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State Of Oregon Travel Forum

State Of Oregon Travel Forum. United Airlines. June 26 th , 2012. United Airlines Discount Agreement. The United Agreement provides simplicity , choice and value to the State of Oregon.

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State Of Oregon Travel Forum

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  1. State Of Oregon Travel Forum United Airlines June 26th, 2012

  2. United Airlines Discount Agreement

  3. The United Agreement provides simplicity,choiceand valueto the State of Oregon Gives the State of Oregon simplicity of one contract, which includes a 2% discounts on all published service classes on UA and UA marketed flights on the following Joint Venture partners (plating on 016): All Nippon (NH) Air Canada (AC) Austrian Airlines (OS) Brussels Air (SN) Lufthansa (LH) Swiss International Airlines (LX) Scandinavian Airlines (SK) United Airlines (UA) Code share has been implemented across all carriers, making it easy for State of Oregon travelers to book the Joint Venture, resulting in increased travel savings. Ability to book travel with any of the following State of Oregon approved Travel Management Companies; Azumano Travel, Peak Travel Group/JBA, Teels Travel Planners, Premier Travel & Cruises, Tzell Travel Group NW, Uniglobe Spectrum

  4. United Operations

  5. Single Passenger Service System (PSS) Update • Operating performance has held up well through the transition • Though we have had customer service challenges, primarily: • Long call waits • Mileage posting issues • Seat assignment issues • We are systematically resolving issues and are seeing improvement

  6. Groups / Meetings update • Impact of PSS transition impacted groups desk more severely than other areas • Telephony and Software issues • Call Volume increased 200% YOY • Deposit and Waiver issues • Since April we have… • Realignment of Specialty desks for Govt, Ad Hoc Sports and TLV • Increased staffing in DTW and HOU • Reduced OA carriers to 15 • ASA now 3.5 mins, down from over 120 • Group Deposit Waiver reinstated for eligible accounts

  7. Back to Basics Focus on STAR and D :00 • S.T.A.R. – Start The Airline Right (our first flights of the day) • Agent-friendly GUI (FastShares) to be deployed by 4th Quarter • Implementing standard work for arrivals and departures • Developing proposal to address carry-on baggage

  8. We Will Begin Participating in Mid-year • Low risk travelers designated for expedited processing • Select airline frequent fliers • Certain members of Trusted Traveler Programs such as Global Entry, SENTRI and NEXUS • Active at 11 airports with plans for 24 more in 2012 • Delta and American participating; United, US Airways and Alaska to begin this year • Mid 2012 launch for UA with O’Hare and Newark first Seattle- Alaska • One non-Priority lane dedicated plus an overflow lane at North TSA • Well received by customers

  9. We are Soliciting Eligible Frequent Flyers and Provide Ability for Them to “Opt in” Phase 1 • All Mileage Plus members have the option to “opt in” Phase 2 • “Opt in” customer information in Secure Flight message to TSA during check-in • Encoded results from TSA printed on boarding passes

  10. United Global Network

  11. Merger created global network with unsurpassed scope #1 in US / Canada #1 across the Pacific #2 across the Atlantic #2 to Latin America • Serving the most destinations of any global carrier • Hubs in the 4 largest U.S. cities • 50 of Fortune 100 companies headquartered in hubs Rankings for US carriers by ASMs as of 2011. Source: Earnings releases and SEC filings. . 11

  12. Strategically Located Hubs

  13. United Service Updates: International Service:Washington (IAD) – Manchester (MAN)Washington (IAD) – Dublin (DUB)Newark (EWR) – Istanbul (IST)Denver (DEN) – Narita (NRT) (MAR13)Domestic Service:San Francisco (SFO) – Washington-National (DCA)Washington (IAD) – Honolulu (HNL)Denver (DEN) – Fairbanks, AK (FAI) SeasonalHouston (IAD) – Rapid City, SD (RAP) SeasonalNewark (EWR) – Bozeman, MT (BZN) SeasonalSan Francisco (SFO) – Raleigh-Durham (RDU)Washington (IAD) – Ft. Lauderdale (FLL)Chicago (ORD) – Sarasota (SRQ)Suspended Service: (Winter, 2012)Newark (EWR) – Copenhagen (CPH): exitWashington (IAD) – Accra (ACC): exitWashington (IAD) – Moscow (DME)Newark (EWR) – Rome (FCO)

