CEO of United Continental resigns amid federal investigation

Jeff Smisek has stepped down as Chief Executive of United Continental Holdings Inc amid a federal investigation.

Oscar Munoz, the Chief Operating Officer of CSX Corp , has been named as Smisek’s replacement.

The company did not say the exact why Mr. Smisek resigned. However, his resignation appears to be linked to a federal investigation involving the Port Authority of New York and New Jersey.

United Continental did say that “the departures announced today are in connection with the company’s previously disclosed internal investigation related to the federal investigation associated with the Port Authority of New York and New Jersey.”

According to a company statement, he will also be stepping down as president and chairman of the company.

Shares of United Continental dropped 2.8 percent in after-market trading on Tuesday.

“It is truly a privilege to serve as United’s CEO. United has an incredible opportunity for improving an experience that is essential to the vitality of global business and to the personal lives of millions of people, for innovation, and for earnings growth,” said Oscar Munoz, the new president and CEO of United.

“In my years serving on the board, I have been impressed by the dedication and skill of my new coworkers. Together, we will make United the top-performing airline.”

Munoz graduated from the University of Southern California with a bachelor’s degree in business administration, and he received a master’s in business administration from Pepperdine University.