Home / Business / UPDATE 2-United Airlines CEO to lapse in early 2016 after heart attack

UPDATE 2-United Airlines CEO to lapse in early 2016 after heart attack


(Adds researcher comment, background)

By Jeffrey Dastin

Nov 5 (Reuters) – United Continental Holdings Inc
Chief Executive Oscar Munoz will lapse to work in a first
quarter of 2016, he pronounced Thursday, 3 weeks after pang a
heart attack.

The news ends doubt about who will run United, the
second-largest U.S. airline by capacity. The association earlier
appointed General Counsel Brett Hart as behaving CEO and pronounced its
board had been scheming for “all intensity outcomes” resulting
from Munoz’s hospitalization on Oct. 15.

“I am on a highway to recovery,” Munoz pronounced in a statement.
“My time divided will be a small longer than we would like, but
based on contention with my doctors we will be behind in the
first quarter.”

Shares were unvaried in after-market trade following the
news.

Munoz took over as CEO in Sep with aims to rebuild
morale after years of stretched labor relations. He spent his
first month on a pursuit criss-crossing a United States to hear
from employees and travelers how to urge a airline.

His prototype Jeff Smisek quiescent given of probes into
United’s attribute with a Port Authority of New York and
New Jersey, that focused on either a association combined flights
to Columbia, South Carolina to curry preference with then-Port
Authority Chairman David Samson, who had a home there.

Hart has betrothed to continue Munoz’s agenda. However, SP
Capital IQ cut a rating on a company’s batch to “Buy” from
“Strong Buy” given it believed Hart had singular knowledge in
finance, operations or patron service.

Under Hart, a association has put brazen a indeterminate understanding for
maintenance workers, paving a approach for a initial contract
covering technicians from both United and Continental given the
airlines joined in 2010.

Last week United pronounced it would not outsource some-more jobs in
baggage doing or patron use during slightest until 2017,
following a turn of airfield outsourcing this year.

“It’s really not too late” for Munoz to make change,
Sterne Agee CRT researcher Adam Hackel said.

Still, Munoz will face a horde of hurdles on his return.

Chicago-based United had a misfortune patron compensation of
any North American airline, with a difference of low-cost
carrier Frontier, according to J.D. Power’s 2015 ranking. That’s
in partial interjection to a aloft rate of late arrivals than peers.

Smisek’s group started addressing this by scheduling more
planes to fly behind and onward from hubs rather than circulating
through mixed cities, so that winter storms would not have a
ripple effect.

(Reporting by Jeffrey Dastin in New York; Editing by James
Dalgleish and Diane Craft)

Article source: http://in.reuters.com/article/2015/11/05/ual-ceo-idINL1N1303UW20151105

Scroll To Top