[Mike Scott]

Below is the message we all got from Mr. Tilton today. I will also post the various other internal notices that we get so that you are all "up to date" with the internal happenings associated with the merger. Looks like our aircrft painting team is going to be busy yet again changing colors/logos etc....and also you folks with your cameras etc as our newly painted aircraft start making their first appearances in Oz probably early next year. Lots of work still to be done before this merger actually happens...but this is a very good day for those of us that have dealt with a lot of sh-t from this company for many many years.

Dear fellow employee,

In recent years, the results of our work together have been evident in our significantly improved and consistent performance and our recognition in the marketplace. Our performance puts us in the position today to announce a merger of equals with Continental Airlines and on track to be the world’s leading airline, which is exactly where our company should be.

Our new airline will be called United Airlines, and will use the Continental white livery with the globe.

With our announcement today, we are bringing together two of the world’s premier airlines to form a platform that will provide greater stability and opportunity for our people, more choices for our customers and a better return for our shareholders.

Our company will be 55 percent owned by United shareholders and 45 percent owned by Continental shareholders. Our headquarters will be in Chicago in our building at 77 W. Wacker, and our operations center will be located in the Willis Tower.

By merging with Continental, we will have the world’s best network, and will be well positioned to compete with global carriers. We will continue to serve every destination our two airlines fly to today. As such, we expect minimal impact to our frontline employees with any reductions coming principally through retirement, attrition and voluntary programs.

The combined company’s management team is expected to include an equitable and balanced selection of executives from each company with the intention that each company will be contributing roughly equal numbers. This will result in some reductions in the salaried and management work force for both Continental and United.

I will serve as non-executive chairman of the Board of Directors and Jeff Smisek, Continental chairman, president and chief executive officer, will be chief executive officer and a board member of United. The board will also comprise six independent directors from each carrier and two labor directors.

Throughout the merger approval process, which is likely to last through the fourth quarter of this year, we will develop an integration plan that will involve a dedicated team of employees from both airlines. Jeff and I will lead that team.

That integration planning work will be separate from that which the vast majority of us will be focused on: safely running a great airline and continuing the momentum we have under way to improve our performance.

Knowing and respecting our Continental colleagues as we do, I am confident that we will work together to create a stronger airline, better positioned to succeed in the competitive global aviation industry.

Today is a great day for our company, and we are very proud of this latest step in our transforming journey. We have always been proud to call Chicago home, and we thank our customers, the city, and Mayor Daley for standing by us and encouraging us to move forward. The work all of you do has enabled us to reach this point, and I look forward to working with you as we create opportunity for our people, our customers, our shareholders and the communities we serve, and make Chicago’s hometown airline even better.

For the most up-to-date information on the merger, I encourage you to visit the SkyNet site and www.unitedcontinentalmerger.com.


Glenn