United Airlines to offer up to $10,000 for passengers to give up seats

Lobai_Sabbath

United Airlines to offer up to $10,000 for passengers to give up seats
US carrier announces shakeup of booking policy after outrage over forcible removal of passenger


United says its goal is to ‘reduce incidents of involuntary denial of boarding’. Photograph: Joshua Lott/AFP/Getty

Nadia Khomami
@nadiakhomami
Thursday 27 April 2017 15.43 BST First published on Thursday 27 April 2017 06.55 BST



United Airlines will offer passengers up to $10,000 (￡7,700) for giving up their seats on overbooked flights, as part of efforts to repair the damage to its reputation after widespread condemnation over the forcible removal of a passenger.

An inquiry was launched after footage recorded by passengers at Chicago O’Hare airport and watched by millions globally showed David Dao, 69, being yanked from his seat on a Louisville-bound flight to make room for crew.

According to his lawyer, Dao lost two front teeth, incurred concussion and broke his nose. The Vietnamese American physician found the experience “more horrifying and harrowing” than the fall of Saigon, his lawyer said.

On Wednesday, United’s reputation suffered another blow after a potentially record-breaking giant rabbit died in its care. The 3ft (90cm) animal, called Simon, was found dead in the cargo hold when the flight arrived at O’Hare airport from London Heathrow, and an investigation has since been launched.

The offer of increased compensation came after rival Delta outlined plans to offer up to $9,950 in such cases.

United said it would “increase customer compensation incentives for voluntary denied boarding up to $10,000”, and also promised action to reduce overbooking and improve customer satisfaction.

“Our goal is to reduce incidents of involuntary denial of boarding to as close to zero as possible and become a more customer-focused airline,” the carrier said.

United also said it would no longer call police to stop passengers boarding, nor would passengers who were seated be required to give up their place on overbooked flights.

Crews would be booked on flights 60 minutes before departure, and staff would undergo annual training to handle “the most difficult situations”, an inquiry report said.

United will also adopt a “no questions asked” policy on permanently lost baggage from June, paying customers $1,500 for the value of the bag and its contents.

United Airlines 'saddened' by death of giant rabbit after transatlantic flight

The company’s chief executive, Oscar Munoz, who took the helm in 2015 as part of an effort to improve customer relations, faced calls to step down after referring to Dao as “disruptive and belligerent” in a statement following the incident.

“This is a turning point for all of us at United,” Munoz said on Thursday.

In an interview with the US radio show Marketplace, Munoz said: “We had a serious breach of public trust, and again, we continue to be profoundly sorry and apologise to everyone involved. What happened is we let our procedures and policies get in the way of common sense and doing the right thing.”

He also discussed his “awful choice of words”, which he said “did not adequately respond to the gravity of the situation”.

Munoz added: “I watched that video. My gut instinct told me to do something different but I messed up, and I’ve taken full accountability for that. In hindsight, I think about it every day and how we should have responded better.”

Dao’s ejection sparked a national conversation on airlines’ treatment of customers in an industry that comprises just a handful of competitors after years of mergers and consolidations.

United announced last week that Munoz, in a move he initiated, would not become company chair in 2018 as stated in his employment agreement.

Airlines have not formally disclosed their compensation amounts. Aviation law requires them to pay passengers who are bumped from flights no more than 400% of the value of the ticket, with a maximum of $1,350, but occasionally they offer more than that.

According to MileCards.com, the average compensation paid to passengers bumped from flights in the US in 2016 ranged from $655 (Spirit Airlines) to $1,981 (Alaska Airlines). The average paid by Delta was $1,131 and by United $573.

“Sometimes you’re just desperate to find the passengers who agree to be bumped, like United should have been,” Brett Snyder, a former airline executive, told CNN. “It would have saved them a lot of money if they had offered more.”

https://www.theguardian.com/business/2017/apr/27/united-airlines-to-offer-up-to-10000-for-passengers-to-give-up-seats-on-flights