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Letter #2 To Jake Brace

June 5, 2003

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Mr. Jake Brace
Executive Vice President
& Chief Financial Officer
United Airlines-WHQPO
P.O. Box 66100
Chicago, IL 60666

FAX: 847-700-6788

Dear Mr. Brace:

I enlisted your assistance as CFO in a previous letter written to you dated May 27, 2003. Since I have yet to receive a counter response, and frankly any response, I now possess the understanding you are in complete agreement with my arguments concerning the financial viability of our domicile, PHLSW. I’m confident to know the sound financial model presented in my letter will save the company millions of dollars over the long term and solidify our market presence and add to the bottom line benefiting every employee of United.

This being the case, I as well as my membership would greatly appreciated you immediately retracting the domicile closure announcement issued June 2, 2003 by Charlie Ahmes, Managing Director Onboard Service. Since this premature and devastating announcement, employee moral as sunk to a new level, the bottom, and just when we believed life was returning to normal after the bankruptcy filing and our 300+ million concession package to aid our airline and fend off liquidation.

Mr. Brace, as you have demonstrated by failing to offer a counter to my sound business prototype for our domicile, I’m sure you’re in agreement spending millions to save nothing is completely inconceivable. Should the domicile close, this is exactly the end result. Examining the past and future financial data of our continuing operational savings could produce no other results, in addition to the domicile management reductions and cost saving initiatives currently in progress.

As stated in my previous letter, closing a financially viable domicile and uprooting the lives of 268 Flight Attendants and their families strictly on the misguided premise the viable PHLSW model may fail to work elsewhere in every situation is counterproductive, senseless and lacks sound business principles. It may serve only to drive a deeper wedge in the employee/management relationship. United management should be willing to leave no stone unturned in their quest for financial stability and to improve employee moral and commitment to service and our customers. This closing would prove to be financially and emotionally destructive to United as a corporation and its dedicated employees.

Should you have a counter view to either letter I have written, please respond by June 12, 2003.

Sincerely,

Terry Knoy
LEC President Council 23 (Proud to be Philly)

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