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United Airlines to settle SEC charges over ‘chairman’s flight’
Friday, 05 Dec, 2016
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United Airlines will pay $2.4 million to settle civil charges stemming from its role in the infamous ‘chairman’s flight’ affair.
Charges brought by the Securities and Exchange Commission said shareholders paid for the loss-making route which was reinstated without following the usual evaluation process.
It was alleged the Newark-Columbia, S.C flight was only brought back to curry favor with David Samson, then chairman of the Port Authority of New York and New Jersey, who owned a vacation home there.
The SEC said United lost nearly $1 million on the route before it cut the route when Samson resigned from the Port Authority.
The day United approved the route, United also won approval from the Port Authority board for a new hangar project at Newark Airport, the SEC said.
CEO Jeff Smisek and two other executives were ousted for their part in the affair after United conducted an internal investigation.
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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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