United Airlines (UA, Chicago O'Hare) has agreed to pay a pecuniary penalty of USD2.25 million as part of a settlement with the United States Attorney's Office for the District of New Jersey (USAO) in connection with its Port Authority of New York and New Jersey (PANYNJ) investigation.

Under the agreement, the USAO will not prosecute United in connection with the carrier's start of New York Newark-Columbia, SC flights provided it complies with the agreement for two years.

The USAO's investigation centered on an apparent dinner discussion in which former PANYNJ chairman David Samson allegedly 'asked' former United CEO Jeff Smisek to reopen the loss-making Newark-Columbia, SC route in return for PANYNJ board approval for an MRO hangar joint-venture at Newark where United is currently the largest operator. Samson owned a property in Columbia.

Samson then allegedly threatened to keep the agreement between United and PANYNJ off a key meeting agenda if the airline did not reinstate the route.

Samson pleaded guilty to bribery allegations during last week's proceedings. Although he faced a maximum penalty of ten years in prison and a fine of USD250,000, he was able to reach a plea agreement to shorten his maximum prison term to twenty-four months.

As such, United has now accepted responsibility for certain conduct related to the establishment of the flight between Newark and Columbia. In addition, it has also agreed to continue to enhance its compliance, anti-bribery and anti-corruption program policies and procedures as appropriate and to make annual reports of its compliance efforts.