FORTUNE magazine ranks United the No.1 WORLDS MOST ADMIRED
AIRLINES On March 1, 2012, FORTUNE magazine rated United the most
admired airline on its annual airline-industry list of the Worlds
Most Admired Companies The magazine also ranked United No.1 for
global competitiveness and long-term investment among 12 global
carriers 2
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United The worlds leading airline 3 Unparalleled Global Network
Strong Partnerships Industry Leading Products & Services
Exceptional Coworkers 3
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United service to all major regions ranks #1 or #2 #1#1#1#1
#1#1#1#1 #2#2#2#2 #2#2#2#2 Serving the most destinations of any
global carrier Hubs in the 4 largest U.S. cities 40 of Fortune 100
companies headquartered in UA hubs Rankings for US carriers by ASMs
as of 2011. 1. Consolidated PRASM numbers for carriers other than
UAL adjusted for length of haul versus UALs length of haul Source:
Earnings releases and SEC filings. 4 2011 Unit Passenger Revenue 1
(in cents)
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7 Alliance Scope Star Alliance consists of 25 current members
strategically located across the globe Notes: * indicates future
partners. * * * *
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United will invest additional $550 million in fleet-wide
onboard improvements Adding flat-bed seating on long-haul aircraft,
more than any other U.S. carrier Adding Economy Plus seating to
Guam B737 fleet in 2013 Installing Panasonic Ku-band satellite
Wi-Fi connectivity on more than 300 aircraft which enables to
introduce wireless streaming video content on onboard its A319,
320, B747, 757, 767, 777 and 787 aircraft 6
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Working together drives business results A culture where
employees like their jobs and enjoy coming to work 7 Direct, Open
& Honest Communication Dignity & Respect Working
Together
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PSS: Largest Technology Conversion in Aviation History
CONFIDENTIAL 8 Early on March 3, we converted to a single passenger
service system (SHARES), a single website (united.com,) a single
loyalty program (MileagePlus) and a single employee booking tool
(employeeRES) This was the single largest technology conversion in
aviation history migrated 17 million PNRs, 17 million tickets and
32 million MileagePlus accounts upgraded 12,000 workstations at
approximately 200 locations installed more than 2,500 application
servers at five data-center locations coordinated partner
connectivity with more than 160 airline and global distribution
system partners and more than 120 common use airport locations
around the world integrated call routing services across our 12
contact centers and 1,400 home agents. more than 14,000 co-workers
completed more than 1.7 million training hours
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United Asia Pacific Network 9 9 HNL LIH OGG KOA SEA SYD UA
Routes SFO LAX ORD IAD DEN NRT MEL SIN BKK SGN HKG TPE PVG PEK ICN
KIX UA Routes Source: OAG Aug-2011 Future Routes NGO CTS SDJ KIJ
HIJ OKJ FUK SPN ROP OKA MNL TKK PNI KSA YAP ROR CNS KWA MAJ IAH EWR
AKL SNA GUM
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Guam Operation Performance Data period ending Jun 12, 2012
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11 Delays GBO A14 YOY Trend
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12 Delays GBO CF Trend
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Houston: You Blew It on United Hub By: Ray Pierce Ref:
[email protected] HOUSTON (TheStreet) -- Houston, you blew it. You
killed the goose that laid the golden egg.
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Aesop's fable, written in the sixth century B.C., tells of a
couple that had a goose that laid golden eggs. Thinking they could
get more gold more quickly, the couple killed the goose and cut it
open. But they found no more eggs. The fable has stood for 2,400
years as a tale of being rich, wanting to be richer, and losing
everything in that pursuit. This ancient lesson, unfortunately, was
lost on Houston's city council, which voted 16-1 last month to
enable Southwest (LUV) to build an international terminal at
Houston Hobby Airport, diminishing United's (UAL) hub at Houston
Bush Intercontinental. There United operates the third biggest U.S.
hub, with 650 daily departures to 177 destinations including 64
international destinations. United's Houston hub is also the third
most profitable major airline operation in the country in terms of
profit margin, according to Scott Kirby, president of US Airways
(LCC). The golden egg is the vast benefit it brings to Houston's
economy. In a global world, cities have few assets more important
than international airports with the reach to drive global
commerce. As John Kasarda, professor at the Kenan-Flagler Business
School at the University of North Carolina, has said, in the 18th
century the great cities were ports. In the 19th century, the great
cities were railroad cities. In the 20th, they were cities with
good highway access. In the 21st century, they are cities with
non-stop international flights. Houston, of course, is important -
it's the home of the oil industry and the fourth biggest U.S. city.
Nevertheless, Houston cannot possibly, by itself, support all the
flights United operates there. Rather, 71% of hub passengers
connect, coming from elsewhere to change planes. That is the
highest percentage for United's hubs. At Denver, the next highest,
68% connect. At Dulles, 65% connect; at Chicago, 62%; at Cleveland
57%, and at Los Angeles and San Francisco, 52%. At Newark, the
lowest, just 42% connect.
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Statistics compiled by United show that among U.S. hubs,
Houston ranks fourth in providing airline seats that exceed the
number of local passengers. In other words, Houston has far more
capacity than its residents fill. Charlotte, US Airways' biggest
hub, has 5.3 seats per local passenger. Atlanta, Delta's(DAL)
biggest, has 4.2. Dallas, AMR's(AAMRQ.PK) biggest, has 2.9. Houston
has 2.8, Detroit has 2.5 and Chicago also has 2.5. At the other end
of the spectrum, Miami and Los Angeles have just 1.6 seats per
local passenger. (Capacity includes all airlines, not just hub
carriers.) Among the top 10 hub cities, only Chicago has two
international airports. In the hub system, you bring in passengers
to connect. The more passengers you have, the more flights and
destinations you can offer. Sadly, little margin for error exists
in a historically unprofitable business where, too often, the last
one or two passengers on an airplane provide the margin between a
profit and a loss. "We have a series of flight that lose money,"
Znotins said. "We knew they were losing money, but we thought we
were going to grow in Houston. Now we know we won't grow, so those
flights look like money-losing investments that won't get any
better. Rather than fly them for two more years, we are pulling
back. The tragedy is that Aesop laid all this out two and a half
millennia ago. The golden goose, the United hub, provides Houston
with far more air service than it can support. That only made
Houston want more, so it chopped up what it has in return for a few
cheap flights to Cancun.
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United Supporting and servicing the communities we live and
work in