United selects oil industry exec Glenn Tilton as CEO

<br>CHICAGO (AP) _ United Airlines named veteran oil executive Glenn Tilton as its new chairman and CEO on Monday, reaching outside the airline industry in its effort to keep the ailing carrier out of

Monday, September 2nd 2002, 12:00 am

By: News On 6

CHICAGO (AP) _ United Airlines named veteran oil executive Glenn Tilton as its new chairman and CEO on Monday, reaching outside the airline industry in its effort to keep the ailing carrier out of bankruptcy.

Tilton, 54, vice chairman of ChevronTexaco Corp. and acting chairman of energy marketer Dynegy Inc., was selected by unanimous vote of the board of United parent UAL Corp. during a special Labor Day conference call, the company said.

He replaces interim CEO Jack Creighton, who turned 70 Sunday and had signaled his wish last May to retire.

The airline also announced that president Rono Dutta and chief operating officer Andy Studdert, under fire from the company's unions for more than a year, are stepping down.

The company said their responsibilities will be assumed by other executives but did not elaborate.

Tilton last year was named chairman and chief executive officer of Texaco Inc., the nation's second-largest oil company, shortly before it was formally acquired by Chevron Corp. He was named to Dynegy's board in January and became interim CEO in May. San Francisco-based ChevronTexaco holds a 26.5 percent stake in Dynegy.

His previous posts included president of Texaco USA, president of Texaco Refining and Marketing and head of Texaco's Global Businesses unit.

The other finalist for the United job _ John Walker, a UAL director and CEO of Weirton Steel Corp. _ also has no experience running an airline. But United has had no luck attracting an industry veteran since it began its four-month search.

Creighton has earned the respect of United's unions, but he turned 70 Sunday and had said he wanted to return to retirement. A UAL board member, he took the post last October when James Goodwin resigned under pressure.

UAL has posted losses of nearly $3 billion in the past 18 months and has threatened to file for Chapter 11 bankruptcy protection this fall if it can't cut costs dramatically and win a government loan guarantee.

Creighton, who had vowed not to preside over a bankruptcy filing, set a Sept. 16 deadline for unions to agree on $2.5 billion in annual cost cuts for the next six years, including $1.5 billion from the unions themselves.

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.

``He gave the board the impression that he wants to try to lead us out without some sort of a court-imposed settlement, and that's good news,'' spokesman Herb Hunter said.

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.

``The guy comes from a company that's made money and has been successful, and he will try to impose that same attitude at United,'' said Neidl, of Blaylock & Co.