United drops $ 1Billion in Market Value

Few of us did miss the horrible treatment from the crew at United Airlines. The treatment, based on a overbooked flight, escalated when the crew couldn’t get someone to postpone their flight voluntary. No one did neither accept $400 plus a free hotel night. Because United had som staff that needed to move, they raised the bid to $800. No one did take it why they had to raffle to solve the situation. The victims of the raffle accepted the outcome except from the poor doctor that got pulled out of the plane with violence.

United Airlines shares drop after man dragged off flight – Apr. 11, 2017

Earlier in the day, United Continental Holdings (UAL)’ stock was off about 4%, knocking off close to $1 billion off the company’s market value. By late afternoon, after a mea culpa from the CEO, the stock had recovered from the worst losses — but its market value was still off by $250 million.

The video, which surfaced Monday, showed a passenger removed on Sunday from United flight 3411 at Chicago O’Hare International Airport.

Several passengers recorded the incident on their phones and posted video on social media showing three Chicago Department of Aviation security officers dragging the man, who has not been identified, down the aisle by the arms and legs while other passengers shout in protest.

He continued to resist after he was removed and ran back onto the airplane, face bloodied from the encounter. United Airlines shares drop after man dragged off flight – Apr. 11, 2017

 

United’s overbooking policy: The reason they can kick you off your flight – Apr. 10, 2017

Now, the airline is scrambling to respond to a wave of consternation centered on one question: How can they do that?

Part of the problem, at least, comes from the often-overlooked policy that allows airlines to stop passengers from boarding a plane if it’s overbooked. You agree to it when you book your tickets.

It’s standard practice for airlines to sell more tickets than there are seats. Carriers calculate how much wiggle room they have based on past stats that track no-shows and offer passengers vouchers if flights end up too full, and no two airlines have the same approach.

“Airlines overbook because people don’t show up for flights and they don’t want to go with empty seats,” said George Hobica, founder of Airfarewatchdog.com. read more at money.cnn.com