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SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K/A
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: April 30, 1998
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(Date of earliest event reported)
UAL CORPORATION
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(Exact name of registrant as specified in its charter)
Delaware 1-6033 36-2675207
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(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
1200 Algonquin Road, Elk Grove Township, Illinois 60007
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (847) 700-4000
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Not Applicable
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(Former name or former address, if changed since last report)
ITEM 5. OTHER EVENTS.
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UAL Corporation (the "Company") is filing herewith a press
release issued today by the Company as Exhibit 99.1, and a
cautionary statement for purposes of the "Safe Harbor for
Forward-Looking Statements" provision of the Private
Securities Litigation Reform Act of 1995 as Exhibit 99.2, both
of which are incorporated herein by reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
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Exhibit No. Description
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99.1 Press Release
99.2 Cautionary Statement
SIGNATURES
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Pursuant to the requirements of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be
signed on its behalf by the undersigned hereunto duly authorized.
UAL CORPORATION
By: /s/ Douglas A. Hacker
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Name: Douglas A. Hacker
Title: Senior Vice President
and Chief Financial Officer
Dated: April 24, 1998
Exhibit 99.1
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UNITED AIRLINES REACHES TENTATIVE AGREEMENT
WITH DELTA TO EXPAND GLOBAL ACCESS
Agreement Would Give Consumers More Choice, Convenience and
Price Options
Chicago, IL, April 30, 1998 -- United Airlines
announced today that it has reached a tentative agreement
with Delta Air Lines to explore a global alliance. This new
bilateral agreement would enable consumers to take advantage
of the frequent flier programs, pricing options, and route
and reservations systems of both carriers and link more U.S.
communities to destinations around the world. Implementation
of the agreement is subject to approval of both companies' pilot
unions.
Plans call for the agreement to be implemented first in
the United States and then internationally, pending the
concurrence of foreign partners and the governments
affected, said United. The U.S. government's initiative to
open skies around the world has created opportunities for
carriers to bring to consumers new competitive choices that
did not exist before. It is the goal of the alliance to
capitalize on these new opportunities where available.
Europe is excluded from the agreement with Delta because of
the uncertainty and complexity of the European regulatory
environment. This new bilateral arrangement would allow
both United and Delta to keep their existing multi-lateral
global alliances intact. United's commitment to Star
Alliance and each of its other partners is unwavering.
"This agreement represents the wave of the aviation
future," said Gerald Greenwald, chairman and chief executive
officer of United Airlines. "The economy and business have
gone global; so have communications. Our customers tell us
they need the same from us in transportation. No one
carrier has the capability or resources to meet this demand
alone. By sharing resources, United and Delta will be able
to provide competitive access to the domestic and global
marketplace without costly and time-consuming investments in
new equipment and facilities.
"During the course of discussions, it became
increasingly clear to both companies that the industry has
to provide a new level of service in the decades ahead,"
Greenwald said. "This means providing seamless, one-ticket
travel without compromising amenities or the benefits of
frequent flier and other rewards programs."
Greenwald emphasized that the new alliance would not be
a merger. "This alliance would allow us to pursue our
customer-focused aims even as we preserve our strategic and
competitive flexibility and our respective cultures,"
Greenwald said. "United is a majority employee-owned
airline, and this alliance would enhance both our company
and the job opportunities and career security of our
employees."
A codesharing alliance would enable the two carriers to
sell seats on each other's flights by sharing codes in
computer reservations systems. For example, a single flight
from Chicago to Atlanta on a United aircraft would now have
codes for both companies: UA 901 and DL 901. Under the
codeshare agreement, United and Delta reservations offices
would offer tickets from both carriers, and customers would
choose which airline they prefer.
Through codesharing on Delta, United customers would
have increased access to Delta's extensive network in the
Northeast, Southeast and Southwest, including the Delta
Shuttle in New York, Boston and Washington, D.C., and Delta
Express in the Florida market. United customers in
Manchester, New Hampshire; and Madison, Wisconsin; for
example, would have access to Savannah, Georgia; and
Charleston, South Carolina; and international destinations
such as Bermuda; Nice, France; and Manchester, England.
Overall, United through codesharing would serve 39 new U.S.
cities and offer 2,528 new daily nonstop flights in 319 city
pairs. For comparison purposes, the carriers estimate a
combined gross revenue benefit of $600 million upon full
implementation of the alliance. The revenue benefits are
anticipated to accrue to each carrier roughly equally. This
figure assumes no other major U.S. domestic alliances. The
carriers expect a positive revenue benefit compared to today
even if other major U.S. domestic alliances are completed.
At the same time, customers would enjoy enhanced online
service at nine U.S. hubs--Chicago, New York, Washington,
DC, Denver, San Francisco, Atlanta, Cincinnati, Salt Lake
City and Dallas/Fort Worth -- that would not be possible
without cooperation of this kind. Customers in medium-sized
communities like Des Moines, Iowa; Burbank, California; and
White Plains, New York, would no longer have to suffer the
delays and costs associated with multiple check-ins and
baggage transfers.
Safe Harbor Statement under the Private Securities
Litigation Reform Act of 1995: Information in this press
release on the revenue benefits of the proposed transaction
is forward-looking, and actual results could differ
materially from expected results. Factors that could
significantly affect revenue benefits include: the
implementation of alliances by competitors; the outcome of
discussions with both carriers' pilot unions, international
partners, and commuter carriers regarding implementation of
the proposed transaction; actions of the U.S., foreign, and
local government; the economic environment of the airline
industry and the general economic environment.
Exhibit 99.2
Cautionary Statement
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UAL Corporation ("UAL") and its representatives from time to
time participate in speeches and calls with market analysts,
conferences with investors and potential investors of UAL and
United Air Lines, Inc. securities, and other meetings and
conferences.
Some of the information presented in such speeches, calls,
meetings and conferences may be forward-looking and involves
risks and uncertainties that could result in actual results
differing materially from expected results. It is not
reasonably possible to itemize all of the many factors and
specific events that could affect the outlook of an airline
operating in the global economy. Some factors that could
significantly impact expected capacity, traffic, load factors,
yields, revenues, unit revenues, expenses, costs, unit costs,
fully distributed unit costs, capital spending, cash flows,
pre-tax margins, earnings, fully distributed earnings,
earnings per share, fully distributed earnings per share and
price to earnings ratios include the airline pricing
environment; industry capacity decisions; the effect of the
U.S. excise tax on travel; the success of the company's cost
control efforts; the cost of crude oil and jet fuel; the cost
of security and safety measures; low-fare carrier expansion;
actions of the U.S., foreign and local governments; foreign
currency exchange rate fluctuations; the Asian economic
environment and travel patterns; the willingness of customers
to travel; the price of UAL common stock; inflation; the
timing of aircraft deliveries from manufacturers; the economic
environment of the airline industry and the economic
environment in general.
With respect to the proposed alliance transaction with Delta
Air Lines, factors, in addition to those factors noted above,
that could significantly affect the revenue, earnings, and
other benefits from the alliance include: the implementation
of alliances by competitors, and the outcome of discussions
with both carriers' pilot unions, international partners,
and commuter carriers regarding implementation of the proposed
alliance transaction.