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United Airlines escapes prosecution over ‘chairman’s flight’ scandal
Friday, 19 Jul, 2016
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United Airlines said it has gained immunity against prosecution for its part in establishing a loss making flight for the benefit of former Port Authority chairman David Samson.
Samson pleaded guilty to a corruption charge that he used his position to pressure United to reinstate a flight from Newark to Columbia, South Carolina so that he could easier visit his vacation home.
It became known within the company as the ‘chairman’s flight.’
An internal United investigation cost CEO Jeff Smisek his job last year over his role in the arrangement.
The US Attorney’s Office for New Jersey will not take legal action against United but the airline will pay a financial penalty of $2.25 million.
"As we move forward, continuing to earn and keep the trust of our employees, customers, shareholders, and the communities we serve around the world remains critical to our success," said Oscar Munoz, United CEO.
"We will continue to act with the utmost integrity in everything we do, ensuring that we are always conducting business ethically and with the best interests of all of our stakeholders in mind."
The US Attorney’s Office said United had made ‘early and extensive remedial efforts’ and had cooperated fully with the investigation.
The carrier has pledged to strengthen its compliance and anti-corruption procedures and will report annually on its compliance programs.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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