United Airlines 2008 Annual Report Download - page 3

PART I
ITEM 1. BUSINESS.
UAL Corporation (together with its consolidated subsidiaries, “UAL”), a holding company whose
principal subsidiary is United Air Lines, Inc. (together with its primary subsidiaries, “United”), was
incorporated under the laws of the State of Delaware on December 30, 1968. We sometimes use the
words “we,” “our,” “us,” and the “Company” in this Form 10-K for disclosures that relate to both UAL
and United. Our world headquarters is located at 77 W. Wacker Drive, Chicago, Illinois 60601. The
mailing address is P.O. Box 66919, Chicago, Illinois 60666 (telephone number [phone]).
This Annual Report on Form 10-K is a combined report of UAL and United. Unless otherwise
noted, this information applies to both UAL and United. As UAL consolidates United for financial
statement purposes, disclosures that relate to activities of United also apply to UAL. Most of UAL’s
revenue and expenses in 2008 were 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.
The Company’s web address is www.united.com. The information contained on or connected to the
Company’s web address is not incorporated by reference into this Annual Report on Form 10-K and
should not be considered part of this or any other report filed with the U.S. Securities and Exchange
Commission (“SEC”). Through this website, the Company’s filings with the SEC, including annual
reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and all
amendments to those reports, are accessible without charge as soon as reasonably practicable after such
material is electronically filed with or furnished to the SEC.
United Airlines operates nearly 3,000 flights a day on United and United Express to more than 200
U.S. domestic and international destinations from its hubs in Los Angeles, San Francisco, Denver,
Chicago and Washington, D.C., based on its annual flight schedule as of January 1, 2009. With key
global air rights in the Asia-Pacific region, Europe and Latin America, United is one of the largest
international carriers based in the United States. United also is a founding member of Star Alliance, the
world’s largest airline network, which provides connections for our customers to approximately 900
destinations in 159 countries worldwide. United offers a unique set of products and services to target
distinct customer groups, which we believe allows us to generate a revenue premium. This strategy of
market and product segmentation is intended to optimize margins and costs, and is focused on delivering
an improved experience for all customers and a best-in-class experience for our premium customers.
These services include:
• United Mainline, including United First», United Business»and Economy Plus», the last
providing three to five inches of extra legroom on all United Mainline and explus
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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 has 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. The Company expects to complete the
refurbishment of a majority of the 66 remaining aircraft in 2009 and 2010, with the remaining
aircraft upgrades to be completed in 2011;
• p.s.
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—a premium transcontinental service connecting New York with both Los Angeles and
San Francisco; and
• United Express, with a total fleet of 280 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.
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