UAL Names New President

United Airlines' parent company named a 32-year veteran of the carrier as its new president Tuesday in a move that analysts predicted was a temporary measure while UAL Corp. searches for a new chief executive.

James E. Goodwin, the company's senior vice president for North American operations since 1995, becomes president and chief operating officer at the nation's largest airline immediately.

Goodwin, 54, replaces John Edwardson, who announced his resignation late Friday after leaders of United's machinists, pilots and flight attendants unions expressed dissatisfaction with his style of leadership. They said they were working to have an outsider named the eventual successor to Gerald Greenwald, UAL's chairman and chief executive.

Union opposition to a successor would not necessarily block the appointment, but the Machinists union and the Air Line Pilots Association own a majority of the stock in UAL Corp. and have board seats. Their opinions were key to Edwardson's fate.

Pilots, mechanics and flight attendants have experienced relative labor peace under Greenwald's tenure, which came when the two larger unions bought a piece of the airline in 1994 in exchange for employee concessions. But Greenwald, 62, a former Chrysler Corp. executive, came aboard with a five-year contract and is expected to retire in July 1999.

Workers were concerned that Edwardson would be more inclined to cut wages and benefits than Greenwald, and they had been pressing company executives to create a search committee to find an outside successor.

Analysts said Tuesday the sudden turmoil at United does not bode well for its prospects.

"What this says is that anybody who leads United is going to be expected by the unions to be soft on labor costs, which account for about 35 percent of an airline's revenue," said James Higgins at Donaldson, Lufkin & Jenrette.

Higgins noted the Elk Grove Village, Ill.-based carrier faces huge costs in coming years as it either unwinds its employee majority ownership plan or renegotiates a new one a reason the airline's stock has lagged despite solid performance.

It was not immediately clear whether Goodwin, who has experience in operations, marketing, finance and international work, would become a candidate for chief executive.

Analysts said Goodwin was relatively unfamiliar to Wall Street and had not been groomed as heir apparent, making him an unlikely choice for chief executive.

United spokesman Joe Hopkins said the succession issue is a matter for the board. He declined comment on whether the company was talking to outside candidates.

Chris Bowers, the company's senior vice president for international operations, replaces Goodwin as head of North American operations.

Written By Cliff Edwards