Appendix E

Letter of Understanding - Early Out Option

January 7, 2005

Mr. Gregory E. Davidowitch, President
United Master Executive Council
Association of Flight Attendants-CWA, AFL-CIO
6250 N. River Road, Suite 4020
Rosemont, IL 60018

Re: Early Out Option

Dear Greg:

This Letter confirms our understanding that within thirty (30) days after ratification of the 2005 - 2010 Flight Attendant Agreement, AFA-CWA and United agree to meet to determine whether there are cost-neutral options for an early out program. If the parties agree that a cost neutral option is feasible, then the Company will implement such program as soon as practicable but not more than ninety (90) days after agreement on a cost neutral option.

Sincerely,

Frank Colosi
Director Labor Relations
Onboard Service

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