CEO DATELINE - Airlines for America board chair steps down amid federal investigation
CEO DATELINE - Airlines for America board chair steps down amid federal investigation
- September 9, 2015 |
- Walt Williams
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The chairman of Airlines for America's board of directors has stepped down after he was replaced as head of a major airline amid allegations of political bribery.
A4A announced Tuesday that airline executive Jeffery Smisek is no longer board chairman. Smisek was CEO of United Continental Holdings, but he and two other United executives stepped down as a result of a federal probe and an internal company investigation into bribery allegations, according to the Associated Press.
At issue was United's decision to offer a direct flight between Newark, N.J., and Columbia, S.C., where the chairman of the Port Authority of New York and New Jersey had a summer home. United may have used the flight to curry favor in negotiations with the Port Authority about projects at Newark Liberty International Airport. Once the chairman stepped down, the flight was terminated a few days later.
No one has been charged with criminal wrongdoing, AP reported. However, federal investigators are looking into the manner, and United conducted its own internal investigation, whose findings have not been made public.
American Airlines CEO Doug Parker will replace Smisek as A4A's chairman. United's new CEO, Oscar Munoz, will join the board.
In a statement, A4A CEO Nicholas Calio thanked Smisek "for his years of service to the industry and its trade association and appreciate his insight and leadership as chairman of the A4A board." http://bit.ly/1EOBjOO
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