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News Release

November 18, 2002

United Pilots Ratify Recovery Plan 

-- Final Approval of Plan Contingent on UAL Receipt of ATSB Loan Guarantee --  

ROSEMONT, Ill.—The United Master Executive Council of the Air Line Pilots Association, International announced today that the pilots of United Airlines have overwhelmingly ratified changes to the pilot labor agreement in connection with United’s Economic Recovery Plan.  The pilot agreement is a critical component of a $5.8 billion labor savings program that will help qualify the airline for a federal loan guarantee through the Air Transportation Stabilization Board (ATSB). 

Approximately 80% of the eligible United pilot group cast votes on the new labor agreement, which was approved by a vote of 6526 to 340.   

The pilot agreement will provide the company with more than $2.2 billion cash savings over a five-and-one-half year period.  The new labor agreement will only become effective upon the ratification of recovery agreements by the Company’s other labor groups and United’s receipt of an ATSB loan guarantee on terms reasonably acceptable to the pilots’ union.  

“We are gratified that the overwhelming majority of the pilot group has rallied around an out-of-court restructuring program,” said Captain Paul Whiteford, chairman of the Master Executive Council of United pilots (UAL-MEC).  “The recovery program is the best and only realistic course of action for United.  This pilot vote is the strongest possible statement of the pilots’ commitment to stabilizing United and returning the carrier to profitability.” 

Under the new labor agreement, pilot wage rates will be reduced by 18% on the effective date of the Economic Recovery Plan.  

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ALPA Contact:  David Kelly, (847) 292-1700