UAL Names Glenn Tilton as Chairman, CEO=20 Monday September 2, 3:44 PM EDT=20 By Kathy Fieweger CHICAGO (Reuters) - Airline industry outsider Glenn Tilton, ChevronTexaco Corp.'s (CVX <http://money.excite.com/jsp/qt/full.jsp?time=3D0&symbol_search_text=3DCV= X> ) vice chairman, on Monday was named chairman and chief executive of UAL Corp. (UAL <http://money.excite.com/jsp/qt/full.jsp?time=3D0&symbol_search_text=3DUA= L> ), the parent of struggling United Airlines, sources familiar with situation said. The sources added that United President Rono Dutt and Chief Operating Officer Andy Studdert were both resigning. United was not immediately available to comment. The airline's machinists and pilots, who both have seats on the UAL board, both initially applauded the appointment. That is an encouraging sign for the No. 2 U.S. airline, which is trying to win government loan guarantees and avoid an autumn bankruptcy. "Glenn Tilton brings the type of qualifications and leadership that United needs and the support on the board was unanimous," said Paul Whiteford, head of Air Line Pilots Association master executive council and a board member. =20 <http://ae.excite.com/adclick/CID=3D000053817d9372bc00000000/acc_random=3D= 63 41025858/site=3Dexcite.reuters/area=3Dmoney.news/aamsz=3D336x280> =09 "He also brings the business experience and acumen that we need to turn the company around." Tom Buffenbarger, president of the International Association of Machinists, said: "I got the word that our guys are behind this guy." Tilton, who has no experience in aviation, will have to contend with declining revenues and labor strife at United, which demanded $9 billion in cost cuts from its unions over six years. United aims to cut annual costs by $2.5 billion to avoid a bankruptcy filing, the company had said. The lack of permanent leadership at United has hampered the airline's ability to work cost-cutting deals with labor, in turn jeopardizing aid it says is needed from the government.=20 A SERIOUS SEARCH Since May, the airline has been seeking a replacement for Jack Creighton, a former timber executive who announced his intention to step down from his interim post as CEO at the carrier, which is 55 percent-owned by employees. Many candidates were rumored for the job, but several were known either to have rejected it or been vetoed by unions. The cost-cutting plans would raise the likelihood of United receiving a $1.8 billion federal loan guarantee under a program to aid the airline industry after the Sept. 11 attacks. ALPA, representing United's 8,800 pilots, and United's flight attendants union said they were dissatisfied with the cost-cutting proposals offered. The IAM said it wouldn't even discuss them until a new CEO was on board. United imposed a Sept. 15 deadline to arrange cost-cutting deals. The company plans to refile a loan application with the U.S. Air Transportation Stabilization Board for the federal loan guarantee the next day.=20 TILTON BUILDS CAREER AT TEXACO Tilton was named chairman and chief executive of Texaco Inc. after Peter Bijur opted to resign in February 2001 following the deal for Chevron to buy Texaco. Following his appointment as president, Texaco U.S.A., he was elected senior vice president in 1995 and president of the Texaco's global business unit in 1997. Tilton's career at Texaco started in 1970 as a sales trainee following his graduation from University of South Carolina with a bachelor of arts in international relations. Dynegy board members tapped Tilton to replace Chairman and Chief Executive Chuck Watson in May 2002 as chairman. Watson resigned in the midst of an energy trading scandal. The board viewed him as the most experienced for the job. Tilton resisted at first, since it would appear that ChevronTexaco, through its 26.5 percent stake in Dynegy, was exerting too much influence. ChevronTexaco has a $1.5 billion option to raise its Dynegy stake to 36 percent. Tilton is a director of Lincoln National Corp., Dynegy Inc. and the American Petroleum Institute. --Additional reporting by Bill Borden in New York=20 =A92002 Reuters Limited.=20