United Airlines 2010 Annual Report Download - page 17

ITEM 1A.RISK FACTORS.
The following risk factors should be read carefully when evaluating the Company’s business and the
forward-looking statements contained in this report and other statements the Company or its representatives
make from time to time. Any of the following risks could materially adversely affect the Company’s business,
operating results, financial condition and the actual outcome of matters as to which forward-looking statements
are made in this report.
The Merger may present certain material risks to the Company’s business and operations.
The Merger, described in Item 1, Business, may present certain risks to the Company’s business and
operations including, among other things, risks that:
• we may be unable to successfully integrate the businesses and workforces of United and Continental;
• conditions, terms, obligations or restrictions relating to the Merger that may be imposed on us by
regulatory authorities may adversely affect the Company’s business and operations;
• we may lose additional management personnel and other key employees and may be unable to attract
and retain such personnel and employees;
• we may be unable to successfully manage the expanded business with respect to monitoring new
operations and associated increased costs and complexity;
• we may be unable to avoid potential liabilities and unforeseen increased expenses or delays associated
with the Merger and integration;
• we may be unable to successfully manage the complex integration of systems, technology, aircraft
fleets, networks and other assets of United and Continental in a manner that minimizes any adverse
impact on customers, vendors, suppliers, employees and other constituencies;
• our ability to use net operating loss carryforwards to offset future taxable income for U.S. federal
income tax purposes may be limited;
• branding or rebranding initiatives may involve substantial costs and may not be favorably received by
customers;
• we may experience disruption of, or inconsistencies in, each of United’s and Continental’s standards,
controls, procedures, policies and services; and
• we may be unable to successfully negotiate and maintain current or future strategic partnerships of
United and Continental on terms acceptable to the Company.
Accordingly, there can be no assurance that the Merger will result in the realization of the full benefits of
synergies, innovation and operational efficiencies that we currently expect, that these benefits will be achieved
within the anticipated timeframe or that we will be able to fully and accurately measure any such synergies.
Certain of the Company’s financing agreements have covenants that impose operating and financial
restrictions on the Company and its subsidiaries. The Company may be unable to continue to comply with the
covenants in these agreements. A failure to comply with these covenants could result in the accelerated
maturity of debt obligations, which could materially and adversely affect the Company’s liquidity.
United’s Amended and Restated Revolving Credit, Term Loan and Guaranty Agreement, dated as of
February 2, 2007 (the “Amended Credit Facility”), the indenture governing Continental’s 6.75% Senior Secured
Notes due 2015 (the “6.75% Notes”) and the indentures governing United’s 9.875% Senior Secured Notes due
2013 and 12.0% Senior Second Lien Notes due 2013 (the “United Senior Notes,” and together with the 6.75%
Notes, the “Senior Notes”) impose certain operating and financial covenants, as applicable, on the Company, on
United and its material subsidiaries, or on Continental and its subsidiaries.
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