United Receives Court Approval of Wage Concession Motion

CHICAGO, Jan. 10 /PRNewswire/ --

CHICAGO, Jan. 10 /PRNewswire-FirstCall/ -- UAL Corp. , the parent company of United Airlines, today received a ruling from the bankruptcy court that will allow the company to implement interim wage reductions of approximately $70 million a month beginning January 2003 for all of its union groups. Today's ruling will keep the company on track to meet debtor-in- possession financing covenants and will provide more time for collaborative discussions between the company and its unions regarding the long-term transformation necessary to emerge successfully from Chapter 11.

As previously announced, United's pilots, flight attendants, dispatchers and meteorologists ratified wage reduction proposals earlier this week that will now go into effect. The court's order imposes wage reductions on the company's employees represented by the International Association of Machinists, which did not agree to the wage reduction proposals. The wage reductions will remain in effect until the earlier of a final agreement on modifications to the collective bargaining agreements or May 1, 2003, subject to further proceedings before Judge Wedoff.

"Now that we have received court approval to take the immediate steps necessary to stabilize our cost structure, we can devote our attention to working with our unions on the longer-term imperatives currently facing the company. From the outset of this process, it has been United's objective to make the necessary changes in a collaborative way. We thank our unions and employees for making the immediate sacrifices necessary for us to be able to continue discussions on the long-term changes needed to re-shape United into a strong and vibrant competitor," said Glenn F. Tilton, chairman, president and chief executive officer.

The wages of United's management and salaried employees were reduced effective Dec. 16, 2002, and additional cost-saving measures will be implemented later this month. Court approval is not required for reductions affecting these employees.

About UAL

United Airlines operates more than 1,700 flights a day on a route network that spans the globe. News releases and other information about United Airlines can be found at the company's website at http://www.united.com/ .

Safe Harbor Language: Certain of the information contained in this press statement should be considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect UAL's current views with respect to certain current and future events and financial performance. Such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the operations and business environments of UAL and its subsidiaries (the "companies") that may cause the actual results of the companies to be materially different from any future results expressed or implied in such forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following: the companies' ability to continue as going concerns; the companies' ability to operate pursuant to the terms of the debtor-in- possession facility; the companies' ability to obtain court approval with respect to motions in the Chapter 11 proceeding prosecuted by it from time to time; the companies' ability to develop, prosecute, confirm and consummate one or more plans of reorganization with respect to the Chapter 11 cases; risks associated with third parties seeking and obtaining court approval to terminate or shorten the exclusivity period for the companies to propose and confirm one or more plans of reorganization, for the appointment of a Chapter 11 trustee or to convert the cases to Chapter 7 cases; the companies' ability to achieve necessary reductions in labor costs; the companies' ability to obtain and maintain normal terms with vendors and service providers; the companies' ability to maintain contracts that are critical to its operations; the potential adverse impact of the Chapter 11 cases on the companies' liquidity or results of operations; the costs and availability of financing; the companies' ability to execute their business plan; the companies' ability to attract, motivate and/or retain key executives and associates; the companies' ability to attract and retain customers; demand for transportation in the markets in which the companies operate; general economic conditions; the effects of any hostilities or act of war (in the Middle East or elsewhere) or any terrorist attack; the ability of other air carriers with whom the companies have alliances or partnerships to provide the services contemplated by the respective arrangements; the costs and availability of aircraft insurance; the costs of aviation fuel; the costs associated with existing or future security measures and practices; competitive pressures on pricing (particularly from lower-cost competitors); government legislation and regulation; consumer perceptions of the companies' products; weather conditions; and other risks and uncertainties set forth from time to time in UAL's reports to the United States Securities and Exchange Commission.

CONTACT: United Airlines, Worldwide Communications, Media Relations, +1-847-700-5538, or Evenings-Weekends, +1-847-700-4088.