United Airlines’ picked its next CEO in 2020, an industry veteran
United Airlines’ next CEO, Scott Kirby, is up to accept this new endeavor. He was a former president of American Airlines who left in the year 2016. He then quickly took the same role at its rival company and was named CEO Oscar Munoz’s successor and this will be effective in May.
Industry members describe the United’s next CEO as a gifted and no-nonsense airline executive.
United Airlines had a plan to grow the company at least 6% a year starting from 2018 through 2020. The said plan received various disappointment on Wall Street the moment Munoz unveiled it in January last year. To date, the company’s shares are almost 87% since Kirby became the president of United Airlines.
According to Hunter Keay, a Wolfe Research airline analyst, the new CEO empowers people he trusts and has no tolerance for stupidity and even laziness. Another high-ranking employee released a statement that described Kirby as an action-taker. On the other hand, Munoz is analytical and takes more time in making decisions. United Airlines declined to allow Kirby available for comment but in a video seen, Kirby is looking forward to continuing the growth in the succeeding years and to spend time to all of his employees, listening to each of them, share enthusiasm and build the best airline in the history of aviation. And he believes that they have a strong position and astoundingly bright future ahead.
Upon accepting the post, one of Kirby’s biggest challenges will be ironing out labor contracts. To give you an idea, almost 12,500 pilots are in the midst of contract negotiations. It’s supposedly be resolved under Munoz’s tenure as CEO which ends in May. The Air Line Pilots Association also demands its pilot to have better health benefits and even the protection from outsourcing to smaller regional carriers. Also, almost 23,000 flight attendants have contracts that are amendable starting next August. Munoz will shift from being CEO to Executive Chairman starting next year, for a year only. There are some relatively warm relations under Munoz and Kirby however, tensions are still seen between them.
Under the reign of Munoz and Kirby, there were controversial changes in the employee bonus program. Also last year, some flight attendants protest United Airlines’ decision to cut cabin crew staffing with the idea of saving money. Those were just some of the challenges for Kirby since he kicked-off the CEO role for this airline company.