Let's hope that a non-airline CEO will bring a breath of fresh air to UA and hopefully the entire North American Airline industry. He won't have that "This is the way we've always done it" mindset and I predict that the entire business model will be fair game for changes to get the carrier profitable again. Mark Roger & Amanda La France wrote: > 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