CHICAGO å- September , 2002 å- UAL Corporation [NYSE: UAL], parent company of United Airlines, announced today that Glenn F. Tilton has been elected Chairman, President and Chief Executive Officer by unanimous vote of the Companyå‘s Board of Directors. He succeeds Chairman and CEO John W. Creighton, who is retiring. The appointment is effective immediately.
Mr. Tilton said, “I am proud to be joining the world-class team of men and women at United and look forward to working with them to restore this company to financial health and growth. Despite the significant challenges we face, United is a company with tremendous strengths on which we can build. In addition to outstanding people, it has a powerful global brand, the world’s best air routes and one of the youngest fleets. But in the days ahead, all of us with a stake in United must work together to reestablish a competitive company with a prosperous long-term future.”
Mr. Tilton continued, “Our highest priorities must be to restore employee trust and revive investor and customer confidence. That means working cooperatively with all of United’s stakeholders on a plan to address near-term financial issues and develop a much-needed, long-term strategy for the company’s renewed growth. We can only reach these goals through a genuine partnership with our employees and their unions. I have been impressed with the commitment to forging a mutually beneficial partnership expressed by our employees’ Board representatives. I believe that together we can develop a plan that puts us on a firm foundation and serves the best long-term interests of our employees, shareholders and customers.”
Mr. Tilton is the former Chairman and CEO of Texaco, Inc. who has served as Vice Chairman of ChevronTexaco Corp. since the two energy companies merged in October 2001. In May 2002, he was named to the additional role of interim Chairman of Dynegy Inc. to assist the energy merchant in restoring investor confidence and stabilizing the company’s financial position. He is resigning from the positions he holds at ChevronTexaco and Dynegy to focus exclusively on his duties at United.
On behalf of the UAL board, James J. O’Connor, a director who led the nationwide search for a new CEO, said, “Glenn is a forceful, positive executive who is exactly the right person to lead United at this critical time. He knows how to guide major global companies through difficult transitions with a sharp focus on financial responsibility. He is an extremely hard-working, hands-on executive who knows how to engage employees. He believes that a company is as good as the ambitions its stakeholders share, and he will push firmly but fairly to achieve the company’s goals. He has the reputation and credibility needed to lead United to recovery and a great future.”
Mr. Creighton, who served as a director of United since 1998 and assumed leadership of the Company in October 2001 on an interim basis, said, “In the aftermath of the terrible blow to our industry on 9/11, we were able to begin reducing costs and make important strides forward, working closely with employees and federal officials. I am proud to have had the opportunity to play a part in that effort and to lay a strong foundation on which Glenn and the United team will build our future.”
Mr. O’Connor added, “We are all grateful to Jack Creighton for his willingness and courage in taking on the tremendous challenge that faced United last fall and for his outstanding performance and contributions. I know that everyone at United joins with me in wishing him the best in all of his future endeavors.”
Paul Whiteford, the representative on UAL’s board of the Air Line Pilots Association (ALPA), which represents 9,000 United pilots who own substantial amounts of the Company’s stock through an Employee Stock Ownership Plan (ESOP), said, “I am very pleased that Glenn has agreed to lead United’s efforts to emerge from one of the most difficult periods in our history. Everything I’ve learned in getting to know him is positive: he is a proven, creative leader willing to work with all sides to build a consensus fairly and effectively. He has a strong reputation as a good listener and a person of integrity. We look forward to joining with him and his management team in a productive partnership to find reasonable and responsible solutions.”
Stephen R. Canale, the representative on UAL’s board of the International Association of Machinists and Aerospace Workers (IAM), which represents 37,000 United employees who own substantial amounts of the Company’s stock, said, “I have been impressed by Glenn as an outstanding leader, and I am delighted to welcome him to United. He brings to United a fresh outlook, a reputation as a no-nonsense executive and a wealth of experience at helping companies facing serious challenges. The members of the IAM have a tremendous stake in the future of United. We fully understand the seriousness of the tough challenges facing our company, and are ready to work closely with Glenn toward our common goal of restoring United to its place as the finest airline in America.”
Glenn F. Tilton was appointed Vice Chairman of the Board of Directors of ChevronTexaco in connection with the merger of Chevron Corporation and Texaco Inc. completed in October 2001. He assumed the additional position of interim Chairman of Dynegy Inc. in May 2002 to help lead that company’s effort to restore investor confidence. Previously, he served as Chairman of the Board and Chief Executive Officer of Texaco Inc., a position he assumed in February 2001.
Mr. Tilton, 54, joined Texaco Inc. in 1970 and served in various marketing, corporate planning and European downstream assignments of increasing responsibility. In 1989, while serving as President of U.S. Refining and Marketing, he was appointed Vice President of Texaco Inc. He became Chairman of Texaco Ltd. in 1991 and President of Texaco Europe in 1992. In January 1995, he was appointed President of Texaco USA and, later that year, a Senior Vice President of Texaco Inc. In January 1997, he became President of Texaco`s Global Business Unit.
Mr. Tilton serves on the Board of Directors of the American Petroleum Institute and Lincoln National Corp., and on the Board and the Executive Committee of the British American Chamber of Commerce.
The company also announced that Rono Dutta, President, and Andrew P. Studdert, Chief Operating Officer, are also stepping down from their positions to afford Mr. Tilton wider latitude to fill these key positions on the senior management team. Their responsibilities will be assumed, for the time being, by other executives of the company.
Speaking for the board, Mr. O’Connor said, “Rono Dutta and Andy Studdert have served United with dedication and ability. We are grateful to them for their many contributions over the years.”
United Airlines operates more than 1,900 flights a day on a route network that spans the globe. News releases and other information about United Airlines can be found at the company`s website at www.united.com.