Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

In this Discussion

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

Consumer Reaction To United Airlines Passenger Removal Incident

FYI: On April 9th, airport police at Chicago O’Hare forcibly removed ticketed passenger David Dao from a United Express flight at the direction of United due to an overbooking situation. The incident was recorded on multiple smartphone devices and immediately went viral once it was posted to various social media platforms. The backlash was swift, and it only got worse after United Continental (UAL) CEO Oscar Munoz made comments about the passenger that were seen as unsympathetic.


  • One might think that this incident would result in United reducing fares to generate goodwill and/or increase ticket sales. Hasn't happened for the fares I'm watching.
  • The more a company resembles a monopoly, the less it will care about its brand image or its end product. If there is a choice only between United and one or two other carriers, they are less likely to care whether you like them or not. It's also possible for United to collude with other carriers to keep prices high and service uniformly bad if there are only one or two competitors. In fact, there is some evidence that index funds--believe it or not--play a role in keeping prices high and service poor in such oligopolistic industries as they own all of the carriers and certainly don't want a price war or costly services added on because funds benefit from the entire industry's profits, not any single company.
Sign In or Register to comment.