -- targeting specific costs that will have the least impact on our core objectives -- cutting an additional $400 million from planned spending. As we adjust both our fleet and capacity, we must size the rest of our business accordingly. This will include difficult but necessary steps to reduce our workforce by some 1,100 employees, including 500 management employees, and these will come through a combination of attrition, retirements and furloughs. In this extraordinarily difficult environment, we recognize the pace of change needs to accelerate, and our actions today reflect just that. Fuel at over $110 a barrel does not alone make the case for consolidation -- it only makes it more compelling, as does increased foreign competition, and a softening economy. Our revised tactical plan for 2008 addresses the realities of our industry, while at the same time building off the solid roadmap and plan we are executing from our five-year strategy -- continuing to vigorously advance those actions that will strengthen the performance and the sustainability of our company. That's all for now. I'll be talking to you again soon. Until then, stay focused on our customers, and of course, on one another... and stay united.
Good morning, it's Glenn and it's the 15th of April. Yesterday, as has long been rumored, Delta and Northwest Airlines announced their intention to merge. This proposed merger will be subject to a detailed, lengthy review and regulatory approval process. In the meantime, each airline will continue to operate independently, just as each does today. As I noted in my message to you last week, we have long advocated that the U.S. airline industry would benefit from consolidation and the economic realities of today's marketplace make the case for consolidation more compelling than ever. But it is equally as important to remember that in addition to the challenging economic environment and high oil prices, U.S. airlines need to address the increasingly competitive industry environment. The largest carriers by revenue are foreign carriers, and since 1999, sixteen foreign flag carriers have begun service to the United States. Consolidation will help get the industry closer to being able to compete against foreign carriers, but as I said last week, new solutions in the regulatory and competitive environment that make it possible to participate fully in the global economy will also be required. We are continuing to focus our efforts on pursuing our strategic plan and taking measures to reduce costs, invest intelligently and maintain our capacity discipline. We are using our flexibility to respond quickly and decisively to today's marketplace and to manage successfully through this challenging economic cycle. We will also continue to focus on the core work of our airline: providing safe and personal service to our customers, running an efficient operation and ensuring we provide the leadership and support we need to do our best work for our customers every day. The industry has changed dramatically - both globally and domestically - and the old paradigms no longer apply; the current fuel and economic environment are only accelerating the need for a different approach. Consolidation is but one of the changes necessary to achieve sustained profitability and we have been fully supportive. As the industry evolves, we will take the actions we need to strengthen our global competitiveness and we will participate in consolidation when and if it is the right choice and provides the right benefits for employees, customers and shareholders. There will undoubtedly be heightened speculation and commentary in the press. We shall stay focused on our customers and if there is news to report we will bring it to you directly. That's all for now. I'll be talking to you again soon. Until then, stay focused on our customers and, of course, on one another...and stay united. March 18, 2008 - Facing Today's Economic Realities Hi, it's Glenn and it's Tuesday, the 18th of March. The economic environment in which our industry operates has changed significantly over the past several weeks. Continued uncertainty about the overall U.S. economy with the price of fuel at historically high levels has put significant pressure on all U.S. carriers. Fuel is our largest expense, as it is for the industry overall, and every 1 dollar increase in a barrel of oil increases our costs by about 60 million dollars. In the last six weeks, the price of oil has increased by some 20 dollars a barrel. United has led industry efforts to pass on some of these fuel costs to customers, as other industries pass on their commodity costs. United has led two fare increases in as many weeks, the second matched by other carriers this past weekend. We have also led the industry in taking critical - and responsible - steps to reduce domestic capacity to work to maintain profitability. Last summer, when we assessed the competitive environment and outlined our five-year plan, we determined that we would take a different path relative to our U.S. competitors - one that would strengthen the core business and put United in the best possible position to be successful. In the current environment, that work and our direction remain sound. We will continue to invest in specific elements of our business that are critical to safety; and on improving service delivery, with a focus on areas that provide value and a return to all stakeholders. As we recently outlined to our investors, we are pursuing new revenue opportunities from unbundling products and services, giving our customers the opportunity to pay for that which they value. This will generate important incremental income that will in some part offset costs that are beyond our control. At the same time, our progress in reducing cost through standard work and continuous improvement becomes even more critical. We will redouble our focus on conserving resources and reducing our spending in areas that are not critical and do not provide a return in this environment; and we will also continue our actions to responsibly deploy capital and divest the company of assets that no longer provide an acceptable return. In that regard, today we will announce a reduction to our fleet of 15 to 20 aircraft by year-end, eliminating from our fleet older, less fuel efficient, narrow-body aircraft. We will continue to review the deployment of our aircraft to ensure we are using our assets appropriately where they can provide the best return. These decisions, in addition to being responsive to the difficult business environment, are consistent with the overall strategy we outlined in our plan last year to make our company more financially resilient. That said, today's environment only amplifies the serious issues facing U.S. carriers in the global marketplace. At United, we have been candid and realistic about the growing gap between U.S. network carriers and our overseas competitors for some time. As the impact of today's business realities hits home, the issue of sustainability should be front and center. It is in no one's interest -- not our employees, our investors, and certainly not our customers - for U.S. network carriers to be so vulnerable to inevitable, as well as unexpected, economic downturns. U.S. airlines must function like other businesses, making investments and providing service where we can do so profitably. Delivering an acceptable level of return is the premise for everything we have in our five-year plan; from managing our individual lines of business with a clear line of sight to how they perform and add to the core business, to managing every element of the company more efficiently. This industry has serious challenges ahead; we have never been in denial about the issues our company has faced, and we are better positioned than most to address those that confront the industry today. That's all for now. I'll be talking to you again soon. Until then, stay focused on our customers, and, of course, on one another... and stay united.
