Washington, DC  20549

                               FORM 8-K

                            CURRENT REPORT

                Pursuant to Section 13 or 15(d) of the
                    Securities Exchange Act of 1934

                   Date of Report:  October 19, 1999
                   (Date of earliest event reported)

                            UAL CORPORATION
          (Exact name of registrant as specified in its charter)

          Delaware                 1-6033          36-2675207
- ----------------------------     ------------   -------------------
(State or other jurisdiction     (Commission    (I.R.S. Employer
     of incorporation)           File Number)   Identification No.)

1200 Algonquin Road, Elk Grove Township, Illinois       60007
- -------------------------------------------------------------
 (Address of principal executive offices)          (Zip Code)

Registrant's telephone number, including area code (847) 700-4000

                            Not Applicable
     (Former name or former address, if changed since last report)


    UAL Corporation (the "Company") is filing herewith a press
release issued by the Company as Exhibit 99.1 which is
incorporated herein by reference.


Exhibit No.     Description
- ----------      -----------

    99.1        Press Release


        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/ Francesca M. Maher
                               Name:    Francesca M. Maher
                               Title:   Senior Vice President,
                                        General Counsel & Secretary

Dated:  October 19, 1999

                                                  Exhibit 99.1

                       INVESTMENT IN AIR CANADA

     UAL and Deutsche Lufthansa AG to provide financial package of
                 up to Cdn$730 million for Air Canada

  Air Canada, United Airlines and Lufthansa strengthen Star Alliance

     CHICAGO, October 19, 1999 - UAL Corporation (NYSE: UAL) announced

today that it and Deutsche Lufthansa AG have agreed to provide a

financial package of  up to Cdn$730 million for Air Canada and will

amend their alliance agreements to solidify Air Canada's place in Star

Alliance, a partnership of the world's leading airlines.

     UAL's investment will be made through the purchase of Air Canada

non-voting convertible preferred shares, an aircraft sale and

leaseback agreement and a guaranteed credit facility.

     "We're pleased to announce this agreement which supports Canada's

leading airline," said James E. Goodwin, Chairman and Chief Executive

Officer of UAL Corporation and United Airlines. "Air Canada is an

extremely important member of Star Alliance. This agreement will

ensure that the customers we mutually serve will continue to benefit

from the extensive travel network created by our alliance."

     Under the agreement announced today, UAL and Lufthansa will:

  -    Through a joint venture, take up Air Canada's newly-issued

       perpetual convertible preferred shares in the amount of Cdn$230

       million. The joint venture will be held 60 per cent by Lufthansa and

       40 per cent by UAL.

  -    Amend their code-share and other agreements with Air Canada by,

       among other things, extending their term until the end of 2009.



     In addition, UAL Corporation will:

  -    Purchase from, and lease back to, Air Canada three Airbus A330

       aircraft, for which UAL will invest approximately Cdn$190 million.

  -    Commit to guarantee a Cdn$160 million credit facility for Air

       Canada. Lufthansa also plans to make a credit facility available for

       Air Canada.

     UAL Corporation is the holding company whose primary subsidiary

is United Airlines. United is the world's largest airline, and the

largest majority-employee owned company in the United States. It

operates more than 2,400 daily flights on a route network that spans

the globe.

     Star Alliance was established in May, 1997. It brings together

some of the world's leading airlines in a partnership designed to

provide customers with the benefits of global reach and seamless

travel. Current members are: Air Canada, Air New Zealand, All Nippon

Airways, Ansett Australia, Lufthansa, Scandinavian Airlines System -

SAS, Thai Airways International, United Airlines and Varig Brazilian

Airlines. Joining Star in future will be the Austrian Airlines

Aviation Group, Mexicana Airlines and Singapore Airlines.