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United Flight Attendants Object to Unlawful Terms of UAL Bankruptcy Loan

Date: August 13, 2004

AFA Asks Court to Allow Opportunity to Explore Alternate Plans

CHICAGO -- The Association of Flight Attendants-CWA, AFL-CIO today filed an objection to United Airlines’ motion to approve new debtor-in-possession (DIP) financing on terms which prohibit the airline from making pension plan contributions, as is required by both statute and the union’s collective bargaining agreement.

“ United Airlines’ management is making decisions that are simply reckless, “ said Greg Davidowitch, United Airlines Flight Attendant Master Executive Council President. “They negotiated new DIP financing on terms that purportedly require the company to withhold employee pension plan payments that are mandatory under the law and under our contract. Choosing financing that threatens the future security of front-line employees reflects baseless business sense. We will challenge any actions that distract from the extraordinary efforts Flight Attendants are making to see our airline succeed.”

AFA filed a separate objection to the request filed by current United management seeking a fifth extension of the exclusivity period in which to file a plan of reorganization with the bankruptcy court. AFA’s objection states that an extension is unwarranted due to the unlawful refusal by current management to make mandatory pension contributions, failure to make good faith progress toward reorganization, the gross misjudgment on how the ATSB would treat its application and failure to develop a contingency plan in the event of an ATSB denial.

“Throughout four previously extended periods of exclusivity, this senior management group has wasted precious tools afforded them through massive employee concessions and industry-leading service records produced by front-line employees who bring the passengers back,” stated Davidowitch. “United Flight Attendants deserve better than that. Flight Attendants and other creditors must be provided the opportunity to explore plans other than those that have consistently failed under the direction of current management.”

More than 46,000 Flight Attendants, including the 21,000 Flight Attendants at United, join together to form AFA, the world’s largest Flight Attendant union. AFA is part of the 700,000 member strong Communications Workers of America, AFL-CIO. Visit us at www.unitedafa.org.

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