I would to acknowledge Denver City Council President Rosemary Rodriguez and all the elected officials here with us today.

I would also like to thank Joe Blake and Maureen McDonald, and the Denver Chamber.

It is a pleasure to be here, knowing United is once again flying the charter for the Leadership Exchange trip. This opportunity to serve the Chamber, the City of Denver, and the State of Colorado, is important to us, as is the partnership that has grown over the seventy-one years United has been flying at Denver.  

Denver is United's second home. It is our second largest hub , our center for pilot training... and integral to our success.

We have a significant stake in the economic development and enhanced competitive position of the Denver metro area. We provide critical connectivity that plays a major role in facilitating that growth.

We share a common goal and the purpose of this event and your aspirations are in lock step with United's commitment to Denver.

I will talk more about Denver, but first I want to focus on United.

United had a very good day a few weeks ago.

We announced $3 billion in all-debt exit financing from two of the most respected financial institutions in the world  JP Morgan Chase and Citigroup.

There were those who questioned whether the capital markets would support an all debt financing.

As Wayne [JPMorgan Chase] can attest, we have the financing and th e terms of the financing are excellent and not at all typical for airlines exiting bankruptcy.

On Friday, the court approved the loan and we are now set to move forward with our financing in place and exit in just a few months.

As we do so, we are a fundamentally better company

• with dramatically lower costs
• revenue performance outpacing the industry
• improved earnings despite massive fuel cost increases
• one of the best records for operational performance of the major carriers;
• and contrary to the expectations of many, our world-class network is intact
• and there are sustainable improvements ongoing across the business.
  

In sharp contrast to three years ago, when we were losing $3 billion a year.  

• Our cost structure was among the highest in the industry and we were unable to compete in the US... and had no chance of competing with international carriers.
• Our collective bargaining agreements with our employees were uncompetitive with the realities of today's marketplace. 
• We had unsustainable legacy benefit obligations. 
  

Three years later, these same issues are today's headlines  the only difference is that now it is in the larger context of legacy industry in the U.S.

United has "lived" these issues for the past three years.

But, by confronting unpleasant realities, we have given United the opportunity to be successful and to create value for our employees and future shareholders.

During the restructuring, we also resolved issues that were uniquely our own, including an impossible governance structure that paralyzed leadership and diluted focus on our customers.

Confronting everything that stood between us and viability, we have done more than simply survive.

We have earned the opportunity to compete for leadership in the U.S. airline industry... and are well positioned as the global airline industry evolves.

United is here today because we were not in denial about what needed to be done in the past, nor what needs to be done in the future.

We face facts, we call the question and we follow through on decisions... regardless of how tough or unpopular they may be.

This industry will continue to be volatile and unpredictable.  Those who will succeed are those who are better able and willing to respond to such volatility and unpredictability.

There is no future for a company that ignores the realities of the competitive marketplace, or ignores the facts that will ultimately determine success or failure. 

U.S. network carriers, including United, had been unwilling or unable to deal with years and years of bad decisions...such as agreeing to provide higher and higher wages and benefits, knowing they were unsustainable... building business plans on some "hoped for" industry recovery, including the demise of United, rather than the reality of the market.

U.S. network carriers failed to respond to radical, permanent changes in the industry... the low cost carriers and pricing transparency via the Internet... both of which forced airfares down 50 percent lower than they were 25 years ago, when adjusted for inflation.

The industry has lost $32 billion since 9/11, and another $10 billion loss is expected this year.

Our first responsibility was to fix what was broken at United.  Face the facts and restructure the company accordingly.  We said from the beginning that there would be no quick fix, only sustainable solutions.

By reaching a balance across the interests of our three key stakeholders  customers, employees and our creditors, soon to be shareholders  we have built a solid competitive platform for United.

• We lowered costs, excluding fuel, by 20 percent across the board  which will result in $7 billion in average annual cost savings through 2010.
• We increased productivity by 27 percent  eliminating duplication, waste and ine fficiencies.
• Fleet costs were renegotiated to achieve unprecedented savings  of $850 million annually.
• Contracts with our United Express partners are now some of the most favorable in the industry.
• Twice in three years, we worked with our labor groups to reach consensual agreements to bring wages and benefits in-line with market reality.
• We overhauled our governance structure and leadership team.
  

And, we confronted the fact that United could no longer afford its legacy pension obligations.  As I mentioned at the outset, we are not alone.

As difficult as this was, it was certainly better than liquidating the company.

It preserves jobs for our 55,000 employees, soon to be joined by 500 recalled pilots and 2,100 new flight attendants by the end of next year.

It provides a better return for our creditors, including the U.S. government's Pension Benefit Guaranty Corporation... and provides continuity of global service for our loyal customers.

It is critical for us to continue to balance the interests of our employees, customers and investors in every decision we make at United.

Airlines, including United, have rarely done this well.

Employees have endured the roller-coaster of boom and bust.  All too often customers had to bear the brunt of the industry's turmoil.  For investors, this industry  for the most part  has been a losing proposition.

The only way to build value for all three is to achieve a balanced approach.  And that is what we are doing.

Our decisions are based on the facts... what is best for United, starting with our customers.

Other US carriers are content to provide a commodity product that meets the barest minimum of customer expectations... believing every element of their business is about cost.

We start with our customers... providing products and service they want and value, at prices they are willing to pay.

