Pass Travel Charges
January 19, 2007
Linda Lister - Manager, Travel and Relocation Programs
Dear XXXX:
Thank you for the e-mail to Mr. Tilton. He has reviewed your inquiry and
has asked me to respond because I am responsible for Travel Programs.
We acknowledge and appreciate the contributions of all United retirees.
Glenn Tilton has stated that our emergence from bankruptcy is not the end of
our story - but rather the beginning of a new chapter. Our responsibility
is to continue growing stronger, better and more innovative each day -- as
we work to generate returns for our investors, service for our customers and
opportunities for every employee. Accordingly, we have to continue to keep
an eye on costs. Our goal is to find the right balance between programs
that are meaningful to our people, competitive in the industry and
cost-effective for the company.
We continue to charge only enough to recover a portion of the cost of
space-available travel which includes fuel, onboard food and beverage,
customer service and baggage handling. It was necessary to reinstate pass
travel service charges as part of the non-labor cost-saving measures
consistent with United's economic recovery efforts. Employee and retiree
pass travel costs United an estimated $35 million per year - a staggering
amount that is crucial for us to recover by requiring employees and retirees
to share the cost of the pass travel that they use. Program economics which
have been recently reviewed indicate we are subsidizing the program and
service charges would need to be raised by 32% to reach a break even point.
We are pleased to offer a strong slate of travel programs to our employees
and retirees which allows for travel across our worldwide network with
friends and family. All members of this Company, retirees and active
employees are working together to ensure its longevity, to preserve valued
programs and benefits, including travel privileges.
Returning to the days of service fee waived travel isn't possible at this
time in today's very competitive industry, high fuel costs and a culture of
performance. While we know that this was not the answer for which you
hoped, we hope that you will continue to use and enjoy your travel privileges.
We appreciate receiving your comments.
Sincerely,
Linda Lister
*************************************
January 19, 2007
Linda Lister - Manager, Travel and Relocation Programs
Dear XXXX:
Thank you for the e-mail to Mr. Tilton. He has reviewed your inquiry and
has asked me to respond because I am responsible for Travel Programs.
We acknowledge and appreciate the contributions of all United retirees.
Glenn Tilton has stated that our emergence from bankruptcy is not the end of
our story - but rather the beginning of a new chapter. Our responsibility
is to continue growing stronger, better and more innovative each day -- as
we work to generate returns for our investors, service for our customers and
opportunities for every employee. Accordingly, we have to continue to keep
an eye on costs. Our goal is to find the right balance between programs
that are meaningful to our people, competitive in the industry and
cost-effective for the company.
We continue to charge only enough to recover a portion of the cost of
space-available travel which includes fuel, onboard food and beverage,
customer service and baggage handling. It was necessary to reinstate pass
travel service charges as part of the non-labor cost-saving measures
consistent with United's economic recovery efforts. Employee and retiree
pass travel costs United an estimated $35 million per year - a staggering
amount that is crucial for us to recover by requiring employees and retirees
to share the cost of the pass travel that they use. Program economics which
have been recently reviewed indicate we are subsidizing the program and
service charges would need to be raised by 32% to reach a break even point.
We are pleased to offer a strong slate of travel programs to our employees
and retirees which allows for travel across our worldwide network with
friends and family. All members of this Company, retirees and active
employees are working together to ensure its longevity, to preserve valued
programs and benefits, including travel privileges.
Returning to the days of service fee waived travel isn't possible at this
time in today's very competitive industry, high fuel costs and a culture of
performance. While we know that this was not the answer for which you
hoped, we hope that you will continue to use and enjoy your travel privileges.
We appreciate receiving your comments.
Sincerely,
Linda Lister
*************************************
