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What United Resignations Say About The Airline And The Industry
Munoz knows the airline from his combined 11 years as a director first of Continental Airlines and then at United Continental Holdings Inc.
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If stricter legislative review were in place – a component of Democratic legislation under consideration – Samson’s alleged behavior might have been prevented, according to state Sen. What’s more, he said, a money-losing flight often costs consumers.
United announced: “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”.
On Tuesday, the CEO of United Airlines was ousted in the midst of a federal probe into the creation of a special twice-weekly flight from Newark to Columbia that allowed a key figure in Christie’s inner circle to shave hours from his weekly trek to an Aiken vacation home.
Christie acknowledged, though, that former Port Authority chairman David Samson – an ally whom Christie appointed to the bi-state agency, and whose travel on United Airlines has been a subject of federal investigation – was not just one of thousands.
United Airlines said in a press release that it is conducting its own internal investigation of the matter, and that the company is continuing to cooperate with the government on the ongoing federal investigation.
Yesterday, Jeff Smisek resigned from his position as CEO of United Airlines because he basically kept alive an unprofitable airline route, from Newark to South Carolina, in hopes that a top Port Authority executive-and Chris Christie appointee-would give him a break on the rent at Newark Airport.
Both Samson and Christie, who is running for president, deny any wrongdoing. On Wednesday he said he fired staffers who failed to meet his standards.
We expect investor focus to remain on the performance of the carrier under its new CEO, going forward. As Record Staff Writer Shawn Boburg reported extensively past year, while Samson led the agency, the Port Authority took actions that benefited clients of his powerful law firm, Wolff and Samson, a firm that Samson subsequently also has left and which has now been reorganized and renamed.
But Smisek has struggled to keep the confidence not only of fliers, but also of the carrier’s front-line workers. “That’s why we need to enact meaningful Port Authority reform legislation”. New York passed a bill with support from New York Gov. Andrew Cuomo and Christie after the governors vetoed unanimously passed legislation in December. He is largely credited for changes that made CSX an industry leader in safety and steadily improving financial performance, people familiar with his tenure said.
Allegedly, they did so for no reason other than to create massive traffic jams which would politically inconvenience the mayor of Fort Lee, the New Jersey town through which the bridge’s approach roads run.
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“This happens all the time: Airline officials use their routes to influence decision-makers”, said Kevin Mitchell, founder of the Business Travel Coalition, an advocate for business travelers. The challenge is predicted to value $1.5 billion and the Port Authority continues to be learning it. First was a brand new upkeep hangar for its jets.