Rumor Control Update

May 11, 2001

--------------------

MEC Takes Action on Parity Award

The MEC has decided to allocate the parity award in accordance with LOA #47 as an "across-the-board increase in hourly rates".

Management is arguing now that the award should be 16.68% percent, not 16.99% percent. ALPA's Parity Review Board has submitted a challenge to Labor Arbitrator Anthony Sinicropi for resolution of this argument.

In another move, the MEC has directed the Negotiating Committee to explore the possibility of changing the "S" reserve rules to increase productivity. This would be done in exchange for securing furlough longevity credit for those pilots who have lost longevity credit due to furlough and and furlough protection for those pilots not covered.

UAL Board Meeting

The UAL Board of Directors will meet on Wednesday, May 16. This meeting will be followed by the stockholders meeting to be held on Thursday, May 17.

In an interview with Reuters on Thursday, UAL's James Goodwin said, "I believe we still have a very doable transaction but because of its complexity, it's going to take time."

DOJ Appointment

Charles James' appointment as assistant attorney general for antitrust passed the committee on a vote of 12 to 5 and now must go before the Senate.

James is likely to recuse himself from the Justice Department's review of the UAL deal because James has represented DC Air founder Robert Johnson during negotiations to purchase assets of US Air.