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Tuesday, August 7, 2007

United Airlines Receives Widespread Support for Proposed Los Angeles-to-Shanghai Route

WASHINGTON, Aug. 7 /PRNewswire-FirstCall/ -- United Airlines' proposal to connect Los Angeles and Shanghai, two global economic centers, in 2009 has generated a strong wave of support from government, business and community leaders as the city estimates the route would bring over 3,000 jobs and contribute $647 million annually in economic output for the region.

Governors Schwarzenegger (CA), Ritter (CO) and Richardson (NM); Los Angeles Mayor Villaraigosa; bipartisan legislators at the national level and state levels; businesses such as Disney, NBC Universal Studios and Macy's; the California Chamber of Commerce; and United employees and customers in the tens of thousands have all expressed their strong support of the proposed connection.

Governor Schwarzenegger, in a letter to U.S. Secretary of Transportation Peters, urged the Department to recognize the far-reaching positive impact of the proposed flight between Los Angeles and Shanghai.

"United's proposed routes will mean significant economic benefits to both China and the United States," Schwarzenegger wrote. "China is our country's fourth largest trading partner, and California is a leading U.S. gateway for trade with China, making the state an ideal choice for increased ties to China."

United's proposed route seeks to address the large unmet demand for flights to China from Los Angeles, the largest metropolitan area in the country still without non-stop service to China from a U.S. carrier. While the Los Angeles-Shanghai proposal is competing with six other proposed routes from U.S. cities to China (Philadelphia, Seattle, Detroit, Atlanta, Chicago and New York), none of the other proposals come close to offering the public benefit of the L.A.-Shanghai option.

The Los Angeles-Shanghai market is far and away the most underserved of any U.S.-China market being considered by the U.S. Department of Transportation. The Western U.S. accounts for 50 percent of all traffic to China, yet only 20 percent of the U.S. to China flights come from this region. California alone accounts for nearly one-third of all Shanghai traffic, far more than any other state.

United's proposed route responds to the high demand in the Los Angeles market for flights to Shanghai -- more than twice the size of the local demand in the next largest market competing for a China route.

The Los Angeles-Shanghai proposal would also create the greatest positive impact on the regional and national economy, as already over $118 billion in U.S.-China trade moves through the Los Angeles Ports and Los Angeles International Airport annually.

    Significant highlights of United's application include:

    Greatest benefit to most people
    -- The Los Angeles-Shanghai market is the largest U.S.-Shanghai market
       overall and Los Angeles is also the fastest growing aviation market to
       Shanghai.
    -- United is proposing the largest plane possible to meet significant and
       growing demand.  United would use a 374-seat B747 aircraft with a
       three-class configuration to provide maximum passenger options and
       comfort on these long-haul flights.  This plane will offer 65,000 more
       roundtrip seats per year than the next closest proposal.
    -- United's hub at Los Angeles International Airport will offer valuable
       connections to a large number of cities in the western United States.
    -- In Shanghai, passengers will benefit from United's code share alliances
       with Air China and Shanghai Airlines, providing convenient connections
       to other cities in China.
    -- California has the largest Asian American population of any state in
       the U.S. and Los Angeles has the second largest population of Asian-
       Americans of any city in the country.

Economic prosperity for the region and nation

The City of Los Angeles estimates that a daily Los Angeles-Shanghai flight by United would contribute $647 million annually in economic output for the region's economy, including:

    -- $164 million in wages;
    -- 3,120 direct and indirect jobs;
    -- 4,070 incremental annual tons of air cargo imports; and
    -- 2,263 annual tons of air cargo exports.

    Strong roster of support
    -- A bipartisan group of legislators, including 63 members of the U.S.
       Congress from 10 different states and 77 California state legislators.
    -- Statewide and regional support from the western U.S. from Governors
       Schwarzenegger (CA), Napolitano (AZ), Ritter (CO), and Richardson (NM);
       L.A. Mayor Villaraigosa, Phoenix Mayor Gordon, Denver Mayor
       Hickenlooper and Las Vegas Mayor Goodman.
    -- Unanimous local support from the Los Angeles City Council, Los Angeles
       Board of Supervisors and Los Angeles Board of Airport Commissioners, as
       well as the Los Angeles International Airport.
    -- Business and civic leaders and organizations from California and China,
       including the California Chamber of Commerce, Chinese Chamber of
       Commerce and American Chamber of Commerce in Shanghai; the Los Angeles
       Economic Development Council and Business Council; the National
       Association of Women Business Owners; and the Los Angeles Convention
       and Visitors Bureau.
    -- Countless businesses, businesspeople and travel industry professionals,
       including Disney, NBC Universal Studios, the Ritz-Carlton, USA
       Olympics, the Recording Industry of America Association, William Morris
       Agency, Creative Artists Agency, Altour, Korn Ferry, Macy's and
       Logitech.
    -- Employee and grassroots support, including 43,000 United employees and
       customers who signed an e-petition in support of the bid.

The Department of Transportation is expected to award the routes this fall, with service to begin in March 2009.

About United

United Airlines (Nasdaq: UAUA) operates more than 3,600* flights a day on United, United Express and Ted to more than 200 U.S. domestic and international destination


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