  14. Products Investments

  15. United is Investing an Additional $550 Million in Fleet-Wide Onboard Improvements • Adding flat-bed seating on 62 additional long-haul aircraft, bringing total aircraft with flat-bed seats to 189, more than any other U.S. carrier • Adding Economy Plus seating to more than 300 aircraft • Nearly doubling the overhead storage space on more than 150 aircraft • Installing advanced broadband Wi-Fi on more than 200 aircraft (was for LiveTV fleet – subsequently announced Panasonic solution for more than 300 other aircraft) • Introducing streaming wireless video onboard 747-400 aircraft • Completely retrofitting p.s. fleet with flat-bed seats, Economy Plus, on-demand audio and video and Wi-Fi

  16. We are Investing to Improve the Airport Experience for our Customers Baggage Systems ORD Terminal 2 Jet Bridges Airport Co-location United Clubs

  17. Flat Bed Seat Programs 145 of 185 (78%) int’l aircraft complete BusinessFirst seat BusinessFirst seat Global First suite As of 5/14 17

  18. Economy Plus Installations549 mainline aircraft and 153 regional aircraft offer Economy Plus seating Economy Plus on sCO fleet – 194 of 338 completed (57%) • 737-500 – 1 in progress • 737-700 – 1 complete • 737-800 – 91 completed • 737-900 – 12 completed • 757-200 – 41 completed • 767-400 – 7 completed • 777-200 – pilot scheduled for June 2012; complete by August As of 5/14 18

  19. Nearly Doubling the Overhead Storage Space on More than 150 Aircraft • 152 A319s and A320s • The larger bins will increase storage space for standard 22-inch rolling bags by 66 percent • We will also refresh the interiors of the Airbus fleet. • First aircraft will enter service during May, with program completed by end of 2012.

  20. Investing in a Fuel Efficient Fleet TME 1Q 2012 Fuel Efficiency(gallons per 1,000 ASMs) Replacing older, less efficient aircraft with firm orders of 50 B787, 25 A350 and 50 additional B737-900ER aircraft Source: Earnings releases and SEC filings. 20

  21. Onboard Wi-Fi – Installation Schedule Planning installations for our satellite-based product for global coverage on over 500 aircraft * Planning to launch with streaming in-flight entertainment and wi-fi. Service would allow customers to access video options through their Wi-Fi-enabled handheld devices, tablets and laptop computers.

  22. 787 Launch • 2012 Deliveries: • Five aircraft during Sept.- Dec. 2012 • 50 Firm orders • Configuration: • 36 United BusinessFirst • 63 United Economy Plus • 120 United Economy • Flat bed seats in United BusinessFirst

  23. 787 Launch Aircraft features • More oxygen, more humidity, fewer pollutants • Existing planes – pressurized at 8,000 feet; 787 will be 6,000 feet, increasing the air pressure and 8% more oxygen inside the cabin for absorption into the blood • High heat of engine air makes air dry; 787 air vented directly from outside through dedicated inlets on each side of the plane’s belly • New humidity system driven by electricity, not engines • 15% humidity, up from 4% today 23

  24. Illustrative – Dates subject to change Looking Ahead Washington-Dublin New United Club design launched Newark - Istanbul 5 new 787s in 2012 Refurbishment of 14 767-300s completed installations begin p.s. reconfigurations begin New Uniforms 777 IPTE completed London Olympics July 27 - Aug 12 Refurbishment of 12 767-400s completed Economy Plus installations on S-CO substantially completed 19 new 737-900ERs in 2012 Brand Marketing COMPANY CONFIDENTIAL - Internal United use only

  25. Thank you Katie Ashbaugh katie.ashbaugh@united.com Mobile (503) 757 0601

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