CSX COO Named The New President And CEO Of The Airline

United Continental Holdings on Tuesday announced the sudden departure of three top executives, including CEO Jeff Smisek. Smisek stepped down as the federal government continues to investigate the relationship between the carrier and the Port Authority of New York and New Jersey.

Along with Smisek (pictured), Nene Foxhall, United’s executive vice president of communications and government affairs, and Mark Anderson, a senior vice president with government-affairs responsibility, also stepped down.

In a statement, United said that the departures "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 investigations are ongoing and the company continues to cooperate with the government."

The Wall Street Journal reports that the federal government is looking into whether David Sampson, a former PANYNJ chairman, used his position to demand special treatment or personal gain from United. While Samson was chair of the Port Authority, United looked to renegotiate its lease at Newark Airport, which is under the control of PANYNJ and where it has a major hub. Prosecutors have subpoenaed records dating back to Samson's early days in his position at the port authority, including meeting records and correspondence.

While the negotiations were going on, United launched a weekly direct flight to Columbia, SC, where Samson has vacation home. Prosecutors want to know if Samson asked United to add that flight to its schedule. The route was cancelled after Samson left the Port Authority last year.

Smisek joined United in 1995 as general counsel. Along with the airline's thanks, Smisek will receive a severance package that includes a lump-sum payment of over $4.8 million cash, according to a regulatory filing. He also steps down as Chairman of the Board.

United introduced its new CEO in a news release. Oscar Munoz (pictured) is leaving his position as COO at CSX to become the new president and chief executive officer at the airline. Munoz, who was already on United's board, will continue in that capacity. The board appointed Henry L. Meyer III, United’s lead independent director, to serve as non-executive chairman of the board of directors.

Munoz brings to this role deep and broad experience in the transportation industry and large consumer brands including AT&T, Pepsico and The Coca-Cola Company.

Henry Meyer, non-executive chairman of the board of directors of United Continental Holdings, Inc. said, “Oscar’s track record demonstrates that he has the right blend of strategic vision and strong leadership to continue United’s upward trajectory. United is well positioned to continue executing on its strategic plan to further improve performance and the value and service it provides to its customers. I’m honored to have been elected non-executive chairman by my fellow directors. The board thanks Jeff for his service to both United Airlines and Continental Airlines.”

“It is truly a privilege to serve as United’s CEO. United has an incredible opportunity for improving an experience that is essential to the vitality of global business and to the personal lives of millions of people, for innovation, and for earnings growth,” said Oscar Munoz, president and CEO of United. “In my years serving on the board, I have been impressed by the dedication and skill of my new coworkers. Together, we will make United the top-performing airline.”

Munoz also served as a director at CSX. During Munoz’s tenure, CSX transformed itself into an industry leader in customer focus, reliability and financial performance. CSX was named one of Institutional Investor’s Most Honored Companies for a decade of excellent financial performance, including increasing its operating income by nearly 600%. Prior to joining CSX, Munoz served in various senior financial and strategic capacities at some of the world’s most recognized consumer brands, including AT&T, The Coca-Cola Company and Pepsico.

He has served on the board of directors for United Continental Holdings, Inc. since 2010 and served on the board of directors of Continental Airlines, Inc. since 2004. Munoz is active in several industry coalitions and philanthropic and educational organizations including the University of North Florida’s board of trustees and the PAFA advisory board of Vanderbilt University.

Munoz graduated from the University of Southern California with a bachelor’s degree in business administration, and he received a master’s in business administration from Pepperdine University. Munoz has been named one of the “100 Most Influential Hispanics” by Hispanic Business magazine.

(Images from file)

FMI: www.united.com