27988_cover_for pdf 3/9/01 11:41 AM Page 1 tion please refer to a Pantone directory, or a Draw Down of the actual color being used. For accurate Spot color representa- Please note that all Digital proofs will simulate the Spot colors with CMYK values. UAL Corporation 2000 Annual Report
UAL 2000 Corporation Annual Report
3% 10% 20% 30% 40% 50% 60% 70% 80% 90% 97% UAL #27998 batch #___ Assm by: GL Proof by:_____ QC by:_____ Date:_____ Inks/Density: C ______M ______Y ______K ______SPOT ______SPOT ______SPOT ______K 541 8400 ❏ 2up Approval ❏ 4up Approval ❏ Waterproof ❏ CPI Standard Stock ❏ Customer Stock 27988_cover_for pdf 3/9/01 11:41 AM Page 2 tion please refer to a Pantone directory, or a Draw Down of the actual color being used. For accurate Spot color representa- Please note that all Digital proofs will simulate the Spot colors with CMYK values.
3% 10% 20% 30% 40% 50% 60% 70% 80% 90% 97% UAL #27998 batch #___ Assm by: GL Proof by:_____ QC by:_____ Date:_____ Inks/Density: C ______M ______Y ______K ______SPOT ______SPOT ______SPOT ______8400 ❏ 2up Approval ❏ 4up Approval ❏ Waterproof ❏ CPI Standard Stock ❏ Customer Stock 27988_P1_32 3/12/01 10:29 AM Page 1
This was a tough year. Tough for employees. Customer Stock Tough for customers. ❏ Proof by:_____ QC by:_____ Date:_____ QC by:_____ Proof by:_____ PG/NS
Tough for stockholders. CPI Standard Stock ❏ 4up Approval 4up Approval UAL#27988 Assm by: UAL#27988 Inks/Density: C❏ ______M ______Y ______K ______SPOT ______
But there is good news. GLOSS VARNISH DULL Contents VARNISH 541 K
2 Spotlight 2000 41 Financial Highlights 4 Chairman’s Letter Operating Statistics
8 United’s Strategy 42 Financial Review MY
28 Just the Facts CMY
54 Directors and Officers UAL Corporation 2000 Annual Report 35 Route Maps C 56 Stockholder Information 1
3% 10% 20% 30% 40% 50% 60% 70% 80% 90% 97%
CP-PP-SOP-008 QR008 QROO1 Effective Date: 1/21/00 Retention: Life of Job
Customer Stock Customer Stock Standard CPI Approval 4up
❏ ❏ ❏ ❏ CMY 541 K CMY VARNISH VARNISH
nsDniy ______PT______SPOT ______K ______Y ______M C Inks/Density: GLOSS DULL
Proof by:_____ QC by:_____ Date:_____ by:_____ QC by:_____ Proof PG/NS by: Assm UAL#27988 27988_P1_32 3/12/0110:29AMPage2
2 UAL Corporation 2000 Annual Report %1%2%3%4%5%6%7%8%9%97% 90% 80% 70% 60% 50% 40% 30% 20% 10% 3% Page 2 Spotlight 2000 United’s future. United’s profoundly shape will in 2000that boldWe steps took PP-O-0 R0 QO1EfcieDt:12/0 eeto:Life of Job 1/21/00 Retention: CP-PP-SOP-008 QR008 QROO1 Effective Date: 27988_P1_32 3/12/01 10:29 AM Page 3
We’re… Maximizing Making our strengthening the power airline run our domestic of our global more reliably
network alliance Customer Stock network ❏ Proof by:_____ QC by:_____ Date:_____ QC by:_____ Proof by:_____ page 8 page 9 page 12 PG/NS CPI Standard Stock
Leading the Adding Improving ❏ industry in legroom for the airport
tackling our premium experience 4up Approval UAL#27988 Assm by: UAL#27988 Inks/Density: C❏ ______M ______Y ______K ______SPOT ______key issues customers
page 14 page 17 page 17 Harnessing Capitalizing on Streamlining technology e-commerce the work for our opportunities experience customers for our employees
page 21 page 22 page 25 GLOSS VARNISH DULL VARNISH 541 K Y M C UAL Corporation 2000 Annual Report
3
3% 10% 20% 30% 40% 50% 60% 70% 80% 90% 97%
CP-PP-SOP-008 QR008 QROO1 Effective Date: 1/21/00 Retention: Life of Job
Customer Stock Customer Stock Standard CPI Approval 4up
❏ ❏ ❏ ❏ 541 K Y M C VARNISH VARNISH
nsDniy ______PT______SPOT ______K ______Y ______M C Inks/Density: GLOSS DULL
Proof by:_____ QC by:_____ Date:_____ by:_____ QC by:_____ Proof PG/NS by: Assm UAL#27988 27988_P1_32 3/12/0110:29AMPage4
4 UAL Corporation 2000 Annual Report %1%2%3%4%5%6%7%8%9%97% 90% 80% 70% 60% 50% 40% 30% 20% 10% 3% Pages 4-7 Chairman’s Letter they’re going first. customers where until we get our not going anywhere road,the but we’re bigplans down has a leader,As United Jim Goodwin PP-O-0 R0 QO1EfcieDt:12/0 eeto:Life of Job 1/21/00 Retention: CP-PP-SOP-008 QR008 QROO1 Effective Date: 27988_P1_32 3/12/01 10:29 AM Page 5
• We initiated a dividend pro- Followed by a Positioned for a gram, paying dividends on Period of Challenges Bright Future common stock for the first time since 1987, and com- Despite these early successes, In light of our challenges, plemented this move with the summer proved to be one there are several reasons for our newly established divi- of the most difficult and chal- my confidence in the future dend-reinvestment and lenging times in our business. of our business. Through a Dear Owners and stock-purchase programs. We were affected – as was growing Star AllianceTM and Employees, the rest of the industry – by new, proprietary code-share • We introduced several product horrendous summer weather arrangements, we continue Customer Stock ❏ There’s no question that 2000 and service enhancements: and the inadequacy of the to expand our global reach. was an eventful year for United. U.S. air traffic control system. We are aggressively pursuing
And while we remained com- - Improved legroom in our e-commerce initiatives through Date:_____ QC by:_____ Proof by:_____ mitted to safety, enhancing industry-leading Economy We also did not anticipate United NewVenturesSM, our customer service, improving Plus® section; how tough labor negotiations new stand-alone e-com- reliability and financial per- would become, and we were merce subsidiary. PG/NS formance, as well as making - Installation of United First disappointed that some of CPI Standard Stock ❏ United a better place to work, SuiteSM, a luxury seat with our employees took actions And our proposed merger we clearly had our fair share work space and entertainment that disrupted operations. In with US Airways is truly a of highs and lows. So I’ll features, which fully reclines response to this unfortunate historic and bold move for begin by offering our collec- into a private, cozy bed; situation, we acted quickly to us. By uniting the assets of
tive thanks and appreciation provide more resources for our two carriers, we plan to 4up Approval UAL#27988 Assm by: UAL#27988 Inks/Density: C❏ ______M ______Y ______K ______SPOT ______to all of you who stood by - Installation of larger over- employees to minimize dis- offer our customers increased us during what were, quite head bins on our Boeing ruptions to customers. We travel choices and conven- simply, turbulent times. 737s and B757s, resulting implemented an aggressive ience, provide our employees in substantial improvements recovery program to bring our with more job opportunities, I’d also like to take this in customer satisfaction – customers back into the fold, and offer growth and economic opportunity to give you my and establishing a new cutting back our operations, benefits for communities assessment of our perform- industry standard; and adjusting schedules, contact- across the United States. ance, share some of our major ing customers in advance priorities for 2001, and tell you - Introduction of B777 service when flights were canceled, If approved, this merger not why – despite considerable to the Pacific. and deploying additional air- only will offer significant ad- challenges last year – I’m very craft to key hubs. vantages for our customers, optimistic about our future. • We improved on key opera- it also will position United for tional performance indicators, Even with our hardest efforts, optimal growth and strengthen A Great Start including on-time departures however, we lost the confi- our industry leadership. It and mishandled baggage. dence and patronage of many will allow us to augment our Reflecting on our 2000 per- customers, employees, stock- presence on the East Coast – formance, we actually got • We restored non-union holders and other investors. solving a pressing structural off to a great start for the first employee pay to market- The delays and cancellations problem in our U.S. domestic four months of the year: competitive levels, resulting we experienced this summer, route network. Combining in increased workforce coupled with rising fuel and the two carriers also will pro- • Reliability was up … customer competitiveness and re- labor costs, did impact our vide us with the best possible service was up … profitability duced attrition. financial performance for competitive response to an was up. 2000. Nonetheless, we gen- international trend toward • And we exceeded our goals erated full-year net earnings airline consolidation. • We enjoyed above-industry- for people of color and women of $322 million, or earnings average revenue growth and in management positions. per diluted share of $2.38, witnessed a substantial switch excluding certain items. And of bookings to online channels, despite our operational reducing our distribution costs. setbacks, we continued to surpass the industry in year- • We had significant revenue over-year yield improvement. growth across most interna- tional markets. GLOSS VARNISH DULL VARNISH 541 K MY CMY UAL Corporation 2000 Annual Report C 5
3% 10% 20% 30% 40% 50% 60% 70% 80% 90% 97%
CP-PP-SOP-008 QR008 QROO1 Effective Date: 1/21/00 Retention: Life of Job
Customer Stock Customer Stock Standard CPI Approval 4up
❏ ❏ ❏ ❏ 541 K Y M C VARNISH VARNISH
nsDniy ______PT______SPOT ______K ______Y ______M C Inks/Density: GLOSS DULL
Proof by:_____ QC by:_____ Date:_____ by:_____ QC by:_____ Proof PG/NS by: Assm UAL#27988 27988_P1_32 3/12/0110:29AMPage6
6 UAL Corporation 2000 Annual Report %1%2%3%4%5%6%7%8%9%97% 90% 80% 70% 60% 50% 40% 30% 20% 10% 3% the entire airlineindustryitself. expertise topositivelyimpact also howUnitedisusingits facing theentire industry, and we’re meetingthechallenges like theUSAirwaysmerger, through strategicmoves in more detail abouthow, In thisreport, you’llread are bright… prospects United’s I believe on OurUnitedCommitment We alsoare continuingwork key priority. baggage performancea making betteron-timeand achieving thisgoal,we’re age andsupport.Toward back theirgoodwill,patron- ers …withagoalofwinning employees andstockhold- the mindsofourcustomers, United nameandbrandin focused onrestoring the In 2001,weare singularly Goals for2001 overall customerservice. part ofoureffort toimprove we introduced in1999as a comprehensive program worldwide. of choice global airline …to bethe SM , to keepcustomers ucts andinitiativesdesigned we introduced severalprod- Lastyear greatest concerns. know tobeoneoftheir cancellations, whichwe gers aboutflightdelaysand communication withpassen- viding increased andtimely particular attentiontopro- and intheair. We’re paying experience ontheground improve ourcustomers’ while workingdiligentlyto industry issueshead-on mitment, we’re addressing Through thisongoingcom- expect anddeserve. andhonestythey fairness tomers therespect, courtesy, ensure that wegiveourcus- service planwascreated to United’s 12-pointcustomer PP-O-0 R0 QO1EfcieDt:12/0 eeto:Life of Job 1/21/00 Retention: CP-PP-SOP-008 QR008 QROO1 Effective Date: better our mission… will achieve and thatwe other withmutualrespect. dards anddealingwitheach adhering toobjectivestan- problem solving,settingand sharing ofinformation,mutual with ourunionsthatrelies on interest-based relationship tomovetoward an want airline. Goingforward, we a dependableandon-time quicklytorunning us toreturn relationships thatwillenable effective labor-management achieving faircontractsand We’re alsocommittedto 2001 andbeyond. build onthisprogress in delays. We’ll continueto informed duringextended 27988_P1_32 3/12/01 10:29 AM Page 7
We are singularly
focused on restoring Customer Stock ❏
the United name and Date:_____ QC by:_____ Proof by:_____ PG/NS CPI Standard Stock brand in the minds ❏
of our customers, 4up Approval UAL#27988 Assm by: UAL#27988 Inks/Density: C❏ ______M ______Y ______K ______SPOT ______employees and stockholders.
