What United Resignations Say About The Airline And The Industry
United Airlines has a hub at Newark Liberty global Airport, and wanted to renegotiate the lease agreements at the airport during Mr. Samson’s reign as the chairman of Port Authorities. Munoz acknowledged to analysts Tuesday that United must convince customers that it is committed to better customer service.
Dirk Jenter, an associate professor of finance at Stanford University, said no one should be surprised that a CEO of Smisek’s tenure – he was at the helm of United for five years – would leave the job with bulging pockets. It earned $1.7 billion in the first half of 2015, a almost 10-fold increase over the first half of 2014, helped by tumbling fuel costs.
American Airlines Group Inc.,AAL 0.51 % the biggest USA carrier, has bulked up in New York through its merger in late 2013 with US Airways. Under his term, the merged companies also suffered from computer outages, the most recent were last June and July. Continental, a longtime player there, was for years the top airline in the New York area. The chief financial officer quit to join PayPal, and now the CEO is out. The PATH, a train line owned and operated by the Port Authority, already runs from the World Trade Center to downtown Newark, New Jersey.
Munoz’s appointment was so sudden that no pay package had been worked out. “I know from my time on the board we’ve made significant progress, but there’s still a lot to be done”, he says.
He’ll receive perks including flight benefits, tax reimbursements on those benefits, and parking privileges for the remainder of his life, in addition to the title to his company vehicle, according to the statement. He gets to keep his company auto.
No one has been charged in the case, and a spokeswoman for Samson on Wednesday said only that Smisek’s resignation “is a United Airlines matter”.
United Continental CEO Jeff Smisek resigned during a storm of both internal and federal investigations. That juvenile scandal involved Christie aides who allegedly worked with Port Authority officials to close down lanes leading to the George Washington Bridge, creating an epic traffic jam, as punishment for a mayor who refused to support Christie. New Jersey State Attorney is now trying to find answers on whether the airline reinstated a money losing route to an airport near the weekend home of David Samson.
Two other senior United officials also are leaving.
Raymond James’ Savanthi Syth said Munoz would appeal to investors as he also brings an outside perspective and experience.
Oscar Munoz, a United Airlines board member, has been named the new president and CEO of the airline. United stated on the time that in response it was conducting its personal inner investigation. The other two employees that stepped down are Nene Foxhall, executive vice president for communications and government affairs, and Mark R. Anderson, senior vice-president for corporate and government affairs.
He will need to reach long-delayed contracts with flight attendants and mechanics, and soothe labor leaders angry over Smisek’s moves to buy back shares to appease shareholders instead of investing to improve service. Bourne said he had a “rocky start” with Smisek when he initially proposed outsourcing ground service operations at several airports including Newark.