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Voluntary Furlough and Partnership Flying Program

Flight Attendant Voluntary Furlough Options And Partnership Program

March 5, 2003

Lighter than planned passenger loads have resulted in additional staffing reductions and a further overage of Flight Attendants. For this reason, the Company is implementing Section 21 of the Flight Attendant Agreement. Effective April 1, 2003 , United needs to reduce its ranks by an additional 900 Flight Attendants. The Company and the Association of Flight Attendants (AFA) have agreed upon a number of furlough options to help avoid the need to impose involuntary furloughs. If there are no voluntary furlough or partnership flying bids, Flight Attendants junior to system classification seniority number 21,825 (seniority classification date June 10, 2000) would be involuntarily furloughed. This is based on the March 4, 2003 system seniority list.

Voluntary Furlough Options

Voluntary furloughs will be offered and awarded in system seniority order. All active and inactive Flight Attendants may bid for this voluntary furlough, but Flight Attendants already awarded a voluntary furlough may not rebid for this furlough . While on voluntary furlough, Flight Attendants accrue seniority and maintain most benefits such as on line pass benefits, and Medical and Dental Insurance coverage. Read Section 21.A., page 145 of our Contract for full information about voluntary furlough benefits. If for any reason the Flight Attendant benefits change during the bankruptcy process, the entire voluntary furlough will be rebid.

To bid for voluntary furlough, complete the Unimatic VOLUN screen or follow the options in CATS. If an insufficient number of Flight Attendants volunteer, then involuntary furlough will be imposed using inverse system seniority order, including if necessary, Flight Attendants already on voluntary furlough status. Flight Attendants who volunteer, but are junior to the most junior voluntary award, will not be awarded a voluntary furlough and will be placed on involuntary furlough status. The new voluntary furlough period begins April 1, 2003 and ends December 30, 2003 .

Please refer to the March 5, 2003 Voluntary Furlough Flight Attendants package for complete details including bidding information.

Furlough Call Center

Partnership Information

The Partnership Flying Program was negotiated in an effort to further reduce the need for involuntary furloughs. If the company does not have enough volunteers for furlough once the bid is complete, the company may offer cost-neutral partnership flying in bases with an overage of Flight Attendants. Voluntary furlough requests will be awarded prior to partnership program requests. If a bid for voluntary furlough is awarded, a partnership bid for the same Flight Attendant will not be considered. Partners must be based at the same domicile. Additional parameters of the partnership program:

• Partnerships will be awarded based on the seniority of the senior partner.
• Line awards will be based on the seniority of the junior partner.
• Participants must possess the same aircraft qualifications. If a specific visa is required (i.e. PRC), both partners must have the visa to be awarded the line.
• Purser and non-purser qualified Flight Attendants can partner, however, they cannot bid a purser line.
• Language qualified Flight Attendants can partner with a non-language or another language, however, they cannot bid a language line. Partnerships may be formed between Flight Attendants with the same language qualification.
• Domestic and International Flight Attendants may partner, however they must bid a domestic line.
• Partners will be compensated at their own rate of pay. Sick leave and vacation will accrue at one half of the contractual rates.

Please refer to the March 2003 Partnership Program for Flight Attendants package for complete details about the program including bidding information

Timeline

Mar. 6    Voluntary furlough bid period opens. 
          Enter bid via Unimatic VOLUN or CATS.

Mar. 6    Furlough Call Center opens 0800, CST.

Mar. 7    Partnership flying bid period opens, 0800, CST.

Mar. 12   April Line Bids Open, 0800, Local Domicile Time.

Mar. 15   Voluntary furlough bid period closes at 0800, CST.

Mar. 16   Voluntary furloughs are awarded by 1700, CST.

Mar. 17   Partnership bid period closes at 0800, CST.

Mar. 17   Partnership is awarded by 1700, CST.

Mar. 18   Involuntary furloughs posted by 1700
          CST and notification begins.

Mar. 19   April Line Bids Close at 0800, Local Domicile Time.

Mar. 20   April Line Awards Posted by 1700, Local Domicile Time.

Mar. 25   Relief Bids open at 0800, Local Domicile Time.

Mar. 28   Relief Bids close at 0800, Local Domicile Time.

April 1   Furlough (voluntary and involuntary) period commences.