During 2000, we resolved through our successful fuel- I would like to close this year’s I also want to thank every five of the labor contracts hedging program and strate- letter with a note of thanks. one of our customers and that became amendable with gic adjustments to our fleet First, to our thousands of stockholders. We owe you the end of the Employee plan in 2000. In 2001, we front-line United employees a debt of gratitude for your Stock Ownership Plan also will work to drive in- around the globe who lead in support, confidence and (ESOP) allocation period in creased productivity, simplifi- countless ways – both big trust in United. You stuck 2000, including that with the cation and other efficiencies and small – every day. I’m by us, and we intend to Air Line Pilots Association through our system. grateful to them for their loyal- do everything possible to (ALPA). Given the reality that ty and commitment to United ensure your utmost satisfac- we’re in a high-cost busi- For all these reasons, I and for everything they did tion each time you do busi- ness, we plan to manage our believe that our long-term to respond to and accommo- ness with us in the future. GLOSS costs to the greatest degree prospects are bright, and date our customers during a We hope you have more VARNISH possible to help bring our that we will achieve our mis- difficult period last summer. reasons to stay with us now DULL
profitability back in line. We sion to be the global airline of than ever before. VARNISH responded to an increasingly choice worldwide. This belief difficult cost environment is supported by the strength 541 of our strategic initiatives in
2000 and our focus for 2001 K and beyond. I hope after March 1, 2001 reading this report you will share my optimism about United’s potential. MY CMY UAL Corporation 2000 Annual Report C 7
3% 10% 20% 30% 40% 50% 60% 70% 80% 90% 97%
CP-PP-SOP-008 QR008 QROO1 Effective Date: 1/21/00 Retention: Life of Job
Customer Stock Customer Stock Standard CPI Approval 4up
❏ ❏ ❏ ❏ 541 K Y M C VARNISH VARNISH
nsDniy ______PT______SPOT ______K ______Y ______M C Inks/Density: GLOSS DULL
Proof by:_____ QC by:_____ Date:_____ by:_____ QC by:_____ Proof PG/NS by: Assm UAL#27988 27988_P1_32 3/12/0110:29AMPage8
8 UAL Corporation 2000 Annual Report %1%2%3%4%5%6%7%8%9%97% 90% 80% 70% 60% 50% 40% 30% 20% 10% 3% countries in 28 destinations Serving 133 customers 85 million Transporting Pages 8-11 Network Strengthening Our United’s Strategy: network global unparalleled Providing an PP-O-0 R0 QO1EfcieDt:12/0 eeto:Life of Job 1/21/00 Retention: CP-PP-SOP-008 QR008 QROO1 Effective Date: daily flights than 2,200 Offering more travel easier Making 27988_P1_32 3/12/01 10:29 AM Page 9
In 2000, nearly 640 million The addition of new members Merging with US Airways We made the decision to people took to the skies for in 2000 – Austrian Airlines acquire US Airways based on travel. More than 85 million Group, Singapore Airlines, In our next move to redefine the strategic understanding of those passengers chose Mexicana and British Mid- the airline industry, United that as a mature industry, United Airlines and our 2,200 land – brings together the Airlines is working to enhance our opportunities to further average daily scheduled vast networks of 15 world- our U.S. domestic network to enhance our network – and flights. This unprecedented class airlines. Now, more than parallel the international reach therefore provide our cus- high travel volume continues ever, Star Alliance provides we have with Star Alliance. tomers more access to the to increase every year, as customers with global access United’s existing domestic destinations they want to does the demand for airlines and greater flexibility in accru- network effectively covers go – were limited. Most of Customer Stock ❏ to meet the growing needs of ing and redeeming frequent- all of the United States, with the communities on the East their customers worldwide. flyer awards to more than 800 the exception of the East Coast are mature markets
destinations worldwide. Coast. In an effort to com- with existing service. This Date:_____ QC by:_____ Proof by:_____ At United, we’re continuing to plete our national network made building our presence find ways to strengthen our With key members in place, presence, United announced there economically and logis- global network. We’re maxi- Star Alliance is now focusing in May 2000 its plan to tically unfeasible. PG/NS mizing our global presence on deeper levels of coopera- acquire US Airways. CPI Standard Stock ❏ through Star Alliance, and tion among the airlines. For We recognized and acted we’re expanding our U.S. example, we are working to As part of the transaction, on the solution – to acquire domestic network with the develop technologies that United entered into agree- another carrier. We’re not the planned acquisition of US will help front-line employees ments that will create the only company to make such
Airways. Together, these deliver seamless service first minority-controlled and a move – many industries, 4up Approval developments will give us an across all airlines. operated airline in the U.S. – including telecommunications, Assm by: UAL#27988 Inks/Density: C❏ ______M ______Y ______K ______SPOT ______unparalleled global network, DC Air – by carving out routes automotive and retailing, are coupled with the best U.S. Star Alliance is creating an based at Washington, D.C.- consolidating globally. But we hub network in the industry, automation infrastructure National. In addition, to were the first U.S. airline to which will allow United to that will allow Star members’ enhance the competitive take that bold step. And deliver on our goal of computer systems to talk to benefits of the merger and being the first gave us the exceptional customer each other. Using this com- address concerns raised by advantage of choosing the access and service. munication link will enable the Department of Justice, airline which best comple- Star front-line employees to United entered into an agree- mented our network. US Star Alliance use their reservation systems ment with AMR Corporation, Airways fit that profile. Leads the Way to access name records for parent company of American passengers with tickets Airlines, to divest certain Acquiring US Airways will United’s founding member- issued by other Star Alliance assets of US Airways. (See enable us to better serve ship in Star Alliance, the members. The system will “United’s Agreement with our customers, and if it goes world’s most successful also provide real-time flight American Airlines,” page 11.) through as planned, we air carrier alliance, is one information and mileage expect it to provide potential example of our position as redemption information for In addition to providing added future revenue benefits for the a progressive leader in the all Star members. competition to the market- combined carrier. industry. Our advantage is in place, merging United Airlines the alliance’s early formation Recent studies have shown and US Airways will create almost four years ago, which that Star Alliance already the first truly comprehensive gives us a solid base from saves customers $100 million U.S. airline network and will which to strengthen our inter- annually, since they benefit mean travel convenience and national network. from the lower fares available efficiency for millions of pas- through allied airlines. As Star sengers across the United Alliance focuses on enhanc- States. By bringing together ing service, it will continue to two complementary route offer passengers substantial systems, we will be able to benefits and access to the give even the smallest cities world through a “just like one in our combined network airline” travel experience. improved service to virtually anywhere in the world. GLOSS VARNISH DULL VARNISH 541 K MY CMY UAL Corporation 2000 Annual Report C 9
3% 10% 20% 30% 40% 50% 60% 70% 80% 90% 97%
CP-PP-SOP-008 QR008 QROO1 Effective Date: 1/21/00 Retention: Life of Job
Customer Stock Customer Stock Standard CPI Approval 4up
❏ ❏ ❏ ❏ 541 K Y M C VARNISH VARNISH
nsDniy ______PT______SPOT ______K ______Y ______M C Inks/Density: GLOSS DULL
Proof by:_____ QC by:_____ Date:_____ by:_____ QC by:_____ Proof PG/NS by: Assm UAL#27988 27988_P1_32 3/12/0110:29AMPage10
10 UAL Corporation 2000 Annual Report %1%2%3%4%5%6%7%8%9%97% 90% 80% 70% 60% 50% 40% 30% 20% 10% 3% global destinations. connections tomanymore Philadelphia andCharlotte passengers inPittsburgh, providing current USAirways mostly untappedmarket, the capacitytoserveanew, merged, Unitedwillhave once thetwoairlinesare Region andWest Coast; the Midwest,Mountain alone. United’s strength is $16 billionintheNortheast estic airlineindustry, with in revenue fortheU.S.dom- which represents $26billion lucrative EastCoastmarket, tions are focusedonthe to none.USAirways’opera- nationwide networksecond two companieswillresult ina The combinedassetsofthe Star Alliance. reach wehavewith the international U.S. networktoparallel we’ll enhanceour US Airwaysmerger, With theplanned territories around theworld. tions in32countriesand to approximately 170destina- more than4,300dailyflights… lion customersannually…on worldwide…for140mil- ees choice for148,000employ- of truly wouldbecometheairline one nationwidenetwork,we routes comingtogetherinto ourcomplementary With place astheindustryleader. tomer serviceandsecure our ment toinnovationincus- more thaneverourcommit- enable Unitedtodemonstrate This merger, ifapproved, will PP-O-0 R0 QO1EfcieDt:12/0 eeto:Life of Job 1/21/00 Retention: CP-PP-SOP-008 QR008 QROO1 Effective Date: 27988_P1_32 3/12/0110:29AMPage11 %1%2%3%4%5%6%7%8%9%97% 90% 80% 70% 60% 50% 40% 30% 20% 10% 3% • • • • • Express Airlines, oneoftheUnited and PSA–toAtlanticCoast carriers –Allegheny, Piedmont regional Airways’ subsidiary nounced planstosellUS March 2001 of UnitedandUSAirways. mission approvedthemerger Airways. TheEuropeanCom- related tothemergerwithUS dress competitiveconcerns with AmericanAirlinestoad- announced anagreement 2001 January iture planstoApril2001. merger proposalanddivest- DOJ’s reviewperiodofthe Airways agreedtoextendthe transaction, UnitedandUS of theAmericanAirlines imminent announcement December 2000 2001. January DOJ decisiondeadlineof