It's United Vs. Activists

The two hedge fund investors, who have launched a boardroom battle with United Continental Holdings Inc (NYSE: UAL), have urged the airline to immediately appoint one of its two new board members as chairman, according to a filing with the SEC.

According to the filing, PAR Capital Management Inc and Altimeter Capital Management LP is seeking the appointment of either James Whitehurst, former chief operating officer of Delta Air Lines, Inc. (NYSE: DAL), or Robert Milton, former CEO of Air Canada as chairman before shareholders vote.

Related Link: Activists Push United...And United Pushes Back

"We encourage the Board to immediately appoint as Chairman one of these two new members – either James Whitehurst or Robert Milton. Both of these individuals are more qualified and more independent than either the current Chairman or the sitting CEO," the filing said.

Altimeter Capital and PAR Capital, which together own about 7.1 percent of United's outstanding common stock, wanted the airline to add six new directors including Gordon Bethune, former CEO of Continental, which merged with United in 2010.

Separately, a Forbes report said the 35 leaders of the master executive council of the United chapter of the Air Line Pilots Association voiced strong support for CEO Oscar Munoz and suggested that former Continental CEO Gordon Bethune shouldn't tarnish his legacy by trying to return to United.