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United CEO Jeff Smisek resigns amid federal probe - In connection with an investigation into United Airline's dealings, the chairman and CEO of the company has decided to step down.
United Continental Holdings Inc. said Tuesday that Jeff Smisek and two other senior executives had stepped down and railroad executive Oscar Munoz was named CEO and president.
Earlier this year, United disclosed that the company and some of its executives had got subpoenas from a federal grand jury for information about its dealings with the Port Authority of New York and New Jersey.
Former Port Authority chairman David Samson's activities were under question by the U.S. attorney's office in New Jersey, including Samson's votes on United Airlines projects at Newark Airport at the same time United was resuming flights from Newark to Columbia, South Carolina where Samson has a holiday house.
Smisek was CEO of Continental Airlines before it combined with United in 2010. He was under pressure for several years as United could not return to profitability at the same pace as Delta Air Lines and also suffered several embarrassing computer outages that resulted in large numbers of delays and canceled flights.
In a letter to employees, Munoz said that executive vice president Nene Foxhall and senior vice president Mark Anderson have also resigned.
Munoz said the company had an "incredible opportunity" to intensify the earnings and improve the flying experience.