February 5, 2008 – Talking with our Investors Good afternoon, it's Glenn. It's Tuesday, the fifth of February, and I'm calling from Chicago. For those of you who were unable to listen this morning to our Investor Day conference, we just spent this morning speaking with investors who hold our stock or who are considering investing. In three detailed panel discussions, key members of our leadership team gave the investors the full picture of the work under way at our airports and other locations, in our revenue and finance organizations and across the company. The team panels reinforced the collaboration and joint accountability we are driving from the highest levels of the organization — and throughout our company — to deliver improved results for our customers, our employees and our investors. The discussion was our opportunity to present our work to investors and their opportunity to discuss with our leaders the issues on their minds – issues such as the impact of our revenue actions on customer demand, how we will take our product forward in the competitive marketplace and the potential for industry consolidation. As we always do, we took the occasion to have a consistent conversation on our five-year plan, our results and our goals for our company. In a panel led by Pete McDonald and Graham Atkinson, Scott Dolan, Alex Marren and Barbara Higgins discussed how standard work and continuous improvement, coupled with product and service improvements, are making real changes for both our customers and for our employees. We soon will unveil a new premium lobby at O'Hare, and later this year we'll begin to install leather seats on our narrowbody aircraft. And we ensure everyone has the tools necessary to improve service, such as Blackberries for customer service representatives and ground equipment at stations that need it. We're investing in products that put us ahead of our U.S. competitors, and put us in a position to compete with virtually anyone in the world. In the revenue panel, led by John Tague, Kevin Knight, Dennis Cary, Doug Leo and Jeff Foland discussed the innovative approaches that are delivering some of the best revenue results in the U.S. industry. We are focused on giving our customers the option to tailor their travel experience by paying for services they value. Investors heard details about our potential to generate some $1 billion over the next five years by pricing those optional services, such as our revised baggage policy. We're also considering innovative ways to increase profits with Mileage Plus products. In addition to the new services, we also reinforced the work we have been doing for several years to improve our revenue: driving capacity discipline; maintaining network strength and ensuring rigorous execution in Sales, Revenue Management and Network Planning. The finance panel, led by Jake Brace with Kathy Mikells, Greg Taylor, Grace Puma and Stephen Lieberman, connected all of these discussions to their impact on the financial results of the company, leading to significant year-over-year improvement. We made great strides in 2007, achieving our most profitable year since 1999, reducing our debt by some $2 billion, and last month returning $250 million in cash to our shareholders. We also discussed how we're creating value across the company through improvements in our planning process and transformation in key areas, such as Strategic Sourcing. We're committed to running this airline like a business, an approach that will enhance shareholder value. Our goal is very straightforward. We intend to be the leading U.S. carrier in the next five years. The key to our plan is strengthening the core airline, and we emphasized today that we are seeing the results for all stakeholders. As we told our investors, the work we have done puts us in a strong position to participate in consolidation when the opportunity and the time is right for all of our stakeholders. No one will be making our decisions for us. We're focused now on building on the work we've done to date and making 2008 better for our customers, our employees and shareholders. So, until the next call, stay focused on our customers, of course, on one another... and stay united.
