When the Confirmation Hearing began, United announced the Tentative Agreement for a Flight Attendant Replacement Plan as a revision to their Plan of Reorganization. The long battle waged through our three-track fight produced a replacement plan that more than compensates the time, energy and expenses of our pension fight. Most importantly, it stems the horrible potential for loss of retirement security we faced in United’s initial plan for termination and replacement of our pension. The entire agreement is posted on our website this evening for your review. A thorough review and discussion of the process that brought us to this point along with a section for questions and answers will be posted as soon as possible in the coming days.

The Management Bonus Survey posted on our website closed today, not surprisingly, with the following results. Ninety-nine percent of participants in the survey did not support the management bonuses contained in their Management Equity Incentive Plan (MEIP). Ninety-four percent of the participants did not support ANY bonus for management.

During the Court proceedings, the Association of Flight Attendants-CWA, the International Association of Machinists and Aerospace Workers, the Air Line Pilots Association and the representatives of the retired pilots collectively waged a vigorous objection against the management equity bonus program. The Court acknowledged the wide-spread media coverage of concern over executive compensation in this country. Then, incredibly, Judge Wedoff ruled that the objections to the bonus program would be denied because it’s consistent with the way executives are paid in our country. The MEIP for 8% of equity distributed to 400 members of management will be approved with confirmation of the Plan of Reorganization which is expected to take place in the Bankruptcy Court this Friday.

Also in Court today, the Bankruptcy Court also retained jurisdiction over United’s right to reject our Collective Bargaining Agreement with regard to the termination of our pension plan in the event the Pension Replacement Plan Tentative Agreement is not ratified and subsequent appeals results in restoration of the Defined Benefit Pension Plan.

The Creditors Committee, of which AFA has held one of the 13 voting seats during the bankruptcy, will be dissolved with the confirmation of United’s Plan of Reorganization. A committee consisting of three members, however, will continue as a Post Emergence Committee to monitor implementation of the Plan. The Committee appointed our President, Greg Davidowitch as one of these three individuals for continued oversight.