UA new cost cutting on flights...

[Montague S]

beginning of the end some might assume? they've also made everyone else an attractive option when it comes to flying from Australia to the USA.

Effective July 1, we will implement a charge of $6 for alcoholic beverages in United Economy. We will also begin charging for alcoholic beverages in the economy cabin on all Pacific and intra-Asia flights beginning August 1.

Also beginning August 1, we will conduct tests offering a la carte snack items available for purchase in the economy cabin for $3. These items, including cookies, candy, chips and trail mix, are in 4- to 5-ounce portions and are in line with our strategy of offering customers more items that they value and can choose from accordingly. The U.S. domestic testing, to run through the summer, will include Denver-Seattle flights and Denver-San Francisco, as well as Chicago-Denver and Chicago-Boston trips. International flights participating in the test will include Los Angeles-London and Los Angeles-Frankfurt flights, as well as San Francisco-London and San Francisco-Frankfurt flights.

Staffing changes to go into effect August 1 include reductions in flight attendant staffing on the Boeing 777XZ and B747OB aircraft, as well as B757 and p.s. flights. We will implement these changes with an eye toward maintaining a clear differentiation between the three cabin products, as well as between United First and United Business on international flights.

We continue to enlist the ideas of our flight attendants to streamline service procedures so that we continue to serve our customers in the best and most efficient way possible.

Flight attendants have begun accepting the "Early Out" option for eligible flight attendants, which goes into effect August 1. In addition, we continue to offer unpaid schedule flexibility, including special leaves of absence and both 30-day and daily authorized no-pay offerings. The division is also undergoing salaried and management organizational reviews that will result in workforce reductions of approximately 20 percent, similar to other divisions.