United Airlines 2014 Annual Report Download - page 9

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Table of Contents
States. In April 2013, to give the International Civil Aviation Organization (“ICAO”) an opportunity to reach international agreement, the EU approved a one
year stay such that the requirements of the EU ETS would apply only to intra-EU flights, and in April 2014, this stay was further extended to 2016.
The ICAO adopted a resolution establishing the path for development of a global market-based-measure to regulate international aviation carbon emissions
for final approval by ICAO in 2016 and the work has progressed during 2014 in developing this regulatory scheme. The cost to the Company of such a global
measure is not known at this time as there are many variables under consideration. The Company is taking various actions to reduce its carbon emissions
through fleet renewal, aircraft retrofits and actions seeking to stimulate the commercialization of aviation alternative fuels.
Some U.S. and foreign airports have established airport restrictions to limit noise, including restrictions on aircraft types and
operating times. In some instances, these restrictions have caused curtailments in services or increased operating costs, and could limit our ability to expand
our operations at the affected airports. In addition, some foreign airports and/or governments either have established or are seeking to establish environmental
fees applicable to carbon emissions, local air quality pollutants and/or noise. The Company is engaged in a number of geographic locations where changes to
existing noise and emissions policies are being considered.
The airline industry is also subject to other federal, state and local environmental laws and regulations that require the Company to remediate soil or
groundwater to meet certain objectives and which may require significant expenditures. Under such environmental cleanup laws, generators of waste
materials and owners or operators of facilities can be subject to liability for investigation and remediation costs at locations that have been identified as
requiring response actions. The Company also conducts voluntary environmental assessment and remediation actions. Environmental cleanup obligations
can arise from, among other circumstances, the operation of aircraft fueling facilities, which primarily involve airport sites. Future costs associated with these
activities are currently not expected to have a material adverse effect on the Company’s business.

As of December 31, 2014, UAL, including its subsidiaries, had approximately 84,000 employees. Approximately 80% of the Company’s employees were
represented by various U.S. labor organizations as of December 31, 2014.
Collective bargaining agreements between the Company and its represented employee groups are negotiated under the RLA. Such agreements typically do
not contain an expiration date and instead specify an amendable date, upon which the contract is considered “open for amendment.” The Company continues
to integrate its remaining employee groups in connection with the Company’s merger transaction in 2010, such process being governed by a combination of
the RLA, the McCaskill-Bond Amendment, and where applicable, the existing provisions of United’s collective bargaining agreements and union policies.
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