United Airlines Operations In NZ Continue Normally
United Airlines Operations In New Zealand Continue Normally
Company Initiates Reorganization Proceedings in US Worldwide Flights, Services and Customer Programs Unaffected
Auckland, December 10, 2002 - United Airlines today announced that its reorganization in the United States will not affect its ability to continue operations in New Zealand, the US or the rest of the world.
United Airlines filed to reorganize under Chapter 11 of the US Bankruptcy Code in order to strengthen its operations and finances. Chapter 11 is a section of US law that enables companies to continue normal business operations while undergoing restructuring. It is not the equivalent of bankruptcy as it is known in New Zealand. More information about United's reorganization filing can be found in the press release issued from corporate headquarters at http://www.united.com.
United said that the US reorganization proceeding will not impact its ability to maintain its high levels of safety and reliability. Customer programmes and services such as Mileage Plus, Red Carpet Clubs, First Class lounges and Arrivals by United facilities are unaffected. Throughout the proceeding flights will continue, and tickets will be honoured. Additionally, United's membership in Star Alliance and other code-share agreements remain in effect.
United will continue to pay its employee salaries and benefits according to the usual processes and timelines. Additionally, United has filed a motion with the court in the US that enables the company to pay overseas suppliers as usual.
"We are taking every step necessary to minimize the impact of our restructuring on our customers," said Graham Atkinson, United senior vice president of international. "We stand by our commitment to provide all of our worldwide customers with the best service possible, convenient schedules, quality onboard services and the most extensive route network globally. This process will in no way change our number one priority, customer safety. We have a longstanding record of being a safe and reliable airline, and we intend to maintain and build upon that record." About UAL United Airlines in New Zealand offers daily flights from Auckland to Los Angeles on a Boeing 777 aircraft. United Airlines offers more than 1,800 flights a day on a route network that spans the globe. News releases and other information about United may be found at the company's website at www.unitedairlines.co.nz
Safe Harbour Statement Certain of the information contained in this press release should be considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect UAL's current views with respect to certain current and future events and financial performance.
Such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the operations and business environments of UAL and its subsidiaries that may cause the actual results of the companies to be materially different from any future results expressed or implied in such forward-looking statements.
Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following:
the ability of the companies to continue as going concerns;
the ability of the companies to operate pursuant to the terms of the debtor-in-possession facility;
the companies' ability to obtain court approval with respect to motions in the Chapter 11 proceeding prosecuted by it from time to time;
the ability of the companies to develop, prosecute, confirm and consummate one or more plans of reorganization with respect to the Chapter 11 cases;
risks associated with third parties seeking and obtaining court approval to terminate or shorten the exclusivity period for the companies to propose and confirm one or more plans of reorganization, for the appointment of a Chapter 11 trustee or to convert the cases to Chapter 7 cases;
the ability of the companies to obtain and maintain normal terms with vendors and service providers; the companies' ability to maintain contracts that are critical to its operations;
the potential adverse impact of the Chapter 11 cases on the companies' liquidity or results of operations;
the ability of the companies to fund and execute their business plan; the ability of the companies to attract, motivate and/or retain key executives and associates;
the ability of the companies to attract and retain customers;
demand for transportation in the markets in which the companies operate; economic conditions;
the effects of any hostilities or act of war (in the Middle East or elsewhere) or any terrorist attack;
labor costs; financing costs; the costs and availability of aircraft insurance;
aviation fuel costs;
competitive pressures on pricing (particularly from lower-cost competitors);
government legislation and regulation; consumer perceptions of the companies' products;
and other risks and uncertainties set forth from time to time in UAL's reports to the United States Securities and Exchange Commission.