UAL Informs IBT of their Intention to Seek Mediation and Amalgamation 060711

David D. Bourne

Director, Airline Division

International Brotherhood of Teamsters

25 Louisiana, NW

Washington, DC 20001

Dear David:

Thank you for your letter of June 3. I regret to hear that the Tentative Agreement reached by the union negotiating committee and United has not been ratified. I, too, believe that it is in the best interests of all involved to resolve the labor agreement issues on an expedited basis.

To that end, the Company has decided to request the mediation services of the National Mediation Board for a single amalgamated collective bargaining agreement covering the IBT-represented mechanics at both subsidiaries, United and Continental (including CMI). We believe that use of the NMB's services in this manner is the best way to achieve a mutually acceptable agreement on a fair and expedited basis. We particularly believe that seeking an amalgamated agreement will be a constructive and positive approach, given the completion of the merger and integration of the subsidiaries that has occurred and will continue.

We intend to ask the NMB to set mediation dates as soon as possible. We hope to hear from the NMB soon regarding available dates.

Feel free to contact me if you have any questions.

Sincerely,

P. Douglas McKeen