United Continental said on Wednesday it had added two new board members in a settlement with activist investors, averting a long fight over governance at the No.3 U.S. airline by traffic.
The move is aimed at placating a complaint by activists PAR Capital Management and Altimeter Capital Management that the company does not have enough directors with expertise in airlines. The hedge funds own a combined 7.1 percent of United.
Barney Harford, former chief executive of online travel services company Orbitz Worldwide, and Edward Shapiro, a partner at PAR, will join United's board immediately, the company said.
Another director, mutually agreed between United and the funds, would be appointed in the next six months.