United Airlines chairman resigns
Jim Goodwin, chairman and chief executive of United Airlines, resigned on Sunday, becoming the first senior executive casualty of the crisis in the US airline industry.
Two of the largest unions at UAL, which is 55 per cent owned by employee shareholders, called for Mr Goodwin’s resignation last week, after he sent a letter to employees warning that the airline could “perish” next year.
Labour relations had been soured by the 20,000 layoffs UAL announced after the September 11 attacks.
The UAL board replaced Mr Goodwin with Jack Creighton, 69, a non-executive director. Mr Creighton said: “Our immediate goal is to restore United’s financial stability. We intend to work hand-in-hand with our employees and unions.”
Unions welcomed the appointment. Captain Rick Dubinsky, chairman of UAL’s branch of the Airline Pilots Association said: “Effective leadership of the company can – and will – bring United’s employees together to weather the downturn.”
Mr Creighton said: “I did not take this job to preside over a bankruptcy. I refuse to accept UAL is collateral damage from the events of September 11.”
Mr Creighton said UAL intends to honour Mr Goodwin’s contract. His basic salary was $900,000, and he received a $225,000 bonus last year.
