A new chief executive has taken the controls at United Airlines, the world's second largest commercial carrier, and pledged instantly to work to rescue the company which has been in the financial equivalent of a nosedive since the terrorist attacks of September.
At an emergency meeting late on Sunday in Chicago, the board of United voted to oust James Goodwin, who had been at the head of the airline for two and a half years, and replace him with John Creighton, a veteran of the paper industry and a board member himself.
The move was widely applauded, not least by the airline's unions many of which had been agitating for Mr Goodwin's resignation. Wall Street also reacted positively yesterday as investors pushed up shares in United Airlines by almost 10 per cent in early trading in New York.
Mr Goodwin sealed his own fate two weeks ago when he wrote a letter to the 100,000 employees of the airline warning that it would "perish" in the course of next year if steps were not taken to stop it bleeding cash.
The letter was leaked and triggered a near panic among investors. In just ten days after the leaking of the Goodwin letter, United saw its share value slump by 25 per cent. Since Mr Goodwin's appointment in March 1999, the airline's shares have lost 81 per cent of their value.
Mr Creighton was quick to repudiate the Goodwin message. "There's nothing wrong with United Airlines that can't be turned around by what is right with United Airlines," he insisted.
"We have great routes and outstanding cities, an enviable route network and a great group of employees."
United lost two of its aircraft on 11 September when they were hijacked by terrorists. One crashed into a field in Pennsylvania while the other destroyed the south tower at the World Trade Centre.
The other two jetliners involved in the hijackings both belonged to American Airlines.
The aviation industry generally has suffered a huge drop-off in business since the tragedy, which has compounded a downturn in traffic that had already occurred earlier in the year because of the slowing economy.
Wall Street expects United to lose more than $US2 billion in 2001. By current estimates, it is bleeding about $US25 million every day.
- INDEPENDENT
Story archives:
Links: Terror in America - the Sept 11 attacks
Timeline: Major events since the Sept 11 attacks
New chief executive aiming to save United Airlines
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