Rumor Control Update

March 26, 2000

UAL MEC Chairman Talks Regional Jets

This information appears in the March 2000 RUPANEWS - Journal of the Retired United Pilots Association:

Excerpts from an interview with UAL Master Chairman Rick Dubinsky.

Dubinsky:

"There are three basic options on the RJ issue. First, you can "buy-and-fly" where United purchases the regional jets, uses our pilots to fly them and it becomes just an extension of the mainline operation. Economically that will not work at United Airlines. It won't work at any carrier and that's why you don't see it anywhere else. The reason is that there is a dramatic difference in overhead cost between a mainline operation and a Comair or ACA type operation. It has hardly anything to do with pilot salaries. The pilots could fly for free and it still wouldn't make economic sense. We've looked at this up and down and frontwards and backwards and it just doesn't make any sense. So I think you can feel comfortable that that's not going to happen anytime soon.

Second is the concept of a wholly-owned subsidiary where the rest of the industry is going - except for United. Here the airline purchases the feeder carrier. And this option is being investigated jointly by the company and ALPA and we're looking at why other carriers are doing it this way. Of the six largest carriers, United is the only one that doesn't have a wholly-owned subsidiary feeding its mainline.

The third option is the one United has historically depended on - contractual relationships with regional carriers to feed their mainline. The big problem with this option is that it leaves the feed vulnerable to being picked off by competitors. And it leaves us in a position where, when a feeder carrier grows big enough and it feels we've become a hindrance to their growth, they're just going to go around us to someone else. And you're seeing that happen with ACA already. So once again, United cannot maintain the status quo in this environment."

MEC Struggles with Internal Conflicts

The MEC spent many hours of this 3 day meeting dealing with internal tensions created when the Council 94 Chairman (PIT) decided to launch a personal attack on the new Council 135 Chairman (LGA). The MEC became involved in a multi-hour debate in an effort to decide how to best put a stop to such personal denigrations. More on this and other MEC business later....

Wolf Meeting

As of today, there is no date for the anticipated labor meeting called for by Management.

US Airways vs. the Composite Competitor - Vacation

The subject of this Rumor Control is vacation. Other areas of interest will be addressed in future Rumor Control Updates.

Vacation Pay

US Airways = 4 hours per day, otherwise 2.5 hours per day.

American = The greater of trips missed or daily prorate of min guarantee.

Delta = 3.5 hours, scheduled break prior to vacation.

Northwest = 3.05 hours per day. 3.5 hours per day after 4/13/00.

United = Trips missed.

Accrued Days