United Airlines CEO Jeff Smisek Resigns Amid Corruption Investigation
United Airlines CEO and chairman of board, Jeff Smisek, has quit amid a corruption investigation that has got to do with dealings with the agency that operates New York area airports.
Smisek, along with two other senior officials, resigned from their posts. Smisek had wanted millions of dollars to sponsor several projects that were advantageous for United, multiple sources said. The issue of whether Smisek authorized a flight to benefit the Port Authority of New York and New Jersey is currently under investigation.
United will provide full cooperation in the investigation, it said.
According to CNBC, Smisek will receive $4.9 million as part of separation payment.
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Meanwhile, railroad executive, Oscar Munoz, has been appointed as the chief executive and president, as reported by Yahoo News. Munoz issued a letter to the members of the staff wherein he spoke about how to improve customer service and provide better support.
United had started a flight route from Newark, New Jersey, to an airport near the home of Port Authority chairman, David Samson. The route was initiated during Samson’s time as chairman and aborted three days after he resigned last year. BBC reports that United Airlines was lobbying for improvements at the Newark airport, which is owned by Port Authority.
“We … don’t expect it to effect operations,” Brett Hart, executive vice president and general counsel at United, said.
United shares fell by 3 percent in after-hours trading.
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