United Airlines CEO won’t assume chairmanship next year after ‘horrific’ seating fiasco

 rt.com  4/21/2017 10:44:08 PM 

In the wake of its ill-fated passenger removal fiasco, United Airlines has announced that chief executive Oscar Munoz will not take up his position as chair of the company board next year.

The CEO of the American airlines was widely expected to assume greater control of the company in 2018. However, in a regulatory filing on Friday, United Airlines said Munoz will keep “future determinations related to the chairman position to the discretion of the Board,” report Reuters. 

READ MORE: Police forcibly remove passenger at behest of United Airlines in disturbing footage

The filing also mentioned that the airline – which was widely criticized for its mismanagement of the removal of a passenger in Chicago this month – will be revising its executive compensation program. 

The financial packages are generally employed to incentivize executive teams developing business strategies.

United Airlines’ reputation went into a tailspin earlier this month when a screaming passenger was filmed being dragged down the aisle of a plane after he had refused to voluntarily vacate a seat on an overbooked flight.

The incident saw Munoz first defend the actions of Chicago Aviation Security Officers in a letter to staff. The PR crisis at the airline continued though, with stock even taking an $800 million hit in one day. 

READ MORE: United Airlines stock plummeted by over $800mn after passenger fiasco

Munoz then issued a fuller apology, promising to “take full responsibility” and “work to make it right.”

“The truly horrific event that occurred on this flight has elicited many responses from all of us; outrage, anger, disappointment. I share all of those sentiments, and one above all: my deepest apologies for what happened,” Munoz’s public apology read.

“Like you, I continue to be disturbed by what happened on this flight and I deeply apologize to the customer forcibly removed and to all the customers aboard. No one should ever be mistreated this way.”

Despite the incident and poor management in the aftermath, Munoz told ABC that he would continue in his role as CEO. “I was hired to make United better and we’ve been doing that and that’s what I’ll continue to do,” he said.

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