THE CEO SLAYER
Sunnier skies may be ahead for United Airlines since Fishman's investigation of former CEO Jeff Smisek's business dealings ended in the executive's quick dispatch. United maintained the departure was the result of an internal probe.
Jeff Smisek’s five years in the captain’s seat at United Airlines came to an end last year, largely thanks to a federal investigation of his business dealings by the office of U.S. District Attorney Paul Fishman.
Among Fishman’s allegations is that United revived service between Newark and Columbia, S.C., to gain the favor of then-chairman of The Port Authority of New York & New Jersey, David Samson. When Smisek, who had been president and CEO of United since the United-Continental merger in 2010, announced his resignation in September, the carrier said the move related to its own internal investigation of the matter.
While losing a CEO under the cloud of a federal probe is never a reason to celebrate, Fishman’s investigation might mean sunnier skies for United in the long run. Smisek’s replacement, Oscar Munoz—formerly COO of rail transportation company CSX and a United board member—spurred cautious optimism in the analyst community that he would take United in the right direction, improving operations and labor relations. Although a heart attack soon sidelined Munoz, he’s expected to return to his position by the second quarter, following a successful heart transplant
this month.