information andagreedtoa theDOJ’s requestfor pleted October 2000 would lessencompetition. consider whetherthedeal for additionalinformationto with theDOJ,andtheyasked United fileditsacquisitionplan of Transportation. InJune, sion andU.S.Department (DOJ), EuropeanCommis- the DepartmentofJustice subject to is the US Airways. announced itsplantoacquire May/June 2000 Chronology andStatus US AirwaysMerger: ® carriers. The transaction – Unitedan- – United – Unitedcom- approval of – United – With the – With Miles Star Alliance.TheirDividend tional destinationsthrough than 500additionalinterna- the globe,includingmore around thenationandacross will haveone-airlineaccess US Airways’customers like neverbefore. ties toflyEastCoastcities current customersopportuni- merger willprovideUnited’s created asaresultofthe destinations. Theairline domestic andinternational expanded numberofU.S. travel conveniencetoan unprecedented accessand carriers. Passengerswillhave of themergertwo significant benefitsasaresult and USAirwayswillrealize Customers ofbothUnited national andinternational access. Theabilitytoattract cities whattheyneedtothrive: lines’ routeswillgivesmaller work createdfrombothair- nation. Theexpandednet- growth generatedacrossthe opportunities andeconomic from morecommerce,job significant economicbenefits Airways willexperience combined UnitedandUS bythe Communities served destinations. flyer programforalltheir check-in andonefrequent- of oneticket,baggage will enjoytheconvenience both groupsofcustomers best customers.Eventually, programs torecognizeour tomed tothroughUnited’s they’reaccus- high service will receivethesamelevelof The Benefits Merging withUSAirways: ® preferred customers and destinations. morepassengers serving maintain, andmoreflights more aircrafttoflyand ties withmoreworklocations, increased careeropportuni- organizations willprovide integrated, thecombined merger. Onceoperationsare benefits asaresultofthe also standtoreapsignificant Employees ofbothairlines Brussels Copenhagen, Birmi Panama City-Fargo, them: Sacramento-Erie, city-to-city routes,among United planstooffer539new never beforebeenavailable. sands ofrouteswhereithas onthou- single-carrier service will beabletoofferexpanded be limitedtolargecities.We spoke networkswillnolonger business throughhub-and- and Tulsa- PP-O-0 R0 QO1EfcieDt:12/0 eeto:Life of Job 1/21/00 Retention: CP-PP-SOP-008 QR008 QROO1 Effective Date: ngham- London. Phoenix- UAL stockholders. of theoriginaltransactionfor Airways, enhancingthevalue related toitsacquisitionofUS ducing thedebtrequirements tional financialbenefitsbyre- would provideUnitedaddi- The transactionwithAmerican acquires USAirways. D.C.-National whenUnited atWashington, tive service that wouldprovidecompeti- stake inDCAir, thecompany would purchasea49percent American’s parentcompany– Separately, AMRCorporation– and BostonLoganairports. Washington, D.C.-National tween NewYork LaGuardia, onroutesbe- shuttle service to ture withUnited 20-year joint American wouldenterintoa as 14gatesatsixairports. ed timesatairports,aswell and take-offrightsatappoint- LaGuardia slots,thelanding United alsowoulddivest36 associated withtheaircraft. spare enginesandotherparts obligations andbuycertain would assumecertainlease to AmericanAirlines. its mergerwithUSAirways up to86aircraftacquiredin tionally, Unitedwouldtransfer with non- the onlycompetitors currently United andUSAirwaysare hub-to-hub routeswhere onkey competitive service American wouldprovide Under theagreement, American Airlines. assets ofUSAirwaysto agreed tosellselected partment ofJustice,United concerns raisedbytheDe- US Airwaysandaddress nature ofitsacquisition To increasethecompetitive American Airlines United’s Agreementwith stop flights.Addi- operations ven- provide 11 UAL Corporation 2000 Annual Report
UAL#27988 Assm by: PG/NS Proof by:_____ QC by:_____ Date:_____ DULL GLOSS Inks/Density: C ______M ______Y ______K ______SPOT ______CMYK541 VARNISHVARNISH ❏ 4up Approval ❏ CPI Standard Stock ❏ Customer Stock
Customer Stock Customer Stock Standard CPI Approval 4up
❏ ❏ ❏ ❏ 541 K Y M C VARNISH VARNISH
nsDniy ______PT______SPOT ______K ______Y ______M C Inks/Density: GLOSS DULL
Proof by:_____ QC by:_____ Date:_____ by:_____ QC by:_____ Proof PG/NS by: Assm UAL#27988 27988_P1_32 3/12/0110:29AMPage12
12 UAL Corporation 2000 Annual Report %1%2%3%4%5%6%7%8%9%97% 90% 80% 70% 60% 50% 40% 30% 20% 10% 3% Pages 12-15 U Reliability Improving Our nited’s Strategy: PP-O-0 R0 QO1EfcieDt:12/0 eeto:Life of Job 1/21/00 Retention: CP-PP-SOP-008 QR008 QROO1 Effective Date: 27988_P1_32 3/12/0110:29AMPage13 %1%2%3%4%5%6%7%8%9%97% 90% 80% 70% 60% 50% 40% 30% 20% 10% 3% of spare aircraft onhand. we’ve increased thenumber tions atallhubstations.And flights, tomainlineconnec- as wellforUnitedExpress connections, and international connection timesforwidebody pectations. We’ve increased more realistic customerex- our reliability goalsandcreate a betteropportunitytomeet September, whichgivesus more than 4,000hourssince times forflightsbyadding lengthened blockandground schedule. Sincethen,we’ve thousands offlightsfrom the tions lastsummer, trimming We quickly cutbackopera- Disruptions Responding toOperational ment continues. venience –andourcommit- possible, customerincon- and reduce, asmuch prove on-timeperformance took immediatestepstoim- eled timeoftheyear, United during themostheavilytrav- problems weexperienced Despite theoperational information toourcustomers. livering accurate,up-to-date gage handling,aswellde- on-time departures andbag- focus onreliability inschedules, This meanshavingasingular safely andontime,everytime. customers arriveanddepart provements toensure thatour and makingoperationalim- commitment toreliability result, weare renewing our faced lastsummer. Asa operational challengeswe ice, especiallygiventhe ability todeliverreliable serv- of thissizewillaffect United’s questioned whetheramerger of USAirways,somehave theproposed acquisition With tions throughout 2001. chariots tootherairportloca- We plantodeployadditional Washington, D.C.-National. Washington, D.C.-Dullesand Francisco, LosAngeles, Chicago O'Hare, San has chariotsinserviceat bag tags.Currently, United and tickets, boarding passes in customersandtoi airport torebook andcheck employees anywhere inthe wireless t to computersystemsthrough con and tery-powered mobile check-inunits–bat- lar flightoperations.These airport duringtimesofirregu- customers' problems atthe solutionstoresolve tech Chariot We alsoare usingourmobile to customerdemands. better matchingouraircraft bility intothescheduleby United tobuildgreater relia- The program hasallowed schedule ofdailyflights. by matchingaircraft toour use ofUnited’s entire fleet ject (ASAP)maximizesthe Scheduling AutomationPro- In addition, ourAircraft less difficult duringdelays. ing customers’experiences while atthesametimemak- communicate flightchanges, for front-line employeesto The Centermakesiteasier delays andcancellations. conditions thatcauseflight sudden changesinweather as maintenancedelaysor disrupted operations,such for passengersaffected by reaccommodation plans and proactively develop of employeeswhoquickly uled for2001–hasateam locations withmore sched- supporting eightairport The Center–currently Customer AdvocateCenter. hancements, includingthe several customerserviceen- United alsohasinitiated SM echnology – to harness high- to harness PP-O-0 R0 QO1EfcieDt:12/0 eeto:Life of Job 1/21/00 Retention: CP-PP-SOP-008 QR008 QROO1 Effective Date: ssue enable nected we hadmore 1K 10 inSeptember. For2000 arrivals report, upfrom No. of Transportation’s on-time No. 5intheU.S.Department By December, Unitedranked improvements inreliability. end of2000demonstrated Our performancetoward the intended destination. that everybagreaches its dite handlingandhelpensure the-art technologytoexpe- America, whichusestate-of- scanners throughout North deployed 2,500baggage baggage operationsand we increased manpowerin performance. Forinstance, to enableconsistenton-time operational enhancements United hasmadefurther Performance Boosting OurOn-Time structurally improve reliability. year ininitiativesthatwill $100 millioninthecoming agreed toinvestmore than are working. Andwe’ve which showsthatourefforts on United–thanin1999, than 100,000milesayear customers whoflymore ® customers – 13 UAL Corporation 2000 Annual Report C
UAL#27988 Assm by: PG/NS Proof by:_____ QC by:_____ Date:_____ DULL GLOSS Inks/Density: C ______M ______Y ______K ______SPOT ______MYK 541 VARNISHVARNISH ❏ 4up Approval ❏ CPI Standard Stock ❏ Customer Stock
Customer Stock Customer Stock Standard CPI Approval 4up
❏ ❏ ❏ ❏ 541 K Y M C VARNISH VARNISH
nsDniy ______PT______SPOT ______K ______Y ______M C Inks/Density: GLOSS DULL
Proof by:_____ QC by:_____ Date:_____ by:_____ QC by:_____ Proof PG/NS by: Assm UAL#27988 27988_P1_32 3/12/0110:29AMPage14
