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NAVIGATIONThe Voyage Report > News > United CEO Testifies Before Congress After PR Debacle; “We Failed”

United CEO Testifies Before Congress After PR Debacle; “We Failed”

May 2, 2017by Mark Albert
United American Southwest American
Officers drag Dr. David Dao off a United Airlines flight on April 9, 2017; image courtesy: Audra D. Bridges 

 

WASHINGTON (TVR) – After being pummeled by bad publicity for the past three weeks after his airline forcibly removed one of its passengers, the CEO of United Airlines testified on Capitol Hill Tuesday morning he would ensure it did not happen again, even as lawmakers threatened action if airlines didn’t move fast enough to improve the way passengers are treated.

United CEO

United Airlines CEO Oscar Munoz testifies before Congress on May 2, 2017

“We failed,” Oscar Munoz told lawmakers as the hearing, titled “Oversight of U.S. Airlines Customer Service,” began. “It was a mistake of epic proportions,” he said later.

“We will do better” Munoz promised.

The hearing before the U.S. House Transportation and Infrastructure Committee focused on “what can be done to improve the flying experience for American travelers”.

WATCH A RECORDING OF THE HEARING:

–>RELATED: United Posts Review of Flight 3411 Debacle

‘Something Clearly Broken’

Airline United American Alaska Southwest

Airline executives testify before a U.S. House committee on May 2, 2017

Committee chairman Bill Shuster (R-PA) began the hearing by lambasting the airline executives before him.

“There’s something clearly broken,” with airline customer service, Shuster said.

He warned the executives of “tough questions” in the hours to come and declared: “You owe the public and this committee answers… Congress will not hesitate to act.”

“If we don’t see meaningful improvements, I can assure you that you won’t like the outcome,” Shuster warned.

Munoz acknowledged the “serious breach of public trust” that occurred because of his airline’s actions and tone-deaf response after airline staff called police officers to remove Dr. David Dao off a flight April 9.

Dragged From Plane Overbooked United Airlines

Officers drag Dr. David Dao off a United Airlines flight April 9, 2017; courtesy: Audra D. Bridges

The officers subsequently dragged Dao through the aisle, causing a “significant concussion,” a broken nose, sinus injuries, and lost two front teeth, his lawyer said; Dao will have reconstructive surgery.

Dao settled with the United Airlines last week for an undisclosed sum.

Munoz told Congress it “will never again ask a customer to give up their seat once they’re on board.”

Reps. Peter DeFazio (D-OR) and Rick Larsen (D-WA) asked the General Accountability Office to investigate and introduced HR1420, the “Know Before You Fly Act.” The act would require airlines to clearly tell passengers how they will be helped during widespread airline service failures and increase transparency on bag fees.

“I think the airline industry needs to focus on getting its own house in order,” Rep. DeFazio told the executives facing him in the hearing room.

–>RELATED: Senator to Introduce ‘Customers Not Cargo Act’ to Ban Forcible Removal of Passengers

–>RELATED: Outrage Over United Incident Spreads to Congress

United CEO Overhauls Policies

The official announcement of the United CEO’s appearance in his highest-profile accounting yet came one day after the carrier unveiled new policies meant to help it recover from its public relations nightmare.

United announced it will reduce overbooking, dramatically increase the maximum compensation it will offer passengers who volunteer to give up their seats on full flights, and limit the use of law enforcement in situations like the one involving Dr. Dao.

Among the new policies:

  • Frontline staff will now be authorized to compensate passengers who voluntarily give up their seats up to $10,000;
  • The carrier commits to reducing the amount of overbooking;
  • It will “limit” the use of law enforcement “only” to safety and security issues;
  • It will no longer remove a passenger involuntarily who is already seated on a plane, except for safety and security;
  • The airline says it will create a “customer solutions team” to empower frontline airport staff with “creative solutions” to get customers to their destination; this would include using other airlines, airports, or ground transportation;
  • No longer allow its own crews to be booked onto flights less than 60 minutes before departure;
  • Create an automated system to ask for volunteers in overbooked situations well ahead of departure, such as other airlines already do;
  • “Eliminate the red tape” on lost bags by offering a flat $1,500 payment to passengers.

–>TOP TIPS: 6 Ways to Avoid Getting Bumped Off Your Flight—And How to Negotiate For More

-–>LEARN: How We Save Hundreds Off Every International Flight

Watch Mark Albert on KSTP-TV, Minneapolis/St. Paul, share tips on how to avoid getting bumped from a flight—or how to profit from it:

KSTP Twin Cities Live Mark Albert

Other Airlines Change Policies

In the wake of the United incident, other airlines have also made changes.

Delta Compensation

A memo obtained by The Voyage Report that was sent to Delta workers April 13, 2017, notifying them of an increase in Voluntary Denied Boarding compensation

Delta was the first to announce new compensation amounts.

On April 14, five days after Dr. Dao’s removal, it authorized its gate agents and airport supervisors to offer up to $9,950 to passengers who agree to voluntarily give up their seats.

American has now changed its contract of carriage to promise not to remove passengers who have already boarded in overbooking situations. At today’s hearing, the carrier’s senior vice president, Kerry Philipovitch, also told lawmakers “new procedures” put in place after the United incident have already reduced the number of involuntarily denied boardings. Philipovitch said the airline has now established a “Day of Departure” hotline for gate agents to speed compensation and rebooking for passengers who are bumped.

Southwest Airlines told TVR last week it will end deliberate overbooking altogether; as of May 9, it will be “off the table as a consideration,” a spokesperson said. At Tuesday’s hearing, the airline’s chief commercial officer, Bob Jordan, said the carrier expects the elimination of deliberate overbooking to reduce denied boardings by 80%. Jordan did not reveal the airline’s compensation limit.

Alaska Airlines told The Voyage Report last month that it is “actively taking a look at our denied-boarding policies, which includes compensation.” At Tuesday’s hearing, Joe Sprague, executive vice president for external relations, said he believed the carrier’s .004% rate of denied boardings is still “too high,” and that the carrier is updating its polices to give its customer agents “discretion” to reduce the figure further.

JetBlue did not respond to a request for comment.

–>RELATED: Number of Passengers Bumped Hits All-Time Low

-–>SIGN UP: For more news, get The Voyage Report newsletter for FREE

–>TIPS: Deal Alert: 12 Money-Saving Ideas for Spring & Summer

Mark Albert
Mark is a Peabody Award-winner who has reported in newsrooms across the country, most recently as a freelance correspondent at CBS News. He's traveled to 60 countries so far and plans to get to the rest—with a little luck.
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