United CEO says no one will be fired for dragging incident
CEO Oscar Munoz said yesterday that he takes
full responsibility "for making this right," and he promised more
details later this month after United finishes a review of its policies
on overbooked flights.
The CEO of United Airlines says no one will be fired over the dragging of a man off a plane including himself.
CEO
Oscar Munoz said yesterday that he takes full responsibility "for
making this right," and he promised more details later this month after
United finishes a review of its policies on overbooked flights.
Company executives said it's too soon to know if the incident is hurting ticket sales.
United
has been pummeled on social media #BoycottUnited is a popular hashtag
and late-night television.
Through yesterday, its shares have fallen 4.4
per cent since Flight 3411, wiping out nearly USD 1 billion in market
value, although some other airline stocks also declined in the same
period.
After the market closed Monday, United reported a USD 96
million first-quarter profit, down 69 per cent from a year earlier
largely because of higher costs for fuel, labor and maintenance. The
revenue picture was looking better evidence was growing that after two
years of falling average fares, United will be able to push prices
higher this year.
On a conference call to discuss those results,
Munoz started by apologizing again for the April 9 scene on a United
Express plane at Chicago's O'Hare airport.
David Dao, a
69-year-old Kentucky physician, was bloodied and dragged off the plane
by Chicago airport officers who had been summoned by United employees
when Dao wouldn't give up his seat.
The three officers have all been
suspended.
Munoz and other executives vowed to treat customers with dignity, and said that what happened to Dao will never happen again.
Munoz's
early statements on the incident were widely criticized. He initially
supported employees and blamed Dao, calling him "disruptive and
belligerent." Yesterday, he was asked if the company ever considered
firing anyone, including management.
"I'm sure there was lots of
conjecture about me personally," said Munoz. He noted that the board of
United Continental Holdings Inc. has supported him.
"It was a system failure across various areas," Munoz continued. "There was never a consideration for firing an employee."
Dao's
lawyers have taken steps that foreshadow a lawsuit against the airline
and the city of Chicago, which operates O'Hare Airport
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