UAL Corporation 2000 Annual Report

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UAL Corporation 2000 Annual Report 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. Down or a Draw directory, to a Pantone tion please refer the Spot colors with CMYK values.Please note that all Digital proofs will simulate Spot color representa- accurate For UAL Corporation UAL 2000 Annual Report 2000 Annual 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. Down or a Draw directory, to a Pantone tion please refer the Spot colors with CMYK values.Please note that all Digital proofs will simulate Spot color representa- accurate For 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 CP-PP-SOP-008 QR008 QROO1 Effective Date: Effective CP-PP-SOP-008 QR008 QROO1 1/21/00 Retention: of Job Life We took stepsWe bold in 2000 that will shape profoundly United’s future. Page 2 Spotlight 2000 3% 10% 20% 30% 40% 50% 60% 70% 80% 90% 97% UAL Corporation 2000 Annual Report Annual 2000 Corporation UAL 2 27988_P1_32 3/12/01 10:29 AM Page 2 UAL#27988 Assm by: PG/NS Proof by:_____ QC by:_____ Date:_____ Inks/Density: C ______M ______Y ______K ______SPOT ______ DULL GLOSS ❏ 4up Approval ❏ CPI Standard Stock ❏ Customer Stock CMYCMYK 541 VARNISHVARNISH 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 CP-PP-SOP-008 QR008 QROO1 Effective Date: Effective CP-PP-SOP-008 QR008 QROO1 1/21/00 Retention: of Job Life Jim Goodwin they’re going first. going they’re customers where customers where until we get our get we until not going anywhere anywhere not going the road, but we’re we’re but the road, has down big plans As a leader, United As a leader, Pages 4-7 Chairman’s Letter Chairman’s 3% 10% 20% 30% 40% 50% 60% 70% 80% 90% 97% UAL Corporation 2000 Annual Report Annual 2000 Corporation UAL 4 27988_P1_32 3/12/01 10:29 AM Page 4 UAL#27988 Assm by: PG/NS Proof by:_____ QC by:_____ Date:_____ Inks/Density: C ______M ______Y ______K ______SPOT ______ DULL GLOSS ❏ 4up Approval ❏ CPI Standard Stock ❏ Customer Stock C M Y K 541 VARNISHVARNISH 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 27988_P1_32 3/12/01 10:29 AM Page 6 ❏ Inks/Density: C Assm by: UAL#27988 ______M ______Y ______K ______SPOT ______ 4up Approval 4up Approval I believe United’s ❏ CPI Standard Stock prospects PG/NS are bright… Proof by:_____ QC by:_____ Date:_____ QC by:_____ Proof by:_____ ❏ Customer Stock and that we will achieve our mission… …to be the global airline of choice worldwide.
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