United Hires New CEO
Tilton Comes From Oil Business
POSTED: 3:39 p.m. MDT September 2, 2002
UPDATED: 3:44 p.m. MDT September 2, 2002
DENVER -- Thousands in Colorado now have a new boss.
United Airlines' Board of Directors held a special meeting on Monday to unanimously vote in a new chief executive officer, Glenn Tilton.
Tilton is a veteran oil industry executive who will replace interim CEO Jack Creighton.
Tilton was the vice chairman of ChevronTexaco and also acting chairman of the energy marketer Dynegy. Although he has never run an airline, United has had no luck attracting an
industry veteran since it began its four-month search.
United also said president Rono Dutta and chief operating officer Andy Studdert are stepping down. Both had been under fire from the company's unions for over a year.
Outgoing CEO Jack Creighton earned the respect of United's unions, but he
turned 70 Sunday and had said he wanted to return to retirement.
A spokesman for the airline's pilots union, which holds a seat
on the board, said the union was impressed with Tilton's background
and leadership.
Analyst Ray Neidl said that despite Tilton's lack of experience
in the industry, his selection demonstrates United's preference to
avoid bankruptcy rather than restructure under court protection.
In the past 18 months, United Airlines has posted a $3 billion loss and this fall, the carrier says it might file for chapter eleven bankruptcy protection.
United Airlines' Board of Directors held a special meeting on Monday to unanimously vote in a new chief executive officer, Glenn Tilton.
Tilton is a veteran oil industry executive who will replace interim CEO Jack Creighton.
Tilton was the vice chairman of ChevronTexaco and also acting chairman of the energy marketer Dynegy. Although he has never run an airline, United has had no luck attracting an
industry veteran since it began its four-month search.
United also said president Rono Dutta and chief operating officer Andy Studdert are stepping down. Both had been under fire from the company's unions for over a year.
Outgoing CEO Jack Creighton earned the respect of United's unions, but he
turned 70 Sunday and had said he wanted to return to retirement.
A spokesman for the airline's pilots union, which holds a seat
on the board, said the union was impressed with Tilton's background
and leadership.
Analyst Ray Neidl said that despite Tilton's lack of experience
in the industry, his selection demonstrates United's preference to
avoid bankruptcy rather than restructure under court protection.
In the past 18 months, United Airlines has posted a $3 billion loss and this fall, the carrier says it might file for chapter eleven bankruptcy protection.
Previous Stories:
- August 29, 2002: United Asks Machinists To Accept 10 Percent Paycut
- August 27, 2002: United Cost Cuts To Be Revealed This Week
- March 7, 2002: United Airlines Mechanics Ratify Contract
- February 13, 2002: United Mechanics Reject Contract Offer
- February 6, 2002: DIA In Trouble? Banks Refuse To Back Bonds
- December 18, 2001: DIA Employees Asked To Fess Up To Felonies
- December 13, 2001: United Machinists To Take Strike Vote
- December 5, 2001: 7NEWS Investigates: Felons Working For United Airlines
- December 4, 2001: 7NEWS Investigates: FAA Changes Background Check Policy
- December 3, 2001: Coloradans React To New Security Warning
- December 3, 2001: 7NEWS Investigates: Felons Working For United, Follow-Up
- November 16, 2001: Flight 93 Hijacker Tape 'Chilling' To Friends, Family
- November 15, 2001: United Wants Stun Guns In Its Cockpits
- November 12, 2001: Denver United Flight Gets Military Escort
- October 28, 2001: United CEO Goodwin Resigns
- October 16, 2001: United Cuts More Flights
Copyright 2002 by TheDenverChannel.com. The Associated Press contributed to this report. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
