United Airlines Chief Resigns Over Corruption
Investigation
By JAD MOUAWAD and KATE ZERNIKE
NYT

United Airlines said on Tuesday that its chief executive, Jeff Smisek, and two
other senior officials had stepped down after a federal corruption
investigation.

The airline is under investigation by the United States attorney in New Jersey
over whether it had improperly sought to influence senior officials at the Port
Authority of New York and New Jersey.

The company said it had named Oscar Munoz as president and chief
executive to replace Mr. Smisek, the company’s chief executive since it
merged with Continental Airlines in 2010. Mr. Munoz, a member of the United
board, previously served as president and chief operating officer of the rail
giant CSX.

  About New York: Call It Coincidence, or Corruption APRIL 28, 2015

“The departures announced today are in connection with the company’s
previously disclosed internal investigation related to the federal investigation
associated with the Port Authority of New York and New Jersey,” the
company said in a statement. “The investigations are ongoing and the
company continues to cooperate with the government.”

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United’s executive vice president for communications and government
affairs, Nene Foxhall, and the senior vice president for corporate and
government affairs, Mark R. Anderson, also resigned, the company said.

In February, federal prosecutors issued subpoenas focused on whether the
former chairman of the Port Authority, David Samson, had pushed United to
reinstate flights that he used to travel to and from his weekend home in
South Carolina.

Ms. Foxhall and Mr. Anderson were among the United officials whose
communications with the Port Authority had been subpoenaed.

The Port Authority runs several airports, including Newark Liberty
International Airport, one of United’s biggest hubs.

Mr. Samson was appointed by Gov. Chris Christie of New Jersey in 2010. He
stepped down in March 2014 when records showed that several senior aides
to Mr. Christie worked with Port Authority officials to close down lanes of the
George Washington Bridge under false pretenses to punish a mayor.

Several months ago, United asked the law firm Jenner & Block to conduct an
internal investigation into the airline’s dealings with Mr. Samson and the Port
Authority.

At the time, lawyers close to the case predicted that this would lead to the
resignation of Mr. Smisek and possibly other executives, in the hopes that
the airline itself could avoid prosecution.

Karen Kessler, a spokeswoman for Mr. Samson’s lawyers, said they had no
new information about the federal investigation, and she declined to say
what it might mean for Mr. Samson. “This is a United matter,” she said.
........
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