The Dinner Proposal That Led United Into Corruption Probe
United Airlines Inc. was seeking hundreds of millions of dollars in public investment for the airport in Newark when its chief executive dined with New Jersey Governor Chris Christie’s top Port Authority official in September 2011.
Jeffery Smisek, United's chief executive officer, wanted funding for several projects, including an estimated $600 million extension of the PATH train from downtown Newark to the airport, as the airline worked through its merger with Continental Airlines.
Halfway through dinner at Novita, an Italian restaurant in Manhattan, Port Authority Chairman David Samson surprised the group with a request of his own. He complained that he and his wife had grown weary of the trip to their weekend home in Aiken, South Carolina, because the best flight out of Newark was to Charlotte, North Carolina, 150 miles away. Until 2009, Continental had run direct service from Newark to Columbia, South Carolina, 100 miles closer.
In a tone described by one observer as “playful, but not joking,” Samson asked: Could United revive that route? An awkward silence fell over the table.
Though the United CEO didn’t agree to the request at the dinner, according to the accounts of some who attended, the airline ultimately added the money-losing route that became known as “the chairman’s flight.”
The U.S. Attorney’s Office in New Jersey is investigating whether United employees made improper attempts to influence Samson at the Port Authority of New York & New Jersey, according to people familiar with the investigation. The authority oversees Newark Liberty International Airport.
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http://www.bloomberg.com/news/articles/2015-04-28/the-dinner-proposal-that-led-united-into-corruption-probe
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