AMFA and United Airlines Officials Meet about Deferral of $72.4 Million Quarterly Pension Contribution; Union Is Concerned About Long-Term Impact On Pension Plan.

CHICAGO -- Executives of United Airlines (OTCBB:UALAQ) met today with national and local leaders of the Aircraft Mechanics Fraternal Association (AMFA) to discuss United's recent deferral of its $72.4 million quarterly contribution to employee pension plans. AMFA had invited the UAL executives to meet and participate in a question-and-answer session.

Union officials have voiced concern that the deferral will cause severe long-term problems with the pension plans if United is unable to make required payments.

"Interest is now accruing on the deferred amount, increasing the total that must be paid by September 15 for the 2004 plan year," said AMFA National Director O.V. Delle-Femine. "If United is unable to make up the deferred payment with interest, this will cause major problems with the plans."

Delle-Femine said the only way to avoid making the 2004 plan-year contribution would have been through a waiver, and United has already withdrawn its waiver request.

"Our people have already given concessions to United, and now the airline is putting the future of our pension plan at risk. We want to find out how United intends to address this very ominous situation," he said.

Following the two-hour meeting, both parties agreed that the information-sharing had been helpful and that the dialogue would continue as the company develops its business plan.