January 22, 2008 – Fourth Quarter and 2007 Results. Good morning, it's Glenn, it's the 22nd of January, and I am calling today from Chicago. Later this morning I'll be joined by Jake Brace, Graham Atkinson, Pete McDonald and John Tague to talk about our fourth quarter and full year 2007 results on a conference call with our investors and the analyst community and journalists that follow our industry. We made real progress in 2007, reporting a pre-tax profit of $606 million, our first full year profit since 2000, when oil averaged about $30 a barrel. In an unprecedented fuel environment, we have more than doubled our annual earnings year-over-year, and recent prices have exceeded $90 a barrel. We closed the quarter and the year with our revenue performance among the best in the industry. Annual mainline passenger unit revenue increased 7 percent year-over-year and we increased our unit revenue by some 13 percent in the fourth quarter. We have been extremely disciplined--and will continue to be disciplined--in our capacity planning, aggressively managing our assets so that they produce the best possible return for us. As a result of our actions, our international performance was strong for both the year and the fourth quarter. Our global network has been further improved during the year with new routes and the recent addition to Star Alliance of Air China and Shanghai Airlines, which provide critical connectivity for our corporate customers in the important China market. We also took decisive action in the United States market and, by the second half of the year, our performance was keeping pace with international; in fact, revenue results in every region improved year over year. We maintained our focus on cost control, completing a $400 million cost-savings program. Our annual unit costs, excluding fuel, were up 3 percent, due to a number of factors such as lower capacity, higher maintenance expense and information technology investments, including systems that will enable future customer enhancements. We are starting to see the benefits of standard work practices across the company through reduced costs, improved efficiency and better customer service. We have seen success in the first areas of focus, such as baggage handling, where we have reduced the number of mishandled bags by 40 percent. We are accelerating implementation of standard work practices across the company and plan to reduce our non-fuel costs by $200 million in 2008 to help offset inflationary pressures. The combination of our efforts resulted in an operating profit of about $1 billion, an increase of half a billion dollars over 2006, and our operating margin more than doubled. Our operating cash flow increased to more than $2 billion this past year, an important measure of success in our industry. Strong cash flow enabled us to reduce debt by $2.3 billion and, at the same time, make important investments in our business and our customers. We are improving service for all of our customers and enhancing the airport and onboard experience for our best customers from their arrival at the airport until they pick up their bags. The launch of our international premium cabins was the most significant product upgrade in a decade, and we became the only U.S. carrier with a truly lie-flat business class seat. We are refurbishing Red Carpet Clubs, introducing new premium lobby areas, and have introduced food from renowned chef Charlie Trotter. We now have premium boarding in place at all of our hubs, bringing the total to 58 airports systemwide, with more to come this year. As we focus on our customers, we have also made progress in improving our operational results and our DOT rankings, during a period when the industry was challenged by weather and escalating air traffic control constraints. For the 12 months ending in November 2007, we ranked third among the six network carriers in on-time arrival :14, moving up from the number 5 position the previous year. We will continue to improve in 2008, as we add breadth to our leadership team in areas critical to the success of our strategy such as strategic sourcing, which is being led by Grace Puma, new senior vice president and chief procurement officer; and information technology, under the direction of Keith Halbert, new senior vice president and chief information officer. We will leverage these areas to reduce our costs, fundamentally improve our operation and strengthen the infrastructure we use to deliver enhanced services to our customers. Tomorrow, we will pay out a $250 million special distribution to our shareholders, including $20 million for employee shareholders. I am pleased to report that our results today mean that we will be paying out $110 million in profit sharing to employees. In total, our employees will receive $170 million in payments related to our 2007 performance. We performed well overall in 2007 despite many challenges, including our worst December weather in company history. We will build on our momentum in 2008, which undoubtedly will present a new set of challenges, opportunities and possibilities. We can look to the future with confidence that we will compete, make the right choices for United at the right time, and make 2008 a better year for our customers, investors and all of us. That's all for now. I'll be talking to you again soon. Until then, stay focused on our customers, and of course, on one another... and stay united. Hi, it's Glenn and it's Tuesday, the 18th of March. The economic environment in which our industry operates has changed significantly over the past several Fuel is our largest expense, as it is for the industry overall, and every 1 dollar increase in a barrel of oil increases our costs by about 60 million dollars. In the last six weeks, the price of oil has increased by some 20 dollars a barrel. United has led industry efforts to pass on some of these fuel costs to customers, as other industries pass on their commodity costs. ss those that confront the industry to all for now. I'll be talking to you again soon. Until then, sed on ourustomers, and, of course, on one another... and stay united. December 13, 2007 – Strengthening Star Alliance Our operating profit, excluding special items, was $589 million, up 93 percent from a year ago, for an operating margin of 10.7 percent, 5 pointsahead of the margin we achieved last year. We continue our focus on controlling cost. Our unit costs were up due to higher year otenance inventory and an increased expense for accrual for profit