United Airlines CEO steps down after Port Authority probe

[brooklynite]

Source: CNN

United Continental's CEO and two other top executives are out following a company investigation related to an ongoing federal probe.

Jeff Smisek, the company's CEO and chairman, have stepped down, the company said Tuesday

"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.

...snip...

Smisek will walk away with a $4.8 million "separation payment," according to a public filing from the company.

Read more: http://money.cnn.com/2015/09/08/news/companies/united-airlines-ceo/index.html

[The Velveteen Ocelot]

1. This is pretty smelly. Remember David Samson?

Chris Christie's former henchman in the bridge closing scandal? United initiated a flight route while Samson was chairman of the Port Authority, which manages local airports. The route provided non-stop service between Newark and Columbia Metropolitan Airport in South Carolina, the airport closest to a home where Samson often spent weekends. United halted the non-stop route on April 1, 2014, three days after Samson resigned from the position. Samson referred to the twice-a-week route (a flight leaving Newark on Thursday evenings and another returning on Monday mornings) as “the chairman’s flight.” https://en.wikipedia.org/wiki/David_Samson_%28lawyer%29 The feds started investigating this in January, and it now appears that Samson and Smisek had some sort of deal. CEOs don't get sacked that suddenly unless there's some funny business.

[Human101948]

2. Now for Samson to make a plea deal...

This old fuck doesn't want to die in jail. C'mon Fishman get working!

[The Velveteen Ocelot]

3. Here's more:

http://www.bloomberg.com/news/articles/2015-04-28/the-dinner-proposal-that-led-united-into-corruption-probe

United Airlines Inc. was seeking hundreds of millions of dollars in public investment for the airport in Newark when its chief executive dined with New Jersey Governor Chris Christie’s top Port Authority official in September 2011.

Jeffery Smisek, United's chief executive officer, wanted funding for several projects, including an estimated $600 million extension of the PATH train from downtown Newark to the airport, as the airline worked through its merger with Continental Airlines.

Halfway through dinner at Novita, an Italian restaurant in Manhattan, Port Authority Chairman David Samson surprised the group with a request of his own. He complained that he and his wife had grown weary of the trip to their weekend home in Aiken, South Carolina, because the best flight out of Newark was to Charlotte, North Carolina, 150 miles away. Until 2009, Continental had run direct service from Newark to Columbia, South Carolina, 100 miles closer.

In a tone described by one observer as “playful, but not joking,” Samson asked: Could United revive that route? An awkward silence fell over the table.

Read the whole thing. It appears that Samson held up United's requests for improvements until it agreed to add the Columbia, SC flight (which was a money-loser). Two weeks afterwards the Port Authority agreed to start work on studying a rail route to EWR. Samson would seem to be a naughty, naughty boy.

[mountain grammy]

5. I read the whole thing.. thanks.

what a bunch of crooks.. robbing the taxpayers and airline employees. I'd love to see Samson die in prison, with the rest of his cronies.

[BlueEye]

4. Don't let the door hit you on the way out Jeff!

That guy ruined a good airline. Also, as others have mentioned, some of this connects back to the totally corrupt administration of Chris Christie. He should resign too!

[The Velveteen Ocelot]

6. On an airline pilot message board I follow,

the UAL pilots are beside themselves with glee.

[KeepItReal]

9. Yep he destroyed Continental Airlines.

That outfit was doing ok by its customers before that BS merger/acquisition with United.

[Laxman]

7. Badaboom.....

Badabing! Mr. Christie must be getting just a tad uncomfortable. I hear David Sampson warming up and my what a wonderful singing voice he has!

“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.”

[Frustratedlady]

8. Why do they always get those bonuses when they are in the wrong?

What a racket.

Will Christie be far behind, or what's happened in that case?

[Laxman]

10. An Article In Mother Jones......

seems to imply that Samson is cooperating with the Federal Authorities. I don't know where they would have gotten information like that from but here's hoping its true!

The CEO of United Airlines Just Resigned—Because of Bridgegate

The original investigation sought to answer whether the George Washington Bridge lane closures of September 2013, which caused massive traffic problems in the town of Fort Lee, N.J., were political payback for the Fort Lee mayor's refusal to endorse Christie for reelection. Since the start, the investigation has revolved around Christie's personal friend and top executive at the Port Authority, David Samson, who is cooperating with federal agents.

http://www.motherjones.com/mojo/2015/09/ceo-united-airlines-just-resigned-because-bridgegate