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Mon, Dec 08, 2008

Air Transport Association Names Tilton As Board Chairman

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.

FMI: www.airlines.org, www.united.com, www.glenntilton.com

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