United Airlines Changes Policy to Pay Bumped Passengers Up to $10,000

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United Airlines — owned by United Continental Holdings Inc (NYSE:UAL) — has made a major change of policy.

United AirlinesEveryone has seen the now-infamous video of a 69-year-old man being dragged out of a company flight due to overbooking, despite the fact that the man did not want to leave the flight and the company only offered $800 to passengers willing to get off, below the $1,350 maximum.

Dr. David Dao managed to reach a settlement with United Airlines over his injuries, and the company is turning another leaf in the brand’s culture by raising the amount of money that passengers will get offered to willingly leave a flight.

Those traveling will be offered up to $10,000 to exit a flight on their own accord, which is $50 more than Delta Air Lines, Inc. (NYSE:DAL). It is unclear under which circumstances such an offer will be extended.

Additionally, United will not force any seated passengers to leave the flight against their will unless safety or security is at risk. The company will also take measures to reduce the amount of overbooking on its flights.

Again, the use of law enforcement to remove passengers will be limited to situations in which a person or a group of people traveling pose a security risk.

UAL stock fell 0.8% Thursday.


Article printed from InvestorPlace Media, https://investorplace.com/2017/04/united-airlines-changes-ual/.

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