sharing. That last expense is one that we are pleased to report is increasing because we are achieving our goals, and have the potential for a meaningful payout from our annual profit sharing program. Unlike some of our peers, United's program essentially pays out after the first dollar of pretax profit. While profit sharing is based on full-year pretax earnings, we've earned approximately $700 million in pretax profits at this point in the year. That means that for our performance through the third quarter, we have earned more than $100 million in profit sharing, and more than 99 percent would go to employees other than senior management. Our full-year results, and importantly, our performance in the fourth quarter, will determine the actual payout. Our financial performance we reported today is aligned with our operational performance, which is also improving. As a result of improvements across the system — and despite a challenging summer with weather and Air Traffic Control issues — we outperformed our network peers in on-time arrivals and baggage handling. Our performance, both financially and operationally, in the air and on the ground, reflects our commitment and the value of our work; focusing on our customers and continuously looking for ways to make our airline more competitive and customer responsive, and I want to thank everyone for their contribution to our results today. As I mentioned in my last call, and in a combined newly appointed captain and purser seminar, as we will discuss with investors today, we can now plan for our future. Our five-year plan is our road map in which we have $4 billion planned to invest in the business and 250 specific projects that will continue to build on our work to date. We intend to create an enterprise that can succeed in a world that will continue to change — whether we all like those changes or not. There will be a very different competitive environment for airlines in the United States five years from now — as well as escalating competition in international markets — and we have to be ready to compete successfully in that environment. We're all building a business that can sustain through the down cycles, offer customers choices and an experience they value, create a return for our shareholders and a future for our people who will share in the upside when we are successful. It's a simple proposition; we're running this airline like a business. We fully understand the inherent complexities of this industry, and we're focused on moving beyond industry dysfunction to solution. That's all for now. I'll be talking to you again soon. Until then, stay focused on our customers, and of course, on one another... and stay united.
The results we are posting across our company have enabled us to look to our future and create a five-year plan that will position us for success in an industry that has historically and consistently destroyed value forshareholders and stakeholders. The ambition of our five-year plan is to position United to be the global airline of choice for premium customers, employees and investors, maintaining our fundamental commitment to safety and balancing the needs of all of our stakeholders. Our main focus continues to be strengthening our core business, and that is where the vast majority of ourwork and effort will continue to be directed. To strengthen our airline, we have charted a detailed roadmap of more than 250 initiatives and will be investing nearly $4 billion in capital over the next five years. The investments support improvements for customers and employees, and drive revenue and efficiency improvements. You will be hearing more about the specifics of this work as we move forward. Much depends on the successful implementation of the 250 initiatives and our new planning process is playing a critical role in that effort. Through this process, we are focused on driving accountability, integration and successful execution – and, tackling issues that have historically challenged the industry. The approach that underpins the new planning process demands cross-functional collaboration, with carefully planned checkpoints to eliminate duplication, discuss priorities and determine which initiatives move forward. The leaders responsible for planning are also accountable for delivering results to ensure that no one signs up for work they cannot commit to execute successfully. Everything is measured and tracked through our Performance Council, where senior executives from Airport Operations; Flight Operations; Onboard; Maintenance; as well as Planning and Customer divisions regularly monitor the progress of the company's most important work. The senior management team also presented our plan at our September strategic board meeting two weeks ago -- the final step in a comprehensive process. In addition to strengthening the performance of the airline, our plan also includes unlocking the value of business units such as United Services and Mileage Plus, and contemplates the eventual consolidation of the industry and United's role in that process. Our goal is to break this industry's cycle of value destruction and serialrestructuring. We aspire to generate returns to shareholders and stakeholders that are competitive with American industry in general. The boom and bust cycles traditionally accepted in this industry have devastating consequences for everyone and are a deterrent to long-term investors. The past five years have been very difficult for our company. We had to take a hard look at ourselves and at the forever-changed competitive environment in which we compete today. As I said at the beginning of my call, it is because of our results that we can today look ahead -- results that have been made possible by the changes we have made and the work we have done. We can now plan ahead and invest in a future that will further strengthen our ability to compete in a fast-changing global marketplace; and, that will significantly improve our ability to manage through down cycles the industry will undoubtedly face. At United, we intend to do more than survive -- we intend to create sustainable enterprise. We now have the roadmap and the ability to have a successful future --- and that is what our employees, our investors and our customers want and expect of us – and it is our commitment to deliver on that expectation over the next five years. That's all for now. I'll be talking to you again soon. Until then, stay focused on our customers, and, of course, on one another…and stay united.
|
