United Airlines 2010 Annual Report Download - page 36

the Merger. On September 27, 2010, the court denied the plaintiffs’ motion for a preliminary injunction, which
allowed the Merger to close. After the closing of the Merger, the plaintiffs appealed the court’s ruling and moved
for a “hold separate” order pending the appeal, which was denied by the court. The appeal remains pending.
Environmental Proceedings
In 2001, the California Regional Water Quality Control Board (“CRWQCB”) mandated a field study of the
area surrounding Continental’s aircraft maintenance hangar in Los Angeles. The study was completed in
September 2001 and identified aircraft fuel and solvent contamination on and adjacent to this site. In April 2005,
Continental began environmental remediation of aircraft fuel contamination surrounding its aircraft maintenance
hangar pursuant to a workplan submitted to and approved by the CRWQCB and its landlord, the Los Angeles
World Airports. Additionally, Continental could be responsible for environmental remediation costs primarily
related to solvent contamination on and near this site.
In 2009, the EU issued a directive to member states to include aviation in its greenhouse gas Emissions
Trading Scheme, which required the Company to begin monitoring emissions of carbon dioxide effective
January 1, 2010. Beginning in 2012, the scheme would require the Company to ensure it has obtained sufficient
emission allowances equal to the amount of carbon dioxide emissions from flights to and from member states of
the EU with such allowances then surrendered on an annual basis to the government. On December 17, 2009, the
Air Transportation Association, joined by United, Continental and American Airlines, filed a lawsuit in the
United Kingdom’s High Court of Justice challenging regulations that transpose into UK law the EU Emissions
Trading Scheme as applied to U.S. carriers as violating international law due to the extra-territorial reach of the
scheme and as an improper tax. In June 2010, the case was referred to the Court of Justice of the European Union
(Case C-366/10) and the parties filed their Written Observations with the court in November 2010.
Other Legal Proceedings
The Company is involved in various other claims and legal actions involving passengers, customers,
suppliers, employees and government agencies arising in the ordinary course of business. Additionally, from
time to time, the Company becomes aware of potential non-compliance with applicable environmental
regulations, which have either been identified by the Company (through internal compliance programs such as its
environmental compliance audits) or through notice from a governmental entity. In some instances, these matters
could potentially become the subject of an administrative or judicial proceeding and could potentially involve
monetary sanctions. After considering a number of factors, including (but not limited to) the views of legal
counsel, the nature of contingencies to which the Company is subject and prior experience, management believes
that the ultimate disposition of these contingencies will not materially affect its consolidated financial position or
results of operations.
ITEM 4. [Removed and reserved]
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