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A Golden Parachute cushions his fall…

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As if you didn’t have enough reasons to hate flying, along comes Jeff Smisek.

David Lazarus, a consumer columnist wrote a column in the LA Times recently about the “resignation” of United Airlines’ president, chief executive and chairman, Jeff Smisek, amid a corruption probe by federal investigators.

Because he wasn’t fired for his alleged corruption, his golden parachute kicked in and he gets his full severance package which includes $5 million in cash, additional financial compensation that could exceed $20 million, first-class travel on UA for the rest of his life, company car, free airport parking and health insurance.

Lazarus writes, “All this is a pretty sweet deal for an ex-CEO whose company’s stock is down 15% this year, who is seen as having bungled United’s merger with Continental, who hasn’t been able to make nice with labor groups and whose airline is rated last for customer satisfaction among big carriers by J.D. Power.”

He added comments by Timothy Pollock, a professor who focuses on corporate governance at Penn State’s Smeal College of Business, “What United should have done is forced him to fly coach for the rest of his life. Instead, we’re all in coach with our knees against our chin, and he’s sitting up there in first class enjoying a complimentary cocktail while they’re losing our luggage.”

One bit of solace for the rest of us schmucks: United’s regulatory filing about Smisek’s severance package makes it clear that the company will no longer pay for his gym membership.

Yeah! That’ll show him!


I suppose I shouldn’t be surprised by such arrogance and lack of integrity on the part of a CEO, who was nominated as one of the worst CEOs in America in a 2013 CNBC poll. The same guy who oversaw contracting out 2,000 union jobs at 28 airport stations last year, including closing its Cleveland hub with the idea of saving $2.7 million from long-time United employees (many of whom made $15 per hour plus benefits). The same CEO who gave $320 million in profits to its shareholders. (By all means, keep those shareholders happy at the expense of your employees and customers!)

The same guy who was at the helm of a once-great airline that dropped to last place in customer-satisfaction rankings in J.D. Power’s 2015 study and to worst among the major airlines in the latest Airline Quality Rating, compiled by Wichita State and Embry-Riddle Aeronautical University. United finished ahead of only three regional carriers.

The carrier that suffered two system-wide groundings of its entire fleet this summer due to “automation issues.”

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All of this come five years – FIVE years – after its integration with Continental. But, the gods of Wall Street apparently viewed the carrier as a successful financial turnaround, with several consecutive profitable quarters. While Smisek was squeezing his employees and his passengers in the economy seats, they boasted of upgraded meals, in-flight entertainment and Wi-Fi service.

Since I’m up on my high horse, I suppose I should check to see if I have UA stock as part of my retirement portfolio. But regardless, as a fellow CEO of a company that exists to serve travelers – even though my company is minuscule compared to United Airlines, I’m smart enough to know that I cannot – and would not – screw over my employees and customers and consider myself a success.

Mr. Smisek, if I were you, I would be wary of any meals or beverages you are served on your free-for-life first-class flights.

Karma is a you-know-what.


Oh, and one more thing: The new CEO comes from a cargo train company. Definitive word: “cargo.”

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Speaking of “cargo”: A French company recently filed a patent for a new type of hexagon aircraft seating. Basically, the idea is to take the middle seat — already the worst seat on a flight — and turn it around 180 degrees so as to maximize space.

A week ago, I got a personalized email from the new guy, Oscar Munoz, who was anxious to introduce himself to me, who he described as, “our valued customer.” He was “excited about the incredible opportunity that the United team has to improve the travel experience essential to the vitality of global business and to the personal lives of millions of people.”

The first of three things that he believes are critical to any successful business is (drum roll!) a “focus on our customers.”

Wow! Focus on customers! What a genius … and he went on to tell me that he’s “committed to learning how to meet my needs and desires.” (Really? “Learning how…”?) “We can do better, and will keep listening to our customers . . .”
How ironic that just a little further down it said: “Do not reply to this email.”

Comments? Do you have a favorite airline? A least favorite airline?

2 Comments

  • Surinder Chinai September 25, 2015 at 3:30pm

    Hi Marilyn! My favorite is Harbour Air Seaplanes based in Vancouver. I truly appreciate the Canadian hospitality of the people there. The most pleasant plane flight one can take….no hassles/no problems…just beautiful scenery!

  • Ron Murphy September 26, 2015 at 3:21am

    There’s gotta be a way to find out where Munoz is, how to contact (but then again….). Send him a copy of your post.

    The rich get richer, then lecture us about “accountability.”

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