14 UAL Corporation 2000 Annual Report %1%2%3%4%5%6%7%8%9%97% 90% 80% 70% 60% 50% 40% 30% 20% 10% 3% numbers oftheflyingpublic. port theexplosivegrowth in ture thatsimplycannotsup- an agingaviationinfrastruc- continue tobehampered by United anditscompetitors performance andreliability. transportation system’s which affect theentire air tions outsideofourcontrol, condi- to influenceexternal control, we alsoare working ments thatUnitedcandirectly Beyond operationalimprove- Addressing IndustryIssues every time. every ontime, …and to reliability… commitment renewing our We’re line industrygrowth. ed approach tomassiveair- insufficient andnon-integrat- cellations resulting from an are causingdelaysandcan- conditions –thesefactors of resources, crowded capacity andrunways,lack systems, inadequateairport Outdated airtraffic control are beginningtoshow. to capacity, andtheeffects current systemisstretched travelers toonebillion.The annual totalnumberof 60 percent –bringingthe passengers willrisebynearly years thenumberofairline istration predicts thatin10 The FederalAviation Admin- leaders. AsthelargestU.S. community andpolitical cooperation amongbusiness, Finding thesolutionsrequires simply cannotbeignored. become aglobalissuethat infrastructure problems have of airtravelerseachyear, theriseinnumber With tions tothiscrisis. long-term, permanentsolu- taken theleadinpressing for and businesses,U heavy tollonpassengers to increase andtakea As thepressure continues PP-O-0 R0 QO1EfcieDt:12/0 eeto:Life of Job 1/21/00 Retention: CP-PP-SOP-008 QR008 QROO1 Effective Date: nited has depart safely… depart and arrive customers our that …to ensure affordable globaltravel. of safe,convenientand our customers’expectations Airlines willcontinuetomeet environment where United reshaped airtransportation moving toward adramatically By workingtogether, weare ments tocustomers. fulfill ourreliability commit- long waytoward helpingus airport facilities,willgoa service initiativesand investments incustomer coupled withUnited’s own changes intheindustry, improvements. Structural significant infrastructure industry’s efforts tomake positioned todrivethe United Airlinesisuniquely domestic andglobalairline, 27988_P1_32 3/12/0110:30AMPage15 %1%2%3%4%5%6%7%8%9%97% 90% 80% 70% 60% 50% 40% 30% 20% 10% 3% solutions… long-term for lead the taking United is equipment andtraining. years inaviationfacilities, invested inthenextthree $40 billiondollarswillbe Aviation Trust Fund.Almost money paidintotheU.S. federal legislationthatunlocks Association, toenactAir21, zation, theAirTransport with ourchieftradeorgani- United workedintandem United SupportsAir21 PP-O-0 R0 QO1EfcieDt:12/0 eeto:Life of Job 1/21/00 Retention: CP-PP-SOP-008 QR008 QROO1 Effective Date: system. infrastructure transportation air aging U.S. the …for for thedemandsoffuture. transportation infrastructure solutions toprepareourair longer-term, morepermanent that wecontinuetodrivefor requires on-time service Our goalofprovidingreliable, first step,itisjustastep. While Air21isanimportant in theareaofinfrastructure. achieve meaningfulsolutions the federalgovernmentto of ourabilitytoworkwith Air 21istangibleevidence noise abatementatairports. controllers, andadditional hiring andtrainingofairtraffic struction projects,increased modernization, airportcon- The fundprovidesforradar 15 UAL Corporation 2000 Annual Report
UAL#27988 Assm by: PG/NS Proof by:_____ QC by:_____ Date:_____ DULL GLOSS Inks/Density: C ______M ______Y ______K ______SPOT ______C M Y K 541 VARNISHVARNISH ❏ 4up Approval ❏ CPI Standard Stock ❏ Customer Stock
Customer Stock Customer Stock Standard CPI Approval 4up
❏ ❏ ❏ ❏ 541 K Y M C VARNISH VARNISH
nsDniy ______PT______SPOT ______K ______Y ______M C Inks/Density: GLOSS DULL
Proof by:_____ QC by:_____ Date:_____ by:_____ QC by:_____ Proof PG/NS by: Assm UAL#27988 27988_P1_32 3/12/0110:32AMPage16
16 UAL Corporation 2000 Annual Report %1%2%3%4%5%6%7%8%9%97% 90% 80% 70% 60% 50% 40% 30% 20% 10% 3% Pages 16-19 Experience Customer Improving the United’s Strategy: PP-O-0 R0 QO1EfcieDt:12/0 eeto:Life of Job 1/21/00 Retention: CP-PP-SOP-008 QR008 QROO1 Effective Date: 27988_P1_32 3/12/0110:32AMPage17 %1%2%3%4%5%6%7%8%9%97% 90% 80% 70% 60% 50% 40% 30% 20% 10% 3% United Economy on thetypeofaircraft) ofthe six to11rows (depending inches oflegroom inthefirst space, uptofiveadditional premium flyerswithmore Economy Plusrepays our the rollout ofEconomyPlus. economy-class travelwith redefined thestandard for for theentire industryand so Unitedraisedthebar they wantedmore legroom, Our loyalcustomerstoldus passengers needandwant. of whatourwidearray based ondetailedresearch that deliveronpromise, develop products andservices convenient. We continueto that iseasy, comfortableand giving thematravelexperience United alsoisdedicatedto and deservereliable service, While customersexpect ® cabin. our competitors. and far-reaching ofany are themostaggressive by OurUnitedCommitment– provement in experience. Ourserviceim- are allpartoftheairport and greet thematthegate questions, handletheirbags, respond toour customers’ experience. Thewaywe key toenhancingtheairport overall customerserviceis tion. We knowthatimproving variable intheserviceequa- Economy Plusisjustone Airport Experience Improving the by theendof2001. rollout should be complete aircraft. Theinternational Boeing 767,777and747 onselect uct internationally begun introducing theprod- from our customers,wehave response toEconomy Plus Because oftheenthusiastic United Shuttle domestic fleet,excluding Economy PlusinourU.S. completed installationof In March 2000,United all ourcustomers. needs andmakessensefor respond toourpassengers’ Economy Plusistailored to ability totravelinexpensively. additional legroom forthe travelers are willingtoforgo research tellsusthat leisure able atdiscountedfares. Our results infewerseatsavail- cabin conversion,which Economy Pluswascomplete competitor’s responses to gain travelers.Oneofour needs ofourleisure orbar- without compromising the Plus tofull-fare customers United canoffer Economy Industry First Economy Plus–an itiatives –guided ® aircraft. cellular phoneorpager. their personalcomputer, tions andgatechangesat about flightdelays,cancella- matically receive messages United customerscanauto- free proactive pagingservice, Through UnitedUpdate and handhelddevices. phones Internet-enabled the area ofwireless and The latestadvancesare in are delayed orcancelled. need, especiallywhenflights tomers theinformationthey ing newwaystogetourcus- We are workingondevelop- the statusofinboundaircraft. flightoptionsand alternate reasons forflight delays, electronic displayprovides During irregular service,the ity anddestinationweather. departure time,seatavailabil- flight information,including vides customerswithreal-time hubs. UnitedEasyInfopro- our otherNorthAmerican O’Hare andare installingin unveiled atgatesChicago information displaythatwe United EasyInfo At theGate… on monitorsatthegates. flight informationwepost range andtimelinessofthe we alsoare upgradingthe Service Representatives, information toourCustomer tion toproviding betterflight pected eventsoccur. Inaddi- when delaysorotherunex- up-to-the-minute information customers more accurate, so ouremployeescanprovide and systemsenhancements service trainingprograms United hasimplementednew last summer. caused forourcustomers tions ouroperationalissues the disruptionsandfrustra- is especiallyimportantgiven deserve from us.Thispledge and honestytheyexpect respect, courtesy, fairness promises ourcustomersthe Our UnitedCommitment PP-O-0 R0 QO1EfcieDt:12/0 eeto:Life of Job 1/21/00 Retention: CP-PP-SOP-008 QR008 QROO1 Effective Date: SM is anew SM , a every bagreaches itsowner. implementing toensure that United isdevelopingand baggage-tracking network of acustomer-focused, total The newequipmentispart and workinourramparea. people whohandlethebags to information and reliable information, providing timely scanners capture passenger devices, theseelectronic Functioning liketracking North Americanstations. ners inusethroughout our 2,500 BullsEye why United than mishandledbags.That’s Nothing cansouratripfaster gage to improve ourbag- nology In addition,we’re usingtech- At BaggageClaim… on united.com. chase orrequest upgrades, summaries, aswellpur- account andE-Upgrade view theirMileagePlus in process. Customerscan and speedingupthecheck- track ofpapercertificates eliminating theneedtokeep Premier Executive’s account, and addedautomaticallytoa now beinelectronic form activity. Theupgradeswill Mileage Plus by purchased orearned Electronic upgradesmaybe electronic upgradeproduct. year, welaunchedanew smoother andswifter. Last make check-inandboarding technology atthegateto We alsoare applying new Executives handling capabilities. ® has more than through flight ® Premier SM bag scan- SM 17 UAL Corporation 2000 Annual Report C
UAL#27988 Assm by: PG/NS Proof by:_____ QC by:_____ Date:_____ DULL GLOSS Inks/Density: C ______M ______Y ______K ______SPOT ______MYK 541 VARNISHVARNISH ❏ 4up Approval ❏ CPI Standard Stock ❏ Customer Stock
Customer Stock Customer Stock Standard CPI Approval 4up
❏ ❏ ❏ ❏ 541 K Y M C VARNISH VARNISH
nsDniy ______PT______SPOT ______K ______Y ______M C Inks/Density: GLOSS DULL
Proof by:_____ QC by:_____ Date:_____ by:_____ QC by:_____ Proof PG/NS by: Assm UAL#27988 27988_P1_32 3/12/0110:32AMPage18
18 UAL Corporation 2000 Annual Report %1%2%3%4%5%6%7%8%9%97% 90% 80% 70% 60% 50% 40% 30% 20% 10% 3% any United,UnitedShuttleor can issueaboarding passfor one minute,thesemachines average check-intimeofonly an Aspen, Colorado.With in Chicago,SanDiegoor use aselfcheck-inkiosk right byairportlinesand using E-Tickets and service.Customers efforts tomarrytechnology as anotherpartofUnited’s equipment inseveralcities new self-servicecheck-in We’ve beenrolling outour …And EvenatCheck-In and convenient. and iseasy,that comfortable experience a travel givingourto customers isdedicated United SM can walk our customers. better travelexperiencefor is committedtocreating a a newwayofthinking,United technology, better trainingor Whether thesolutionisnew airport locationsin2001. will bedeployedatadditional line thecheck-inprocess, services designedtostream- EasyCheck-In nology, partofourUnited upgrade list.Thekiosktech- add themselvestothe their seatassignment,or their bags,selectorchange In addition,theycancheck Mileage PlusPremier card. insert amajorcredit card or America. Customerssimply United Express flightinNorth SM package of PP-O-0 R0 QO1EfcieDt:12/0 eeto:Life of Job 1/21/00 Retention: CP-PP-SOP-008 QR008 QROO1 Effective Date: ready toturnin,FirstSuite are rests. Whenpassengers adjustable legand fully back stimulationand comfort withlumbarsupport, electronic seatisbuiltfor sleeping area.Thereclining center andacozy, private work space,anentertainment seat offeringthatcombinesa United FirstSuiteisaluxurious United FirstSuite head 27988_P1_32 3/12/0110:32AMPage19 %1%2%3%4%5%6%7%8%9%97% 90% 80% 70% 60% 50% 40% 30% 20% 10% 3% with modemconnection. and alaptoppowersource space, ahandyflexlamp ample shelfandstorage calls andfaxore-mailaccess, sonal phoneforworldwide executive office,withaper- space isappointedlikean reducing headset.Thework and newsthroughanoise- channels ofCD-qualitymusic programming, andupto21 channels ofmovieandTV to 20featurefilmtapes,nine audio-visual systemwithup First Suiteoffersanindividual working orbeingentertained. option ofspendingtheirtime Our passengerswantthe soft lie-flatbed. transforming itselfintoa reclines to180degrees, kiosks check-in Self-service overhead bins overhead Roomier enjoy short-subject video can Customers tic flights. classes to customersinallservice offer freeheadsetsandmovies major U.S.carrierto first In 2000,Unitedbecamethe domestic flights. offeri tainment United expandeditsenter- customers’ travelexperience, In ourdrivetoenhance Options Expanded Entertainment onboard U.S.domes- PP-O-0 R0 QO1EfcieDt:12/0 eeto:Life of Job 1/21/00 Retention: CP-PP-SOP-008 QR008 QROO1 Effective Date: ngs onU.S. legroom More while theyfly. spend theirtimerelaxing options iftheychooseto to giveourpassengersmore panded accessisdesigned The newcontentandex- and airtrafficcontrollers. between theflightcrew transmits conversations “From theCockpit,”which access toUnited’s exclusive Customers alsohavefree produced programs. popular sitcomsand programming, suchas specially 19 UAL Corporation 2000 Annual Report
