United Airlines Announces Changes To U.S. And Canada Base Commission Structure For Domestic And International Travel

For Immediate Release

CHICAGO, October 7, 1999 - United Airlines announced today it is restructuring its travel agency base commission for tickets purchased in the United States and Canada for all domestic and international First Class (F), Business Class (B), Economy Class (Y), and promotional economy fares effective October 8, 1999, 12:01 a.m. (Central Time). "Today's announcement is part of our continuing efforts to examine all facets of our cost structure, " said United Airlines Chairman and Chief Executive Officer Jim Goodwin. "We expect this action to result in savings of approximately $150 million annually."

Domestic:

The new U.S. base commission program is effective for all tickets purchased the U.S. (including Puerto Rico, Washington D.C., and the U.S. Virgin Islands) for travel to/from and within the U.S. The domestic policy pays a base rate of five percent (5%) with a maximum pay out of $50 (USD) for round-trip travel and maximum of $25 (USD) for one-way travel.

Canada:

The new Canada base commission program is effective for all tickets purchased in Canada for travel to/from Canada and within the U.S. (including Puerto Rico, Washington D.C., and the U.S. Virgin Islands). The policy pays a base rate of five percent (5%) with a maximum pay out of $70 (CAD) for round-trip travel and a maximum pay out of $35 (CAD) for one-way travel.

International:

United also is introducing a new U.S. and Canada base commission program for international tickets purchased in the U.S. (including Puerto Rico, Washington D.C., and the U.S. Virgin Islands) and Canada for itineraries including any destination outside these points. The new international base rate pays five percent (5%) with a maximum pay out of $100 (USD) or $140 (CAD) for round-trip travel and a maximum pay out of $50 (USD) or $70 (CAD) for one-way travel.

As the largest air carrier in the world and the largest majority employee-owned company, United offers 2,370 flights each day on a network that spans the globe.

United Airlines' web site is www.ual.com