DAVID FIELD / WASHINGTON DC
Ex-Chevron Texaco vice-chairman gives himself until mid-September to win union concessions or seek Chapter 11
New United Airlines chief executive Glenn Tilton took up his position at the troubled US carrier last week facing a self-imposed mid-September deadline to wrest $2.5 billion in annual concessions from its unions or seek Chapter 11 bankruptcy protection.
Tilton comes to the job with no experience of the airline industry and no reputation in the business. That may be his greatest chance for success at the carrier, which has lost about $3 billion in the last 18 months. Tilton joins United from energy giant Chevron Texaco, where he became vice-chairman after the October 2001 merger of Chevron and Texaco. Tilton, who joined Texaco in 1970, replaces United's acting chief executive, Jack Creighton. Appointed to the temporary post in October last year after the departure of Jim Goodwin, Creighton had planned to step down as soon as a replacement could be found.
Tilton proved to be the only candidate for the United job capable of winning the backing of the pilots' and machinists' unions. The Air Line Pilots Association and the International Association of Machinists have board seats at United and hold veto power over executive appointments.
Tilton made no reference to bankruptcy in his first address to employees. Some analysts suggest that Tilton's tenure may be brief. One analyst says: "He may have promised the unions not to file for bankruptcy, but it may not be up to him." Outsiders have had some success rescuing airlines, note observers, citing the tenures of former utility company executive Leo Mullin at Delta Air Lines and former hotel executive John Dasburg at Northwest Airlines. Former United chairman Jerry Greenwald came from the automobile industry. Each executive brought with him a clean slate and little baggage to strife-torn airlines.
Meanwhile, the unions have forced the resignation of United's president, Rono Dutta, and of long-standing chief operating officer Andy Studdert.
Source: Flight International
