Full Description

UAL Corporation (UAL), incorporated on December 30, 1968, is a holding company whose principal subsidiary is United Air Lines, Inc. (United). Most of UAL's revenue during the year ended December 31, 2008, was from United's airline operations. United transports people and cargo through its Mainline operations, which utilize full-sized jet aircraft exceeding 70 seats in size, and its regional operations, which utilize smaller aircraft not exceeding 70 seats in size that are operated under contract by United Express carriers. United Airlines operates more than 3,300 flights a day on United, United Express and Ted to more than 200 United States domestic and international destinations from its hubs in Los Angeles, San Francisco, Denver, Chicago and Washington, D.C. The Company operates in two business segments: Mainline and United Express.

United offers services including, United Mainline, including United First, United Business and Economy Plus, the last providing three to five inches of extra legroom on all United Mainline flights (including Ted), and on explus United Express flights; a new international premium travel experience featuring 180-degree, lie-flat beds in business class. As of December 31, 2008, the Company completed first and business class equipment upgrades on 25 international aircraft that have been refitted with new premium seats, entertainment systems and other product enhancements; p.s. a premium transcontinental service connecting New York with both Los Angeles and San Francisco, and United Express, with a total fleet of 279 aircraft operated by regional airline partners, including over 100 aircraft that offer explus, United's premium regional service, providing both first class and Economy Plus seating.

Mainline

As of December 31, 2008, mainline domestic operations served approximately 80 destinations primarily throughout the United States and Canada and operated hubs at Chicago O'Hare International Airport (O'Hare), Denver International Airport, Los Angeles International Airport (LAX), San Francisco International Airport (SFO) and Washington Dulles International Airport (Washington Dulles). Mainline international operations serve the Pacific, Atlantic, and Latin America regions. The Pacific region includes non-stop service to Beijing, Hong Kong, Nagoya, Osaka, Seoul, Shanghai, Sydney, Tokyo, and direct service to Bangkok, Seoul and Singapore via Tokyo; direct service to Ho Chi Minh City and Singapore via Hong Kong, and to Melbourne via Sydney. The Atlantic region includes non-stop service to Amsterdam, Brussels, Frankfurt, Kuwait City, London, Munich, Paris, Rome and Zurich. The Latin American region offers non-stop service to Buenos Aires, Sao Paulo and direct service to Rio de Janeiro. The Latin American region also serves various Mexico destinations, including Cancun, Cozumel (seasonal), Mexico City, Puerto Vallarta, San Jose del Cabo, and Ixtapa/Zihuatanejo (seasonal); various Caribbean points including Aruba and seasonal service to Montego Bay, Punta Cana, and St. Maarten; and Central America including Guatemala City, Liberia and Costa Rica (seasonal). The mainline segment operated 409 aircraft and produced approximately 135.8 billion available seat miles (ASMs) and 110.1 billion revenue passenger miles (RPMs) during 2008.

United Express

United has contractual relationships with various regional carriers to provide regional jet and turboprop service branded as United Express. United Express is an extension of the United mainline network (United, Ted and p.s.). SkyWest Airlines, Mesa Airlines, Colgan Airlines, Chautauqua Airlines, Shuttle America, Trans States Airlines and GoJet Airlines are all United Express carriers, most of which operate under capacity purchase agreements. Under these agreements, United pays the regional carriers contractually-agreed fees (carrier-controlled costs) for operating these flights plus a variable reimbursement (incentive payment) based on agreed performance metrics. The capacity agreements, which United has entered into with United Express carriers do not include the provision of ground handling services. As a result, United Express sources ground handling support from a variety of third-party providers, as well as by utilizing internal United resources in some cases. United Express carriers operated 280 aircraft as of December 31, 2008, and produced approximately 16.2 billion ASMs and 12.1 billion RPMs during 2008.