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United Airlines' Maintenance Division Wins Top Industry Award

Aviation Week awards United Services the 2004 Charles B. Ryan
Award for Business Innovation

CHICAGO, IL - MARCH 29, 2005 - United Services - United's maintenance and engineering division - has been recognized as an industry-leader by winning the 2004 Charles B. Ryan Award for Business Innovation. The award will be presented on April 19 at Aviation Week's Maintenance, Repair and Overhaul (MRO) Conference in Dallas, Texas.

"United Services has very successfully taken a market-driven approach to MRO, shedding cost while growing its customer base, making it a deserving recipient of our annual Charles B. Ryan MRO Award," said Kenneth E. Gazzola, executive vice president/publisher-Aviation Week Group. "Challenging times led to innovation and inspired United Services with the courage to examine its MRO business and make significant strategic changes - even exiting work segments where it could not be competitive and restructuring its collective bargaining agreements - in order to focus its business and increase revenue."

This year, United Services is the sole winner of the annual MRO award that is typically given to two companies in separate industry categories. This award recognizes the work done by employees to make United Services more than just another MRO provider, but an industry leader providing MRO services on engines, landing gear, and high-tech components including avionics, as well as line maintenance.

"This award is a great honor for us, especially after all the hard work our employees have done to revamp the way we do business and become a more market-oriented enterprise committed to the customer," said Gregory Hall, senior vice president-United Services. "We've strategically focused on cost-effective, competitive endeavors, and exited markets that were not delivering the results we needed to be a robust business. Earning the Charles B. Ryan Award is a nod from the industry that indicates we're on the right track."

Last year, United Services implemented the Lean Manufacturing system to improve processes and eliminate inefficiencies and waste - an action which has helped drive down United's cost per available seat mile (CASM) and attracted new customers. With nearly 100 current customers around the world, United Services expects that its operational changes will help grow its revenue by more than 15% annually in the coming years.

The annual award is co-sponsored by the Aviation Week Group and Overhaul & Maintenance magazine, and has been awarded each spring since 2002 in two categories: the first for an outstanding airline or military operator and the second for a leading MRO supplier. It is meant to honor the memory of Charlie Ryan - aerospace leader, former president of aircraft component manufacturing and repair company The NORDAM Group and beloved industry colleague - by recognizing industry-leading companies and organizations for finding new ways to improve operations, service, profits, products, efficiency and effectiveness, while sustaining or improving safety and technical proficiency.

About United Services

United Services, a division of United, brings 79 years of experience, employee talent and the highest level of operational integrity to more than 100 airline customers worldwide. As an airline-based MRO provider, United Services provides its customers industry-leading services on engines, landing gear and high-tech components including avionics, as well as line maintenance. For more news and information about United Services, visit its Web site at unitedsvcs.com.

About United

United Airlines (OTCBB: UALAQ.OB) is the world's second largest airline, operating more than 3,400 flights a day on United, United Express and Ted to more than 200 U.S. domestic and international destinations from its hubs in Los Angeles, San Francisco, Denver, Chicago and Washington, D.C. With key global air rights in the Asia-Pacific region, Europe and Latin America, United is the largest international carrier based in the United States.* United is also a founding member of Star Alliance, which provides connections for our customers to nearly 800 destinations in 139 countries worldwide. United's 60,000 employees reside in every U.S. state and in many countries around the world. News releases and other information about United can be found at the company's Web site at united.com.

About Aviation Week Group

The Aviation Week Group, a division of The McGraw-Hill Companies, is the largest multimedia information and services provider to the global aviation and aerospace industry. Its publications include Overhaul & Maintenance and Aviation Week & Space Technology, the world's leading aviation and aerospace industry magazine, covering technology, business and operations in the commercial, military and space markets for nearly 100,000 paid subscribers in 180 countries. The group's web portal, http://www.aviationnow.com/, offers the industry's most reliable news, information and features.

* Measured by revenue passenger miles as reported to the U.S. Department of Transportation for 12 months ending September 2004, the most recent comparison data available.

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