United Chief Out as U.S. Attorney Probes Port Authority Dealings

United Airlines announced Tuesday its CEO, Jeff Smisek, is resigning from the company. The announcement comes as the U.S. Attorney for the District of New Jersey continues to investigate whether the airline provided a special flight route, known as the "chairman's flight", for former Port Authority Chairman David Samson in exchange for flight fee reductions and other benefits.

In a conference call, United's new non-executive chair of the board, Henry Meyer, told investors: "Jeff's departure is in connection with the company's previously disclosed internal investigation associated with the Port Authority of New York and New Jersey." A spokeswoman for Samson, Karen Kessler, said in an email, "This is a United Airlines matter." Port Authority spokesman Steve Coleman declined to comment. 

As WNYC reported last spring, United Airlines lavished Port Authority executives with attention at the same time it sought tens of millions of dollars in reductions in flight fees paid for using Newark Liberty Airport.

United’s overtures included a special flight route that benefited David Samson; campaign contributions to New Jersey Gov. Chris Christie; fancy lunches and dinners; and meetings with top officials, including the governor.

The deal was never consummated — it blew up in the wake of the George Washington Bridge lane closure scandal, known widely as Bridgegate. Last December, United filed a legal complaint with the Federal Aviation Administration over the fees. The matter is currently being litigated.

Samson, a longtime mentor and confidante of Gov. Christie, resigned in the wake of the Bridgegate investigation.

Last February, The Bergen Record reported that federal prosecutors had subpoenaed records of dealings between David Samson and United, along with records of Samson's personal trips. Then, Bloomberg News described a dinner at which Samson had allegedly asked United to open a now-discontinued flight route between Newark, a United hub, and Columbia, S.C., where he owns a vacation home.

WNYC uncovered other actions: steak lunches and dinners with Bill Baroni, Gov. Christie's former top appointee at the Port Authority, and Samson; large campaign contributions to Christie, including the maximum amounts given by two of the United executives who resigned; and a meeting between Christie, Smisek, and Samson. According to a memo written by Nene Foxhall, United’s executive vice president for communication and government affairs, a deal to reduce the flight fees appeared imminent. This was just a week after Gov. Christie's re-election -- and just as the Bridgegate scandal began to unravel.

“We are grateful to the Port Authority leadership for being willing to address the long-standing inequity in flight fees paid by carriers serving the Newark airport and those serving the New York airports,” Foxhall wrote in an email to Baroni, who has since been indicted in the Bridgegate scandal.

Just hours after that email was sent, Baroni, Christie, Samson and Smisek all convened at Newark Airport for a press conference announcing that United would fly to Atlantic City. Extending service to the downtrodden gambling town was a cherished Christie goal because of its potential for boosting business and its importance to the South Jersey political bosses.

Foxhall, the email's author, also resigned Tuesday. Now, United says it's moving on with new leadership.

"For the investment community, what I can tell you today is that our management team will remain focused on ensuring the continued improvement of our product, our customer service, our operations, and of course, financial performance," said incoming CEO, Oscar Munoz, in a call with investors Tuesday afternoon.

Christie's spokesman, Kevin Roberts, had no comment Tuesday night.