United CEO ‘Threw Gasoline on a Fire’
The stock market wasn’t especially concerned as video of security agents dragging a passenger off a United flight to make room for employees went viral on Monday, but after United CEO Oscar Munoz’s public statement apologizing for having to “re-accommodate” the passenger, a medical doctor, and a leaked memo to employees justifying the airline’s actions, shareholders and investors have taken notice.
After Tuesday’s opening bell, shares of United Continental (UAL:NYSE) tanked, dropping over 4%, losing shareholders nearly $1 billion in market value.
The passenger was not only dragged out by several law enforcement or security officers, but later video shows his face covered in blood, and him back on the plane, distraught, possibly disoriented, clutching a cabin curtain and saying, repeatedly, “just kill me.”
Instead of making the situation better, United’s CEO by many accounts has poured gasoline on the fire.Â
Munoz described the 69-year old doctor as “disruptive and belligerent,” which is rather incredible since he had paid for a ticket. He also told employees worldwide that the flight crew on United 3411 “were left with no choice but to call Chicago Aviation Security Officers to assist in removing the customer from the flight.”
The airline’s ticket policy may land them in hot water, as it states they can refuse to board a passenger if they are overbooked, but some have noted it appears it does not state they have the right to remove a passenger for that reason.
Legal implications aside, this has now become an international incident.
In addition to the dropping stock price, which likely will recover, social media users in China have noticed the victim appeared to be Asian, possibly Chinese. CNBC reports “the top trending topic on Tuesday on microblog Weibo, China’s take on Twitter, was #UnitedAirlinesforcespassengeroffplane.”
“This went to the next level when the CEO and the [United] executives began to respond,” said Andy Swan of LikeFolio, which monitors social media for financial applications. “They threw gasoline on a fire.”
…
“When management stepped out — and [they did it] in most offensive way possible — you started to see negative mentions surge,” he said. “[United] invited some really negative stuff on themselves.”
ThinkProgress notes that United “made $2.3 billion in profit last year.”Â
Here’s Munoz in 2015:
Editor’s note: NBC’s Bradd Jaffy deserves credit for the headline:Â
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Overbooked, United Airlines Uses Law Enforcement to Forcibly Remove Passenger (Video)
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