Business & Society:
Market stakeholder and Non-Market stakeholder
United Chief Executive: Oscar Munoz (CEO)
PRIMECAP Management Co. 14.0%
Berkshire Hathaway, Inc. (Investment Management) 9.79%
The Vanguard Group, Inc. 7.20%
PAR Capital Management, Inc. 5.71%
Altimeter Capital Management LP 4.29%
BlackRock Fund Advisors 4.13%
T. Rowe Price Associates, Inc. 3.16%
SSgA Funds Management, Inc. 3.07%
Capital Research & Management Co. (World Investors) 2.04%
Diamond Hill Capital Management, Inc. 1.93%
The victim: Doctor David Dao
His lawyers: Thomas Demetrio & Stephen Golan
Legal representatives for United
The Public including Airline customers
Social media especially Chinese social media where they claimed discrimination since Dao appears of Asian descent
Inspector General Joseph Ferguson
Airport Security officers (James Long, Mauricio Rodriguez Jr. and Steven Smith)
United States government:
Executive branch: The president (Donald Trump) and the white house
The US Congress:
Senate Commerce, Science and Transportation Committee
Illinois General Assembly which was providing the Airline passenger protection Act in the Illinois house of representatives
Chicago City Council
Chicago Police Department
Cook County Circuit Court
The U.S Transportation Department
Chicago department of aviation
U.S House panel
Interaction between stakeholders:
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00Chicago DPT aviation
86741029845The US Congress
00The US Congress
Doctor David Dao & Police officers:
On the 9th of April, Doctor David Dao has been pulled violently by a police officer from united Airline seat to give it to a crew member. The passenger wanted to go home while the the officers thought they are doing their job while removing him violently from the plane. This incident results in a bloody broken nose, a concussion and broken teeth.
Cabin Crew & Police officers:
They cooperate together to drag out brutally the customer (David Dao).
The victim & United Airline:
The passenger has sued United Airline for his injuries and the treatment that he received on the plane.
However, he reached an amicable settlement by his lawyers: Thomas A. Demetrio and Stephan L. Golan Christie Taglia, and the legal representatives for United for the injuries received.
The CEO & employees:
The first reaction of the CEO surprised everyone where he defended the employees instead of apologizing. He claims that they were following rules and procedures. Even more, he described Dao as
“disruptive” and “belligerent”.
United Airline & Public:
Airline customers were disgusted by what happened and declare that they would never fly with United again. Moreover, Social media especially in China and Vietnam were angry and called for a boycott of the carrier where they claimed discrimination since Dao appears of Asian descent.
After less than six months of the horrific incident, the video of the bloody removal of the passenger has been watched by more than 5 billion persons.
United Airline & Competitors:
United Airline Competitors’ are Delta, American and Southwest.
There was a high consolidation of American Airlines. Flights were controlled by them and United airlines. So, they tried to make the boycott impractical. On the other side, they changed many policies.
Delta Air Lines: it rose the amount of compensation for displaced passengers.
American Airlines: Once the passenger boarded, he must not be removed from his or her seat.
Southwest Airlines: No more overbooking flights.
United Airline ; Shareholders:
This incident has not just damaged the reputation of the company but also affect its finance and market value. Shareholders look to have more dividends and care about the reputation of the company as well as the public opinion. After just 48 hours of the incident, United shares lost about 1,4% of their market value which corresponds approximately to $1,3 billion.
Oscar Munoz ; the victim:
Even though he couldn’t remove the scandal or their reputation and most important he couldn’t change the high drop of their market value, he tried to apologize the victim and the public several times.
United Airline ; Witnesses:
Witnesses were shocked by what happened on that flight.
However, they were compensated by 500$ toward future travel on United Airlines.
Chicago department aviation ; Security officers:
Security officers were fired by the Chicago department aviation (according to the investigation) stating that their actions on « The incident on United Flight 3411 » was not in accordance with their standard operating procedure of the department. They also violated the Chicago personal rules.
In fact, one of the police officer (James Long) has filed a lawsuit against the Chicago Department of Aviation as well as United Airline declaring that he was unfairly fired and that he was not trained enough to handle this kind of situation.
United Airline ; Executive branch:
The white house received 100,000 petition signatures in one day requesting the government to open an investigation regarding the incident.
The president criticized the United Airline stating it was a horrible treatment.
US Congress ; United Airline:
The Airline company had to answer multiple detailed questions about the incident on the fixed deadline: April 26, 2017.
US Congress ; Chicago Department of Aviation:
US Congress required information about the security protocols and about Dao’s behavior from the department while fixing a deadline on April 20, 2017.
US Congress & the CEO:
21 Democratic US senators wrote to Munoz to express their deep concern about this scandal.
US Congress & competitors:
Senators (Maggie Hassan and Brian Schatz) has introduced new rules regarding how Airlines should handle their boarding and bumping policies. United Airline as well as its competitors must adapt to new policies.
US Congress & Passengers:
They took new initiatives regarding passenger protection and banned the practice of bumping passengers from the plane.
“Customer Not Cargo Act”: An act that prohibit to bump involuntary passengers already boarded.
Illinois General Assembly & The victim:
The Airline Passenger Protection Act forbids state or local government authorities for removing passengers if they are not dangerous or causing troubles in non-emergency situations.
Illinois General Assembly & United Airline:
Airlines cannot do business if their policies allow to remove passengers to make a seat for employees traveling such as our case.