Embattled UAL Chief Replaces Former Northwest CEO
He's one of the most reviled airline CEOs in the
business... and as of Friday, he has a new job. UAL president,
chairman and CEO Glenn Tilton has been named chairman of the Board
of Directors of the Air Transport Association.
And sorry, United pilots... but Tilton will be keeping his day
job, as well.
Tilton succeeds former Northwest Airlines Chairman and CEO Doug
Steenland as board chairman at ATA, the lobbying group for many of
the nation's airlines.
Steenland was named to a two-year term in January
2008... three months before his carrier was swallowed
up whole by Delta, and he found himself out of work but for a token
spot on the merged airline's BoD.
"Glenn has proven time and again his strong leadership ability
during the most tumultuous of times," said ATA President and CEO
James C. May. "Under Glenn's chairmanship, ATA will work vigorously
with the new administration and Congress on a number of aviation
priorities, including air traffic modernization, energy policy and
the implementation of fair and practical environmental-protection
measures."
Tilton became UAL Corporation chairman, president and CEO in
September 2002. Prior to joining United, Tilton was vice chairman
of the board of directors of ChevronTexaco, as well as interim
chairman of Dynegy Inc. He previously served as chairman of the
board and chief executive officer of Texaco.
"I am pleased to serve as chairman of the ATA and, along with my
fellow directors, look forward to partnering with the new
administration and the Congress on initiatives that will further
both the performance of the industry and its economic contribution
to the US economy," Tilton said.
It's perhaps lucky for Tilton that undying gratitude and
appreciation from your workforce is not a prerequisite for a top
position at ATA.
The embattled CEO -- who reportedly earns some $10.3 million a
year as United's grand poobah -- has never been the most popular
guy among United's workforce. In recent years, United's pilots have
upped their criticism of Tilton, calling for him to resign as their
airline plummeted further down in customer service rankings, and
continued bleeding cash.
The airline lost $779 million in the third quarter of this
year -- just the latest in a string of very large
negative postings for United -- and recently announced the first
wave of some 7,000 layoffs.
United's misfortunes certainly aren't unique among airlines, and
it's probably unfair to lay all of United's many woes at
Tilton's feet... but its pilots say their carrier's problems
begin at the top.
"United's pilots believe that there is no justifiable reason for
the worst airline executive to be compensated the most," said the
United branch of the Air Line Pilots Association in September.Up to
that point, ALPA asserted, UAL had lost more money in the year than
nearly all other US competitors combined.
In the meantime, Tilton and his managers collected their full
paychecks... while United's employee ranks worked under pay cuts
negotiated during the carrier's stint in bankruptcy.
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