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UAL's Smisek quits amid probe into high favours to ex-PANYNJ boss
UNITED Airlines chief Jeff Smisek and two other top officials have resigned from the airline in the midst of a federal corruption investigation, reports Atlanta area Air Cargo World.
Mr Smisek will receive separation pay of $4.9 million, payable in a lump sum. He agreed to cooperate fully with United "in the defence, prosecution or conduct" of any investigations into the time he led the airline.
Oscar Munoz, a board member, has been named president and CEO, while retaining his seat on the board. Mr Munoz is the former CEO of the CSX railway.
At issue is the money-losing flight from Newark, NJ, to Columbia, SC, and how it came to be and whether it was for the benefit Port Authority of New York and New Jersey chairman David Samson, who owned a vacation home near Columbia.
The route became known as the "chairman's flight," becoming a bargaining tool between United and the Newark Liberty International Airport. The route was cancelled after Mr Samson resigned in early 2014, after news broke of a federal probe into the potential conflict of interest.
CNBC reported "shortly after the agency approved a new United hangar at Newark, as well as financial incentives for its construction, the airline moved forward with plans to resume service from Newark to Columbia."
The advocacy group Business Travel Coalition said that United also reportedly sought rail service to lower Manhattan and airport rent reduction as part of the port authority's US$8 billion capital improvement plan.
The other two employees that stepped down are Nene Foxhall, executive vice president for communications and government affairs, and Mark Anderson, senior vice-president for corporate and government affairs.
Mr Smisek will receive separation pay of $4.9 million, payable in a lump sum. He agreed to cooperate fully with United "in the defence, prosecution or conduct" of any investigations into the time he led the airline.
Oscar Munoz, a board member, has been named president and CEO, while retaining his seat on the board. Mr Munoz is the former CEO of the CSX railway.
At issue is the money-losing flight from Newark, NJ, to Columbia, SC, and how it came to be and whether it was for the benefit Port Authority of New York and New Jersey chairman David Samson, who owned a vacation home near Columbia.
The route became known as the "chairman's flight," becoming a bargaining tool between United and the Newark Liberty International Airport. The route was cancelled after Mr Samson resigned in early 2014, after news broke of a federal probe into the potential conflict of interest.
CNBC reported "shortly after the agency approved a new United hangar at Newark, as well as financial incentives for its construction, the airline moved forward with plans to resume service from Newark to Columbia."
The advocacy group Business Travel Coalition said that United also reportedly sought rail service to lower Manhattan and airport rent reduction as part of the port authority's US$8 billion capital improvement plan.
The other two employees that stepped down are Nene Foxhall, executive vice president for communications and government affairs, and Mark Anderson, senior vice-president for corporate and government affairs.
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