United Airlines Hires Former American Airlines President Scott Kirby

After more than two decades at American Airlines, Scott Kirby stepped down from the industry giant on August 29, with his switch to United Airlines effective “immediately”. CEO Doug Parker, but he has instead taken his expertise to United.

After he was dismissed as president of American Airlines earlier Monday, United immediately announced it had picked him up and installed him in the same position in its Chicago headquarters.

The combination of Kirk’s experience and Munoz’s ambitious leadership may just see United Airlines surge ahead with its mission to emerge as an “agile and innovative industry leader”. The highly respected duo helped engineer AWA’s merger with US Airways in 2005 followed by US Airways’ 2013 merger with American Airlines. The agreement includes some fascinating clauses about Kirby not being allowed to reveal American “trade secret” information.

The sudden move fills a key void at United, providing a potential successor with deep airline roots to Munoz, 57, a former railroad executive.

While Yates felt Kirby was likely to succeed American CEO Doug Parker, who is 55, Cowen analyst Helane Becker said such a development was a long time away. If Isom being promoted from COO to president and Kirby being dropped was driven by American’s planning, then wouldn’t Isom’s salary have been settled prior to the announcement of the change? He began his airline career at Northwest Airlines in 1991. When US Airways management took control of post-merger American, he kept the chief operating officer’s job at the combined carrier, which is based in Fort Worth, Texas. We would not be where we are today without his leadership.

American said Kirby’s departure came after discussions about CEO succession and “career expectations” of its executives.

American’s new President Isom will continue to oversee the airline’s operation and assume all revenue responsibilities for the airline. He will also get an accelerated vesting of more than 259,000 American shares now valued at more than $9.34 million. The move, which surprised some analysts, comes after United this month appointed Andrew Levy as chief financial officer and Julia Haywood as chief commercial officer.