UNITED APIL - Saipan

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UNITED APIL - Saipan
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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

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United The worlds leading airline
Unparalleled Global Network
Industry Leading Products Services
Strong Partnerships
Exceptional Coworkers
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United service to all major regions ranks 1 or 2
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2011 Unit Passenger Revenue1 (in cents)

• 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.
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Alliance Scope
Star Alliance consists of 25 current members
strategically located across the globe




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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

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Working together drives business results A
culture where employees like their jobs and enjoy
coming to work
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PSS Largest Technology Conversion in Aviation
History

• 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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CONFIDENTIAL
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United Asia Pacific Network
SEA
CTS
SDJ
ORD
KIJ
DEN
EWR
IAD
PEK
SFO
NRT
ICN
KIX
LAX
NGO
HIJ
FUK
SNA
OKJ
PVG
OKA
IAH
HKG
TPE
LIH
HNL
SPN
OGG
KOA
MNL
BKK
ROP
GUM
KWA
TKK
SGN
YAP
ROR
MAJ
PNI
KSA
SIN
UA Routes
UA Routes
Future Routes
CNS
SYD
AKL
MEL
Source OAG Aug-2011
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Guam Operation Performance

• Data period ending Jun 12, 2012

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Delays GBO A14 YOY Trend
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Delays GBO CF Trend
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• Houston You Blew It on United Hub
• By Ray Pierce
• Ref ray_at_raypierce.com
• 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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UnitedSupporting and servicing the
communities we live and work in