Press release
Press release

United Airlines' Resource Optimization Targets Company Assets to Generate Savings and Improve Service

CHICAGO, Jan. 30, 2006 - United Airlines announced it is implementing a resource optimization program enabling it to more efficiently use its gates and deliver the equivalent of 10 additional aircraft using existing resources.

As part of its focus on continuous improvement in all areas of the company, United's resource optimization efforts aim to make the best use of the company's core assets (including aircraft and real estate) and are on target to contribute significantly to the company's bottom line. Key focus areas include tightening aircraft turns; depeaking operations at additional hubs; optimizing block time to improve customer connections and on-time results; and the continued reduction of under-utilized real estate, such as gates and facilities.

United's goal is to reduce its average turn times by eight minutes and free up at least 10 aircraft in 2006. Tightening turns will also enable United's existing gates to handle more flights per day, reducing overall gate requirements.

"By using our assets more efficiently, we can increase our departures without adding more aircraft to the fleet," said Pete McDonald, executive vice president and chief operating officer. "For customers, this will mean more frequencies, new destinations and even better connection possibilities. We've worked hard over the last three years to tighten our operation and improve every aspect of it to best serve our customers, and we will continue to do so with resource optimization and other initiatives, even beyond our upcoming exit from bankruptcy."

United plans to reduce and reallocate block time -- the time between the aircraft's release of its brakes at the gate and setting them upon return to the gate after a flight. Reducing actual block time by one minute systemwide saves tens of millions of dollars a year. United's new policies to reduce taxi-out time include eliminating early brake release for prompt pushback from the gate and better managing the time when the aircraft departs the gate in ground delay situations. Based on initial reports, United has already achieved more than a one-minute reduction in taxi-out time. Additionally, new block allocation measures are being tested on all Ted flights this month and will be implemented throughout the mainline later in 2006.

United has assessed its real estate at more than 60 sites and identified opportunities for annual lease savings in excess of $32 million. Administrative offices, gates, cargo and maintenance facilities have been "right-sized" (or made the right size for the space's operational needs), eliminated or relocated to a lower-cost leasehold area.

About United
United Airlines (OTCBB: UALAQ.OB) operates more than 3,400 flights a day on United, United Express and Ted to more than 200 U.S. domestic and international destinations from its hubs in Los Angeles, San Francisco, Denver, Chicago and Washington, D.C. With key global air rights in the Asia-Pacific region, Europe and Latin America, United is one of the largest international carriers based in the United States. United is also a founding member of Star Alliance, which provides connections for our customers to 790 destinations in 138 countries worldwide. United's 57,000 employees reside in every U.S. state and in many countries around the world. News releases and other information about United can be found here.

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