SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: October 19, 1999
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(Date of earliest event reported)
UAL CORPORATION
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(Exact name of registrant as specified in its charter)
Delaware 1-6033 36-2675207
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(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
1200 Algonquin Road, Elk Grove Township, Illinois 60007
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (847) 700-4000
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Not Applicable
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(Former name or former address, if changed since last report)
ITEM 5. OTHER EVENTS.
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UAL Corporation (the "Company") is filing herewith a press
release issued by the Company as Exhibit 99.1 which is
incorporated herein by reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
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Exhibit No. Description
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99.1 Press Release
SIGNATURES
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Pursuant to the requirements of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be
signed on its behalf by the undersigned hereunto duly authorized.
UAL CORPORATION
By: /s/ Francesca M. Maher
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Name: Francesca M. Maher
Title: Senior Vice President,
General Counsel & Secretary
Dated: October 19, 1999
Exhibit 99.1
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UAL CORPORATION ANNOUNCES STRATEGIC
INVESTMENT IN AIR CANADA
UAL and Deutsche Lufthansa AG to provide financial package of
up to Cdn$730 million for Air Canada
Air Canada, United Airlines and Lufthansa strengthen Star Alliance
agreements
CHICAGO, October 19, 1999 - UAL Corporation (NYSE: UAL) announced
today that it and Deutsche Lufthansa AG have agreed to provide a
financial package of up to Cdn$730 million for Air Canada and will
amend their alliance agreements to solidify Air Canada's place in Star
Alliance, a partnership of the world's leading airlines.
UAL's investment will be made through the purchase of Air Canada
non-voting convertible preferred shares, an aircraft sale and
leaseback agreement and a guaranteed credit facility.
"We're pleased to announce this agreement which supports Canada's
leading airline," said James E. Goodwin, Chairman and Chief Executive
Officer of UAL Corporation and United Airlines. "Air Canada is an
extremely important member of Star Alliance. This agreement will
ensure that the customers we mutually serve will continue to benefit
from the extensive travel network created by our alliance."
Under the agreement announced today, UAL and Lufthansa will:
- Through a joint venture, take up Air Canada's newly-issued
perpetual convertible preferred shares in the amount of Cdn$230
million. The joint venture will be held 60 per cent by Lufthansa and
40 per cent by UAL.
- Amend their code-share and other agreements with Air Canada by,
among other things, extending their term until the end of 2009.
-more-
-2-
In addition, UAL Corporation will:
- Purchase from, and lease back to, Air Canada three Airbus A330
aircraft, for which UAL will invest approximately Cdn$190 million.
- Commit to guarantee a Cdn$160 million credit facility for Air
Canada. Lufthansa also plans to make a credit facility available for
Air Canada.
UAL Corporation is the holding company whose primary subsidiary
is United Airlines. United is the world's largest airline, and the
largest majority-employee owned company in the United States. It
operates more than 2,400 daily flights on a route network that spans
the globe.
Star Alliance was established in May, 1997. It brings together
some of the world's leading airlines in a partnership designed to
provide customers with the benefits of global reach and seamless
travel. Current members are: Air Canada, Air New Zealand, All Nippon
Airways, Ansett Australia, Lufthansa, Scandinavian Airlines System -
SAS, Thai Airways International, United Airlines and Varig Brazilian
Airlines. Joining Star in future will be the Austrian Airlines
Aviation Group, Mexicana Airlines and Singapore Airlines.