UAL#27988 Assm by: PG/NS Proof by:_____ QC by:_____ Date:_____ DULL GLOSS Inks/Density: C ______M ______Y ______K ______SPOT ______C M Y K 541 VARNISHVARNISH ❏ 4up Approval ❏ CPI Standard Stock ❏ Customer Stock
Customer Stock Customer Stock Standard CPI Approval 4up
❏ ❏ ❏ ❏ 541 541 K K Y Y M M C C VARNISH VARNISH VARNISH
nsDniy ______PT______SPOT ______K ______Y ______M C Inks/Density: GLOSS DULL DULL
Proof by:_____ QC by:_____ Date:_____ by:_____ QC by:_____ Proof PG/NS by: Assm UAL#27988 27988_P1_32 3/12/0110:32AMPage20
20 UAL Corporation 2000 Annual Report %1%2%3%4%5%6%7%8%9%97% 90% 80% 70% 60% 50% 40% 30% 20% 10% 3% Pages 20-23 Opportunities E-Commerce Maximizing United’s Strategy: PP-O-0 R0 QO1EfcieDt:12/0 eeto:Life of Job 1/21/00 Retention: CP-PP-SOP-008 QR008 QROO1 Effective Date: 27988_P1_32 3/12/01 10:32 AM Page 21
In an age when the informa- United’s Internet conven- In an effort to deliver seam- tion superhighway has forever ience doesn’t stop at the less global travel, United changed the way people desktop or notebook com- NetWorks has introduced “travel,” the airline industry puter. We provide real-time country-specific versions of has joined the Internet flight information through united.com in most of the revolution in an effort to give Palm VIITM handheld personal 28 countries we serve. Cus- consumers an even better, digital assistant devices, and tomers around the world more convenient flying experi- we also offer a flight-paging can now shop for travel with ence. At United Airlines, we’re service that proactively in- at-home convenience, no tapping into our expertise to forms customers about longer just in English or Customer Stock ❏ give our customers what they schedule changes and with U.S. currency. want most from the web – gate information through
greater choices, more their handheld devices, For travelers who are on the Date:_____ QC by:_____ Proof by:_____ access and easier travel. pagers, personal computer road, United NetWorks has or Wireless Application announced a cutting-edge As customers conduct their Protocol (WAP)-enabled wireless booking and ticket- PG/NS lives and businesses at Inter- mobile telephones. ing service that allows cus- CPI Standard Stock ❏ net speed, United is enhanc- tomers to book flights and ing existing services as well Introducing United purchase E-Tickets from as developing new technology NewVentures any Internet-enabled mobile products and partnerships to phone. Users of this indus-
more quickly and efficiently In 2000, to manage the try-first free service can 4up Approval meet our customers’ needs. incredibly high demand for purchase E-Tickets for Assm by: UAL#27988 Inks/Density: C❏ ______M ______Y ______K ______SPOT ______We started years ago by pio- web-based travel options any United Airlines, United neering the use of E-Tickets, and growing e-commerce Shuttle or United Express and we helped pave the way opportunities, we created flight originating in the United for more customers turning United NewVentures, the States, view their itineraries, to the web to book their first stand-alone e-com- check their seat assignments, travel plans. merce subsidiary in the and make special meal re- U.S. airline industry. United quests – all via wireless United.com NewVentures is wholly phone. Once this service focused on creating busi- is off the ground, we plan to One way we’re taking nesses that offer innovative expand its capability to allow advantage of this trend is by customer solutions, strength- travelers to make changes to constantly evaluating and en our airline business and already-booked flights. improving our award-win- create incremental value for ning proprietary web site – our stockholders. United NetVentures’ collabo- united.com. In addition to rative partnerships will bene- purchasing tickets at the site, United NewVentures is fit our customers in equally customers can redeem and made up of two divisions, innovative ways. For example, book Mileage Plus award United NetWorksSM and through United NetVentures, travel, request travel upgrades United NetVenturesSM. United was one of the five and check up-to-the-minute United NetWorks manages founding member airlines flight information. all United branded e-com- of Orbitz, a travel-oriented merce activities, developing mega-web site. This web site In addition, two new features strategies for and driving the is designed to be the com- on united.com are making operations of United’s web prehensive and unbiased travel scheduling and ticket- site and wireless communica- source of travel information ing even easier. Customers tion initiatives. It also man- on the Internet. With 28 who purchase E-Tickets on ages third-party sales of airlines currently onboard, our web site can now print Mileage Plus program fre- Orbitz will be a multi-airline receipts as soon as they quent-flyer miles. United portal offering low-fare tickets receive confirmations of their NetVentures focuses on along with hotel reservations, transactions. The receipt collaborative partnerships, car rentals and a host of other provides itinerary and flight including the developing of travel-related services. information and will make business sponsorship GLOSS completing business travel efforts and non-United United NetVentures is en- VARNISH expense reports a breeze. branded businesses. gaged in other groundbreak- DULL
Visitors to united.com also ing initiatives to offer United VARNISH can download a complete flyers the greatest possible
United flight schedule to their value and convenience. 541 own computers. Hotwire is a new online dis- count-ticketing venture that K will auction off vacant airline seats to last-minute and price-driven travelers. CMY UAL Corporation 2000 Annual Report
21
3% 10% 20% 30% 40% 50% 60% 70% 80% 90% 97%
CP-PP-SOP-008 QR008 QROO1 Effective Date: 1/21/00 Retention: Life of Job
Customer Stock Customer Stock Standard CPI Approval 4up
❏ ❏ ❏ ❏ 541 K Y M C VARNISH VARNISH
nsDniy ______PT______SPOT ______K ______Y ______M C Inks/Density: GLOSS DULL
Proof by:_____ QC by:_____ Date:_____ by:_____ QC by:_____ Proof PG/NS by: Assm UAL#27988 27988_P1_32 3/12/0110:32AMPage22
22 UAL Corporation 2000 Annual Report %1%2%3%4%5%6%7%8%9%97% 90% 80% 70% 60% 50% 40% 30% 20% 10% 3% UnitedSameDay In 2000weintroduced their shipmentsonline. tomers canbookandtrack Cargo.com, where ourcus- initiatives, includingUnited- a varietyofweb-based customers’ needsthrough meeting United’s cargo United NetVentures is oriented topassengers. Our efforts are notsolely our corporatecustomers. delivery servicetargetedto flight-out” smallpackage and easiertravel. choices, keyinformation access togreater fingertip customers the Internet to give our We’re tapping into SM , a“next- United andoursuppliers. cient businessprocesses for power todevelopmore effi- provides uswithtremendous opportunities. TheInternet on excitingnewe-commerce tion technologytocapitalize United isalsousinginforma- Potential Developing theB2B together tocreate Cordiem global airlineswhohavelinked We are oneofnineleading cessing andinventorycosts. by loweringtransaction,pro- nificant valuefrom thisinitiative We anticipatecapturingsig- annual supply-chainbusiness. billion ofthememberairlines’ handle approximately $32 procurement venture will This business-to-business related goodsandservices. qualified sellersofairline- worldwide incontactwith place thatbringscarriers a web-basedvirtualmarket- PP-O-0 R0 QO1EfcieDt:12/0 eeto:Life of Job 1/21/00 Retention: CP-PP-SOP-008 QR008 QROO1 Effective Date: SM , and more. customers alltheyneed marketplace togiveour nership inthevirtualairline both competitionandpart- electronic services,redefining lead theindustryininnovative businesses. We continueto customers andairline-related today’s airtravelers,cargo and convenienceare to important choice,access United understandshow 27988_P1_32 3/12/0110:32AMPage23 %1%2%3%4%5%6%7%8%9%97% 90% 80% 70% 60% 50% 40% 30% 20% 10% 3% tion Week In December2000, better serve theircustomers.” better serve savvy tolearnmoreaboutand technology withbusiness that IT of titioners IT considers“innovativeprac- among the100companies 100” list.Unitedranked17 Airlines toitsfirst“Innovation (IT) industry, namedUnited the informationtechnology for ITInnovation United Recognized , apublicationfor PP-O-0 R0 QO1EfcieDt:12/0 eeto:Life of Job 1/21/00 Retention: CP-PP-SOP-008 QR008 QROO1 Effective Date: combine Informa- or personaldigitalassistants. net-enabled phones,e-mail t mation travel provides wireless that services of suite Update, ourcomprehensive and ticketingthroughUnited 2000 ofwirelessbooking introduction inNovember United’s industry-leading The publicationpraised updates andflightinfor- hrough pagers,Inter- access toelectronic 23 UAL Corporation 2000 Annual Report
UAL#27988 Assm by: PG/NS Proof by:_____ QC by:_____ Date:_____ DULL GLOSS Inks/Density: C ______M ______Y ______K ______SPOT ______C M Y K 541 VARNISHVARNISH ❏ 4up Approval ❏ CPI Standard Stock ❏ Customer Stock
Customer Stock Customer Stock Standard CPI Approval 4up
❏ ❏ ❏ ❏ CMY 541 K CMY VARNISH VARNISH
nsDniy ______PT______SPOT ______K ______Y ______M C Inks/Density: GLOSS DULL
Proof by:_____ QC by:_____ Date:_____ by:_____ QC by:_____ Proof PG/NS by: Assm UAL#27988 27988_P1_32 3/12/0110:32AMPage24
