Smisek leaving UA

[WorldTraveler]

breaking news but clearly a potential major turning point for UA.

also,

United's EVP of communications and government affairs and its SVP of corporate and government affairs have also stepped down. The departures are tied to a "federal investigation associated with the Port Authority of New York and New Jersey."

http://seekingalpha.com/news/2766786-united-airlines-ceo-smisek-resigns-csx-exec-named-successor?uprof=45#email_link

 

[eolesen]

Well, there's some drama for a Tuesday....

 

[WorldTraveler]

It will take more than a day for this to pass

while the general theme of the PANYNJ corruption charges is known, further details are here.

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

 

[Albert]

It will take more than a day for this to pass

while the general theme of the PANYNJ corruption charges is known, further details are here.

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

Isnt it the same as DL agreeing to help the NY PA with rebuilding LGA  and the PA lifting perimeter rules?  I guess Smisek is looking pretty ugly himself 

 

[WorldTraveler]

If DL accepted bribes, yes.

but there is absolutely no evidence that took place.

If UA really did add a route in order to get EWR projects pushed thru, there are potentially serious implications for UA and EWR.

and it also doesn't seem so far-fetched for DL to be asking for documents from UA in the DAL case.

 

[eolesen]

I think this may be a good thing in that it might break up some of the logjam in labor negotiations. Smisek wasn't exactly loved by the unions. ALPA has already released a statement.

It also helps that there may not be as much of an identity of Munoz having been pmCO or pmUA.

 

[ThirdSeatHero]

I think this may be a good thing in that it might break up some of the logjam in labor negotiations. Smisek wasn't exactly loved by the unions. ALPA has already released a statement.

It also helps that there may not be as much of an identity of Munoz having been pmCO or pmUA.

 
Indeed.
 
When the news broke on the floor the reaction could best be described as relief.
 
We'll see what happens.

 

[WorldTraveler]

There is a lot of potential good that could come from an "executive reset" and if the board managed to isolate the potential legal problems to 3 executives, then the rest of the company can move forward which needs to happen.

 

[swamt]

I think this may be a good thing in that it might break up some of the logjam in labor negotiations. Smisek wasn't exactly loved by the unions. ALPA has already released a statement.

It also helps that there may not be as much of an identity of Munoz having been pmCO or pmUA.

I think you are correct sir.  I have heard rumors of the mechanics group getting close, now maybe after a little delay, they will come to terms.  The CEO of UAL needed to do a long time ago.  Wow. What an extreme quick departure, speaks volumes. Pretty sure we will see more charges in the soon future...

 

[eolesen]

No, I doubt there will be any more charges, at least not within UA. Maybe Samson or Fox, but even that's questionable at this point.

It's hard to argue that the people at the dinner weren't aware that what was suggested and implied crossed the ethics line. I've taken the mandatory business ethics training at every employer I've worked for, and it's pretty clear that you steer clear of granting "waivers & favors" for government officials or accepting/offering gifts of more than a nominal value from/to vendors/suppliers.

Beyond that, it's a lot muddier to prove. If you don't know *why* a route was being added, how can you be guilty of an ethics violation? There's no shortage of route additions in the history of airlines that failed a sniff test for basic economics, and were added for "strategic value" and no other reason.

 

[700UW]

http://www.goiam.org/index.php/news/press-releases/14978-machinists-union-welcomes-changes-at-united-airlines

 

[WorldTraveler]

Beyond that, it's a lot muddier to prove. If you don't know *why* a route was being added, how can you be guilty of an ethics violation? There's no shortage of route additions in the history of airlines that failed a sniff test for basic economics, and were added for "strategic value" and no other reason.

When the route was dropped, re-added under pressure, and then dropped as soon as the PAPNYNJ official left, it is pretty hard to argue that it was just coincidence.
and remember that these resignations culminated from UA's own internal investigation

and the prosecutors handling the case have a whole lot more evidence than we do or what was provided in a basic ethics class.

The sad part in a way is that UA execs are the ones so far that are paying the price. The hope can really be that by being forced to resign, they become witnesses to the federal prosecutors that will clean house at the PANYNJ.

and the terms of the 3 UA execs' separation from UA says they will be paid for working on the case for UA.

It is not clear how much corruption took place or where UA business interests in the case end and the PANYNJ's overall criminality begins but UA has far more to gain as a company by working with a clean Port Auth.

for a whole lot of reasons, however, UA benefits from a chance to hit the reset button and there is a good chance that Muñoz knew for some time that he needed to start planning a strategy to capitalize on the opportunity.

No one wins in events like this and hoping that the logjam will break for UA in many respects.

 

[swamt]

No, I doubt there will be any more charges, at least not within UA. Maybe Samson or Fox, but even that's questionable at this point.

It's hard to argue that the people at the dinner weren't aware that what was suggested and implied crossed the ethics line. I've taken the mandatory business ethics training at every employer I've worked for, and it's pretty clear that you steer clear of granting "waivers & favors" for government officials or accepting/offering gifts of more than a nominal value from/to vendors/suppliers.

Beyond that, it's a lot muddier to prove. If you don't know *why* a route was being added, how can you be guilty of an ethics violation? There's no shortage of route additions in the history of airlines that failed a sniff test for basic economics, and were added for "strategic value" and no other reason.

Sorry bout that.  Not in UAL but possibly involving that bridge closure, correct..
 

http://www.goiam.org/index.php/news/press-releases/14978-machinists-union-welcomes-changes-at-united-airlines

Looks like the IAM has already had personal nego's experience with this in coming CEO.  Also glad to hear that this CEO is all for progressive labor relations.  

 

[T5towbar]

Isnt it the same as DL agreeing to help the NY PA with rebuilding LGA  and the PA lifting perimeter rules?  I guess Smisek is looking pretty ugly himself 

Although the Bi-State agency is corrupt on both sides, all of this is just on the Jersey side, because of "Bridgegate" and Governor Christie.
I'm just wondering about the EWR-SBN flight (although it was introduced last winter) for a certain family member.......hmmmm.....!
At least Cuomo and DL are working together for the good on the NY side.
 
 

No, I doubt there will be any more charges, at least not within UA. Maybe Samson or Fox, but even that's questionable at this point.

It's hard to argue that the people at the dinner weren't aware that what was suggested and implied crossed the ethics line. I've taken the mandatory business ethics training at every employer I've worked for, and it's pretty clear that you steer clear of granting "waivers & favors" for government officials or accepting/offering gifts of more than a nominal value from/to vendors/suppliers.

Beyond that, it's a lot muddier to prove. If you don't know *why* a route was being added, how can you be guilty of an ethics violation? There's no shortage of route additions in the history of airlines that failed a sniff test for basic economics, and were added for "strategic value" and no other reason.

No. Jeff and the other two will probably have to make statements or perhaps testify against Samson. All of this is to put pressure on Samson to rat out Christie.
Samson will take the weight and fall on the sword to protect Christie, our no-show bully.  Kelly and Wildenstien protected Christie (they were directly responsible for the bridge lane closures).......Samson will do the same. End of story.
 
Bottom line is the PA is corrupt. Politicians ask for and get favors every day. As long as there is unlimited money in politics, there will be corruption. 

 

[Kev3188]

Looks like the IAM has already had personal nego's experience with this in coming CEO.  Also glad to hear that this CEO is all for progressive labor relations.

Everyone's nice on their first day...

Let's hope his optimistic words hold true.