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AFA met with United Executive Vice President-Strategy Doug Hacker

December 12, 2002

United's labor teams met Thursday with representatives from the Unions to continue discussions that began Tuesday with the Union Coalition’s representatives and financial advisors.At the meeting, Executive Vice-President-Strategy Doug Hacker presented an overview of the company's business plan long term and short term, what will be released today is the announcement that along with a leaner, more competitive mainline operation, the strategy team believes it's necessary to offer a low-cost, no frills product in markets dominated by leisure customers and low-cost competition.Unlike the former United Shuttle, this product would operate as a “separate” airline with a cost structure that is fully competitive with low-cost carriers.

What does this mean for Flight Attendants?

We expect we will be given that information shortly, because in the short-term, the company is working on very tight timeframes established by the lenders to reduce labor costs. Thursday’s NewsReal stated that they need to lower the labor costs to continue to receive the money United needs to operate during bankruptcy.

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