Release #08.UAL5

Statement by Captain Steve Wallach,
Chairman of the United Master Executive Council
Of the Air Line Pilots Association,
Regarding Speculation of Possible
Merger Between United Airlines
And US Airways

April 29, 2008

“Continental Airlines’ abandonment of merger discussions has produced intense media speculation that United Airlines is in final merger negotiations with US Airways. This speculation has created enormous concern among the pilots of United.

“United pilots share the market’s view that a merger with US Airways would be extremely negative from United’s perspective.

“While United has its own problems and issues—mostly created by management’s single-minded focus since bankruptcy exit on consolidation as opposed to the basic ‘blocking and tackling’ required to run a successful airline—US Airways’ problems run even deeper.

“Much of this is a result of US Airways’ inability to achieve operational integration despite the fact that more than two and one-half years have elapsed since its merger with America West. Continued difficulties associated with pilot seniority integration are well chronicled. Even those reports grossly underestimate the complexity of seniority integration, which likely will not be solved without years of litigation. US Airways’ pilot integration problems have created a toxic stew, as any carrier that seeks to merge with it will quickly discover and one which in the current environment could imperil a United/US Airways combined enterprise.

“United should take a page from Continental, and turn its attention inward. United is the only carrier in the industry with no aircraft on order or optioned. That is not a long-term plan for survival. While United’s labor costs are among the lowest in the industry, its other costs excluding fuel and labor are among the highest, year over year.

“The United pilots have always been proactive in seeking creative solutions to problems. We have repeatedly demonstrated our ability to make the airline fly, despite management’s missteps. However, we do not view a marriage with US Airways as anything remotely resembling a solution.”

Dave Kelly