United Airlines moves to ease criticism with settlement, new policies
United Airlines moved to staunch criticism — and any customer defections — by reaching a settlement Thursday with a passenger dragged off one of its planes two weeks ago and issuing new policies designed to prevent similar customer-service failures.
On April 9, Kentucky physician David Dao was forcibly removed from a flight after refusing to give up his seat to a crew member. The incident ignited a debate about poor service and a lack of customerfriendly policies on U.S. airlines.
United and lawyers for Dao declined to disclose financial terms of the settlement Thursday. Earlier, United announced steps it would take to reduce overbooking of flights. Among other things, the airline said it will raise the limit on payments to customers who give up seats on oversold flights to $10,000, and it will improve training of employees.
Dao’s lead attorney, Thomas Demetrio, praised the airline and its CEO, Oscar Munoz, for accepting responsibility and not blaming others, including the city of Chicago, whose airport security officers yanked Dao from his seat and dragged him off the United Express plane.
Dao never filed a lawsuit against United, but Demetrio had said legal action was likely.
Dao was waiting to fly to Louisville, Kentucky, an April 9 when the airline decided it needed four seats for Republic Airline crew members who needed to travel to work another United Express flight in Louisville the next morning. When Dao and his wife were selected for bumping, he refused to leave.
Video of the incident has sparked more than two weeks of withering criticism and mockery of United. Munoz initially blamed Dao, but later said he was horrified by the event and called it a failure on United’s part.
To head off customer defections, United had already announced that it will no longer call police to remove passengers from overbooked flights, and will require airline crews travelling for work to check in sooner. On Thursday, it added several other new policies including:
Raising the limit on compensationto $10,000 for customers who give up their seats starting Friday. That is a maximum — it’s unclear how many, if any, passengers would see that much. The current limit is $1,350. Delta Air Lines earlier this month raised its limit to $9,950.
Sending displaced passengersor crew members to nearby airports, putting them on other airlines or arranging for car transportation to get them to their destinations.
Giving gate agents annual refreshertraining in dealing with oversold flights. Munoz said he also wants agents and flight attendants to get more help at deescalating tense situations.
While not a factor in this month’s incident, United also said that starting in June it will pay customers $1,500 with no questions asked if the airline loses their bag.