Company completes negotiations on a $160 million
plan that preserves jobs, reaffirms commitment to Pittsburgh and
Commonwealth of Pennsylvania
FOR IMMEDIATE RELASE
CHICAGO, December 21, 2000 – United Airlines
(NYSE: UAL) announced today that it has reached final agreement with
the Commonwealth of Pennsylvania and Allegheny County on its $160
million plan to expand US Airways maintenance operations and
overhaul existing US Airways facilities in Pittsburgh. The company
also said today’s announcement reaffirmed its commitment to keeping
maintenance and maintenance-related jobs in Pittsburgh.
In July, United announced it would proceed with the Pittsburgh
plan subject to the successful outcome of negotiations with the
relevant local authorities.
The Pittsburgh project is still contingent on United receiving
regulatory approval for the merger with US Airways.
The maintenance base will consist of two new hangars with four
aircraft maintenance bays and will cost an estimated $130 million.
In addition, United plans to refurbish four existing US Airways
maintenance hangars at a cost of $30 million.
"We are very pleased to have reached a final agreement that will
allow us to proceed with these exciting plans," said James E.
Goodwin, Chairman and Chief Executive Officer of United Airlines.
"These state-of-the-art facilities, once completed, will complement
United’s existing maintenance operations in San Francisco, Oakland
and Indianapolis and will provide United with the best airline
maintenance operation in the world."
He added: "We appreciate the tremendous support our merger with
US Airways has received in Pennsylvania. We look forward to bringing
the many benefits of the merged airline to consumers in Pittsburgh
and the many cities US Airways currently serves in the
Commonwealth."
Goodwin thanked the federal, state and local officials who have
worked with United on the project, especially Governor Tom Ridge of
Pennsylvania, Allegheny County Executive James Roddey, Rep. Bud
Shuster (R-Pa) and Sen. Rick Santorum (R-Pa). He also thanked labor
leaders for their support on the project, especially Tom
Buffenbarger, international president of the IAM.
In addition to the maintenance facilities, United has pledged to
maintain all service at Pittsburgh International Airport, which will
remain an important hub once the merger is completed. United plans
to offer non-stop or one-stop service from Pittsburgh to 254
domestic and international destinations, including new daily
non-stop service to San Jose, Calif., and Portland, Oregon, and two
additional daily non-stops flights to Denver. In addition, United
has announced new one-stop service it intends to operate to several
Asian/Pacific and Latin American cities. United has previously said
that it plans to keep US Airways’ existing reservations center in
Pittsburgh.
United announced its transaction to acquire US Airways and merge
the two companies on May 24, and expects to complete the transaction
by the first quarter of 2001, subject to gaining all necessary
regulatory approvals. The merged airline would operate a fleet of
approximately 1,000 aircraft and would serve 163 destinations with
more than 4,278 daily flights.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995
: This press release contains certain
"forward-looking" statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements are based
on management’s current expectations and are naturally subject to
uncertainty and changes in circumstances. Actual results may vary
materially from the expectations contained herein. The
forward-looking statements contained herein include statements about
future financial and operating results and benefits of the pending
merger between United and US Airways. Factors that could cause
actual results to differ materially from those described herein
include: industry capacity decisions; the airline pricing
environment; competitors’ route decisions; the inability to obtain
regulatory approvals; actions of the U.S., foreign and local
governments; domestic and international travel patterns; the
inability to successfully integrate the businesses of United and US
Airways; costs related to the merger; the inability to achieve cost
cutting synergies resulting from the merger; labor integration
issues; the economic environment of the airline industry and the
general economic environment. More detailed information about these
factors is set forth in the reports filed by United and US Airways
with the Securities and Exchange Commission. Neither United nor US
Airways is under any obligation to (and expressly disclaims any such
obligation to) update or alter its forward-looking statements,
whether as a result of new information, future events or
otherwise.