24 UAL Corporation 2000 Annual Report %1%2%3%4%5%6%7%8%9%97% 90% 80% 70% 60% 50% 40% 30% 20% 10% 3% Pages 24-27 Better PlacetoWork Making Uniteda United’s Strategy: PP-O-0 R0 QO1EfcieDt:12/0 eeto:Life of Job 1/21/00 Retention: CP-PP-SOP-008 QR008 QROO1 Effective Date: 27988_P1_32 3/12/0110:32AMPage25 %1%2%3%4%5%6%7%8%9%97% 90% 80% 70% 60% 50% 40% 30% 20% 10% 3% challenges weexperienced. tations duringtheoperational expec- to managecustomers’ put forthextraordinary efforts our front-line employees,who saw thislastsummeramong we United succeed.Clearly exert theextraeffort tomake work andtheirwillingnessto pride andenjoymentintheir employees’ strong senseof – our point onwhichtobuild We have agoodstarting deliver highperformance. our employees,Unitedmust compensation levelsfor In order tosustainthese leading levels. management toindustry- our non-unionstaff and bringing compensationfor employee groups, aswell same mannerforallunionized this bargainingcycleinthe gists. We anticipatefinalizing instructors andmeteorolo- patchers, fleettechnical agreements forflightdis- and wefollowedthatwith industry-leading payposition, cycle tookourpilotstoan reached inthebargaining tion. Thefirstcontractwe contracts openforrenegotia- almost allU.S.domesticlabor faced ayearoftransition,with period endedin2000,United since theESOPinvestment It’s importanttonotethat The ESOPTransition reality forouremployees. several fronts tomakethisa to work.We’re working on make Unitedabetterplace of lifeforourworkforce and strive toimprove thequality employees. Thisiswhywe committed andengaged satisfied customersistohave know theonlywaytoensure service wedeliver, andwe make thedifference inthe The peopleofUnitedAirlines meant ouremployeeshadto which standby situations, a changefeeforsame-day viously, certainfares required without incurringafee.Pre- their originalreservation to thesamedestinationas to departonthesameday by foranyflightscheduled allows customerstostand front-line CSRs,thepolicy Proposed byagroup ofour is ournewstand-byfeepolicy. we’re streamlining procedures Another exampleofhow process forourcustomers. speeds upthecheck-in easier tounderstand,italso system more consistentand only isthissimple,two-price gage from 33totwo.Not North Americaexcessbag- in thenumberofpricesfor implemented isareduction fication thathasalready been example ofaprocess simpli- on-time departure. One on theairplanesafelyforan tomers andtheirbelongings tributes togettingthecus- long ittakesandhowcon- frequently eachisdone,how forms bydetermininghow the varioustasksaCSRper- team continuestoprioritize cesses. Across-functional effort tosimplifyairportpro- why Unitedhasbegunan on anairplane.That’s exactly pass andgetthepassenger customer, issueaboarding tive (CSR)tocheckina tomer ServiceRepresenta- as 1,700tasksforaCus- In fact,itcantakeasmany don’t haveeasyjobs. airlineemployees today, that,asitstands recognizing experience. We beganby the qualityoftheirwork a littleeasierandimprove to maketheirworkinglives steps duringthispastyear ment, we’vetakenseveral and recognize theircommit- To fuelouremployees’energy Process… Simplifying theWork PP-O-0 R0 QO1EfcieDt:12/0 eeto:Life of Job 1/21/00 Retention: CP-PP-SOP-008 QR008 QROO1 Effective Date: irregular operations. strategies duringhigh-volume to determinerescheduling United’s operationsmanagers ware application thatallows deployed Artemis,anewsoft- and arrivaltimes.We also time topredict departure flight crew andwheels-up flight resources, aircraft, system and solutionstool.The airline operationsprediction out CHRONOS,areal-time In November2000,werolled answer customerquestions. single resource from whichto giving front-line employeesa a cluding from numerous sources, in- CS INFOcollectsinformation the customerstheyserve. information andprovide itto accessvitaloperational ly front-line employeestoquick- new technologythatallows Service Info(CSINFO),a We alsolaunchedCustomer tion onflightstatus. informa- employees real-time systems togiveourfront-line reservations andoperating nection betweenUnited’s systems toimprove thecon- communications internal example, weenhancedour easier andlessstressful. For make ouremployees’jobs United isusingtechnologyto Tools …With NewTechnology customers andemployees. win-win solutionforbothour lined policyprovides another departure. Thisnewstream- type, oftenminutesbefore check therulesoffare uses statusofall live weathersource, 25 UAL Corporation 2000 Annual Report
UAL#27988 Assm by: PG/NS Proof by:_____ QC by:_____ Date:_____ DULL GLOSS Inks/Density: C ______M ______Y ______K ______SPOT ______CMYK 541 VARNISHVARNISH ❏ 4up Approval ❏ CPI Standard Stock ❏ Customer Stock
Customer Stock Customer Stock Standard CPI Approval 4up
❏ ❏ ❏ ❏ CMY 541 K CMY VARNISH VARNISH
nsDniy ______PT______SPOT ______K ______Y ______M C Inks/Density: GLOSS DULL
Proof by:_____ QC by:_____ Date:_____ by:_____ QC by:_____ Proof PG/NS by: Assm UAL#27988 27988_P1_32 3/12/0110:32AMPage26
26 UAL Corporation 2000 Annual Report %1%2%3%4%5%6%7%8%9%97% 90% 80% 70% 60% 50% 40% 30% 20% 10% 3% hits aglitch,everyonebenefits. prove atravelexperiencethat can applytechnologytoim- our or delays.When weather causes sengers –likesitwhenbad our employees,norpas- not – with questions.Nobody they gettoanairportcounter arranging forhotels–before ing themonotherflightsor customers –suchasrebook- sary arrangementsforour tions andmaketheneces- during majorservicedisrup- ipate ourcustomers’needs allows ustoproactively antic- Advocate Centerin2000 duction ofourCustomer United’s reliability, theintro- discussion onimproving And aswementionedinour cancellations people employee engagement. measure andimprove employee feedbackto leaders regularly assess serve ourcustomers.Our more toolsforthemto training techniques and supervisors, addingnew training forourfront-line ment formore andbetter ing inleadershipdevelop- the difference. We’re invest- between themthatmakes to-face personalinteraction but ultimatelyit’s theface- and employeeexperience, help improve thecustomer Technology solutionscan goals atChicago’s O’Hare meet on-timedeparture occur inorder tosuccessfully which criticaleventsneedto that identifythesequencein and 50-minutetimingmaps the teamdeveloped30- expertise andresources, together andcoordinating work processes. Byworking performance byimproving 2000 toimprove departure created inthesummerof is across-functional group TeamThe O’Hare Timeline line performance. even higherlevelsoffront- being implementedtoachieve programs are successfully Additionally, twoteam-based Through Teamwork Promoting Performance PP-O-0 R0 QO1EfcieDt:12/0 eeto:Life of Job 1/21/00 Retention: CP-PP-SOP-008 QR008 QROO1 Effective Date: customer satisfaction. baggage reliability and on-time performance, employees toimprove teamwork amongfront-line how Unitedisleveraging 2001, isanotherexampleof rolled outatotherairportsin in SanFranciscoandwillbe Team, whichisalsoin place departure. TheTimeline them atanypointduring side employeescanrefer to “ready rooms” sothatplane- podiums, injetwaysand posted visiblyatgatearea airport. Maptimelinesare 27988_P1_32 3/12/0110:32AMPage27 %1%2%3%4%5%6%7%8%9%97% 90% 80% 70% 60% 50% 40% 30% 20% 10% 3% Smaller groups ofemployees gates onaday-to-daybasis. sions forasetnumberof problems andmakingdeci- are responsible forsolving leadership, employeeswho management andunion consists ofteamslocal dite customerservice.TBO ultimately improve andexpe- and workperformanceto functional communication to promote bettercross- Denver airportwascreated Organization (TBO)atthe United’s Team Based area, includingtyingmanage- of stepstokeeppaceinthis and we’vetakenanumber base andthelabormarket, must reflect ourcustomer force diversity. Ourworkforce is alsoreflected inourwork- United’s people commitment Dulles airport. at theWashington, D.C.- out currently beingrolled mentation inD Following asuccessfulimple- to thecustomeraspossible. to makedecisionsasclose empowered toworktogether ice andcustomerserviceare as maintenance,rampserv- from different divisionssuch enver, TBOis tomer travelexperience. deliver anexceptionalcus- our employees’abilityto at thesametimeenhancing diverse placetowork,while ways tomakeUnitedagreat, we willcontinuetoexplore improve theirperformance, tool thathelpsemployees work process oratraining expedites andsimplifiesa technology orsystemthat In theend,whetherit’s anew to diversitygoals. ment incentive compensation PP-O-0 R0 QO1EfcieDt:12/0 eeto:Life of Job 1/21/00 Retention: CP-PP-SOP-008 QR008 QROO1 Effective Date: around theglobe. to adiverseworkforce reflects United’s commitment for Minorities.Theranking the 50BestCompanies United in2000asoneof Fortune Magazine Recognizes United Fortune Magazine named 27 UAL Corporation 2000 Annual Report
UAL#27988 Assm by: PG/NS Proof by:_____ QC by:_____ Date:_____ DULL GLOSS Inks/Density: C ______M ______Y ______K ______SPOT ______CMYK 541 VARNISHVARNISH ❏ 4up Approval ❏ CPI Standard Stock ❏ Customer Stock
Customer Stock Customer Stock Standard CPI Approval 4up
❏ ❏ ❏ ❏ 541 K Y M C VARNISH VARNISH
nsDniy ______PT______SPOT ______K ______Y ______M C Inks/Density: GLOSS DULL
Proof by:_____ QC by:_____ Date:_____ by:_____ QC by:_____ Proof PG/NS by: Assm UAL#27988 27988_P1_32 3/12/0110:33AMPage28
