CHICAGO, Sept. 18 /PRNewswire-FirstCall/ -- UAL Corporation
(Nasdaq: UAUA), the holding company whose primary subsidiary is United
Airlines, completed the amendment of its co-branded card marketing services
agreement with Chase Bank, as well as amended its credit card processing
agreement with Chase/Paymentech L.L.C. These agreements boost United's
liquidity by approximately $1.2 billion, including $1.0 billion in the short
term and an additional $200 million over the next two years.
'This is one of the many steps we are taking to improve our liquidity and
increase the amount of cash we have on hand to strengthen our business for all
our stakeholders in this volatile fuel environment,' said Jake Brace,
executive vice president and chief financial officer.
Under the terms of the agreement, United has received an additional
$600 million from Chase in consideration for the advance purchase of frequent
flyer miles and for extending the agreement. As part of the transaction,
United has granted a security interest in various assets, including specified
intangible Mileage Plus assets. United continues to have more than $3 billion
in unencumbered hard assets to use to raise additional liquidity if needed.
With its amended credit card processing agreement, United realizes a
return of more than $350 million of restricted cash back to the company
compared to its prior reserve requirement.
About United
United Airlines (NASDAQ: UAUA) operates more than 3,200* flights a day on
United and United Express to more than 200 U.S. domestic and international
destinations from its hubs in Los Angeles, San Francisco, Denver, Chicago and
Washington, D.C. With key global air rights in the Asia-Pacific region, Europe
and Latin America, United is one of the largest international carriers based
in the United States. United also is a founding member of Star Alliance, which
provides connections for our customers to 975 destinations in 162 countries
worldwide. United's 55,000 employees reside in every U.S. state and in many
countries around the world. News releases and other information about United
can be found at the company's Web site at united.com.
*Based on the flight schedule between Jan. 1, 2008 and Dec. 31, 2008.
SOURCE UAL Corporation
