Union Coalition Letter to Mr. Tilton

Page updated: September 25, 2002

Glenn F. Tilton
Chairman, President and
Chief Executive Officer
United Airlines
1200 E. Algonquin Road
Elk Grove Township, IL 60007

Dear Mr. Tilton:

On behalf of the International Association of Machinists and Aerospace Workers; The Air Line Pilots Association, International; the Association of Flight Attendants; the Transport Workers Union and the Professional Airline Flight Control Association, we attach an alternative labor savings framework in support of the Company’s pending application for a loan guarantee from the Air Transportation Stabilization Board or other new financing for the Company.

We stand ready to negotiate and implement a recovery program that will provide United with five billion dollars in labor cost savings over the next five years (approximately $1 billion each year measured against the Company base case). Together with other cost savings and broad strategic initiatives developed over the past few weeks, the coalition framework will enable the Company to improve its core annual profitability by $2 to $3 billion in the most challenging industry environment in history.

The coalition framework is without precedent for this or any other airline, and United has the most committed employees and strongest airline franchise in the world. We will not let it fail. We look forward to working with you to implement the coalition framework, to secure financing for the Company through the ATSB or third parties and to rebuild our airline.

Yours very truly,

Gregory E. Davidowitch
UAL-MEC President

Captain Paul Whiteford
UAL-MEC President

Randy Canale
President & General Chairman
District Lodge 141 IAM

Scotty Ford
President & General Chairman
District Lodge 141-M IAM

David W. Durkin
President, Local 540 TWU

Mikel Alpers
President, PAFCA-UAL

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