United says to release more details about CEO’s hospitalization

United Airlines parent United Continental Holdings has named EVP and general counsel Brett Hart acting CEO following president and CEO Oscar Munoz’s heart attack.

He took over as CEO last month following the ouster of former CEO Jeff Smisek, who was involved in a scandal tied to the Port Authority of New York and New Jersey.

“Brett has taken on increasing responsibility beyond general counsel over the last few years in the operations and customer facing areas of the company”, he said.

Hart’s appointment follows the hospitalisation of Munoz 15 October for a heart attack only a little over a month after accepting the chief executive job at United. “The company expects to release more details either later today or tomorrow”.

Mr Munoz had been appointed chief executive in a bid to clean up the company and deal with a litany of staff and customer complaints.

The Wall Street Journal adds that Munoz’s illness has once again raised the issue on how and when the company’s board tell shareholders about the CEO’s illness.

United also ranks at the bottom for customer satisfaction among major airlines according to several surveys.

It is puzzling why the company has not stated who will take over for Munoz in the meantime, said Greg Taxin, chief investment officer of New York-based Luma Asset Management, and founder of corporate governance research firm Glass, Lewis & Company. But Meyer said United’s “thoughts and well wishes are with Oscar”.

United, along with other major USA carriers, is also being investigated for possible collusion in keeping airfares high, the U.S. Department of Justice said this summer.

Smisek led Continental Airlines before the merger, and had been the only CEO at the combined company.

Jill Fisch, a law professor and corporate-governance expert at the University of Pennsylvania, said boards are wary of making a statement about the CEO’s health that might turn out to be too optimistic or too pessimistic — either could get them sued, she said.

United’s service difficulties – it lags behind big-airline peers in on-time arrivals – and rifts between legacy-United and Continental workers remain unresolved, and Hart cast himself Monday as picking up Munoz’s mantle.

Hart was at Sara Lee when its CEO, Brenda Barnes, suffered a stroke and resigned in July 2010.