300 Miles could cost Hundred of Millions

Discussion in 'Water Cooler' started by Edward, Apr 12, 2017.

  1. Edward

    Edward Well-Known Member

    Anyone shorted United Airlines recently? -- UAL

    People were more concern about the violence toward paying customers on United Airlines. The flight so talked about was from Chicago to Louisville Kentucky a distance of 300 miles or 4-1/2 hour drive according to Google Maps. Nobody is talking about how Extremely Stupid Management is at United Airlines really is on social media. From what have I read, they bumped paying 4 passengers who boarded on the plane not for 4 other paying customers but for 4 United Airlines Employees who needed to work the next day out of Louisville Kentucky. Technically one can say it is not an overbook situation at all.
    Instead of paying $3200.00 ($800 x 4) plus Hotels ( which I suppose in Chicago is $100 per day), to bump four paying seated passengers why not charter a Limo to drive the four United Employees down to Louisville? They still would be there well before the next day.
    Am I missing something in this story??o_O
  2. Teddy

    Teddy Well-Known Member

    There was talk somewhere about getting Uber and it would have cost $400 to drive employees there. I have no idea if that is the price. The problem here is that cash would be needed. It appears that UAL issues cash equivalent vouchers. Hence, getting physical cash is an issue.

    My suspicion (I used to audit in a prior life) is that the activities cover up something more disturbing and that bumping passengers for employees have gone on for quite sometime. Employees have been abusing the system and getting the company to pay for it. They only went as far to offer $800 when they could offer $1,2000. That was likely the amount that surpassing would become an audit issue.

    If they offered a passenger $2,000 or $5,000 and internal auditors found out, they get in trouble. If discovered that there was space but it was paid for a employee to sit in, that would initiate reviewing past transactions. And if past transactions manifest similar situations where UAL could have accommodated a revenue generating passenger and instead incurred a cost for an employee, it opens a huge can of worms.

    The handling of the situation was brutal. I could hear Mr.Dao screaming and a woman saying "Oh my God, look at what you did to him...No! This is wrong. Oh my God.".... Seems that the bystander effect was at play here. UAL needs to wake up to the time of cameras on cell phones.

    It is interesting in that it is civil case of which the dispute was between UAL and Mr.Dao. So he did not want to get off, blah, blah, blah. Then it turns into a criminal case of pulling, shoving, hitting his head on something and dragging him out which turn it into a criminal case.

    The interesting thing that I read from some social network is that it really was not that random. 3 people chosen out of only 3 on the plane (I am being vague because it needs to be validated).

    It is costly. Very costly for United Airlines which needed a wake up call.....a civil case turned criminal.

    Since they could not escalate a higher price for the offer, they could have chosen a softer or more willing passenger.
    Last edited: Apr 12, 2017
  3. Edward

    Edward Well-Known Member

    I know for a fact United can Charter a bus. I once was suppose to transfer between United flights and on the last leg of the flight from Chicago to Milwaukee there was a delay. Normally it is a 15 minute flight or less. Because of weather a bus was chartered for the passengers instead of waiting for the plane.
    I am not sure about using Uber but Uber is a NONE cash transaction. It is charges to a credit card. I would imagine management has the ability to reimburse employees for expenses on a charge card.
  4. Teddy

    Teddy Well-Known Member

    Too many options and can't understand why certain things are done as they are done....getting too old to attempt to even try to understand.

    The video was quite disturbing video. I could not help thinking that it could have been me, my dad or uncle. :mad:
  5. DGH

    DGH Administrator

    And yet....look how quickly traders bought the dip. (see a chart of UAL with extended hours).
  6. Teddy

    Teddy Well-Known Member

    According to this attorney the can't kick him off.
  7. Edward

    Edward Well-Known Member

    Last edited: Apr 13, 2017

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