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United Airlines Takes Steps To Lower Distribution Costs

September 16, 2004

United Airlines Takes Steps To Lower Distribution Costs
September 16, 2004 – United Airlines it is taking steps to lower its distribution costs as part of the company’s ongoing restructuring efforts. This month, United began adding a fee to tickets purchased at U.S. airport ticket offices and through United reservations offices for calls originating in the U.S. and Canada. Tickets sold through the company’s Web site will not incur the new fees.

United will add a $10 fee to tickets purchased at airport ticket counters and a $5 fee to tickets purchased through United reservations offices. The fees apply to domestic and international tickets sold through United reservations centers and U.S. airport ticket offices.

"The industry continues to face extremely difficult conditions that are only made more challenging by record fuel prices and a weakening revenue environment," said John Tague, United’s executive vice president-Customer. "Given the dynamics of today’s marketplace, we need to take this step to lower our distribution costs to remain competitive."

Tague said the changes are expected to generate significant savings for the company, which is working to lower its costs as part of its ongoing restructuring efforts.

The fees apply to new ticket sales only. No fees will be charged to change current reservations, either at the airport or through United reservations. Also excluded from additional fees are Mileage Plus 1K and Global Services customers, government, military, bereavement and Pass Plus fares.

NTA members booking online, under GroupPlus, will not be charged fees. Members should include that they are NTA members with their membership code in the comments section.

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