UAL Corporation and Subsidiaries - Page 28




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          affirmative conclusion that these payments were not travel                  
          expenses.  The pilots and flight attendants could use the per               
          diem payments as they pleased, just as they could use their base            
          salaries as they pleased.  The per diem payments were not                   
          contingent on the employees’ incurring or accounting for any                
          travel expenses.  Indeed, the per diem payments were in addition            
          to amounts United provided its employees for practically all                
          travel expenses except meals and incidentals.2                              
               Rather than provide its employees meals and incidentals,               
          United agreed, as part of a negotiated union contract, to pay               
          them small hourly wage enhancements for all hours they were on              
          duty or on flight assignment.  The union contract refers to the             
          wage enhancements as per diem payments.  The nomenclature does              
          not affect the reality, however, that the bargain struck was for            
          additional compensation, not for meals, incidentals, or other               
          travel expenses.                                                            
               The fact that the per diem payments were computed by                   
          reference to time spent on duty or aboard the aircraft does not             
          suggest that the per diem payments are travel expenses.  Rather,            
          it suggests the contrary.  Hours on duty or on board an aircraft            
          would appear to encompass substantially all the pilots’ and                 
          flight attendants’ hours on the job.  Moreover, from United’s               

               2 The record reveals that in addition to providing its                 
          pilots and flight attendants per diem payments, United also                 
          provided them–-either directly or through reimbursement--lodging,           
          ground transportation between airports and hotels, and uniform              
          laundering.                                                                 



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