28 UAL Corporation 2000 Annual Report %1%2%3%4%5%6%7%8%9%97% 90% 80% 70% 60% 50% 40% 30% 20% 10% 3% Just theFacts Pages 28-34 (available seatmiles;percent ofsystem) 2000 Pacific 19.3% Atlantic 13.4% – Latin America CapacitybyRegion 4. 6% America 62.7% North allows Unitedanimportant This regional diversification the AtlanticandLatinAmerica. North America,thePacific, market segmentsitserves– well represented inthefour the world.Thecompanyis day in2000topointsallover of 231,000customersevery United carriedanaverage 2000 United in reducing theflightschedule. by market, North America which primarilyaffected the our operationaldisruptions, experiencedduring tomers the inconveniencecus- mize We alsowere abletomini- conditions duringtheyear. capacity torespond tomarket able tostrategicallyreallocate enced in2000.Unitedwas service thecompanyexperi- such asthedisruptionsto to unusualcircumstances around the world,aswell and economicconditions sponding tovaryingindustry measure offlexibilityinre- PP-O-0 R0 QO1EfcieDt:12/0 eeto:Life of Job 1/21/00 Retention: CP-PP-SOP-008 QR008 QROO1 Effective Date: (available seatmiles;percent ofsystem) 1999 United system. percent in2000forthetotal r available seatmiles, senger revenues d unit revenue, whichispas- pared to 1999.Passenger decrease tocapacitycom- This resulted inaonepercent America – 65.0% North CapacitybyRegion Latin America 5.1% Atlantic 12.5% Pacific 17.4% ivided by ose six 27988_P1_32 3/12/0110:33AMPage29 %1%2%3%4%5%6%7%8%9%97% 90% 80% 70% 60% 50% 40% 30% 20% 10% 3% • cent. Despitethissubstantial miles, orcapacity, by10per- increasing availableseat the region duringtheyear, significant capacitybackinto the Pacific,Unitedadded countries Unitedservesin economies inseveralofthe Responding totheimproving company counted for16percent ofthe operations intheregion ac- ating inthePacific,United The largestU.S.airlineoper- Pacific market. international ating informationforeach The followingprovides oper- up 15percent over1999. totaled $6.2billionin2000, United reach. Operating revenues for with thebroadest international globe andistheU.S.carrier United International demand. cust to fleet company’s more effectively m of thesummerandinpartto to theoperationaldisruptions pany tookpartlyinresponse market, ameasure thecom- reduction incapacityforthe due inparttoafourpercent increased sevenpercent, year the for unit revenue revenues in 68 percent ofthecompany’s operations accountedfor United’s NorthAmerica North America US Airways,”page9.) markets. east-west U.S. marketswithUnited's necting USAirways’eastern ient forpassengers,con- make travelingmore conven- markets. Themergerwould presence intheEastCoast dressing itsrelatively weak lent U.S.networkbyad- will round outUnited’s excel- acquire USAirways,which United announcedplansto 2000 Highlights ’ ’ s international segment s international s presence spansthe ’ (See “Mergingwith s revenues in2000. and international 2000. Passenger atch the omer ’ s • • 87 U.S.stations,aswell lation of463gatereaders in United completedtheinstal- First,” page17.) “Economy Plus–anIndustry successful roll-out. Economy, completedits legroom product inUnited Economy Plus,United’s extra North America Operating Earnings North AmericaOperatingEarnings As reportedtotheU.S.DepartmentofTransportation As reportedtotheU.S.Department ofTransportation 10,717 Pacific Operating Earnings Pacific OperatingEarnings 9619 981999 1998 1997 1996 9619 981999 1998 1997 1996 9619 981999 1998 1997 1996 961997 1996 3,438 North AmericaRevenues 288 738 Pacific Revenues (See 11,214 3,552 267 652 11,997 1998 1,236 2,843 (68) • Airport’s newlyopened, Francisco International United movedintoSan tomers andemployees. boarding process forcus- machines streamline the tion, thesegateside the boarding passinforma- By automatically“reading” locations. two international ($ millions) 12,516 1999 2,691 112 990 ($ millions) ($ millions) ($ millions) 13,094 PP-O-0 R0 QO1EfcieDt:12/0 eeto:Life of Job 1/21/00 Retention: CP-PP-SOP-008 QR008 QROO1 Effective Date: 2000 2000 2000 3,161 2000 380 92 • • Narita International Airport. Narita International First ClassLoungeinTokyo bination RedCarpetCluband opened state-of-the-artcom- also benefitfrom thenewly United Francisco-Beijing service. plements ournewdailySan to dailyservice,whichcom- company toexpandtheflying flying authorityallowsthe day-a-week basis;thenew earlier intheyearonafive- Francisco-Sha had inauguratednon to ChinainNovember. United to flytwoadditionalfrequencies tions, the company Of significantimportanceto Pacific byfivepercent. revenues increased forthe increase, passengerunit travel experience. tomers amore seamless providing thealliance’s cus- are locatedintheterminal, Star Alliancepartnersalso Arrivals Lounge, aswellaUnited FirstClass and International tomers aRedCarpetClub the newterminaloffer cus- terminal. United’s facilitiesin state-of-the-art international Portland andSaltLakeCity. new LosAngelesserviceto as wellthelaunchof Colorado Springsservice, the additionofnewDenver- 23 destinationsin2000,with when itbeganin1994to serving ninedestinations United Shuttlegrew from in Terminal 7. national FirstClassLounge renovation ofUnited’s Inter- tional Airport,includingthe at theLosAngelesInterna- improvements toitsfacilities company madesubstantial out ofLosAngeles,the United’s traffic international Supporting thegrowth of United received authority ’ s Pacificcustomers ® lounge. Several ’ s Pacificopera- nghai service stop San ® ’ s 29 UAL Corporation 2000 Annual Report
UAL#27988 Assm by: PG/NS Proof by:_____ QC by:_____ Date:_____ DULL GLOSS Inks/Density: C ______M ______Y ______K ______SPOT ______CMYK 541 VARNISHVARNISH ❏ 4up Approval ❏ CPI Standard Stock ❏ Customer Stock
Customer Stock Customer Stock Standard CPI Approval 4up
❏ ❏ ❏ ❏ CMY 541 K CMY VARNISH VARNISH
nsDniy ______PT______SPOT ______K ______Y ______M C Inks/Density: GLOSS DULL
Proof by:_____ QC by:_____ Date:_____ by:_____ QC by:_____ Proof PG/NS by: Assm UAL#27988 27988_P1_32 3/12/0110:33AMPage30
30 UAL Corporation 2000 Annual Report %1%2%3%4%5%6%7%8%9%97% 90% 80% 70% 60% 50% 40% 30% 20% 10% 3% de a rnic-RsmdHn og de o nee-ai AddedChicago-Aruba AddedLosAngeles-Paris ResumedHongKong- Added SanFrancisco- de o nee-AddedSanFrancisco- Added LosAngeles- de evrTrnoRsmdSnFacso de a rnic-ExpandedChicago- DiscontinuedTokyo (Narita)-Beijing AddedSanFrancisco- DiscontinuedBangkok-Hong Kong Discontinued Washington, AddedSan Francisco-Beijing Expanded Chicago-Toronto Expanded LosAngeles-Kona ResumedSanFrancisco- Added Denver-Toronto Service Highlightsfor2000 in 2000. percent ofUnited region accounted forfour America operationsinthe percent lesscapacity. Latin region economies inseveralofthe 2000, boostedbyimproved prove almost 13percent in passenger unitrevenue im- United saw Latin America destinations in12countries. 306 dailydepartures to31 Europe, BritishMidlandoffers port, thegatewayairportto Air-Heathrow International tions. HubbedatLondon United Alliance greatly enhances Midland percent fortheyear. British ger unitrevenue this increase, ket rose sixpercent. Despite United performance; however, capacity intheregion aided in 2000.Reducedindustry of thecompany accounted for12percent United Atlantic atLk iyShanghai D.C. (Dulles)-Fort Meyers Singapore Salt LakeCity Lihue, Kauai ’ ’ ’ ’ s countriesand10 s trans-Atlanticopera- s capacityinthemar- s Atlanticoperations ot mrc aii tatcLatinAmerica Atlantic Pacific North America ’ s entryintotheStar Latin America Atlantic passen- ’ increased six s revenues ’ s revenues ’ s Seoul Frankfurt Mexico City Mexico Frankfurt Seoul As reportedtotheU.S.DepartmentofTransportation Latin America Operating Earnings Latin AmericaOperatingEarnings As reportedtotheU.S.DepartmentofTransportation Atlantic Operating Earnings Atlantic OperatingEarnings 9619 981999 1998 1997 1996 1,412 9619 981999 1998 1997 1996 9619 981999 1998 1997 1996 9619 981999 1998 1997 1996 Latin AmericaRevenues 750 86 18 Atlantic Revenues 1,745 238 824 69 1,846 238 832 41 ($ millions) 1,973 205 787 35 ($ millions) PP-O-0 R0 QO1EfcieDt:12/0 eeto:Life of Job 1/21/00 Retention: CP-PP-SOP-008 QR008 QROO1 Effective Date: ($ millions) ($ millions) 2000 2,260 2000 2000 2000 175 816 26 27988_P1_32 3/12/0110:33AMPage31 %1%2%3%4%5%6%7%8%9%97% 90% 80% 70% 60% 50% 40% 30% 20% 10% 3% United States. destinations across the daily flightstonearly180 tomers anadditional2,000 Express isabletooffer cus- and turboprop aircraft, United more than255regional jet acombinedfleetof With SkyWest Airlines. Great LakesAviation and Atlantic CoastAirlines, consin AirlinesCorporation, These carriersare AirWis- name ofUnitedExpress. operate underthebrand regional U.S.carriers, which ing arrangementswithfour America through ourmarket- connecting flightswithinNorth United offers anetworkof United Express Leads theWay,” Alliance, see more informationonStar more than$235million.For United's revenues in2000by The allianceaugmented more thanoneairline. tronic ticketfortravelon customers touseoneelec- development thatenables ticketing service,ahistoric true interlineelectronic launched theindustry'sfirst During theyear, StarAlliance 130 countries. than 815destinationsin tomers accesstomore airlines thatprovides cus- in 2000toanetworkof15 members, StarAlliancegrew alliance withfiveinaugural as thefirstglobalnetwork From itsbeginningsin1997 Star Alliance Alliances “Star Alliance page 9. • ntdArie 1997 2000 1997 2000 2000 1997 1999 1997 1997 1999 1999 2000 United Airlines Thai AirwaysInternational Singapore Airlines Scandinavian AirlineSystem-SAS Mexicana Airlines Lufthansa GermanAirlines British MidlandAirways Austrian AirlinesAviation Group Ansett Australia All NipponAirways Air NewZealand Air Canada ai rzla ilns1997 Varig BrazilianAirlines trAlac ebr Year Joined Star AllianceMembers vious contract regional jetsbeyondthepre- to increase thenumberof allows UnitedExpress carriers iation, signedinOctober, with theAirLinePilotsAssoc- United 2000 Highlights on regional jets. Express turboprop aircraft andUnited smaller communitieswith Lakes This moverecognizes Great independent alliancecarriers. gram tobecomeoneofour from the UnitedExpress pro- Lakes Aviation willtransition Effective May1,2001,Great (Austrian Airlines,LaudaAirandTyrolean Airways) ’ ’ strength inserving s amendedcontract ’ greater emphasis ’ s limitof65. • jet fleet. based onthesizeofUnited operate more regional jets allows UnitedExpress to preferred regional jets.Italso replaced with the customer- 150 turboprop aircraft canbe thenewprovision, upto With by theendof2003. regional jetsitfliesto108 to increase thenumberof Atlantic CoastAirlinesisable Under thenewagreement, Airlines inDecember2000. contract withAtlanticCoast United signedanew10-year PP-O-0 R0 QO1EfcieDt:12/0 eeto:Life of Job 1/21/00 Retention: CP-PP-SOP-008 QR008 QROO1 Effective Date: ’ s regional partnersin2000. which becameoneofour newest alliancecarrier, BWIA, Airlines, Emirates,SaudiArabian tion, Airways, ALM Antillean,Aloha,Cayman regional carriers:Aeromar, alliance agreements withnine United hasindependent In additiontoStarAlliance, Other AllianceAgreements Spanair andour Continental Connec- 31 UAL Corporation 2000 Annual Report
UAL#27988 Assm by: PG/NS Proof by:_____ QC by:_____ Date:_____ DULL GLOSS Inks/Density: C ______M ______Y ______K ______SPOT ______MYK 541 VARNISHVARNISH ❏ 4up Approval ❏ CPI Standard Stock ❏ Customer Stock
Customer Stock Customer Stock Standard CPI Approval 4up
❏ ❏ ❏ ❏ CMY 541 K CMY VARNISH VARNISH
nsDniy ______PT______SPOT ______K ______Y ______M C Inks/Density: GLOSS DULL
