Posted on 04/11/2017 10:35:28 AM PDT by Morgana
FULL TITLE: United Airlines' stock price falls 2.46% in trading on Wall Street wiping $550MILLION off the company's value after violent eviction of passenger
Investors on Wall Street appear to be ready to jump ship from United Airlines in the wake of the public relations debacle triggered by the forced removal of a passenger on Sunday.
Shares of United Continental Holdings Inc. fell over 3 per cent in early trading on Wall Street, wiping $800million off the company's value.
Just after noon local New York time, the stock recovered somewhat but was still hovering at a loss of 2.46 per cent - resulting in a devaluation of slightly over $550million.
In premarket trading on Tuesday, the share price dropped by 2.4 per cent, according to MarketWatch.
Investors currently peg United's market capitalization at $22.5billion.
The 2.4 per cent drop is an improvement over the 6-per cent drop in share price that had been reported in premarket trading hours earlier.
(Excerpt) Read more at dailymail.co.uk ...
It's not about who was right, or who was legally within their means. It's about how this has turned into a deserved PR nightmare for United. Sometimes, we all have to take a bite out of a s**t sandwich. United should have taken their bite and avoided this firestorm. Now they are going to have to consume a s**t smorgasbord instead of one little bite.
I hate flying anymore. But once I got a 400 dollar voucher and a seat on a flight that left two hours later than the one I gave up. Another time I gave up my seat, and was given a first class seat on the next flight.
I think you are splitting hairs here. Who cares if it was overbooked or not. They were kicking him off of the plane for no good reason.
This doesn’t even seem like overbooking. They bumped him so they could use the seat for their own crew. Someone said Chicago to Louisville was a 4 hour drive. The crew could have easily rented a car to get there, or United could have raised their offer until they got enough volunteers. One of the passengers said they stopped at $800.
Drudge had a headline that this happened 40,000 times last year. It isn’t as rare as people think. The only reason this one made the news was because he didn’t cooperate.
And that's all it is.
Nobody did this until Bob Crandall implemented it as part of the early implementation of Yield Management strategies.
It's outright deception. You have to read tiny lines in obscure locations to find the "rules". And it was controversial when it was started.
One of the other early adopters was People Express. The difference with them was that they routinely added a flight with floater aircraft to accommodate bumped passengers.
But no matter what accommodations are made, they are admitting that they aren't in the business of getting you anywhere on a timely basis. And if that's the case, why bother flying, at least on short to medium haul runs, at least when timeliness is a factor? It's a crapshoot.
They’re gonna panic and do or say something stupid. Can’t wait.
LMAO!!!
Accepted by all airlines, as they all do it. And accepted by all passengers that buy a ticket, as this is commonly known and we know people who take options and credits for giving up a seat. So all of a sudden you don't accept it because of this incident? Did you ever "not accept" the overselling practice before and voice your opposition?
It's bad PR for United, but these days, it's bad PR to demand gender specific bathrooms in North Carolina.
I guess it wasn’t really up to him then, was it? He didn’t really have a choice, unless he wanted a beatdown.
Time to buy a little UAL stock...they did the right thing & stock will soar when most people realize it..
This one is going to make the PR textbooks. How NOT to handle a crisis.
“Might be a good time to buy it.”
Yea in Southwest Airlines
First time I the video I cringed. I figured it was ICE agents boarding a plane to remove an illegal for deportation. Can you imagine the media firestorm if that were the case (not saying it would be wrong, mind you - just explosive optics)
Are you saying he deserved to have his face bloodied and be dragged off the plane?
It was not an overbook. Overbooks are when there are too many paying passengers. He was allowed to board the plane and THEN they decided to remove 4 pax so employees could fly to their next assignment. If this was an issue they should not have boarded the aircraft until the issue was resolved, then boarded.
He was clearly uncooperative, but thus far there is no proof of him being belligerent.
Uhhh where do you get your facts. FYI they offered $800 and by law they are required to go up to $1350 domestic or $5000 international before bumping (beating) people. They screwed the pooch hard core. China is a major revenue driver for United and you should see the outrage there. It makes US social media outrage pale in comparison. They are pushing for a boycott. 150,000,000 views of the video yesterday in China. It is (was) one of the most profitable markets for United.
I’ve read so many comments on other sites say that Southwest is way better than other airlines including United. In fact they say United is the worst hands down (no pun intended)
First time I the video I cringed. I figured it was ICE agents boarding a plane to remove an illegal for deportation. Can you imagine the media firestorm if that were the case (not saying it would be wrong, mind you - just explosive optics)
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