NYTimes.com Article: UAL to Seek New Chief Executive

[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

 



This article from NYTimes.com
has been sent to you by psa188@juno.com.


/-------------------- advertisement -----------------------\


Enjoy new investment freedom!

Get the tools you need to successfully manage your portfolio
from Harrisdirect.  Start with award-winning research.  Then
add access to round-the-clock customer service from
Series-7 trained representatives.  Open an account today and
receive a $100 credit!

http://www.nytimes.com/ads/Harrisdirect.html

\----------------------------------------------------------/


UAL to Seek New Chief Executive

May 1, 2002

By EDWARD WONG




UAL, the parent company of United Airlines, said yesterday
that it was starting a search for a chief executive to
succeed Jack Creighton, who took the post temporarily last
October.

Mr. Creighton, 69, will remain until a replacement is
found, said Joe Hopkins, a company spokesman. Mr. Creighton
moved from UAL's board to the chief executive position
after James E. Goodwin was forced out. Mr. Goodwin had
angered unions at the airline, which is owned by employees.


"I was brought in for the short term to stabilize United
and improve the relationship between management and
employees," Mr. Creighton said yesterday in a statement.
"We have made important strides in each of these areas, and
I will continue to focus on those priorities as we search
for my replacement."

UAL said it had hired Russell Reynolds Associates to start
a search for a chief executive.

The decision was made at a board meeting yesterday in a
hotel near O'Hare International Airport in Chicago.

It was Mr. Creighton's choice to step down, Mr. Hopkins
said, "because he felt he had done what he wanted to do."
But the move comes as United is still struggling to survive
a huge downturn in the industry and is trying to win wage
concessions from its employees.

UAL reported a loss of $510 million in the first fiscal
quarter after losing $2.1 billion last year, an industry
record.

Last Thursday, Mr. Creighton met with leaders of four of
United's six unions to lay out the company's finances and
build a foundation for further talks about wage
concessions. But the meeting drew mixed reactions.

The flight attendants' union said it would not give ground
on pay, while the pilots' union said it would talk further
with Mr. Creighton as long as managers also looked at other
ways to bring the company to profitability.

That same day, United reached a contract agreement with a
branch of its machinists' union that represents more than
23,000 ground workers. It was United's only outstanding
contract, and the settlement provides top industry pay for
the workers. Union members will vote in the next couple of
weeks on whether to ratify the contract.

Under Mr. Creighton, United also reached a contract
agreement in February with 13,000 mechanics and
cleaning-crew workers.

"Reaching these two agreements was a lot more than what we
obtained under Jim Goodwin's leadership," said Joe Tiberi,
a spokesman for the International Association of Machinists
and Aerospace Workers. He added that the next chief
executive should be "someone who's willing to work with the
employees at United Airlines to turn the airline around."

Separately, Joseph Adams, the executive director of the Air
Transportation Stabilization Board, said yesterday that he
was stepping down. The board was created by the federal
government after the Sept. 11 attacks to dole out up to $10
billion in federal loan guarantees to the ailing airlines.
Daniel Montgomery, a managing director of the board, will
succeed him.

http://www.nytimes.com/2002/05/01/business/01AIR.html?ex=1021280303&ei=1&en=204409b50c29a55f



HOW TO ADVERTISE
---------------------------------
For information on advertising in e-mail newsletters
or other creative advertising opportunities with The
New York Times on the Web, please contact
onlinesales@nytimes.com or visit our online media
kit at http://www.nytimes.com/adinfo

For general information about NYTimes.com, write to
help@nytimes.com.

Copyright 2002 The New York Times Company

[Index of Archives]         [NTSB]     [NASA KSC]     [Yosemite]     [Steve's Art]     [Deep Creek Hot Springs]     [NTSB]     [STB]     [Share Photos]     [Yosemite Campsites]