UPDATED: United reaches settlement with doctor

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April 28, 2017

United Airlines has confirmed it has reached an undisclosed settlement with the 69-year-old passenger who caused a global backlash after he was dragged bleeding from a United Express flight in Chicago.

News of the agreement came shortly after the US carrier announced it boosted to $US10,000 the maximum amount it will offer passengers for involuntary denied boarding as part of a package of measures aimed at heading off the public relations fiasco created by its treatment of Dr David Dao on the April 9 flight.

“We are pleased to report that United and Dr. Dao have reached an amicable resolution of the unfortunate incident that occurred aboard flight 3411,’’ the airline said in a statement “We look forward to implementing the improvements we have announced, which will put our customers at the center of everything we do.’’

The settlement was first revealed by Dao’s attorney, Thomas Demetrio, who said the settlement would remain undisclosed and praised United chief executive Oscar Munoz, who copped criticism for his initial response to the incident.

“Mr. Munoz said he was going to do the right thing, and he has,”  Demetrio said. “In addition, United has taken full responsibility for what happened on Flight 3411, without attempting to blame others, including the City of Chicago. For this acceptance of corporate accountability, United is to be applauded.”

The airline had earlier announced 10 “substantial changes” it will make in a bid to win back the trust of passengers and repair reputational damage caused by a video of security personnel dragging Dao screaming from his seat.

Dao threatened to sue the airline after he was dragged from his seat on an April 9 United Express flight from Chicago to Louisville, Kentucky, so a staff member needed to operate a later service could take it.

The incident created a worldwide uproar and put passenger rights in the media and political spotlight.

The issue was rekindled last weekend after another video emerged of a problem on an American Airlines flight involving a young mother with a baby and an altercation between a flight attendant and a passenger.

In addition on the new ceiling on payments t passengers denied boarding,  United will require there to be a safety or security issue before it uses law enforcement to deal with passengers or forces customers already seated on a plane to give up their seat.

United said the changes being introduced were the result of “a thorough examination of its policies and procedures, and commitment to take action”’ in the wake of Dao incident.

They include the establishment of a customer solution team to look at options such as using nearby airports or ground transportation to get customers to their destination and ensuring crews are booked on a flight at least 60 minutes prior to departure.

The carrier will provide additional employee training, reduce the level of overbooking, create an automated system to solicit volunteers on overbooked flights and introduced a  “no questions asked’’ policy for permanently lost bags.

Employees will also be given more power to resolve customer service issues on the spot.

The airline said several policies would be effective immediately while others would be rolled out during the year.

“Every customer deserves to be treated with the highest levels of service and the deepest sense of dignity and respect,’’ chief executive Oscar Munoz said in the latest of a series of apologies. “Two weeks ago, we failed to meet that standard and we profoundly apologize.  However, actions speak louder than words.

“Today, we are taking concrete, meaningful action to make things right and ensure nothing like this ever happens again.”

“Our review shows that many things went wrong that day, but the headline is clear: our policies got in the way of our values and procedures interfered in doing what’s right.”

“ This is a turning point for all of us at United and it signals a culture shift toward becoming a better, more customer-focused airline.’’

Delta Air Lines earlier this month also gave employees the power to offer up to $US10,000 to passengers willing to give up seats on overbooked flights.