United Taps New No. 2 as Airline Undergoes Long-Planned Leadership Change During COVID-19 Pandemic. ‘We Believe it is Safe to Fly.’
United Airlines has tapped chief administrative officer Brett J. Hart to succeed airline president Scott Kirby in the No. 2 executive role when Kirby takes the top spot later this month, a long-planned leadership change that comes at a time of turmoil for the airline.
A lot has changed since December, when United announced the leadership transition would take place after the company’s annual meeting May 20. At the time, CEO Oscar Munoz, who will become United’s executive chairman after stepping down, said United was “in a stronger position than ever.” Now, the entire airline industry is reeling from the COVID-19 pandemic.
In an exclusive interview Monday, Hart said transparency will be a key part of the airline’s approach to convincing customers and employees it’s safe to fly as travel restrictions and stay-at-home orders lift.
“We believe it is safe to fly and are taking all appropriate measures to ensure we make employees and customers as comfortable as possible and as safe as possible," he said.
Both he and Kirby start May 20 and are temporarily waiving their salaries as the airline undergoes a series of cost-cutting initiatives in response to a dramatic drop in air travel during the COVID-19 pandemic.
“Every strategic objective and plan that was on the table before COVID-19 has to be reassessed and put in perspective,” said Hart, 51.
As president, Hart will be responsible for human resources and labor relations, a role he’s stepping into as United warns it will need to shrink its payroll as it prepares for a long period of economic recovery.
Earlier this month, United reported a $1.7 billion first-quarter loss and said it could eliminate more than 3,400 management and administrative positions when a prohibition on involuntary layoffs linked to $5 billion in federal financial assistance for the airline ends this fall.
The airline has already been asking other employee groups to take voluntary unpaid leave and faced opposition from airport employees after attempting to slash 15,000 workers’ hours to part-time. United reversed course after the union representing those workers filed a lawsuit in a New York federal court alleging the reduction violates the terms of United’s agreement with the federal government tied to the financial assistance.
“We’ll have to be consistent and transparent. Frankly, from an employee perspective, it’s just not possible to overcommunicate at this point,” Hart said.
Hart already held the top spot at United for about six months during another tumultuous period for the company. When Munoz, 61, suffered a heart attack in late 2015, just 41 days into his tenure as CEO, United picked Hart, then the airline’s general counsel, to the lead the airline while Munoz recovered from a subsequent heart transplant.
At the time, analysts questioned Hart’s background as an attorney and more limited experience with airline operations and finance. Before joining United in 2010, Hart served as executive vice president, general counsel and corporate secretary at Sara Lee, was a partner at Sonnenschein Nath & Rosenthal and was special assistant to the general counsel at the U.S. Department of Treasury.
United said that background makes him a good complement to incoming CEO Kirby, 52, who has spent three decades in the commercial airline industry and already held the role of president for a decade by the time Munoz hired him from rival American Airlines in 2016.
“Brett knows what it means to be a steady voice in a crisis, which is why there is no one in the world better suited to taking on this critical leadership role. More than ever, United needs — and as CEO, I will need — an experienced, level-headed strategist who can help us continue to make smart decisions and aggressively manage this crisis,” Kirby wrote in a letter to employees announcing the change.
In addition to his reputation as a level-headed, analytical thinker, choosing a leader who has already been with the company for a decade makes sense at a time when the industry is facing unprecedented challenges, said Henry Harteveldt, travel industry analyst and president of the Atmosphere Research Group.
“You don’t have to teach the new person the ropes,” he said.
Sara Nelson, international president of the Association of Flight Attendants-CWA, which represents United’s flight attendants, said the union saw Hart’s “careful leadership” during his tenure as interim CEO.
“There’s no doubt he’s committed to United Airlines and we look forward to working with him in his new role,” she said in a statement.
If Kirby is known for a data-driven approach and bold personality, colleagues described Hart as calm, thoughtful and influential despite rarely being the loudest voice in the room. Kate Gebo, United’s executive vice president of human resources and labor relations, said she was confident the pair would work well despite their differing backgrounds and styles, calling them a “powerful combination.”
Since being appointed chief administrative officer in 2017, Hart has led the airline’s work with local, federal and overseas governments and on legal and regulatory issues. He was heavily involved in the airline’s negotiations related to the federal coronavirus stimulus bill that saw United get $5 billion in financial assistance.
He is also responsible for the company’s government affairs, corporate communications and community engagement teams, as well as corporate real estate and sustainability.
Though Hart may not be as well-known to the airline’s workforce, Michelle Brown, vice president of finance and chief financial officer for commercial, who said she considers Hart a mentor, said he’s been committed to developing diverse talent at the company.
“He finds a way to highlight talented people,” she said.
Hart, who lives with his wife, Dontrey, and sons Jonah, Aiden and Matthew on Chicago’s South Side, is a member of the board of directors at North Chicago-based drugmaker Abbvie and serves as chairman of the Metropolitan Pier and Exposition Authority board.
He’s also a member of the board of the Chicago Council on Global Affairs, Northwestern Medical Group and University of Chicago and was one of 17 civic and corporate leaders the nonprofit foundation behind the Obama Presidential Center appointed to a council promoting diversity and inclusion in 2016.
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