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UNITED APIL - Saipan

UNITED APIL - Saipan. FORTUNE magazine ranks United the No.1 WORLD ’ S MOST ADMIRED AIRLINES. On March 1, 2012, FORTUNE magazine rated United the most admired airline on its annual airline-industry list of the World ’ s Most Admired Companies

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UNITED APIL - Saipan

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  1. UNITED APIL - Saipan

  2. FORTUNEmagazine ranks United the No.1 WORLD’S MOST ADMIRED AIRLINES • On March 1, 2012, FORTUNE magazine rated United the most admired airline on its annual airline-industry list of the World’s Most Admired Companies • The magazine also ranked United No.1 for global competitiveness and long-term investment among 12 global carriers

  3. United – The world’s leading airline Industry Leading Products & Services Unparalleled Global Network Strong Partnerships Exceptional Coworkers 3

  4. United service to all major regions ranks #1 or #2 #1 #2 #1 #2 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 UAL’s length of haul Source: Earnings releases and SEC filings.

  5. Alliance Scope Star Alliance consists of 25 current members strategically located across the globe * * * * 7 Notes: * indicates future partners.

  6. 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

  7. Working together drives business resultsA culture where employees like their jobs and enjoy coming to work Direct, Open & Honest Communication Dignity & Respect Working Together

  8. 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 8 CONFIDENTIAL

  9. United Asia Pacific Network SEA CTS SDJ KIJ ORD DEN EWR IAD PEK SFO NRT ICN KIX NGO LAX HIJ SNA FUK OKJ PVG OKA IAH HKG TPE LIH HNL SPN KOA OGG 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 9

  10. Guam Operation Performance Data period ending Jun 12, 2012

  11. Delays GBO A14 YOY Trend

  12. Delays GBO CF Trend

  13. Houston: You Blew It on United Hub By: Ray Pierce Ref: ray@raypierce.com HOUSTON (TheStreet) -- Houston, you blew it. You killed the goose that laid the golden egg.

  14. 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.

  15. 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.

  16. UnitedSupporting and servicing the communities we live and work in…

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