How Economics 101 Could Have Prevented United’s PR Nightmare

Rethinking the not-so-friendly and overbooked skies

United's gaffe didn't have to happen

On April 9, 2017, a passenger was forcibly removed from a United Airlines flight from Chicago O’Hare to Louisville after the carrier was unable to find volunteers to accommodate four of its employees on standby. Many articles have reported that airlines routinely overbook their flights, and sometimes passengers have to accept (voluntarily or not) the inconvenience of getting to their destination later than planned. As an airline economist, I do not recall, however, such a situation ever escalating to the level it did on that United flight.

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Bumping Compensation

It should be noted that many employees have been booked by their employer at the lowest possible fares and are required by their employers to turn over any compensation received for being bumped to their employer. Thus there is absolutely no incentive or reward for these persons to give up their seats under any circumstances at any price.

The airline should make all these decisions before boarding the flights and make a determination regarding who absolutely has to get to their destination - not just select persons at random. If being bumped causes you to miss the first day of a two or three day training event that is critical to your career advancement - how does any cash payment compensate you for that?