Retirees

United Announces Enhancements to Pleasure Travel/NRSA Policy

United is enhancing its pleasure travel policy for United, United Express and Mileage Plus travel-eligible employees, retirees and travel-eligible family members.

Several changes will take effect Nov. 1, 2007:

* First, we will no longer assess service charges for U.S. domestic and international flights in United Economy on United and Ted. We will continue to waive service charges for travel in United Economy on United Express. Applicable transportation taxes and fees will continue to apply.

* Second, Performance Incentive service charge-waived flight segments, which are provided when we meet our reliability and customer goals, will have their usage period lengthen from one year to two years. This will give employees more time to take advantage of the awards. Any Performance Incentive segments that remain in your "bank" as of Nov. 1, 2007, will expire two years after the date of issuance. You can see how many segments you have by visiting WebList and clicking "My Coupons."

* Employees who list themselves in United First or United Business using Performance Incentive segments but who are ultimately seated in service charge-waived United Economy will have their Performance Incentive segments returned to their "bank" of unused segments.

* Next, we're simplifying the way pleasure travel service charges for United First and United Business are calculated that, in many cases, will reduce the cost. Premium cabin travel prices will be based on a new zonal fee structure, matching the Zonal Employee Discount (ZED) service charge structure currently used on some interline carriers. ZED pricing is based on the mileage between a point-to-point origin and destination.

* Premium cabin prices will be discounted 65 percent off ZED fares for U.S. domestic travel and discounted 50 percent off ZED fares for international travel.

* The cost for travel to Hawaii, which we've traditionally priced separately from other U.S. domestic travel, will be calculated in the same way as mainland domestic.

* To assist employees in determining cabin pricing, the calculator on WebList will soon be updated so you can quickly and easily see the new pricing.

* To make premium cabin pricing more consistent between mainline and United Express, we will be introducing the discounted ZED service charges for travel in the United First cabin on United Express.

* Finally, in the first quarter of 2008, United employees, retirees and travel-eligible individuals will board United Express flights based on company hire date or years and months of service, according to United's travel policy. This will replace the current boarding at BP-8C, same day, time of check-in policy.

* As always, United Express employees will board first on their own carrier, before other non-revenue, space-available travelers. For example, when the aircraft is operated by SkyWest, the boarding priority would be the SkyWest traveler, the United traveler, and then other United Express partner travelers.

* Separately, we are reviewing our companion travel policy and will keep you posted if we make any changes to this travel privilege.

"We are pleased to introduce these enhancements to our travel policy," says Pete McDonald, executive vice president and chief operating officer. "The changes are an acknowledgement of the value we place on our employees and our commitment to improving the employee experience, while making our travel policy more consistent across the company and more competitive within the industry."

A letter that details these changes will be mailed to employees and retirees in the near future.