We have strengthened our domestic network and global connectivity because they are highly valued by our customers. Today we serve more cities and fly more routes than we did in 2002.

United created differentiated products to meet changing customer demand, knowing that even the same customer wants different products at different times.

The business traveler has always been at the heart of United and we will provide the travel experience they want.
 

We have maintained our Economy Plus service while some of our competitors have been squeezing more seats into their aircraft.

Against a backdrop of price reductions and declines in service in the U.S. , we created p.s., our premium transcontinental flights, because we believed those customers were prepared to pay a premium for special service and a lie flat bed.  And we were right.

This week United's p.s.(SM) service was awarded "Best First Class in North America" by Global Traveler Magazine.

We introduced Explus across United Express to better accommodate higher-yield passengers. 

New 70-seat jets with First Class and Economy Plus have redefined standards in the Regional Jet experience.  

United is not only competing for the business traveler; all our passengers and their travel demands are important to us and to the sustainability of our network.  We provide a different experience that meets their expectation and price point.

When we introduced Ted, our low-fare leisure travel product, in Denver, Mr. Michael Boyd a local Denver pundit voiced his opinion.

On various occasions, he called Ted, "a paint job and a press release." He said Ted would confuse customers and that the cost structure was not low enough. He said, "I think it's nuts."

Across the eight Ted destinations, we had a 34 percent share of the Denver market before we launched Ted and Frontier had 33 percent. In August Ted had a 57 percent share and Frontier was at 19 percent.  We fly more Ted service from Denver than any of our other hubs.  And United has introduced flights to Mexico City, Cancun, Puerta Vallarta, Los Cabos and other destinations in the Caribbean and Central America.

Ted is, in fact, a success story for our customers and our employees and is profitable for United.  So much so, that we are expanding Ted to 56 aircraft this year, a 20 percent increase.

For the last 12 months, United is Number 1 in on-time performance among the network carriers and customer satisfaction ratings are running at all-time highs thanks to the efforts of our employees.

We are challenging ourselves to do better work every day... to take a fresh look at everything we do... things that were done the same way for 30 years or more. 

A program called FIT  for Fix, Improve, Transform  initiated at our Denver hub, is being rolled out across our system to make customer service, check-in and baggage handling more efficient and better. 

We have outsourced work that we cannot do at a competitive cost... restructured how we sell our product... realigned our fleet... and built new relationships with partners. 

We have focused on the things we do well to develop new revenue opportunities by bringing in work that we can do competitively. 

United Cargo has been revamped and restructured, improving service levels and international scope. It is now contributing hundreds of millions to United's bottom line on an annual basis and outperforming its plan.

At United Services, our maintenance and engineering division, we are engaging technicians, engineers, and management in streamlining maintenance operations.

Maintenance of engines, landing gear and avionics, provided to a growing list of customers, is an expanding revenue source for United, delivering high quality at competitive prices.

United's Flight Training Center in Denver is the largest and best commercial flight training center of its kind.  We train the flight crews for Air Force One, and for other heads of state.

We are using available training capacity to generate revenue, selling available flight simulator time, training programs and instruction to other airlines and aviation companies from the U.S. and around the world.

This business also means more than 60,000 occupied hotel rooms for Denver every year  as well as other economic benefits.

Recent figures from the Metro Denver Economic Development Corporation describe United's contribution to the Denver economy. United has more than 5,500 employees living and working in the Denver Area and when added to indirect employment creates more than 20,000 jobs that earn more than $650 million annually.

United is committed to Denver and to providing world-class travel services for the business community and leisure travelers.

By December of this year, using our full suite of products, United, United Express and Ted, we will provide non stop service from Denver to 101 cities... including First Class, seat assignments and Economy Plus.

Through our international network and our Star Alliance partners, we can get you almost anywhere in the world you want to go.

We are a better company for competing with Frontier and we look forward to competing with Southwest, as we do in other cities. II's good for the consumer and it's good for United to continue to take on competitive challenges...as a reminder that our challenges will not cease the day we exit Chapter 11.

Should Southwest decide to fly from Denver to every city in their network, they would still only offer 60 percent of the coverage United offers today and no connectivity.  We will be delighted to fly you to the 800 destinations they can't.

Our commitment to Denver and the work we have done put us in a strong place to serve you now and well into the future.

Just as airlines compete, cities and airports compete. 

Denver already has the infrastructure in place at DIA... we need to build on that competitive advantage by addressing issues that impose constraints and are inconsistent with growth.

• We face some of the most expensive airport fees in the world.
• The Colorado combined jet fuel taxes are among the highest in the nation.
  

Cost control at DIA and a closer look at taxes and fees are important to United and critical for Denver's competitive position as an expanding hub city now and in the future.

We will continue to work closely with Mayor Hickenlooper and the City of Denver, the Denver Chamber and civic and business leaders to ensure that Denver is a competitive and leading destination for business and tourism from around the world.

United is better positioned today to do that than anyone thought remotely possible three years ago.

All that we have accomplished so far says a great deal about who we are today: one company, committed to doing good work, focused on our customers and on competing in a way that is distinctly United. 

Perhaps our most important accomplishment is that we have proven, over and over again during the last three years that we have the ability to meet whatever challenges this very volatile industry may encounter in the future.
 

Facing the facts, calling the question and following through on the tough decisions has become a way of life at United. 

Your support and willingness to stand with us during difficult times, has been very important to our business and our employees, and I would like to close today by saying "Thank you."