The CEO of United Airlines and two other top executives have resigned amid internal and federal investigations into whether the former head of the New York/New Jersey Port Authority and the airline traded access to Newark Liberty International Airport in exchange for favors such as flights.
Federal prosecutors have been probing David Samson, an appointee of New Jersey Gov. Chris Christie, who resigned last year over fallout associated with the "Bridgegate" scandal that saw lanes of the George Washington Bridge closed at rush hour, allegedly as political payback.
Story Continued Below
According to WNYC, the allegations that caused Tuesday's shake-up at United appear centered around suggestions that Samson struck a deal to lower United's flight fees at Port Authority-owned Newark airport in exchange for campaign contributions, access to top New jersey politicians including Christie himself, and a special flight from Newark to Columbia, S.C., near where Samson's wife owns a home.
The latest wrinkle in the saga over investigations into possible corruption at the Port Authority, this time involving United, isn't likely to engender any sustained campaign for changes on Capitol Hill, but it could embolden critics of Christie and his presidential ambitions. It could also delay the closure of a pending slot swap with Delta Air Lines, though United executives sought to assuage those fears on a call with analysts Tuesday.
In addition to CEO Jeff Smisek, the company's executive vice president of communications and government affairs, Nene Foxhall, and its senior vice president of corporate and government affairs, Mark R. Anderson, have also resigned.
United confirmed the departures, effective immediately, saying they are in "connection with the company’s previously disclosed internal investigation related to the federal investigation associated with the Port Authority of New York & New Jersey,” United said. “The investigations are ongoing and the company continues to cooperate with the government.”
Smisek will be replaced by Oscar Munoz, chief operating officer of freight giant CSX.
On a call with analysts Tuesday evening, United executives sought to tamp down fears of financial fallout. Brett Hart, United's executive vice president and general counsel, said "to date, there's no indication that we have an issue, a financial issue, that is material to the company. That is based on information that we have available today and that's just all that we can say about the matter."
Dr. Politics: Trump gives GOP a wet willy
Hart also said United does not anticipate the investigation will have "any impact" on a pending slot swap with Delta. United wants to essentially divest itself of flights at JFK International Airport in favor of further consolidating its presence at Newark, pending approval from U.S. regulators.
Analysts on the call sought information on when the investigation might be resolved, as well, but Hart demurred. "You have to appreciate we have no control whatsoever over the timing of the federal investigation or the process. What we can tell you is that we’re cooperating fully and that we have disclosed all information that we’re able to disclose at this point in time."
