Statement by United Master Executive Council,
Air Line Pilots Association 
Regarding Bankruptcy Judge Eugene Wedoff's
Decision on the Tentative Agreement
Between ALPA and United Airlines

January 7, 2005

The bankruptcy court today rejected an historic pilot agreement that would permit the Company to emerge from Chapter 11. We are disappointed with the judge's ruling and even more disappointed with the objections of the creditors and others who prompted the ruling.

The court's decision today affirms the substance of the pilot agreement over the objections of other creditors but states that certain legal aspects of the agreement may be inconsistent with the requirements of the bankruptcy code. We will promptly review the judge's decision with the United Master Executive Council, the governing body of United pilots union.

While we intend to meet with the Company over the next few days to explore the consequences of the judge's decision, there can be no assurance that the parties will reach another settlement. In addition, any further agreements with United on this matter will be subject to review and decision by the full United Master Executive Council and, in all likelihood, to an additional membership ratification vote.

One thing will remain certain and steadfast as we consider the consequences of today's decision. The pilots of United Airlines are committed to the success of our company, but we will not participate in any restructuring of the airline in which our pensions or our contract are unfairly sacrificed for the benefit of any other group in this case.

Contacts:

Dave Kelly   

Captain Herb Hunter   

Captain Steve Derebey

847/292-1708   

954/757-4067   

253/279-8260