United Airlines 2009 Annual Report Download - page 8

Table of Contents
• A new international premium travel experience featuring 180-degree, lie-flat beds in first and business class. The Company has completed first and
business class equipment upgrades on 45 international aircraft that have been refitted with new premium seats, entertainment systems and other
product enhancements. The Company expects to complete the remaining aircraft upgrades between 2010 and 2012;
• p.s.SM—a premium transcontinental service connecting New York with both Los Angeles and San Francisco; and
• United Express, with a total fleet of 292 aircraft operated by regional airline partners, including approximately 150 aircraft that offer explusSM
service, United’s premium regional service providing both United First and Economy Plus seating.
The Company also generates revenue through its Mileage Plus® Frequent Flyer Program (“Mileage Plus”), United Cargo SM and United Services. Mileage
Plus, which helps the Company attract and retain high-value customers, contributed approximately $774 million to passenger and other revenue in 2009. United
Cargo generated $536 million in freight and mail revenue in 2009. United Services generated $134 million in revenue in 2009 by utilizing downtime of otherwise
under-utilized aircraft maintenance resources through providing third-party maintenance services.
The Company characterizes its business approach as “Focus on Five,” which refers to a comprehensive set of priorities that focuses on the fundamentals of
running a good airline: one that runs on time, with clean planes and courteous employees, delivers industry-leading revenues and competitive costs, and does so
safely. The goal of this approach is to enable United to achieve best-in-class safety performance, exceptional customer satisfaction and experience and
industry-leading margin and cash flow. Building on this foundation, United aims to regain its position in key metrics reported by the U.S. Department of
Transportation (“DOT”) as well as higher revenue driven by services, schedules and routes that are valued by the Company’s customers.
Operations
Segments. The Company operates its businesses through two reporting segments: Mainline and Regional Affiliates (United Express operations). The
Company manages its business as an integrated network with assets deployed across its Mainline and regional carrier networks. This focus seeks to maximize the
profitability of the overall airline network. Financial information on the Company’s reporting segments and operating revenues by geographic regions, as
reported to the DOT, can be found in Note 9, “Segment Information,” in the Footnotes.
Mainline. The Company’s Mainline operating revenues were $13.3 billion, $17.1 billion and $17.0 billion in 2009, 2008 and 2007, respectively. As of
December 31, 2009, Mainline domestic operations served approximately 80 destinations primarily throughout the U.S. and Canada and operated hubs at O’Hare,
Denver, LAX, SFO and Washington Dulles. Mainline international operations serve the Pacific, Atlantic and Latin America regions. The Pacific region includes
non-stop service to Beijing, Hong Kong, Osaka, Seoul, Shanghai, Sydney and Tokyo and direct service to Bangkok, Beijing (seasonal), Seoul, Singapore and
Taipei 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, Dubai, Frankfurt, Geneva, Kuwait City, London, Moscow, Munich, Paris, Rome and Zurich and, commencing in April 2010, direct
service to Bahrain through Kuwait City. The Latin American region offers non-stop service to Buenos Aires, Rio de Janeiro (seasonal) and Sao Paulo and direct
service to Rio de Janeiro via Sao Paulo. The Latin American region also serves various Mexico destinations including Cancun, Cozumel (seasonal), Mexico City,
Puerto Vallarta and San Jose del Cabo; various Caribbean points including Aruba and seasonal service to Montego Bay, Punta Cana, and St. Maarten; and
Central America including Liberia, Costa Rica (seasonal). United will fly to the African continent commencing in the second quarter of 2010, serving Accra,
Ghana, and plans to add service to Lagos, Nigeria, pending governmental approvals.
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