CHICAGO _ Scott Kirby, the second-in-command at United Airlines brought on three years ago from rival American Airlines, will take over the top post next year as the Chicago-based airline aims to continue its turnaround, replacing CEO Oscar Munoz.
Kirby, 52, is an airline industry veteran known as an analytical, detail-oriented executive who aspired to the CEO spot when he jumped from president of American to United.
Under Munoz and Kirby, the airline has improved its financial performance, grown its network of routes and strengthened relations with employees while working to restore its image after a rocky period that included a 2017 incident in which a passenger was dragged off a flight.
"With United in a stronger position than ever, now is the right time to begin the process of passing the baton to a new leader," Munoz said in a news release.
But Kirby has always been "the details guy alongside another leader," said Seth Kaplan, airline expert and former editor of Airline Weekly.
"There's no questions about (Kirby's) knowledge and acumen. If there's any question at all, it's whether he can also be a big-picture leader."
Munoz, 60, will become executive chairman and will hold the post for a year, United said. The airline's current chairman, former Federal Aviation Administration chief Jane Garvey, will retire after serving on the board for more than a decade.
Munoz, Kirby and Garvey were not available for comment Thursday.
Kirby has already been heavily involved in the airline's strategy, including a focus on growing the airline's network of routes and building connecting traffic through domestic hubs in a bid to win back market share.
In a video included with the news release, Kirby said he wants to continue that growth over the next few years.
"That's been great, getting the airline back to growing again," he said.
But if United is no longer the "hot mess of an airline" it was a few years ago, it still lags rival Delta Air Lines in on-time performance and some amenities, said Henry Harteveldt, travel industry analyst and president of Atmosphere Research Group. It's also in the midst of negotiations with the union representing its pilots, and faces industry-wide challenges including slowing economic growth and disruption from the ongoing grounding of Boeing's 737 Max aircraft as well as growing concerns about climate change and sustainability.
"Is it where it needs to be? Absolutely not. ... But when you look at it and compare it to where it has been, it is financially more successful and operationally more successful," Harteveldt said.
When Munoz, who had been president at railroad company CSX and a longtime United board member, was named CEO in September 2015, he took charge of an airline struggling with employee relations, on-time performance and a difficult merger with Continental Airlines. Its reputation with customers had slipped, and Munoz's predecessor, Jeff Smisek, resigned unexpectedly amid a federal corruption probe.
"Oscar became CEO at one of the most challenging points in United's history, and his focus on putting customers and employees first has transformed United's culture today and successfully positioned the company for tomorrow," Garvey said in a news release.
Smisek had led the company since its 2010 merger with Continental. United tied his exit and the firing of two of his top lieutenants to internal and federal investigations into allegations that executives had improperly curried favor with then-Port Authority of New York and New Jersey Chairman David Samson. United reinstated a money-losing route from Newark to an airport near Samson's South Carolina vacation home.
"There was this question in the minds of a lot of people of whether there was just something structural about United that made it impossible to run successfully," said Kaplan, who described the airline as "mired in mediocrity for decades under very different management teams."
The years that followed weren't smooth. Just weeks after becoming CEO, Munoz suffered a heart attack and received a heart transplant in January 2016. In 2017, an incident that saw a 69-year-old ticketed passenger dragged from a United Express flight in Chicago led to widespread criticism and legislative hearings.
Munoz's initial response to that incident _ he defended employees while calling the passenger disruptive _ deepened outrage. Munoz later apologized, gave up his bonus and promised to change the culture at United, starting with policy changes including additional employee training and limiting use of law enforcement on aircraft. Other airlines chimed in with plans to limit problems resulting from overbooking, and new procedures were implemented across the industry.
Still, Munoz _ who once appeared alongside Spider-Man in a safety video _ managed to take a company culture that was "somewhat toxic to genial," said Cowen analyst Helane Becker. "He seems to have been able to get the employees working together to generate a better and more consistent product."
"Oscar Munoz fought against all odds to rescue @united from being torn apart & return it to premier status in the industry," Sara Nelson, president of the Association of Flight Attendants, said in a tweet. She also called Kirby "the best network man in aviation."
In a letter to members of the union representing pilots, United Capt. Todd Insler said Munoz's leadership team "successfully changed the culture at United."
Kirby "has the opportunity to continue the momentum for our airline. The mantras of 'proof not promises' and 'no excuses' should continue to drive United's success going forward," Insler wrote.
