United Airlines names new chief operating officer : US Business

CHICAGO (Reuters) - UAL Corp's United Airlines on Thursday named John Tague to the position of chief operating officer, a move one industry expert said may represent a management reshuffling ahead of a possible merger with US Airways Group .

Tague, formerly UAL's chief revenue officer, replaces Pete McDonald, who has been named chief administrative officer, the carrier said in a statement.

Prior to joining United five years ago, Tague was president and chief executive officer of ATA Holdings.

"He's an incredibly talented, exceptionally bright guy," said Stuart Klaskin at KKC Aviation Consulting. "One could say that by putting him out there in this position ... they are putting their best talent out there in the front."

UAL and US Airways are in advanced merger discussions, according to sources with knowledge of the matter. Neither carrier has confirmed the talks and it remains unclear which management team would take over a combined airline.

The airline industry may be in the early stages of a wave of consolidation as carriers grope for stability amid record high fuel prices. Last month, Delta Air Lines and Northwest Airlines unveiled a merger proposal that would create the world's largest airline.

Sources said a deal between UAL and US Airways could be announced soon.

(Reporting by Kyle Peterson and Mark McSherry, editing by Richard Chang)

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