In a report by The Guardian, nearly $1 billion USD (RM4,432,500,000) of United Airlines’ value was erased in trading on Tuesday (11th April).
This drop came after the recent incident involving the violent way staff and security officers handled an Asian doctor, Dr. David Dao, who refused to give up his seat on an overbooked United Airlines flight because he had to see patients the following day.
Source: Next Shark
Of course, the outrageous incident had investors lose their trust in the company as well. Karma anyone?
Viral videos of the horrific incident showed the man being dragged on the floor by officers after being hit on the head by an armrest, causing him to bleed profusely from his mouth.
According to Reuters, Dr. Dao is currently being treated in a hospital in Chicago, in a statement from his lawyers.
Needless to say, netizens from all over the globe were outraged that an airline could be so cruel to paying customers.
What was even more shocking was that Oscar Munoz, CEO of United Airlines, took the side of his staff, calling the man’s actions “disruptive and belligerent”.
It looks like the dramatic plunge in the airline’s share prices has evidently shaken the CEO, as he issued another, more sincere-sounding apology later on Tuesday.
“I deeply apologize to the customer forcibly removed and to all the customers aboard. No one should ever be mistreated this way.”
Munoz stated in the apology that the incident was horrific and he was determined “fix what’s broken so this never happens again.”
He went on to say that he would also review the airline’s policy for getting volunteers to give up their seats, overbooked flights as well as partnering with airport authorities and law enforcement officers.
According to CNN Money, United Continental Holdings (UAL)’s stock went down by about 4% early on Tuesday morning. After the most recent apology from the CEO, UAL recovered slightly, but its market value was still off by $250 million USD (RM 1,108,125,000).