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United Airlines and Flight Attendants Reach Tentative Agreement on Contract Concessions To Avoid Bankruptcy

Date: November 10, 2002

CHICAGO – Representatives of the United Airlines Master Executive Council of the Association of Flight Attendants, AFL-CIO, have reached a tentative agreement on changes to the Flight Attendant Contract that will provide United Airlines with $412 million in savings over the next 5 1/2 years. This tentative agreement achieves the airline's goal of getting the cost savings it needs from the Flight Attendants to obtain approval of the Air Transportation Stabilization Board loan guarantee, gain access to capital markets and keep the airline out of bankruptcy.

The Recovery Plan tentative agreement, reached early Saturday morning, Nov. 9, was presented to the members of the AFA United MEC on Saturday and Sunday. The MEC voted unanimously to endorse the Recovery Plan tentative agreement. It is being sent to the Flight Attendants for ratification by November 30, 2002.

"These Flight Attendant sacrifices will enable our airline to obtain the ATSB loan guarantee, avoid bankruptcy, and return our airline to premier status in airline industry," said AFA United MEC President Greg Davidowitch. "The Recovery Plan tentative also provides the Flight Attendants with a return on our investment in United in the form of profit-sharing and stock options available through the future success of our airline."

Details will not be released until the Flight Attendants get a chance to review the tentative agreement.

More than 50,000 Flight Attendants, including the 26,000 Flight Attendants at United, join together to form AFA, the world’s largest Flight Attendant union. Visit us at www.unitedafa.org.

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