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United Airlines CEO resigns amid federal probe

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By Keith Laing – 09/08/15 05:17 PM EDT

United Airlines CEO Jeff Smisek has resigned from his post due to a federal probe into allegations the company offered air service to win favor from a New Jersey state official, the company announced on Tuesday.

The Bergen County, N.J., newspaper reports that federal prosecutors have been investigating allegations that United offered flights from Newark to Columbia, S.C., to benefit the chairman of the Port of New York and New Jersey, which operates one of United’s biggest hubs, Newark Liberty International Airport.

United said Tuesday that Smisek and two other high-ranking officials have resigned effective immediately because of the investigation, which the company stressed it is cooperating with.

The company said a member of its board of directors, Oscar Munoz, is taking over effective immediately.

United said Tuesday Munoz would provide a steady hand at the helm of the company, despite the ongoing federal investigation.

“Oscar’s track record demonstrates that he has the right blend of strategic vision and strong leadership to continue United’s upward trajectory,” Board of Directors Chairman Henry Meyer said in a statement announcing the resignations of Smisek and United’s executive vice presidents of communications and government affairs.

“United is well positioned to continue executing on its strategic plan to further improve performance and the value and service it provides to its customers,” Meyer continued. “I’m honored to have been elected non-executive chairman by my fellow directors. The board thanks Jeff for his service to both United Airlines and Continental Airlines.”

Smisek has led United since its 2010 merger with Continental. Smisek previously ran Continental, which also operated a hub at Newark.

https://thehill.com/policy/transportation/252980-united-airlines-ceo-resigns-due-to-federal-probe

5 thoughts on “United Airlines CEO resigns amid federal probe

  1. I used to like Continental, when Gordon Bethune was in charge. He understood that customer satisfaction was as important as profit, and it showed. I used to gladly pay a little extra to fly Continental.

    United is a different animal, and it sucks. I now gladly pay a little more to avoid it.

    Invisible hand, bitches.

  2. Of course the Invisible Hand is somewhat shackled in this case when you consider the monopoly United has in North Jersey. Thankfully there is at least some regulation in place to facilitate a “free market” in the area. The irony isn’t lost on me, but it’s lost on most.

  3. they utterly mismanaged the merger. 5 years in, the employees hate United and customers hate United. Even in Business class customer service is a joke at United.

  4. United ruined what was good about ContinentL

  5. At one time UA was an excellent airline but now UA totally sucks and screwed their employees multiple times…Smisek will also get a couple of million in bye bye funds for his mismanagement… too bad Continental didn’t acquire UA when they had the chance a few years earlier…. Maybe Bethune can come back… yeah, wishful thinking….

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