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Star Alliance Confirms 'Business as Usual' at United

Travel News Asia 9 December 2002

United Airlines' filing for Chapter 11 bankruptcy protection will have no impact on its membership in Star Alliance. United will continue to honor its obligations to the alliance, including bilateral code-share agreements, frequent flyer agreements and lounge access agreements, and will maintain a comprehensive schedule of flights across its vast domestic and international route network.

Chapter 11 refers to the section of the U.S. Bankruptcy Code that provides for court-supervised restructuring of companies as they continue to operate normally. The proceeding is intended to help companies become stronger financially.

"It will be business as usual at United and throughout the Star Alliance network. Customers will see no change," confirmed Jaan Albrecht, Chief Executive Officer of Star Alliance.

Under Chapter 11 protection, United will be allowed "breathing room" to work with creditors and other key constituents to develop a plan to reorganize and restructure the company. Business will continue operating without interruption during this process, including flights, reservations and other services. Aircraft maintenance and flight safety will remain the number one priority. Passengers will continue to be able to accrue and redeem frequent flyer mileage on United flights.

"We are confident that United, a founding member of Star Alliance, is going to emerge successfully from Chapter 11," said Jaan Albrecht. "During this time of restructuring, United will continue to serve its customers with focus and energy while offering all the benefits that customers have come to identify with Star Alliance.

"When this process is over, we will see the emergence of a stronger and even more competitive United Airlines," he predicted.

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