United Airlines Transitions to United Express in Six Cities Across the U.S.

United Airlines (NYSE: UAL) announced today it will transition from United Airlines to United Express, its regional partner carrier, in six cities across the United States as of Oct. 31, 2001.

The markets are Allentown, PA; Knoxville, TN; Norfolk, VA; Portland, ME; Raleigh/Durham, NC; and Santa Barbara, CA. The United Express carriers will provide scheduled service in regional jet aircraft when they take over operation of the routes from United.

United Express carrier Atlantic Coast Airlines (NASDAQ: ACAI) will fly in lieu of United Airlines in all of these markets with the exception of Santa Barbara-San Francisco which will be flown by United Express carrier SkyWest (NASDAQ: SKYW).

Rono Dutta, United’s president, said, “We regret the need to make these decisions which are obviously driven by the terrorist attacks on our country and soft passenger demand we have been experiencing. While United Airlines will be leaving these communities later this month, we are pleased that our United Express carriers are prepared to succeed us and assure a continuity of scheduled air service in most presently served markets.”

United said several options will be available to its employees, and those options will be discussed privately with the employees.

United also announced these further changes:

- United Airlines also will be ending nonstop service in two markets Oct. 31, 2001: Los Angeles-Medford, Washington Dulles-Sacramento. Service in the Denver-Hartford market was ended recently.

- United Express will be ending all service in Bellingham, WA; Little Rock, AR; Lynchburg, VA; Victoria, BC; and Yakima, WA as of Oct. 31, 2001. Service to Mobile, AL ended Sept. 30, 2001.

- United Express has ended or will end service Oct. 31 on these routes: Washington Dulles-Allentown, Washington Dulles-Canton/Akron, Washington Dulles-Cincinnati, Washington Dulles-Louisville; Washington Dulles-Knoxville; Portland-Eureka/Arcata; Seattle-Eugene; and Portland-Pasco.

- United Express will serve Quincy, IL from Chicago via Springfield . Service to Vail, CO will be provided seasonally, ending briefly Oct. 31, 2001 and resuming Dec. 15, 2001. Chicago-Birmingham service will end Oct. 31, but new service between Birmingham and Washington Dulles will be launched the same day.

- United has filed with the U.S. Department of Transportation to end United Express service in Newport News and Shenandoah/Staunton, VA. United filed previously with the Government to end service at Tri-Cities Airport which serves portions of Tennessee and Virginia.