United, Continental name execs for combined airline; United CFO and president to leave

Executives named for combined United, Continental

MINNEAPOLIS — United Airlines and Continental Airlines on Tuesday named the executives who will run what would be the world’s largest airline, on the same day that European antitrust authorities approved the combination.

The moves brought United and Continental a step closer to their goal of closing the deal by the end of this year. The main suspense now is whether the U.S. Justice Department will object on antitrust grounds. The airlines have said they expect approval and have been cooperating in the government’s review.

The plan all along has been for Continental CEO Jeff Smisek to run the combined airline, with United CEO Glenn Tilton as chairman. The question has been who their lieutenants would be.

The eight executives named on Tuesday include four from Continental and four from United. It’s hard not to conclude though that much of the power will come north from Houston with Smisek.

Continental’s chief financial officer, Zane Rowe, 39, would keep that job at the combined airline. Continental labor chief Mike Bonds, 48, will keep his role, too.

Meanwhile, United Chief Financial Officer Kathryn Mikells and President John Tague will both leave after the deal closes. Tilton brought in Tague in 2003 while United was restructuring under bankruptcy protection. Mikells has been with United since 1994, and was named chief financial officer in November 2008.

United’s new general counsel Tom Sabatino, 51, is staying in that job.

The chief operations officer will be Pete McDonald, 59, who started as a ramp worker in 1969. His title is chief administrative officer, and he oversees technology, labor, communications, lobbying, investor relations, and customer issues. He knows United’s operations well. Besides working on the ramp, he has overseen its operations in various executive roles and built the airline’s Denver hub.

The airlines have said the combined company will fly under the United name and will be based in United’s hometown of Chicago.

In approving the combination Tuesday, the European Commission said it will have only a small effect on the market share of the two airlines on lucrative North Atlantic routes. The European regulatory body said the combination will not give rise to any specific concerns because their passenger and cargo routes between Europe and North America largely overlap anyway.

U.S. regulatory approval for the merger is expected in August, EU officials said.

Tague and Mikells both sold shares of United parent UAL Corp. in recent days, according to a filing late Monday. Tague sold shares worth $1.2 million on Thursday. Mikells exercised options on Thursday and Friday and sold shares for net proceeds of almost $352,000 according to the company. Neither sale was part of a prearranged trading plan.

Other executives named Tuesday for the combined airline included:

— Jeff Foland, 39, who has been at United since 2005, will lead the combined airline’s frequent flier program;

— Nene Foxhall, 58, who has been at Continental since 1995, will oversee communications and lobbying;

— Jim Compton, 54, who has been with Continental since 1995, will be chief marketing officer.

— The chief information officer will be Keith Halbert, 50, who has been with United since 2008.

United also said that Graham Atkinson, who runs its frequent flier program, and chief lobbyist Rosemary Moore would leave when the deal closes.

Merging work forces at the two companies will be a major project that won’t be finished before the deal closes.

United said on a company website that because of the planned combination, it is offering its flight attendants terms similar to those at Continental. According to the company’s calculations, Continental flight attendants make more money per hour, which United is offering to match. However, United wants work-rule concessions, which it said flight attendants rejected during talks last week.

UAL shares fell 54 cents, or 2.2 percent, to close at $23.71, while Continental Airlines Inc. shares lost 44 cents to close at $25.21.

AP Transportation Writer Samantha Bomkamp in New York contributed to this report.

(This version CORRECTS Mikells share sale proceeds in 12th paragraph)