United Airlines picks Scott Kirby to replace Oscar Munoz as CEO

[December 05, 2019]  (Reuters) - United Airlines UAL.O on Thursday named insider Scott Kirby as its chief executive officer to succeed Oscar Munoz, who will take the role of executive chairman in May 2020.

Munoz took over as CEO of Chicago-based United in September 2015, aiming to build morale after years of strained labor relations. He replaced Jeff Smisek, who resigned because of probes into United's relationship with the Port Authority of New York.

Shortly after taking the helm, Munoz suffered a heart attack and received a transplant in January 2016.

"This eventual transition was widely anticipated by investors, though the timing of the announcement is perhaps a bit earlier than expected. We expect the shares to react positively today," Credit Suisse analyst Joe Caiado said in a note to investors.

Kirby stepped down as president of American Airlines Group Inc AAL.O in 2016 to move to rival United, where he was recruited by Munoz as the company's president.

As part of the transition, United's current Chairman, Jane Garvey, will retire from the Board in May 2020, while Munoz will serve as executive chairman for a one-year term.

(Reporting by Rachit Vats in Bengaluru; Editing by Maju Samuel)

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