United Airlines 2011 Annual Report Download - page 5

Table of Contents
Integration-related 2011 accomplishments and key 2012 initiatives include:
• During 2011, the Company received a single operating certificate from the Federal Aviation Administration (the “FAA”), marking a significant
achievement in the integration of United and Continental. The certificate gives the FAA a single point of oversight for our combined operations. It
also allows all maintenance and operating activities to be considered as “United” by the FAA;
• In 2011, the Company announced that MileagePlus will be the loyalty program for the Company beginning in 2012;
• The Company has co-located check-in, ticket counter and gate facilities at 66 airports since closing the Merger and now has a single area for
check-in at 291 airports systemwide. More than 800 aircraft are now rebranded in the new United livery;
• Some key initiatives for the Company in 2012 include converting to a single passenger service system, harmonizing other information technology
systems, moving to a single website, making substantial fleet reallocations around the system and working to integrate certain employee groups.
We currently expect to migrate to a single passenger service system in early March 2012, allowing the Company to operate using a single carrier
code, flight schedule, inventory, website and departure control system; and
• UAL expects the Merger to deliver $1.0 billion to $1.2 billion in net annual synergies on a run-rate basis in 2013, including between $800 million
and $900 million of annual revenue synergies, in large part from expanded customer options resulting from the greater scope and scale of the
network, fleet optimization and additional international service enabled by the broader network of the Company, and between $200 million and
$300 million of net cost synergies. The Company has realized an estimated $400 million of synergies in 2011, comprised of $250 million of
revenue synergies and $150 million of net cost synergies.
The Company will incur substantial expenses in connection with the Merger. The Company incurred approximately $450 million of integration-related cash
costs in 2011 and expects to incur a similar amount in 2012 in categories generally consistent with 2011. There are many factors that could affect the total
amount or the timing of those expenses, and many of the expenses that will be incurred are, by their nature, difficult to estimate accurately. See Notes 1 and 21
to the financial statements included in Item 8 of this report and Item 1A, Risk Factors, for additional information on the Merger.

Network. The Company transports people and cargo through its mainline operations, which utilize jet aircraft with at least 110 seats, and its regional
operations. See Item 2, Properties, for a description of the Company’s mainline and regional aircraft.
With key global air rights in the U.S., Asia-Pacific, Europe, Middle East, Africa, and Latin America, UAL has the world’s most comprehensive global route
network. UAL, through United and Continental and their regional carriers, operates more than 5,600 flights a day to more than 370 U.S. domestic and
international destinations from the Company’s hubs at Newark Liberty International Airport (“Newark Liberty”), Chicago O’Hare International Airport
(“Chicago O’Hare”), Denver International Airport (“Denver”), George Bush Intercontinental Airport (“Houston Bush”), Hopkins International Airport
(“Cleveland Hopkins”), Los Angeles International Airport (“LAX”), A.B. Won Pat International Airport (“Guam”), San Francisco International Airport
(“SFO”) and Washington Dulles International Airport (“Washington Dulles”). Including its regional operations, United operates approximately 3,200 flights a
day to more than 235 U.S. domestic and international destinations based on its annual flight schedule as of January 1, 2012. Including its regional
operations, Continental operates approximately 2,400 flights a day to more than 280 U.S. domestic and international destinations based on its annual flight
schedule as of January 1, 2012.
4