Proof by:_____ QC by:_____ Date:_____ by:_____ QC by:_____ Proof PG/NS by: Assm UAL#27988 27988_P1_32 3/12/0111:37AMPage32
32 UAL Corporation 2000 Annual Report • • partner in2000,E*TRADE. MCI WorldCom andanew andMasterCard,Plus Visa such asFirstUSAMileage of more than100partnerships due tothecontinuedsuccess grew significantlyin2000 ning frequent-flyer program The company'saward-win- Mileage Plus United Cargo 2000 Highlights previous year. percent greater thaninthe 3.1 billionin2000,three Cargo tonmilesreached three percent over1999. lion inrevenue in2000,up Cargo generated$931mil- carrier intheworld,United The sixthlargestairfreight United Cargo the historiclaunchof specific versions,including quent launchingofcountry- early intheyear. Thesubse- the redesign ofunited.com site becameevenbetterwith United’s award-winning web 2000 Highlights an 89percent increase. versus $400millionin1999, $755 millionfortheyear reached over theInternet United revenue gener ness Unitedconducts.Total touch everyaspectofbusi- and e-commerce initiatives low, thecompany’s Internet 2000 highlightsillustratebe- Ventures,” page21.) “Introducing UnitedNew- world oftheInternet. ence intherapidlyevolving maximizing United'spres- a subsidiarydedicatedto launched UnitedNewVentures, During 2000,thecompany E-Commerce debut inApril1999,whenit and order tracking.Sinceits venience ofonlinebooking to offer customers thecon- UnitedCargo.com, continued ’ s website, ® ® As the (See ated • 25 percent ofallUnitedCargo increased, nowrepresenting online trackinginquirieshave to offer online cargobooking, of anycommercial aircarrier was thefirstcargowebsite the worldcanaccess that Unitedcustomers guage bookingengine,means industry’s firstJapanese-lan- exceeds 40million. whose enrolled membership increase fortheprogram, representing a16percent million duringtheyear, mileage salesreached $456 Revenue from third-party the sameperiodlastyear. more than 101percent over united.com for2000grew Gross airbookingson in thelocalcurrency. guage, aswellviewfares lan- information intheirnative Q9 Q9 Q9 4Q99 3Q99 2Q99 1Q 99 Total UnitedRevenueGeneratedOvertheInternet 60 9619 981999 1998 1997 1996 80 773 Cargo Revenues 109 892 travel all over ($ millions) 151 913 • • • 1Q 00 Plus andUnitedNetVenture’s In conjunctionwithMileage enabled devices. Application Protocol (WAP)- check itinerariesonWireless tomers tobookflightsand ing capability, allowingcus- offer air-travel wireless book- became thefirstairlineto In November2000,United grocery purchases. frequent-flyer milesfor earn which allowscustomersto Grocery Miles,aprogram Mileage Pluslaunched newpartnerSafeway,With 2000 Highlights web site. now doneonlinethrough the cent ofcargobookingsare inquiries. Three tofiveper- 158 ($ millions) 906 Q0 Q0 4Q00 3Q00 2Q 00 204 PP-O-0 R0 QO1EfcieDt:12/0 eeto:Life of Job 1/21/00 Retention: CP-PP-SOP-008 QR008 QROO1 Effective Date: 2000 931 178 215 • • • via e-mail. news andpartneroffers provides mileagesummary, electronic communication ember. Thepersonalized e-commerce initiativesin2000.) (See pages21-23formore and trackingcapabilities. instant pricequotes,itineraries provides customersaccessto United- line withtheintroduction of service becameavailableon- United NetVentures, the 2000, inconjunctionwith customers. InDecember to United’s existing corporate delivery serviceistargeted time-sensitive 2000. This in to launchUnitedSameDay delivery servicecompany, NextJet, anindustry-leading a strategicrelationship with United Cargoentered into incentives. opportunities withmileage expanded onlineshopping dash.com, thecompany new partnershipwith of MyMileagePlus and more withthelaunch access accountinformation easier formembersto Mileage Plusmadeiteven aircraft for itscargooperations. of cargo-friendlywidebody the company December andisnowusing DC-10 freighter servicein discontinued itsdedicated ing DC-10aircraft early, United decision toretire itsremain- As partofthecompany SameDay.com, which ’ door-to-door s growing fleet small-package SM in Dec- ’ s Please note that all Digital proofs will simulate the Spot colors with CMYK values. For accurate Spot color representation please refer to a Pantone directory, or a Draw Down of the actual color being used. 27988_P33 3/9/0111:46AMPage2 %1%2%3%4%5%6%7%8%9%97% 90% 80% 70% 60% 50% 40% 30% 20% 10% 3% - - United’s missionis“toberecognized worldwideastheairlineofchoice.” Enhanced Ground Proximity Warning System (EGPWS),Unitedalwaysfocusesonitscore valueof“safetyatalltimes,inthing United alsoleadsthewayinsafety andtechnologicaladvancementsfortheaviationindustry. Thepioneerofsystemssuchasth nologically advancedBoeing777. service,airportgatereaders, theChariotmobCommitment, E-Ticket United isanindustryinnovatorwith customer-service breakthroughs suchasEconomyPlusseating,UnitedFirstSuite,OurUnite times aday. 28 in flies to133 destinations United Angeles, SanFranciscoandWashington, gatewaysinTokyo, D.C., andkeyinternational London,Frankfurt,MiamiandToronto, hubsinChicago,Denver,UAL CorporationistheholdingcompanyforUnitedAirlines,largest aircarrierintheworld.With Corporation Description 2000 include: lights ofUnited’s awards in 2000 wasnoexception.High- United’s operationstouch. the manyareas ofbusiness global awards andspanning from localrecognition to awards everyyear, ranging United receives avarietyof Awards in2000 secutive year. alliance forthesecondcon- as theleadingglobalairline Group ranksStarAlliance Merrill Lynch GlobalSecurities Companies forMinorities. United asoneofthe50Best Fortune Magazine names - - - in Asia. companies doingbusiness one ofthetopmultinational Review The FarEasternEconomic annual airlinesurvey. Business Travel News’ in 1 No. rank United Corporate travelbuyers their businessmodels. in integrated theInternet opportunities butalsohave have identifiedInternet of companiesthatnotonly Portfolio,” whichconsists top picksforits“Future names Unitedasoneofits Salomon SmithBarney countries. United’s 102,000-plusemployeesworldwidebringpeople togethermore than2,200 names Unitedas - - ile airportpodium,United over thePacific. its Boeing777aircraft flying twin-engine operationsfor authority forextended-range United theindustry’s first Administration awards The U.S.FederalAviation the secondconsecutiveyear. to its“Top 25Web Sites”for marketing, namesunited.com specialists inone-to-one Peppers andRogersGroup, site.Separately,Internet united.com thebestairline consulting groups, names world’s leadinge-commerce Gomez Advisors,oneofthe PP-O-0 R0 QO1EfcieDt:12/0 eeto:Life ofJob 1/21/00 Retention: CP-PP-SOP-008 QR008QROO1 Effective Date: Shuttle andtheintroduction ofthetech- - established in1997. members ofthepartnership, was oneofthefounding Partnership. UnitedAirlines nonpartisan Welfare toWork community’s independent, part oftheU.S.business former welfare recipients as of schedule–hiring2,000 its goal–sixmonthsahead an award, Unitedreached And thoughtechnicallynot Washington, D.C. Smithsonian Collectionin the 2000Computerworld awarded membershipin Automation Project, are and theAircraft Scheduling nologySkyPath systems, Two Unitedinformationtech- Los e s.” d TM 33 UAL Corporation 2000 Annual Report C
United #27988 batch #___ Assm by: XX Proof by:_____ QC by:_____ Date:_3/1____ Inks/Density: C ______M ______Y ______K ______SPOT ______SPOT ______SPOT ______M 541 K 287 194 ❏ 2up Approval ❏ 4up Approval ❏ Waterproof ❏ CPI Standard Stock ❏ Customer Stock Please note that all Digital proofs will simulate the Spot colors with CMYK values. For accurate Spot color representation please refer to a Pantone directory, or a Draw Down of the actual color being used. 27988_P34 3/9/0111:47AMPage2
34 UAL Corporation 2000 Annual Report %1%2%3%4%5%6%7%8%9%97% 90% 80% 70% 60% 50% 40% 30% 20% 10% 3% As scheduledforMarch 2001 Operating fleetasofDecember31,2000 Retirement scheduleforaircraft asofDecember31, 2000 Delivery scheduleforaircraft onorder asofDecember31,2000* C03 3 75 – 25 13 2 48 44 – 25 – – 8 7 3 Served by: 25 Nonstop markets– 23 5 – 22 3 22 6 18 Operated by: 0 9 Average dailydepartures – 6 8 14 18 9 2 3 15 0 12 22 22 3 ConnectingAirports Major U.S.DomesticandInternational 7 0 4 2 4 15 17 0 0 0 8 0 50 21 17 18 15 30 DC10-30 15 91 B727-200 0 19 0 3 41 32 23 0 48 27 35 10 19 24 98 298 67 44 19 288 B777-200 57 14 219 B767-300 168 101 A320 24 182 A319 75 368 68 104 32 120 103 141 138 120 DC10-30 B777-200 B767-300 B767-200 B757-200 B747-400 B737-500 B737-300 B737-200 B727-200 A320-200 A319-100 Aircraft Fleet *Figures include15aircraft which,inFebruary2001,Unitedexercised optionstoacquire. Note: oa 34 5107 15 49 43 Total oa 82 578 25 25 28 Total oa 0 8 3 210 82 233 289 604 Total US Airwaysisconsummated. The FleetFactsreflect United’s fleetprojections asofMarch 1,2001,whichwouldbeadjustedaccordingly intheeventme oesaePrnr 652 2 0 2 66 23 0 12 27 5 7 0 23 1 0 16 140 2 0 3 8 0 218 96 14 6 23 6 9 0 35 56 0 7 14 0 336 44 13 50 16 3 45 0 14 7 4 7 48 21 10 0 4 22 16 15 61 113 1 0 6 16 4 96 56 245 10 213 9 Code-share Partners 34 1 Star AllianceMembers 231 165 United Express Partners 4 United Airlines 7 298 100 444 21 206 Code-share Partners Star AllianceMembers 128 United Express Partners United Airlines oa 4 2 38 83 4 33 70 39 53 147 38 88 225 37 165 89 349 73 79 382 122 146 410 344 509 600 Total Total vrg ubro esdAverage Leased Numberof Average et icatOndOeaigCptlage(yrs) Capital Operating Owned Aircraft Seats hcg evrFacsoAglsDC im rnfr odnTkoToronto Tokyo London Frankfurt Miami D.C. Angeles Francisco Denver Chicago OD DN SO LX ID MA FA LR NT (YYZ) (NRT) (LHR) (FRA) (MIA) (IAD) (LAX) (SFO) (DEN) (ORD) 0120 eodTotal beyond 2002 Total 2001 beyond 2002 2001 PP-O-0 R0 QO1EfcieDt:12/0 eeto:Life ofJob 1/21/00 Retention: CP-PP-SOP-008 QR008QROO1 Effective Date: a o Washington, Los San 2003 and 2003 and rger with
United #27988 batch #___ Assm by: XX Proof by:_____ QC by:_____ Date:_3/1____ Inks/Density: C ______M ______Y ______K ______SPOT ______SPOT ______SPOT ______C M 541 K 287 194 ❏ 2up Approval ❏ 4up Approval ❏ Waterproof ❏ CPI Standard Stock ❏ Customer Stock 27988_map 3/9/01 11:48 AM Page 1 representation please refer to a Pantone directory, or a Draw Down of the actual color being used. For accurate Spot color Please note that all Digital proofs will simulate the Spot colors with CMYK values.
United’s U.S. Domestic Destinations Bellingham