United we fall
The airline finds millions knocked off its market value and a dent in its corporate image
United Airlines is one of the largest airlines flying in the US and in the last week it has demonstrated, with copious supporting evidence, just how wrong even America can get it. Pakistan’s own much-maligned and indifferently managed PIA can take comfort from the fact that thus far nobody has posted an online phone clip of passengers being dragged screaming from seats that they have paid for, on an aircraft that the airline operators had knowingly overbooked. The recent reports of several PIA passengers having to stand for the duration of a flight because of the same action — overbooking — is perhaps a harbinger of things to come, but the overbooking phenomenon is perfectly legal in the US and in some other countries, Australia for example.
Flights are overbooked as airlines seek to boost their profit margins by in effect betting on the number of passengers that will not show up for their flight. United Airlines needed to bump four passengers to make space for crew who were due to get to a connection point — and if they did not an entire planeload of passengers may have found themselves bumped as their flight was cancelled for lack of a crew. Things went downhill fast.
‘Inducements’ are offered to passengers being bumped, usually a sum of money and a hotel stay until they can fly on an aircraft that is not overbooked and generally passengers grumble but will go along with the offer. Such incidents rarely become headline news outside the family and friends and business associates of those involved. Where it all went to worms for United Airlines was that on this occasion nobody took the offer despite the cash-sum being raised to $800. Mayhem ensued and a PR disaster was born. As the dust settles, the airline finds millions knocked off its market value and a dent in its corporate image.
Published in The Express Tribune, April 16th, 2017.
Flights are overbooked as airlines seek to boost their profit margins by in effect betting on the number of passengers that will not show up for their flight. United Airlines needed to bump four passengers to make space for crew who were due to get to a connection point — and if they did not an entire planeload of passengers may have found themselves bumped as their flight was cancelled for lack of a crew. Things went downhill fast.
‘Inducements’ are offered to passengers being bumped, usually a sum of money and a hotel stay until they can fly on an aircraft that is not overbooked and generally passengers grumble but will go along with the offer. Such incidents rarely become headline news outside the family and friends and business associates of those involved. Where it all went to worms for United Airlines was that on this occasion nobody took the offer despite the cash-sum being raised to $800. Mayhem ensued and a PR disaster was born. As the dust settles, the airline finds millions knocked off its market value and a dent in its corporate image.
Published in The Express Tribune, April 16th, 2017.